Deutsche Bank has unveiled an estimate that its revenues from ESG business will grow to around €1.4bn per year, ahead of €800bn secured last year.

The estimate was unveiled at the bank’s ‘Sustainability Deep Dive 2023’ last week.

During this event, Deutsche also set a series of new sustainable finance goals, including an ambition to enable a total of €500bn in sustainable financing and investments between 2020 and 2025. There are also financed emissions commitments and updates to its policies for financing emissions-intensive sectors.

Deutsche Bank’s €500bn 2025 sustainable finance goal builds on the bank’s prior ambition to achieve €200 billion in sustainable financing and investments by the end of 2022.

The bank also outlined a series of initiatives it will pursue to reach the new 2025 goal. These include measures to link supply chain financing to environmental and social criteria, such as providing more financing for energy-efficient construction and renovation in Germany and growing ESG financing in developing economies and emerging markets.

The most substantial sustainable finance volume growth rate is expected in the corporate bank area, with 2023-2025 volumes anticipated to double to €70-85bn, compared to €40bn in the prior three-year period.

Deutsche Bank CEO Christian Sewing said, “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.”

“In most cases, we can contribute more to reducing greenhouse gas emissions by working with our clients. But in cases where we saw no willingness on the part of a client to embark on a credible transition, we would not shy away from exiting a relationship.”

Last year, prosecutors in Germany raided the headquarters of Deutsche Bank and its subsidiary DWS over allegations of misleading investors regarding green investments.

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Source: Fintech Global