Deutsche Bank’s Lee Says Global Rulebook on ESG Rules Crucial

(Bloomberg) -- The head of Deutsche Bank AG’s U.K. and Ireland business said that a global rulebook on how to measure and enforce sustainability efforts was crucial for the industry to make progress in the fight to reduce carbon emissions.

“Alignment of global standards I think is going to be key both for banks that are willing and able to finance this transition, but also for clients,” Chief Executive Officer for U.K. and Ireland Tiina Lee said in a Bloomberg TV interview on Tuesday. “A global taxonomy is really part of that.”

Germany’s largest lender has recently stepped up its efforts to become a net zero emitter of carbon by 2050. CEO Christian Sewing is also among the many finance executives attending this week’s COP26 climate summit in Glasgow.

Deutsche Bank earlier this year set a range of sustainability goals including a pledge to facilitate 200 billion euros ($232 billion) in sustainable finance by the end of 2023. The lender has also promised to disclose the carbon footprint of its loan portfolio by the end of next year.

Asked what the allegations of greenwashing leveled against Deutsche Bank’s asset management unit DWS by a former employee mean for the industry, Lee highlighted the importance of fighting the practice of inflated sustainability claims. 

“Greenwashing is absolutely a topic that the industry has to take incredibly seriously,” Lee said. “I think it really goes to the heart of maintaining the integrity of all ESG activity.”

She added that Deutsche Bank ensures that “all our policies and all our guidance is overseen by our group sustainability office.”

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