Deutsche Bank Unveils Enhanced Sustainable Finance Framework

Deutsche Bank has taken a significant step forward in its commitment to sustainable finance by introducing an updated Sustainable Finance Framework, underscoring its dedication to rigorous environmental and social standards. This comprehensive guideline represents the bank’s second iteration aimed at fostering sustainable financial practices, building upon its initial launch in July 2020 and signalling a continued escalation in its sustainability objectives.

The framework outlines Deutsche Bank’s meticulous approach to classifying financial products and transactions as “sustainable,” incorporating stringent environmental and social criteria. Notably, the bank has set ambitious targets, aiming to achieve €500 billion in sustainable financing and investment volumes from 2020 to 2025, a goal that has seen progressive upward revisions from its initial €200 billion objective.

As of the end of 2023, Deutsche Bank has made significant strides towards this target, reporting €279 billion in sustainable finance and investment activities, underscoring its tangible impact in advancing sustainability goals.

Key enhancements to the framework, highlighted by Jörg Eigendorf, Chief Sustainability Officer at Deutsche Bank, include refined eligibility criteria for sustainable investments and a commitment to transparency in line with evolving market standards. This commitment to transparency entails regular updates on sustainable financing and investments, disseminated through quarterly and annual financial reports as well as the bank’s annual non-financial report.

Sustainable activities under the framework adhere closely to the six EU Taxonomy objectives for environmental sustainability, spanning climate change mitigation to biodiversity protection, while also addressing social sustainability objectives such as access to essential services and socioeconomic empowerment.

The credibility of the framework is further reinforced by a second-party opinion from ISS ESG, a leading rating agency and consultancy, affirming its alignment with market practices and Deutsche Bank’s sustainability criteria.

Eigendorf’s statement underscores the bank’s vision for sustainability, emphasising the framework’s role in defining sustainable activities and its accessibility to the public. He articulates Deutsche Bank’s commitment to transparency and credibility, stating, “Our newly updated Sustainable Finance Framework provides comprehensive guidance on sector-specific classification thresholds and social criteria. It serves as the foundation for us to achieve our ambitious sustainability targets, guided by credible criteria.”

By strengthening its Sustainable Finance Framework, Deutsche Bank reaffirms its position as a leader in sustainable finance, driving positive environmental and social impact while promoting transparency and accountability in financial practices.