Have your investments changed? · as currency fluctuation, political and economic changes,...

One changing climate, one changing world

Have your investments changed?

Presenter’s DetailsDate

Agenda

What is climate change?A new world of investment opportunitiesDWS Climate Change Fund


What is climate change?


Climate change warning signs

Heat waves and periods of unusually warm weather

Ocean warmingArctic and Antarctic warmingGlaciers meltingSea level risingCoastal flooding

Increasingly random and extreme weather patternsHurricanesFloodingDroughtsTsunamis

Climate change evidence

1UN climate report, 2/3/07, 5/4/07 2Professor Martin Classen, Max Planck Institute for Meteorology

The Earth is now at its highest temperature in the past 1,300 years1

Carbon dioxide levels are at an all-time high and are increasing 200 times faster than at any time in the last 650,000 years1

"Even if we halted all emissions, the climate would continue to warm up”2

"Greenhouse gases survive for more than 100 years in the atmosphere"2

Reasons for climate change

Changing world

Rapidly growing population

Industrialization of the developing world

Increased burning of fossil fuels and deforestation

Greenhouse gases increase

Emissions thicken Earth’s greenhouse blanket

Gases become trapped

The surface temperature rises

The ozone layer thins

The sources of greenhouse gas emmissions

Source: World Resources Institute, 2006. The Organisation for Economic Co-operation and Development (OECD) is an international organization of 30 developed countries that accept the principles of representative democracy and a free market economy.

Waste3%

Other energy related

5%

Industry14%

Agriculture14%

Land use18%

Transport14%

Buildings8%

Power24%

60%-plus of greenhouse gas emissions come from CO2

75% of greenhouse gas emissions come from OECD countries

Rising temperatures could have a profound impact

Source: Stern Review on the Economics of Climate Change, 2007


A new world of investment opportunities


A new world of investment opportunities?

Source: Stern Review on the Economics of Climate Change, 2007

The market for low-carbon energy products could range from $500 billion to $1 trillion per year over the next five years

Could surpass $2 trillion per year by 2050

Largest private equity recipients in 2006—alternative energy

New markets may be created as consumers and companies look for ways to decrease energy consumption

Financial services firms could benefit from increased activity in designing instruments that tap into the growing demand in new markets

Capital markets could play a critical role in raising funding for new businesses in emerging technologies

Ways to invest in climate change

Finding companies responding to climate change

A clean technology company

Companies that manufacture “green” products

Companies that are improving their operations to lessen their negative environmental impact

A commercial forestry company that has engaged in a wide-scale reforestation effort, which is helping to reduce the level of CO2 in the atmosphere

An energy-efficient company

A leading manufacturer of automotive interior equipment

Created a new type of foam pad used in the creation of vehicle seats

Decreases dependence on petroleum products

Less environmental impact

An environmental management / damage limitation company

One of the world’s largest consultancy firms

Operates across Europe, conducting major activities in the environmental sector, including projects involving water, waste, land-use planning, nature conservation, railroad construction and renewable energy

Helps protect against flooding


DWS Climate Change Fund


Important risk information

DWS Climate Change Fund is subject to stock market risk. Investing in foreign securities, particularly in emerging markets, presents certain unique risks not associated with domestic investments, such as currency fluctuation, political and economic changes, including emerging markets and market risks. Stocks of small-cap companies involve greater risk than securities of larger, more-established companies, as they often have limited product lines, markets or financial resources and may be subject to more-erratic and more-abrupt market movements. Additionally, the fund concentrates itsinvestments in climate-change-related companies, increasing its vulnerability to industry risks and regulatory developments. All of these factors may result in greater share price volatility. Please read the prospectus for specific details regarding the fund’s risk profile.

The DWS Investments difference

Climate change asset management expertise

Deutsche Asset Management manages $2.9 billion in climate change assets globally (as of November 2007)

DWS Climate Change Fund's investment team is composed of a climate change investment committee, portfolio managers, global theme analysts and global sector analysts.

Investment process

Incorporates both top-down and bottom-up approaches

Top-down inputs include environmental and macroeconomic trends

Stock selection based on fundamental, bottom-up research

Top-down analysis

Sector earningsdynamic

Long-term trends(energy, demographics, consumer

needs, technological change, subsidiesfor alternative energies, agro and water

supply, carbon emisissions, cropreports, develpoment commodity

marktes, etc.)

Macroeconomic trends(GDP, interest rates,

consumption and investment, currencies, commodity prices,

money flows, leading indicators,etc.)

