Highlighting significant sustainability-related growth opportunities, Deutsche Bank unveiled an estimate today that its revenues from ESG business will grow to approximately €1.4 billion per year, well ahead of 2022 levels of €800 billion.

Announced at the bank’s “Sustainability Deep Dive 2023” event on Wednesday, Deutsche Bank also set a series of new sustainable finance goals, 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.

Christian Sewing, Deutsche Bank Chief Executive Officer, 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.”

Deutsche Bank’s €500 billion 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. Despite pulling forward the €200 billion goal by three years, from the initial target announced in 2020, the bank said it exceeded the 2022 ambition by €15 billion.

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

By division, the most significant sustainable finance volume growth rate is anticipated in the corporate bank, with 2023 – 2025 volumes anticipated to roughly double to €70 – €85 billion, compared to €40 billion in the prior 3 year period, while investment bank sustainable finance volumes are forecast to reach €125 – €160 billion from €125 billion, and in the private bank to €40 – €60 billion, from €48 billion.

Jörg Eigendorf, Chief Sustainability Officer of Deutsche Bank, said:

“For us, sustainability is both a matter of responsibility and opportunity. As a bank in the center of Europe with a strong presence in the US and in Asia, for example with our ESG Center of Excellence in Singapore, we are well positioned for this transformation both globally as well as in many local markets.”

The bank also unveiled a series of new policies and goals for its financing activities for 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, and a tightening of its thermal coal policy including a requirement for transition plans by 2025 in order to access new lending. Deutsche Bank said that it also plans to update its oil & gas policy.

In October, Deutsche Bank unveiled interim 2030 targets to reduce its financed emissions in several carbon-intensive sectors, including Oil & Gas, Power Generation, Automotive, and Steel. During the presentation today, the bank said that it aims to publish net zero pathways for at least four more sectors in 2023.

Deutsche Bank also discussed its approach to addressing financed emissions, with a focus on supporting clients’ efforts to become more sustainable, and exiting relationships only as a last resort.

Sewing said:

“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.”