Deutsche Bank’s Asset Management division releases Investing in Climate Change 2011 report
A DB Climate Change Advisors (DBCCA) report released today, “Investing in Climate Change 2011, The Mega-Trend Continues: Exploring Risk and Return”, examines the risks associated with climate change investing across different asset classes and provides a framework to understand how asset managers can manage these risks. DBCCA is the climate change investment and research business of Deutsche Bank’s Asset Management business.
In the report, DBCCA argues that a major shift in investor attitudes is leading institutional investors around the world to undertake this analysis because of a growing realization of the potentially profound impact climate change may have on their existing portfolios.
“Institutional investors are giving greater consideration than ever before to climate change in their assessment of asset allocation,” said Kevin Parker, Global Head of Deutsche Bank’s Asset Management division (DeAM) and a member of Deutsche Bank’s Group Executive Committee. “I believe that we have reached a critical point in our industry at which all the talk about climate change begins to translate into action. Asset owners everywhere are starting to move and their first impulse is to identify where in their portfolios the climate risk lies. To do so effectively and efficiently, they need a new intellectual framework and set of tools. And they need them now.”
The report, DBCCA's fourth annual review of the climate change investment market, points out that 2010 was the largest year on record for investment in clean energy* and globally, the investment opportunity steadily continues to improve.
The paper also includes an updated global database of climate change policy initiatives with China, Europe and U.S. states leading the charge in 2010. DBCCA points out that the flow of government stimulus capital into low-carbon energy sectors peaked in 2010**, with China allocating the bulk of capital. China's investment in clean energy will be a game changer for clean technology industries globally, the report says.
The report identifies eight key trends which will influence investors’ capital allocations over the next year:
- The climate change megatrend persists
- A more sophisticated exploration of climate change risk within portfolios
- Policy is a key driver for cleaner energy
- The ambitious scale, scope and commitment of Chinese leadership will foment structural change in clean technologies
- Investors will look to US state projects rather than projects driven by Federal policy
- Natural gas as a lower-emission transition fuel in the US
- The risk-return profile in the climate change sector varies between asset classes
- Global policy makers recognize the need for more in-depth dialogue to explore how public and private partnerships can support renewable energy scale-up in developing countries
For a copy of the report please visit: http://www.dbcca.com/dbcca/EN/investment-research/investment_research_2361.jsp
DB Climate Change Advisors (DBCCA) is the climate change investment and research business of Deutsche Asset Management (DeAM). DeAM is one of the leading climate change investors in the world, with approximately $6.5 billion under management as of December 2010. With a world-class in-house research team focusing on this theme, DBCCA is an investment industry thought-leader on a broad range of clean tech dynamics.
* Total global investment in clean energy in 2010 including all asset classes = $243 billion. (Source: Bloomberg New Energy Finance, 2011).
** It is expected that approximately $240 billion of green stimulus capital will be spent in 2010. (Source: HSBC).
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About Deutsche Asset Management
With approximately $730 billion in assets under management globally as of 30 December 2010, Deutsche Bank’s Asset Management division is one of the world's leading investment management organizations, not just in size, but in quality and breadth of investment products, performance and client service. The Asset Management division provides a broad range of investment management products across the risk/return spectrum.