Major bank Deutsche Bank continues to invest in sustainable ESG projects and sees revenue doubling in the area.
It’s no secret that sustainable investments, so-called ESG projects, have significantly decreased over the course of the year. Inflation and the war in Ukraine have both caused investors to hold onto their wallets as they bet on more conventional safe energy sources like fossil fuels. This is a 16% decline from the same period last year, where total ESG investment totals $410 billion so far this year, writes Bloomberg.
ESG projects: opportunities for big banks
Looking further into the future, however, sustainability is here to stay and ESG is a “clear opportunity” for big banks in Europe, he says Christian sewingCEO of Deutsche Bank.
He points out that Europe lags behind American banks in a number of areas, but when it comes to sustainability, Europe as a region is far ahead, while Asia clings to its reliance on coal.
Deutsche Bank is accelerating its ESG efforts and the leading bank’s revenue is expected to double to €1.5 billion by the end of 2024.
Regulations slow down work
At the same time, Christian Sewing warns that permitting processes and regulations can slow down that work.
“These are things that actually prevent Europe from taking the next step. We must have reasonable rules”.
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