Wall Street’s First Climate Change Strategist Appointed

Although it might not sit well with Joe Kernen, the green movement on Wall Street continues to gain momentum. Carbon credit trading, solar energy, wind power. Its all good, at least for Wall Street employment.

Deutsche Bank Asset Management has named Mark Fulton to the newly created position of Climate Change Strategist. But what does a climate strategist do, exactly?

Fulton’s new responsibilities include creating a coordinated strategic plan to address investment opportunities presented by climate change, working with each of DeAM’s businesses to develop specific products and coordinating the firm’s Climate Change Investment Committee.

“These initiatives are designed to strengthen DeAM’s position as a leader in the rapidly developing market for climate change products, where we have already raised nearly EUR 6bn in assets under management,” said Kevin Parker, Global Head of Deutsche Asset Management and a Member of the Deutsche Bank Group Executive Committee. “We believe the shift away from a carbon-based economy is a mega trend that will shape the asset management industry for many years. We expect return opportunities in sectors like renewable energy, water and agribusiness will justify dedicated strategies, and we believe climate change will be an important consideration for investment decisions. Business Wire

No doubt the move is a precursor to the bank rolling out a suite of products targeted at the trendiest movement on Wall Street. Deutsche’s white paper identifies “Four PIllars” that they will use to guide their investment methodology:

1.  Due to scientific analysis, governments are regulating, creating economic and business opportunities.
2. Carbon prices are emerging and are central to the whole process.
3. Some corporates will take action on competitive and reputational grounds.
4. New technologies will play a central role in mitigating the problem.

With nearly $10 billion invested in the sector, and momentum building, Deutsche clearly intends to remain at the forefront of this emerging sector.  Solar industry revenues are estimated to reach $20 billion by 2010, and $100 billion is pegged to be invested in clean energy by 2009. Climate change is clearly becoming big business globally.

Fad or not.

Deutsche Bank Asset Management Launches Climate Change Investment Initiative
Business Wire

Investing in Climate Change: An Asset Management Perspective
DeAM Executive Summary
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.

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