Fortescue Future Industries poaches RBA’s chief climate warrior as new CFO

Fortescue Future Industries has made a major acquisition, this time on the personnel front, with the appointment of Reserve Bank deputy governor and chair of its climate working group Guy Debelle as its new chief financial officer.

There had been some speculation that Debelle was in line to takeover from Philip Lowe as the Reserve Bank governor, after Debelle was reappointed as a deputy governor last July.

Instead, Debelle will finish with the RBA on March 16 and start with FFI in June to lead the company’s new Sydney headquarters and will be charged with the financial management of Andrew Forrest’s ambitious green energy venture.

In forming the FFI spin-off, the parent Fortescue Metals Group has committed to reinvesting 10 per cent of its annual profits into the green energy venture, which aims to produce 15 million tonnes of green hydrogen a year by 2030, and support a switch to green steel manufacturing.

Last year’s FMG profits tipped $10 billion, seeing an extra $1 billion poured into its green energy investments, giving Debelle a decent amount of cash to play with in his new role.

There is significant demand for the fund, with the scale of FFI’s commitments growing rapidly and already includes investments in the world’s biggest electrolyser factory, massive renewable energy and storage hubs, and multiple different technology plays from hydrogen, green planes, and its “infinity” trains.

During his tenure at the RBA, Debelle has been outspoken about the need to address climate change as an emerging financial and climate change risk.

“Climate change is a first-order risk for the financial system. It has a broad-ranging impact on Australia, both in terms of geography and in terms of Australian businesses and households. Most Australian financial institutions now recognise climate as a risk,” Debelle told an investor conference last year.

“There are challenges ahead in managing the transition and in managing the financial risks. But with the risk comes a great potential for reward,” Debelle added.

Debelle again reiterated this message when announcing his appointment.

“Climate change has a broad-ranging impact on Australia, both in terms of geography and in terms of Australian businesses and households,” Debelle said on Thursday.

“There are plenty of opportunities for Australia. Reflecting our endowment, Australia has been an energy exporter for many decades.

And there is no reason why this should change. Australia is also endowed with resources that have the potential for us to continue to be an exporter of energy – but renewable rather than emissions-intensive fossil fuels.”

“There are challenges ahead in managing the transition and in managing the financial risks. But with the risk comes a great potential for reward,” Debelle added.

Forrest praised Debelle’s credentials when announcing the appointment on Thursday.

“Bringing in someone of Dr Debelle’s economic credibility goes to the heart of our vision for FFI. Not only are we committed to arresting climate change, we are also committed to creating economic growth, increasing jobs and growing our business profitability,” Forrest said.

“Dr Debelle with the leadership team, will drive the most optimal financial solutions for FFI’s vast technology and energy portfolio. This will be instrumental in Fortescue’s journey to become the best green hydrogen, energy and resources company in the world.”

Debelle is the latest in a number of high profile appointments at FFI, which has included former prime minister Malcolm Turnbull.