Deutsche Bank publishes transition plan

Deutsche Bank, one of the leading financial institutions globally, has recently taken significant steps in its commitment to achieving net-zero emissions by 2050. The bank has published its Transition Plan, which outlines its strategies and actions for decarbonisation, and it also highlights its progress in various areas, including corporate loans, its own operations, and supply chain emissions.

Here are the key highlights of Deutsche Bank’s Transition Plan:

Scope of Decarbonisation: The Transition Plan covers three key dimensions of decarbonisation, including the bank’s own operations (Scope 1 and 2 emissions), its supply chain (Scope 3, categories 1-14), and financing provided to clients (Scope 3, category 15).

Sectoral Targets: Deutsche Bank has set specific sectoral targets for Coal Mining, Cement, and Shipping. These targets include substantial reductions in emissions by 2030 and 2050. These actions aim to address emissions arising from sectors financed by the bank.

Client Engagement: The bank’s approach includes engaging with high-emitting clients to support and finance their transition towards more sustainable practices. It also involves gradually phasing out business with industries that are not aligned with the bank’s transition pathway, especially those in not-to-abate industries.

Progress in Residential Real Estate: Deutsche Bank has detailed its strategy for European residential real estate, with a focus on decarbonisation pathways. This includes partnering with clients aiming to reduce property emissions, collaborating with corporate clients in related industries, and engaging with public and private bodies to drive emissions reduction.

Decarbonising Own Operations: The bank has made significant progress in reducing its own emissions (Scope 1 and 2), with a 64% reduction since 2019. Notably, the bank has increased its use of renewable energy sources, with 96% of its electricity now coming from renewables. Deutsche Bank aims to achieve 100% renewable energy usage by 2025.

Supply Chain Decarbonisation: The Transition Plan outlines the bank’s approach to reducing emissions in its supply chain (Scope 3, categories 1-14). Emissions have been reduced by approximately 15% between 2019 and 2022, and the bank is on track to meet its 46% reduction target by 2030.

Enabling Transition: Deutsche Bank emphasises the importance of governance structures, a transition and climate risk management framework, sustainable finance frameworks, financial planning, data and technology, and external engagement as key enablers of its net-zero transition.

Broadening the Scope: The bank’s ambitions include expanding decarbonisation efforts in its corporate loan portfolio, reporting and reducing facilitated emissions related to capital market activities, supporting nature and biodiversity, contributing to a socially just transition, and expanding its offering in ESG assets under management.

Deutsche Bank’s commitment to achieving net-zero emissions by 2050 is in line with global efforts to combat climate change. The bank’s comprehensive Transition Plan provides a transparent roadmap for its actions in various sectors and its strategies to mitigate climate-related risks. This initiative reflects the growing importance of sustainability and climate responsibility in the banking sector.

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