Financial services firm Deutsche Bank announced today that it plans to link top level executive and management compensation to ESG and sustainable finance criteria.
Deutsche Bank CEO Christian Sewing said:
“It is our ambition to be a leader on sustainability in the financial sector, and contribute to an environmentally sound, socially inclusive and well-governed world. We see a great opportunity for us to transform ourselves as well as to support our clients in their transformation towards greater sustainability.”
According to the bank, starting next year top-level executive compensation will be tied to criteria including annual target volumes for sustainable finance and ESG investments, as well as a sustainability ratings index comprising five leading ratings agencies. In May 2020, Deutsche Bank established sustainability targets, including planned increases in its volume of sustainable financing and portfolio of ESG investments under management to over 200 billion euros by the end of 2025.
In the upcoming year, targets considered in management performance assessment will include reductions in the bank’s power consumption in its buildings, on the way to Deutsche Bank reaching its goal to reach 100% renewable sources of energy by 2025.
Deutsche Bank stated that it has recently established a new Sustainability Committee of the Management Board, which is chaired by Sewing, and consists of 13 other members, including Management Board members and the heads of the four corporate divisions. The committee began its work in October and is the bank’s highest level decision-making committee with respect to sustainability.