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Thought leaders from the investment, corporate and academic communities recently gathered in Boston, MA, for Deutsche Bank’s ESG Investing Conference 2018. Topics and panel discussions showcased the bank’s environmental, social and corporate governance (ESG) specialists and how ESG factors into research, investing and the bank’s culture.  

“We passionately believe that sustainable business practices are good for all stakeholders,” said John Eydenberg, Chairman, Deutsche Bank Americas, in opening remarks. “We strive to create positive impact for our clients, employees, investors and communities.” He talked about the important role ESG has played in his nearly 20 years at the bank. In addition to being a senior investment banker and member of corporate finance management group, most of his other responsibilities revolve around ESG. Eydenberg is Chairman of Americas Foundation, member of Diversity and Inclusion Committee, and Chair of the CIB Reputation Risk Group.

ESG is an important growth area for Deutsche Bank. In November 2017, the Management Board established a Sustainability Council comprising senior managers who advise on ESG topics. Deutsche Bank also has established guidelines about engagement with businesses such as coal, mining, agriculture and gas, and participates in sustainable financing such as green bonds. In March, the bank published its first non-financial report, which ties in to its longstanding commitment to transparency on ESG.

In CIB, the bank has risen to the forefront in providing both quant and company research to help investors evaluate companies from an ESG standpoint. The day’s first presenter, Jan Rabe, ESG Strategist, CIB, talked about how ESG is being integrated into research at Deutsche Bank. He focused key trends including the expectation that ESG will become a standard investment overlay within the next 10 – 15 years, with the key driver being regulation on sustainable investing and non-financial corporate reporting. Another key point presented was how Deutsche Bank’s strategic initiative to integrate ESG in company research adds value. “We exclusively focus on associated risks and opportunities with significant potential to impact share prices,” said Rabe. “On top of this, we reflect bottom-up aggregated findings against top-down equity strategy views and advise on ESG-adjusted asset allocation.”

Other presentations included a Climate Panel moderated by Gerold Koch, Head of ESG Product Development, DWS; a presentation on Investing Through the Energy Transition: the Deutsche Bank Carbon Alignment Framework by Caroline Cook, Research Analyst covering energy transition and decarbonization; and an Impact Investing Panel moderated by Andy Moniz, Chief Data Scientist. Moniz also led a discussion on ESG Materiality addressing the quantification of ESG controversies for stock risk, returns, and changes in forecasts.

Sallie Krawcheck, owner of Ellevate/Ellevest, a platform dedicated to helping women reach their financial and professional goals, was the conference’s keynote speaker. Krawcheck talked about how diversity has moved from being a fairness issue to also being a significant business driver, linking to superior business results, higher returns, lower risk, greater long-term focus, increased innovation and improved stockholder returns. She also touched upon the disparities between women’s earning power and the ability to invest, reinforcing that smart investment must be more attainable to women by closing the gender gap.

The conference, which drew nearly 150 attendees, is the 3rd annual ESG conference in the US and closely followed the bank’s first ESG conference in Europe held earlier this month in Frankfurt.