Political environment(legal, fiscal and

economic certainty, geopolitical tensions)

Market sentiment(level of euphoria, riskaversion, consensus)

Valuations(risk premium, dividendand earnings yield to bond and cash yield,

credit spreads)Identification of trends and themesAsset, country and sector allocation

Bottom-up stock selection screening

Companies with an established market share or at least 20% of their revenue derived from the fund’s investment themes (clean technology, energy efficiency, environmental management/damage limitation)

Companies with a unique and promising approach to solutions in our investment universe

A strategic or regional advantage in comparison to peer group

Sound and proven management with an established track record in their area, close relationship to management

DWS Climate Change Fund characteristics

Invests in global equities across the market-cap spectrum (small-cap, mid-cap, large-cap)

No regional focus

Actively managed—i.e., managers select stocks instead of mimicking a benchmark index

Buy-and-hold strategy

Fully invested

Invests in almost all sectors of the MSCI World Index

Broad diversification: 80 to120 stocks

Performance driven by stock selection via fundamental, bottom-up research

Maximum single-stock exposure 4% of net asset value (NAV)

Benchmark index: MSCI World Index

The MSCI World Index is a measure of stock markets around the world, including North America, Europe, Australia and Asia.

Important information

DWS Investments Distributors, Inc.222 South Riverside Plaza Chicago, IL 60606-5808www.dws-investments.com [email protected] (800) 621-1148

DWS Investments is part of Deutsche Bank's Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company.

NOT FDIC/NCUA INSURED MAY LOSE VALUENO BANK GUARANTEE NOT A DEPOSITNOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

OBTAIN A PROSPECTUSTo obtain a prospectus, download one from www.dws-investments.com, talk to your financial representative or call Shareholder Services at (800)-522-1441.We advise you to carefully consider the product’s objectives, risks, charges and expenses before investing. The prospectus contains this and other important information about the investment product. Please read the prospectus carefully before you invest.

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INVESTING WITH GREEN PRINCIPLESINVESTING WITH GREEN PRINCIPLES

Presented by Nellie Reid at Mobius LA 10.16.08

SUSTAINABLE DESIGN:Opportunity for Impact

INVESTING WITH GREEN PRINCIPLES

ECONOMICBecome eligible for available incentives

Reduce hauling & disposal costsReduce annual energy and O&M costs

Increase productivity / reduce absenteeismImprove financial performance / asset value

SOICALImprove occupant health

Enhance occupant comfortCommunity education

Boost public image

ENVIRONMENTALConserve limited resources(energy, water, materials)

Reduce pollution (air, water)Preserve natural habitats

The “Triple Bottom Line” Of Sustainability


Increasing Cost of Energy


U.S. Average Natural Gas Price


Source: USGBC

Global Emissions of CO2 Continue to Grow


Source: McKinsey Quarterly Report

Cost Comparison of CO2 Reduction Strategies


Source: SF Environment

U.S. Energy Consumption by Sector


12%Water Use

30%GreenhouseGas Emissions

65%WasteOutput

70%ElectricityConsumption

Source: USGBC

U.S. Buildings account for…


Average Savings of Green Buildings


THE CHALLENGEAll new buildings and major renovations:

60% fossil fuel reduction by 2010

80% fossil fuel reduction by 2020

Carbon neutral by 2030

U.S. Conference of Mayors and the American Institute of Architects have partnered in this challenge along with many other groups

THE SOLUTIONSPassive Design Strategies

Active Technologies

Carbon Offsets

http://www.architecture2030.org/

By 2035, 3/4 of the U.S. building stock will be either new or renovated - AIA

Architecture 2030 Challenge


• Focus is on energy performance (and associated climate change impacts)

• 7 step program

• Looks for continuous improvements (annual performance assessments are encouraged)

• Utilizes the Energy Star Portfolio Manager to track energy performance and benchmark building.

• The facility's performance is rated on a scale from 1 to 100. A facility that scores 75 or higher is eligible to receive the ENERGY STAR label.

http://www.energystar.gov

ENERGY STAR Ratings for buildings

LEADERSHIP IN ENERGY & ENVRONMENTAL DESIGN

5 Major Categories:Sustainable SitesWater EfficiencyEnergy & AtmosphereMaterials & Resources Indoor Environmental Quality Plus:Innovation PointsLEED Accredited Professional

4 Certification Levels:CertifiedSilverGoldPlatinum

Currently AvailableLEED-NC (new construction and major renovations)LEED-CI (commercial interiors)LEED-EB (existing buildings)LEED-CS (core & shell)

Pilot ProgramsLEED-H (homes)LEED Application GuidesLEED-ND (neighborhood developments)LEED for Schools – K-12 (currently in public draft stage)LEED Portfolio


LEED Rating System


Initial Cost Premiums


$16.00

Financial Benefits


605 Certified Projects

4300 Registered Projects

78 Million GSF in 50 States & 13 Countries

LEED Registered & Certified Buildings


FEDERAL

• Energy Efficient Commercial Buildings Tax Deduction: $0.30-$1.80 per square foot, depending on technology and amount of energy reduction.

