Deutsche Bank has for the first time published quantifiable ESG targets. 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.

The current ESG assets of around €70bn managed by asset manager DWS as of the end of 2019 are not included in these calculations, but the figure does include loans granted by 2025 and bonds placed by Deutsche Bank and sustainable assets managed by the private bank as of the end of 2025.

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.

In an additional drive for sustainability, the Bank will target fully renewable electricity consumption by 2025. At the end of 2019, nearly 80 per cent of the bank’s electricity across the world came from renewable energy sources.

Deutsche Bank’s business operations have been climate neutral since 2012. The energy efficiency measures the bank implemented in 2010 have enabled it to reduce its energy consumption by more than a quarter. In order to offset the remaining carbon emissions, the bank buys Verified Emission Reduction certificates.

In terms of governance, Deutsche Bank will sign up to the Equator Principles – the ESG rules for project financing due diligence. Furthermore, Deutsche Bank expects to be able to adopt a new oil and gas policy by the end of the second quarter, which will provide a clear framework for financing and investments in this area.

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