By 2025, Deutsche Bank wants to invest 200 billion euros in sustainable projects

 

By 2025, Deutsche Bank DBKGn.DE intends to invest at least 200 billion euros ($216.8 billion) in so-called sustainable financing and investments, marking the bank’s first public targets in this area. The funds will come from bank loans, bonds made on behalf of clients, and assets handled by the bank’s private bank. It does not include assets handled by DWS, the company’s fund arm, according to a statement released late Tuesday.

As pressure mounts on banks to help the universally agreed transition to a low-carbon, environmentally friendly economy, this is the latest action by a major global institution to demonstrate commitment to sustainable investing.

After the COVID-19 outbreak, countries in Europe and beyond have been focusing on ensuring that long-term investment is at the center of economic recovery efforts. Deutsche Bank stated it would either use its own “clear criteria” or a planned European Union framework known as the sustainable finance taxonomy to define sustainable activities. By the end of the second quarter of this year, the bank said it would report on its progress annually and provide further specifics on its definition of sustainable finance.

“We are driven by a very strong commitment to help influence the global transformation to a sustainable, climate-neutral, and social economy,” said CEO Christian Sewing, who described the 200 billion euro objective as “ambitious” in comparison to its competitors’. “However, we’re off to a strong start since, as an internationally active financing firm, we’ll be able to meet our clients’ growing need for sustainable investment solutions on our own.”