Ambiguity in corporate sustainability/ESG goals and communications has long been a major bugaboo. With so much uncertainty in the space right now, the last thing anyone wants is a lack of clarity. Deutsche Bank (DB) didn’t seem to get that memo. Bloomberg wrote
“Deutsche Bank AG won’t move ahead with a plan to add restrictions on financing oil and gas, as it assesses the legal risks of doing so, according to its chief executive.
‘The legal environment has changed, and we are currently analysing this in detail in order to minimise potential risks for the bank,’ CEO Christian Sewing told shareholders at Deutsche Bank’s annual general meeting on Thursday.
At the same time, Sewing sought to reassure investors that Deutsche Bank isn’t backing away from its climate goals. Germany’s largest lender has ‘largely completed’ an update of its guidelines for the oil and gas industry, which includes limits on the financing of oil sands, hydraulic fracking in certain geographies and Arctic exploration, he said. But the timeline of the update’s implementation is currently unclear, he said.”
Got it?
DB’s history with sustainability/ESG doesn’t provide a foundation for confidence – Sewing’s lack of clarity just piles on.
The takeaway: Get sustainability/climate communications right. Be clear and accurate – don’t obfuscate or get ahead of corporate activities. Honesty is still the best policy – own up to shortcomings, missed deadlines or unanticipated changes in market sentiment, demand or governmental policy. Finally, make sure everyone who might communicate with media or investors – especially in impromptu situations – is on the same page with this.
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