• Solar: 30% tax credit for the installation of qualifying solar equipment on buildings.

LOCAL (SO CAL)

• Los Angeles, Pasadena, Santa Monica, Beverly Hills, Santa Clara, Anaheim, Burbank, Glendale

State (CA)Savings by Design: up to $150,000rebate applied towards energy modeling and applied energy efficiency measures)

Emerging Renewables Program:Cash incentives for grid-connected small wind and fuel cell renewable energy electric-generating systems.

California Solar Initiative: $2.50 per watt.

So Cal Gas Co’s Energy Efficiency Program for commercial and industrial large business customers provides up to $1 million per eligible premise per year.

Green Building Incentive Programs


• Assembly Bill 621 (signed into law June 15, 2007)

• Reduces property tax incentives from AB 3

• Superimposes minimum energy performance component

State of Nevada Tax Incentives

Certified

Silver

Gold

Platinum

26-32

33-36

39-51

52-69

2

3

5

8

No property tax incentive

10 Years

10 Years

10 Years

25%

30%

35%

Level LEED Points Min. EAc1 Pts

Amount of AbatementTerm of Abatement


In October 2006, Fireman’s Fund received regulatory approval to offer a 5% property insurance discount on LEED or GreenGlobe certified buildings.

“Fireman’s Fund Insurance Co. Website”www.firemansfund.com

Insurance Benefits for Sustainable Design


Projected 30%reduction in energy use

• High performance glazing andcool roofing materials

• Centralized cogeneration plant recovers waste heat (CHP)

• State-of-the-art building mgmt. systems and controls for optimized energy performance

Projected 30% reduction in potable water use

• Studying use of greywater and/or reclaimed water for make up water in the cooling towers

• Water conserving plumbing fixtures

Goal is to minimize water use for landscape irrigation by 50%• Selection of plant types that require low amounts of water and high-efficiency irrigation

CITY CENTER Las Vegas, Nevada: Registered LEED Silver

INVESTING WITH GREEN PRINCIPLESCITYCENTER: MANDARIN ORIENTAL BY KPF, THE HARMON BY FOSTERS + PARTNERS

INVESTING WITH GREEN PRINCIPLESCITYCENTER: VEER TOWERS BY MURPHY/JAHN, VDARA BY VINOLY


• (0) Many strategies have no incremental capital cost

• (+) Initial capital cost premium (estimated at less than 1%) includes:• Certain materials

• Certain building systems and controls

• Indoor air quality management and technologies

• (-) Nevada State Tax incentives and other savings:• Property Tax abatement (up to 50% for up to10 years, depending on LEED

rating level)

• Sales Tax reduction (on construction materials purchased for project)

• Reduced energy and water bills and other long-term operational cost savings

• (=) ROI for achieving LEED Silver….less than one year!

The “Triple Bottom Line”Return on Investment (ROI) Analysis


This 5,022 sf adaptation of Bank of America’s prototypical retail banking center is a learning laboratory for ideas to roll out nationwide. It is attempting a LEED Platinum rating.

BANK OF AMERICA Adelanto Marketplace


BANK OF AMERICA Adelanto Marketplace

• Projected 60% reduction in energy use• Projected 40% reduction in potable water use


Presented by Nellie Reid at Mobius LA 10.16.08

SUSTAINABLE DESIGN:The Most Cost-Effective Opportunity for Impact

www.lightstudioLA.com

The VALUE of Good Lighting The VALUE of Good Lighting

Kathy PryzgodaPrincipal Designer, Light Studio LA,

INC.

DAYLIGHTING:DAYLIGHTING:Our MOST efficient SOURCEOur MOST efficient SOURCE--the SUN!the SUN!

LIGHTING CONTROLS:LIGHTING CONTROLS:““The Lamp that saves the most energy is the one The Lamp that saves the most energy is the one

that is switched OFF!that is switched OFF!””

Efficient LIGHT TECHNOLOGY:Efficient LIGHT TECHNOLOGY:Are LEDAre LED’’s the s the ““Magic BulletMagic Bullet””??


DAYLIGHTING:The SUN is our MOST efficient

SOURCE

DAYLIGHTING:The SUN is our MOST efficient

SOURCE


DAYLIGHTING-SITING the Building

Take advantage of Nature’s BEST Luminaire!

DAYLIGHTING-SITING the Building

Take advantage of Nature’s BEST Luminaire!


DAYLIGHTING-FENESTRATIONConsider Clerestories instead of Skylights-Allow LIGHT impact without HEAT impact!

DAYLIGHTING-FENESTRATIONConsider Clerestories instead of Skylights-Allow LIGHT impact without HEAT impact!


