Treasury goes green as demand for ESG products soars
Banks are refining their sustainable cash-management offerings, seeking to align their corporate sustainability strategies to financing and treasury actions.
Deutsche Bank recently announced the launch of its green deposits programme – a new cash management solution for term deposits of less than 12 months, where the cash finances an equivalent amount of Deutsche’s green asset pool.
“The new programme is an important step on our journey into ESG [environmental, social and governance] as a cash management provider,” says Ole Matthiessen, head of cash management at Deutsche.
“It marks the first of many cash-management products we’ll look to introduce as part of the bank’s sustainability framework.”
Corporates are looking to integrate ESG into their cash-management activities
This asset pool may include loans to companies and projects that support the transition to clean energy sources and to an energy efficient and environmentally sustainable global economy. Assets must fall within a sector deemed eligible, according to sustainability criteria as defined by the bank’s green financing framework.
Johnny Grimes, head of liquidity product at Deutsche, acknowledges that ESG goals vary between corporates and how they want to align their liquidity goals to their broader sustainability goals.
“However, there is a clear theme emerging: corporates are looking to integrate ESG into their cash-management activities,” he says.