Deutsche Bank said on Thursday it had linked its supply chain financing for Henkel to environmental, social and governance (ESG) ratings of the German consumer goods group's suppliers in the first move of this kind in Europe. The programme, which Deutsche Bank currently offers in Europe but aims to expand to other countries, gives Henkel's suppliers a discount on costs of financing in the supply chain according to their ESG rating.
Deutsche Bank looked to open a new chapter on Thursday as its shareholders voted in a successor to Paul Achleitner as chairman, after a rocky decade during which Germany's largest lender lost billions and saw its share price plummet. Alexander Wynaendts, a Dutch former insurance executive, was voted in to succeed Achleitner for a four-year term as chairman at Deutsche's annual general meeting. As a former head of Dutch insurer Aegon, which also had staff around the world and a large U.S. presence during a turbulent decade, Wynaendts has experience that should serve him well at Deutsche.
Deutsche Bank will require its vendors and suppliers around the world to have a sustainability rating from July, according to an internal memo seen by Reuters, a move that is unlikely to fully satisfy environmental activists. The German bank's chief executive officer, Christian Sewing, will highlight the plan in a speech to shareholders at the lender's annual meeting on Thursday, said a person with knowledge of the matter. Environmental groups plan to hold protests against the financing of oil companies at the bank's headquarters while the shareholder meeting is taking place.