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Deutsche Bank Sets Target for Sustainable Investment by 2025
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Deutsche Bank (DB - Free Report) is planning to invest €200 billion in sustainable business activities, mainly environmental, social and governance (ESG), by the end of 2025.
The lender seeks to issue green bonds to raise funds for further developing renewable energy sources or for projects aimed at boosting energy efficiency. Notably, Deutsche would issue its first-ever green bond late in 2020.
In 2019, nearly 80% of the bank’s electricity across the globe came from renewable energy sources. It plans to make renewable energy its power source for entire operations by 2025. The step is consistent with the company’s policy of transitioning to carbon neutrality and reducing emissions of primary greenhouse gases.
“We are driven by a very strong conviction to help shape the global change to a sustainable, climate-neutral and social economy,” said CEO Christian Sewing. He added, “We are starting from a good base because, as a globally active financing house, we can serve the growing demand of our clients for sustainable investment products by ourselves.”
Deutsche will also revise its oil and gas policy by June-end in order to provide a clear framework for financing and investments in the area.
Of late, investors have been showing interest in sustainable investing. BofA Global Research estimates that the amount invested in ESG funds could rise $15-20 trillion over the next two decades.
Thus, several major banks have taken efforts in the space. PNC Financial (PNC - Free Report) issued its first green bond in November 2019 to fund eligible projects that promote a transition to a low-carbon economy. Also, in 2017, Citigroup (C - Free Report) announced to invest $100 billion by 2025 in projects aimed at reducing carbon emissions, while JPMorgan (JPM - Free Report) pledged $200 billion between 2017 and 2025.
Our Take
Deutsche Bank's efforts to improve financials by offloading unprofitable businesses and continued investments in order to expand its fee income sources are commendable.
However, the company continues to be plagued with several headwinds and remains under the scrutiny of investors. Also, litigation issues related to past misconduct and legal costs might impede its bottom-line growth.
Shares of the company lost 9.7% over the last six months compared with the 41.3% decline recorded by the industry.
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Image: Bigstock
Deutsche Bank Sets Target for Sustainable Investment by 2025
Deutsche Bank (DB - Free Report) is planning to invest €200 billion in sustainable business activities, mainly environmental, social and governance (ESG), by the end of 2025.
The lender seeks to issue green bonds to raise funds for further developing renewable energy sources or for projects aimed at boosting energy efficiency. Notably, Deutsche would issue its first-ever green bond late in 2020.
In 2019, nearly 80% of the bank’s electricity across the globe came from renewable energy sources. It plans to make renewable energy its power source for entire operations by 2025. The step is consistent with the company’s policy of transitioning to carbon neutrality and reducing emissions of primary greenhouse gases.
“We are driven by a very strong conviction to help shape the global change to a sustainable, climate-neutral and social economy,” said CEO Christian Sewing. He added, “We are starting from a good base because, as a globally active financing house, we can serve the growing demand of our clients for sustainable investment products by ourselves.”
Deutsche will also revise its oil and gas policy by June-end in order to provide a clear framework for financing and investments in the area.
Of late, investors have been showing interest in sustainable investing. BofA Global Research estimates that the amount invested in ESG funds could rise $15-20 trillion over the next two decades.
Thus, several major banks have taken efforts in the space. PNC Financial (PNC - Free Report) issued its first green bond in November 2019 to fund eligible projects that promote a transition to a low-carbon economy. Also, in 2017, Citigroup (C - Free Report) announced to invest $100 billion by 2025 in projects aimed at reducing carbon emissions, while JPMorgan (JPM - Free Report) pledged $200 billion between 2017 and 2025.
Our Take
Deutsche Bank's efforts to improve financials by offloading unprofitable businesses and continued investments in order to expand its fee income sources are commendable.
However, the company continues to be plagued with several headwinds and remains under the scrutiny of investors. Also, litigation issues related to past misconduct and legal costs might impede its bottom-line growth.
Shares of the company lost 9.7% over the last six months compared with the 41.3% decline recorded by the industry.
Deutsche Bank currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
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