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Investment Opportunities and Environmental Sustainability in the Marketplace
Green Business
Green business shapes our future.As corporations, individuals and governments seek to achieve balanced and sustainable use of the world’s natural resources, the need for new sources of energy, materials and clean technologies is clear. In both the public and private sectors, ideas are being put swiftly into practice, with the potential to fundamentally alter the way society uses and prices the resources it consumes.
At Credit Suisse we have a long history of helping our clients identify opportunities and act on them to generate strong returns. Whether it’s a clean tech investment in emerging markets, an alternative-energy startup in the U.S., or the development of sustainable building codes in our home market of Switzerland, our three divisions – Private Banking, Investment Banking and Asset Management – work together to provide a seamless offering to individuals and institutions.
This ethos is reflected in our corporate culture as well, where the idea of engaging in green business has been at home for over a decade. In 1997 Credit Suisse was the first bank to obtain ISO 14001 certification for its environmental management system, paving the way for us to achieve global greenhouse gas neutrality in 2010. This represented a milestone for “Credit Suisse Cares for Climate,” our bank-wide initiative to provide solution-oriented products and services, reduce our carbon footprint and engage with employees, policymakers and other stakeholders.
Our capital-efficient, client-focused model is designed to ensure that we can build on these efforts and remain an innovative, reliable partner to our clients for years to come.
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The breadth of technologies, companies and entrepreneurs at work in the world of green business means no two investors are likely to share the same view. Still, our experience has helped us identify several general themes which may be useful to consider.
Strong networks matter In fragmented sectors with a continually shifting mix of manufacturers, suppliers and customers, access to strong networks is vital. The ability to identify results-focused management teams and the use of creativity to build relationships are key ingredients for success. Green innovation is global Innovation can come from virtually anywhere, particularly in industries which may not have existed a decade ago. This highlights the importance of having a global reach, to maximize the chances of discovering the most promising opportunities.
Sustainability retrofittingRenovating using the latest standards is another way to be green. In the property sector, for example, older buildings can be made highly energy efficient so that they compare favorably with new construction on measures of cost, efficiency and sustainability.
Ability to scaleCapital will go to the key differentiators in each sector, to those who have proven that their business is scalable and that it has relevance across industry sectors and national boundaries.
Public policy intelligence and forecastingGovernments are in the midst of what will likely be a long-term effort to create policy frameworks that underpin many green initiatives. The most effective advisors are those with a strong working knowledge of public and quasi-public regulators and trade groups.
Merging green and traditional investmentsThe impact of “green” investments can often be magnified by combining them with traditional investment flows. In many corporations, green investments can be found across the capital structure, in both short- and long-term instruments.
GREEN BUSINESS
Current Themes in Green Business
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GREEN BUSINESS
Private BankingGlobal Investment Delivery: A global view of trends including sustainability, demographics and the emergence of a multi-polar world, plus development of related products.
Thematic Equity & Alternatives Research: Expertise in alternative energy, resource efficiency and nanotechnology, including equity indices that express these themes.
Investment BankingPower & Renewables Group: Tailored advice for buyside and sellside clients in M&A, project finance and capital raisings in both the debt and equity markets in sectors including solar, wind, geothermal, biomass, biofuels and energy efficiency.
Fixed Income, Strategic Transactions Group: Close cooperation with clients to provide late-stage funding for projects in renewable energy, with over $500 million committed since 2009.
Alternative Energy Research: Thematic and sector reports on topics including electric vehicles, water, wind, solar and power market regulations, with a global team covering over 70 companies.
Carbon Commodities Trading: A full range of services including market making, underwriting and structured transactions involving European Union emissions permits and secondary market certificates.
Asset ManagementCustomized Fund Investment Group: One of the largest clean tech and renewables private equity managers, which has invested approximately US$1.3 billion in the Energy, Infrastructure and Renewables sector.
Real Estate Asset Management: Largest provider of real estate investment products in Switzerland with assets under management of over CHF 28 billion (as of July 31, 2011). The unit focuses on direct real estate investments and along with the launch of its sustainable real estate fund in 2009 also developed “greenproperty”, the quality seal of approval for sustainable property.
Credit Suisse’s Green SolutionsTo meet the diverse needs of our clients and provide them with a range of green products and services, we set up the Credit Suisse Green Business Initiative in 2009. The initiative brings together senior managers and specialists from across our regions and divisions to share insights and promote products and services in renewable energy, clean technology and related green business sectors. By drawing on our global resources and perspectives, Credit Suisse can better understand environmental trends, their market implications and our clients’ needs.
$17,964
Credit Suisse Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 Bank 8
$12,400 $11,766 $8,559
$6,489 $5,099 $4,882 $4,632 $4,554
Source: Bloomberg New Energy FinanceNote: Public bookrun deals only, pro-rata for percentage of deal. M&A incorporates advisor to target and acquirer. Includes New Energy deals only.
Renewable Energy Equity Capital Markets and M&A Globally, 2005 to 2010 (US$ in millions)
Credit Suisse also has a global Sustainability Affairs team to support the businesses, as well as specialists in its Corporate Real Estate Services group to improve the bank’s operational performance.
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GREEN BUSINESS
A Unified ApproachOur three divisions regularly collaborate to develop unique products and solutions.
- In February 2011, Credit Suisse Asset Management launched an exchange-traded fund based on the Credit Suisse Global Alternative Energy Index. Developed by the Private Banking division, the index is equally balanced among five sectors of the markets for alternative energy and provides a standard for the industry.
