Deutsche Bank has pledge to increase its environmental, social, governance (ESG) financing total to over 200 billion euros by 2025, marking the first time it has committed itself to a quantifiable sustainability target.
The minimum volume of 200 billion euros within six years includes loans granted by 2025 and bonds placed by Deutsche Bank during this period. It also includes sustainable assets managed by its private banking division as of the end of 2025.
The ESG assets of around 70 billion euros, as of the end of 2019, managed by DWS, the bank's asset manager subsidary, are not included in these calculations.
When defining activities it will classify as sustainable, the bank will be guided by 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 and disclose more details on its definition of sustainable finance by the end of the second quarter 2020.
“The target of 200 billion euros in sustainable financing and ESG investments is ambitious compared to our peers,” says Christian Sewing, Deutsche Bank’s chief executive officer. “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.”
To anchor the topic of sustainability throughout the company, Deutsche Bank will also sign up to the Equator Principles – a set of environmental and social governance rules for project financing due diligence.
Deutsche Bank is currently number 10 in the global ranking for sustainable bonds, according to data from Dealogic. The bank also expects to adopt a new oil and gas policy by the end of the second quarter that will provide a clear framework for financing and investments in this area.