Treasury Management Internation Logo

Deutsche Bank Launches Sustainability-Linked Overdrafts to Help Corporate Clients Meet their ESG Goals

Published 

Deutsche Bank announces the launch of sustainability-linked overdrafts to help meet a growing demand for innovative ESG products in the cash management space.

The new solution is designed to encourage businesses to improve their ESG performance by providing a pricing incentive related to an ESG KPI. For the pilot stage, this KPI will be the client’s ESG rating, as determined by a third-party ESG rating specialist. If a client’s ESG rating changes above or below a certain threshold, their pricing will be adjusted accordingly. While offering this innovation Deutsche Bank considers the clients overall sustainability strategies and targets.

The Bank has already gone live with the first implementation, converting a client’s existing

€10m overdraft facility into a sustainability-linked overdraft – offering flexibility in the usage of funds, with rewards tied to improvement in its overall ESG score.

“We are proud to confirm the first sustainability-linked overdraft arranged by Deutsche Bank, which highlights our commitment to finding new and innovative ways to offer sustainable finance,” says Johnny Grimes, Global Head of Liquidity at Deutsche Bank. “After launching our green deposits programme earlier this year, we are delighted to continue building our sustainability offering to further support corporate clients with their ESG goals.”

The launch of this sustainability-linked overdraft solution is part of Deutsche Bank’s wider sustainability strategy. It follows the announcement of the bank’s green deposits programme in March 2021, where deposited funds contrast with an equivalent amount of Deutsche Bank’s green asset pool. The bank also set itself several targets to reduce its environmental footprint, paying particular attention to energy efficiency and energy consumption. With its own operations carbon neutral since 2012, the bank aims to maintain this and to source 100% renewable electricity by 2025.

Most recent episodes

Trends in RFPs and RFIs: What Treasurers Want

Eleanor Hill (TMI) invites Dick Oskam and Bert Van Drie (ING) into the TreasuryCast hotseat to find out what trends treasurers want to see emerge from the Request for Proposal (RFP) and Request for Information (RFI)...

33:16

Creating a Connected Financial Office

When data flows are connected, it’s so much easier to make quick and accurate decisions. This is the principle behind the notion of the connected financial office. In this podcast, Gareth Priest (Bottomline Technologies) provides informed advice on how...

18:34

Journeys to Treasury: Managing Changing Perspectives

For this special edition of TreasuryCast, we showcase the results of the Journeys to Treasury 2021-22 report. Here, Jan Dirk van Beusekom (BNP Paribas) and Christian Mnich (SAP) offer Eleanor Hill (TMI) an informed view...

33:03

Cybersecurity for Treasurers

Cybercrime and fraud is on the rise and new attack vectors are emerging with alarming frequency. In this podcast, Nicolas Trimbour (BNP Paribas) and Laurent Sarrat (Sis ID) provide an overview of the latest tools and best practices treasurers should be employing...

37:53

A New Treasury Ecosystem: Open Banking, APIs, and BaaS

For this special edition of TreasuryCast, Eleanor Hill invites Peter Claus-Landi (GE) and Jared Smith (HSBC) to cover how key API-centric developments are changing the treasury landscape. With APIs significantly...

18:02

Using Data as the Corner for Finance Transformation

Many organisations face challenges in managing spend, payments, and cash effectively due to siloed processes and datasets across multiple departments. In this podcast, Ulrika Haug (Coupa) and Kim Estes (The Knot...

29:20

Realising Treasury’s True Value – A Strategy for Change

Join John Meehan (Froneri) to hear how Froneri utilised a year of no acquisitions and no meetings to implement a total transformation project through implementation of a TMS, unlocking the true value of his corporate...

49:14

Lessons from Innospec on Building a Strong Cash Culture

Without ready access to the key metrics of cash forecasting, Andrew Hawes (Innospec) knew the business could do little more than react to events. But without the collaboration of key stakeholders too, he knew that...

35:08

How to Make Your TMS the Ultimate Investment Tool

The right TMS can be a huge asset to treasury. But these one-stop shops often fall short when it comes to short term investment workflows. In this podcast, Ed Lopez, James Griffin (Calastone), Jeannot Jonas (Carrier...

01:24:00