DayLIGHTING: SOLUTIONDayLIGHTING: SOLUTION• Model light with the “HelioDome”, it’s free!


Local Source: Southern California Ed’s “CTAC”www.sce.com/ctac

DayLIGHTING: SOLUTIONDayLIGHTING: SOLUTION


LIGHTING CONTROLS:“The Lamp that saves the most energy is the one that is switched

OFF!”

LIGHTING CONTROLS:“The Lamp that saves the most energy is the one that is switched

OFF!”


LIGHTING CONTROLS:SOLUTION

DAY LIGHT HARVESTING

LIGHTING CONTROLS:SOLUTION

DAY LIGHT HARVESTINGTake ADVANTAGE the SUN during the HOURS we

need toCONSERVE the most!


LIGHTING CONTROLS: SOLUTION

DAYLIGHT HARVESTING

LIGHTING CONTROLS: SOLUTION

DAYLIGHT HARVESTING


Case Study: AIA-San Francisco

G GCONTROLS:SOLUTION

Use Occupancy Sensors and Dimmers

CONTROLS:SOLUTIONUse Occupancy Sensors and

Dimmers


If you Dim your lights 25% you save 20% on electricityAnd you extend the life of the bulb 4 times!

EFFICIENT LIGHTING TECHNOLOGY:

Are LED’s the “Magic Bullet”?


Are LED’s the “Magic Bullet”?


Lumens per watt: ?? Color temperature?

Price?

Color rendering?


LED’s are still evolving (70+ Lumens per watt)


LED’s are still evolving (70+ Lumens per watt)


Efficient LIGHT TECHNOLOGY: SOLUTION

A (5watt) LED Step light is brighter than a 20watt Halogen!


A (5watt) LED Step light is brighter than a 20watt Halogen!



FLUORESCENT (90+ lumens per watt)


FLUORESCENT (90+ lumens per watt)

• Good Color Rendering• Different Color Temps.• Electronic Ballasts• 20,000 hours• It’s dimmable!



METAL HALIDE (80+ Lumens per Watt)


METAL HALIDE (80+ Lumens per Watt)


Metal Halide isn’t just for Parking Lots anymore!


Metal Halide is perfect for Retail (80+lumens per watt)


Metal Halide is perfect for Retail (80+lumens per watt)

• Good Color Rendering• Warm Color Temp. • Small Par20 Lamps• 15,000 hours


Metal Halide 39watt Par 20= 2000 lumensHalogen 50watt Par 20 = 500 lumens

DAYLIGHTING:DAYLIGHTING:SOLUTIONSOLUTIONDayLightDayLight ModelingModeling

LIGHTING CONTROLS: LIGHTING CONTROLS: SOLUTIONSOLUTIONDayLIGHTDayLIGHT Harvesting, Sensors and DimmersHarvesting, Sensors and Dimmers

Efficient LIGHT TECHNOLOGY: Efficient LIGHT TECHNOLOGY: SOLUTIONSOLUTIONUse a variety of Energy efficient lamps including: Use a variety of Energy efficient lamps including:

LED, Fluorescent, and Metal HalideLED, Fluorescent, and Metal Halide



The VALUE of Good Lighting The VALUE of Good Lighting

Kathy PryzgodaPrincipal Designer, Light Studio LA,

INC.

eco-friendly nail salon

investing with green principles


a warm welcome


comfortable


healthy & safe


holistic approach


downtown shopping district


embrace existing conditions

before after


passive cooling


stunning eco surfaces


striking countertops


attractive furniture & fabric


efficient & effective systems


most effective things you can doNO COST•open curtains on south-facing windows during the day, close at night•lower water heater temp to 120°: $12/yr•set thermostat as low as comfortable: $18/yr for 3°•turn thermostat back 10-15° while sleeping or away and save 10%•wash clothes in cold water: $18/yr•air dry clothes during summer: $43/yr•turn off unneeded lights: $21/yr•close fireplace damper when not using fireplace•when using fireplace, open dampers in the bottom or open a nearby window 1” and close nearby doors•turn off unneeded lights: $21/yr


most effective things you can doLOW COST•get a setback and save up to 15% on heating: $58/yr•energy-saving appliance features, including power-down or sleep mode on PC: $43/yr•electronic power-controlling devices for older appliances•stop air leaks: $80/yr•insulate water heater: $15/yr•add attic insulation: $116/yr•install efficient showerheads: $21/yr•weatherize windows: $34/yr•faucet aerators: $6/yr•seal and insulate ducts: $82/yr•replace 6 interior incandescents: $32/yradapted from www.rmi.org and www.energysavers.gov


investing with green principles

Have your investments changed? · as currency fluctuation, political and economic changes,...

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