Deutsche Bank (DB) has said it will link its top executives’ pay to whether or not it reaches its sustainability goals, it has emerged.
Citing an internal memo by chief executive Christian Sewing, the Frankfurter Allgemeine Zeitung said the lender has set a target for 2025 of reaching €200bn (£180bn, $242bn) in annual sustainable investment. It will start with more than €20bn this year.
The policy 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 newspaper said.
Deutsche also plans to change all of its buildings globally to renewable energy by 2025.
It comes after the bank last month said it was bullish about the 2021 economic recovery as it upgraded its global growth outlook.
“With efficacy rates at the upper end of expectations, this opens up the possibility of a much more rapid return to normal than had been anticipated only a month ago,” Deutsche Bank’s group chief economist David Folkerts-Landau noted.
“By the end of 2021 it may no longer have much impact on day to day life,” he added in a report.
The German lender’s third-quarter results also outperformed its consensus estimates thanks to a 47% jump in fixed income, currency sales and trading revenues in its investment bank division, partially offset by a 5% drop in the corporate bank segment.
Group third-quarter revenues increased 13% year over year to €5.94bn with costs dropping 10% to €5.18bn over the period. However, some Deutsche bankers have warned that investment bank revenues may slow somewhat next year.
Deutsche has been losing money for the past half a decade and is hoping to shore up its finances through an overhaul of cutting staff, exiting some businesses and reducing costs.
The lender, which is the largest in Germany, last posted a quarterly profit in January-March 2019.
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