Day three of Sibos Frankfurt 2025 centred on how banks can align with global priorities on climate and inclusive growth. Lavinia Bauerochse, global head of sustainable finance, Corporate Bank at Deutsche Bank said the bank has moved beyond isolated “green” projects to mainstream sustainability across its corporate franchise. She discussed the shift to transition finance, the role of small and medium-sized enterprises (SMEs), the integration of environmental, social and governance (ESG) metrics into treasury products and the need for tokenisation to be powered by renewable energy. From green projects to transition finance Bauerochse traced the trajectory of sustainable finance within Deutsche Bank’s corporate bank. “It started with really focusing on green projects and green assets, but by now, we are starting to look into the transitional activities of our clients. We call it transition finance,” she said. This mirrors a wider industry shift, with sustainability-linked instruments and transition bonds now growing faster than traditional green bonds. She stressed that transition finance is not transactional but “a very strategic conversation” about clients’ targets. Deutsche Bank, she said, now engages with senior management on science-based pathways, then “arranges financing in order for our clients to achieve their targets,” including structuring ESG-linked revolving credit facilities, trade finance and hedging solutions. Integrating sustainability with strategy Bauerochse noted that many corporate clients initially treated sustainability as a compliance exercise but now must “integrate sustainability into the strategy process” alongside geopolitics and energy transition. For example, companies exporting to the European Union will soon face the Carbon Border Adjustment Mechanism (CBAM), which imposes levies on carbon-intensive imports. Deutsche Bank can support them “across the treasury toolkit,” such as integrating ESG key performance indicators (KPIs) into their financing or foreign exchange hedges. Inclusion and broad project portfolios She emphasised that inclusion is “at the heart” of Deutsche Bank’s approach. While sustainability debates often focus on large multinationals, the bank also has “a very strong foothold” in SMEs in Germany and is very active across Asia Pacific and Africa. She cited facilitating affordable housing projects in Asia Pacific, arranging ECA financing for infrastructure in Latin America and supporting hospitals in Africa — examples of how corporate banks can mobilise private capital for social, as well as environmental outcomes. Payments as an ESG enabler Bauerochse argued that payments are “a means of inclusion.” Digital disbursement platforms can reduce leakage and improve transparency in government-to-person payments, while green cross-border payment solutions can track and offset carbon footprints. By embedding ESG metrics into payments and cash management — for example, incentivising suppliers with better terms for meeting sustainability criteria — banks can influence behaviour throughout supply chains. Tokenisation and renewable energy On tokenisation she said, “we will definitely continue to see” this trend but warned that the challenge is “ensuring that the way it’s being operationalised is powered by renewable energy” and that “we have abundance of renewable energy.” Bauerochse believes tokenisation can democratise access to green investment products and improve traceability of carbon credits, but it must be implemented sustainably to avoid undermining its own objectives. Mainstreaming sustainability across finance Bauerochse’s remarks show that Deutsche Bank is no longer treating sustainability as a specialist or marketing theme but as part of its core corporate banking franchise. By shifting from isolated “green” projects to transition finance, it can support a much wider range of clients and activities — from industrial decarbonisation to affordable housing — and integrate ESG metrics into everyday treasury products. This reflects the regulatory and investor push for companies to show credible pathways rather than only headline commitments. At the same time, she emphasised that inclusivity and infrastructure matter: SMEs and emerging markets must be brought along, payments can be a lever for behavioural change, and tokenisation will only be credible if powered by renewable energy. Taken together, these themes position Deutsche Bank to mobilise private capital at scale for decarbonisation while ensuring that sustainability remains transparent, inclusive and operationally practical for clients navigating the next phase of the global transition.