- Invenergy is one of the largest private wind developers in North America. The Company utilizes the Investment Banking Renewables team advisory services. Additionally, Credit Suisse Customized Fund Investment Group invested $36 million in a mezzanine debt capital raise on behalf of its clients.
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2011 Best Private Bank - GlobalEuromoney Private Banking Survey
2010 Asset Triple A Investment Awards“Best Private Bank in Asia”, “Best Private Bank in Singapore” and “Best Private Bank in Indonesia”
2010 Renewable Energy Deal of the Year Centrica wind farm portfolio sale and project financing, Environmental Finance
2010 IPO of the Year Initial Public Offering of STR Holdings, Environmental Finance
2009 Top M&A Advisor Clean Energy M&A, Bloomberg New Energy Finance
2009 Handelsblatt Elite Report / Fuchsbriefe ReportSumma cum laude for Credit Suisse Germany and Credit Suisse Switzerland
Quality Seal with Real Impact: Real Estate Asset Management aims at establishing greenproperty as the first integral quality seal for sustainable real estate in Switzerland. greenproperty is the cornerstone of Real Estate Asset Management’s sustainability strategy and provides a comprehensive method for assessment and qualification of properties. Its application areas include real estate investment products such as real estate funds, real estate investment groups of Credit Suisse investment foundations, and mandate vehicles.
Private Equity US$36 m Mezzanine Debt
March 2009
Investment Banking Tax equity for Grand Ridge Expansion and Vantage wind energy projects
December 2009/October 2010
US$3.6 bn Initial Public Offering
Joint Global Coordinator Joint Bookrunner October 2010
US$64 m / US$126 m Initial Public Offering/ follow on offering Sole Bookrunner May 2010/November 2010
Private Equity US$7.5 m LP Interests in the Rovigo solar PV facility
January 2011
SunEdisonR E S E R V E
US$200 m10.250% senior secured notes due 2018
Lead Left Bookrunner May 2011
US$150 mInitial Public Offering
Lead Left Bookrunner June 2011
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Investment BankingUS$2.3 bn Sale to Toshiba
Sole Advisor to Landis + Gyr Announced May 2011
Private EquityUS$50 m LLC Interests
March 2010
Green concepts have been a part of our business and operations for two decades.
2011: Credit Suisse receives top tier “green bank” ranking from Bloomberg Markets.
2010: The bank achieves green-house-gas neutrality for its banking operations globally and launches the Credit Suisse Cares for Climate Initiative.
2009: Credit Suisse launches its first sustainable real estate fund with its own sustainability rating and quality seal called “greenproperty”.
2003: The bank becomes one of the founding members of the Equator Principles, a set of environmental and social performance standards for project finance.
2001: Credit Suisse becomes a constituent of the FTSE4Good Index.
2000: Credit Suisse is one of the first signatories to the United Nations Global Compact.
1999: The bank is named a constituent of the Dow Jones Sustainability World Index.
1997: Credit Suisse becomes the world’s first bank to obtain ISO 14001 certification for its environmental management system.
1992: The bank is one of the first signatories to the United Nations Environment Program (UNEP) Statement by Financial Institutions on the Environment and Sustainable Development. To this day Credit Suisse remains an active member of the United Nations Environment Program Finance Initiative, a partnership to understand the impact of environmental and social considerations on financial performance.
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Credit Suisse Group AGParadeplatz 88070 Zurich Switzerland www.credit-suisse.com C
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Investment BankingGlobal Renewable Energy
Global HeadRay Wood+1 212 325 2845 [email protected]
Head of AsiaSanjeev Chaurasia +852 2101 7470 [email protected]
European Power & RenewablesJonathan Grundy +44 20 7883 6541 [email protected]
Clean TechJeremy Hux +1 415 249 8925 [email protected]
Carbon Commodities TradingRoss Warner +1 212 325 6893 [email protected]
Fixed Income: Strategic Transactions GroupJerry Smith+1 212 325 [email protected]
Asset ManagementPrivate Equity: Customized Fund Investment GroupVikram Bhaskar+1 212 538 [email protected]
General InquiresSustainability AffairsAndrew Aulisi +1 212 538 7372 [email protected]
Important InformationThis document was produced for informational purposes only and is for the exclusive use of the recipient. No part of this material may be reproduced or retransmitted in any manner without the prior written permission of Credit Suisse. The information contained herein is indicative and subject to change at any time. Credit Suisse does not represent, warrant or guarantee that this material is accurate, complete or suitable for any purpose and it should not be used as a basis for investment decisions. This document does not constitute an offer, a recommendation, or an invitation to purchase or sell investment instruments, execute transactions of any kind, or employ a specific investment strategy. This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon or used in substitution for the exercise of independent judgment. Past performance is not a guarantee or an indication of future results. The programs, products, strategies and investments discussed herein may be not profitable or achieve the same or similar results. There is no indication that such programs, products, strategies or investments are available in all jurisdictions or that they comply with applicable local laws and regulations. There is no intention to offer products and services in countries or jurisdictions where such offer would be unlawful under the relevant domestic law. Credit Suisse does not provide tax or legal advice. Prior to investing, you should consult your accounting, tax, and legal advisors to understand the implications of such investment.
Unless otherwise specified, the term “Credit Suisse” is the global market brand name for the investment banking, asset management and private banking services offered by Credit Suisse Group AG subsidiaries and affiliates worldwide. Each legal entity in Credit Suisse Group AG is subject to distinct regulatory requirements and certain products and services may not be available to all client types or in all countries or jurisdictions.
