Deutsche Bank has, for the first time, published quantifiable targets for expanding its sustainable business activities covering the ESG space and aims to support the transformation towards a sustainable economy.
By the end of 2025, the bank will increase its volume of ESG financing plus its portfolio of sustainable investments under management to over €200bn in total. By the same time, the German lender will also be entirely reliant on renewable energy.
"We are driven by a very strong conviction to help shape the global change to a sustainable, climate-neutral and social economy," says Deutsche Bank CEO Christian Sewing. "The target of €200bn in sustainable financing and ESG investments is ambitious compared to our peers. However, we are starting from a good base because, as a globally active financing house, we can serve the growing demand of our clients for sustainable investment products by ourselves."
We are driven by a strong conviction to help shape the global change to a sustainable, climate-neutral and social economy,”
The minimum volume of €200bn within six years includes loans granted by 2025 and bonds placed by Deutsche Bank during this period. It also includes sustainable assets managed by the Private Bank as of the end of 2025. Deutsche Bank is thereby following the standards used in the industry. The ESG assets of around €70bn managed by asset manager DWS as of the end of 2019 are not included in these calculations.
When defining which activities it will classify as sustainable, the bank will be guided by the EU Taxonomy - the European Union's ESG standard. In areas where the EU has yet to develop its own standards, Deutsche Bank will rely on its own transparent criteria. The bank will report annually on the progress towards achieving this target in its Non-Financial Report. It will also disclose more details on its definition of sustainable finance by the end of the second quarter 2020.
Deutsche Bank said, since the beginning of 2020, it has advised clients on 22 transactions, placing ESG bonds with an underwriting volume of nearly €3.5bn. These included green bonds, social bonds, sustainable bonds and bonds linked to sustainability criteria.
Deutsche Bank is currently number 10 in the global ranking for sustainable bonds, according to Dealogic.
Passive products have 'significant limitations'