Deutsche Bank to Link Executive Pay to Sustainability Goal: FAZ

© Bloomberg Christian Sewing, chief executive officer of Deutsche Bank AG, addresses the Deutsche Bundesbank financial market conference in Frankfurt, Germany, on Tuesday, Oct. 29, 2019. Bundesbank President Jens Weidmann warned that giving preference to green bonds when conducting quantitative easing policies risks overburdening central banks and could eventually endanger their independence.

(Bloomberg) --

Deutsche Bank AG will link its top executives’ pay to whether the lender reaches sustainability goals, Frankfurter Allgemeine Zeitung reported, citing an internal memo by Chief Executive Officer Christian Sewing.

The new policy, which starts next year, will measure the volume of sustainable financing and investment that complies with environmental, social and governance criteria and how the bank is ranked by rating agencies on sustainability. The lender also wants to convert all its buildings globally to renewable energy by 2025, the newspaper said.

© Bloomberg Christian Sewing, chief executive officer of Deutsche Bank AG, addresses the Deutsche Bundesbank financial market conference in Frankfurt, Germany, on Tuesday, Oct. 29, 2019. Bundesbank President Jens Weidmann warned that giving preference to green bonds when conducting quantitative easing policies risks overburdening central banks and could eventually endanger their independence.

The bank has set a target for 2025 of reaching 200 billion euros ($242.8 billion) in annual sustainable investment, starting with more than 20 billion euros this year. It also set up a sustainability committee headed by Sewing, according to the newspaper.

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