Deutsche Bank announced a series of new sustainable finance goals at its “Sustainability Deep Dive 2023” event on Wednesday, including an expanded ambition to enable a total of €500 billion in sustainable financing and investments between 2020-2025, as well as financed emissions commitments and updates to its policies for financing emissions-intensive sectors.
Further, Deutsche Bank announced that its revenues from ESG business would grow to around €1.4 billion per year, considerably ahead of 2022 levels of €800 billion, highlighting substantial sustainability-related growth prospects.
Deutsche Bank’s €500 billion 2025 sustainable finance target expands on the bank’s previous aim of €200 billion in sustainable financing and investments by the end of 2022. Despite moving the €200 billion aim forward three years from the initial 2020 plan, the bank said it exceeded the 2022 ambition by €15 billion.
The bank outlined a series of initiatives it will pursue to meet the new 2025 target, including measures to link supply chain financing to environmental and social criteria, additional financing for energy-efficient construction and renovation in Germany, and expanding its ESG financing in developing economies and emerging markets.
The most significant sustainable finance volume growth rate is expected in the corporate bank, with volumes expected to roughly double to €70 – €85 billion in 2023 – 2025, compared to €40 billion in the previous three years, while investment bank sustainable finance volumes are expected to reach €125 – €160 billion, up from €125 billion, and private bank volumes to reach €40 – €60 billion, up from €48 billion.
The bank also announced several new policies and goals for its financing activities in emissions-intensive sectors, including a new target for at least 90% of its high-emitting clients in carbon-intensive sectors seeking new lending transactions to have net zero plans in place by 2025, as well as a tightening of its thermal coal policy, which includes a requirement for transition plans by 2025 to access new lending. Deutsche Bank also intends to revise its oil and gas strategy.
In October, Deutsche Bank announced interim 2030 objectives to cut its financed emissions in various carbon-intensive industries, including oil and gas, power generation, automotive, and steel. During today’s presentation, the bank stated that it intends to publish net zero pathways for at least four additional industries by 2023.
Deutsche Bank also presented its strategy for tackling funded emissions, emphasising customer efforts to become more sustainable and leaving ties only as a last choice.
“Despite the present political and economic challenges, we have no time to lose regarding the sustainable transformation of our society. We want to support our clients as a strong partner on their path to a more climate friendly economy. Given our progress in sustainability, we are confident that we can achieve our € 500 billion target in cumulative ESG financing and investment volumes also in a volatile environment”, said Christian Sewing, Chief Executive Officer.
