The Bjorn Lomborg "global warming doesn't matter" set may be pleased by this news. While perusing today's edition of the Wall Street Journal, my eye was drawn to an ad asking me to dress up Zwinky for a global warming investment fund. Apparently, DWS Scudder, an asset management subsidiary of Deutsche Bank, has just set up a fund whose cause celebre is global warming. Call it an offshoot of the oh-so-trendy socially conscious investing. (Do view the slick videos about the DWS Climate Change fund if you've got the scratch.) Anyway, the fund info sheet has this to say about why future opportunities are plentiful in this area:
- Due to scientific analysis, governments are regulating, creating economic and business opportunities;
- Carbon prices are emerging and are central to the whole process;
- Some corporates will take action on competitive and reputational grounds;
- New technologies will play a central role in mitigating the problem;
- These all interact with each other to create a dynamic pool of investment opportunity.
- The portfolio manager has not selected the "best performing" green firms;
- While climate change-conscious firms will do better in the long run, short-term returns are volatile;
- It doesn't pay to be green.