- Deutsche Bank has set emissions reduction targets for loans to clients.
- Deutsche Bank’s targets do not include emissions linked to its underwriting of stocks and bonds.
Deutsche Bank has set emissions reduction targets for loans to clients in the coal mining, cement and shipping sectors. It now has a net-zero plan for 55% of its financed emissions. Chief Sustainability Officer Jörg Eigendorf said, “Once we have pathways, we can start to manage it down as the bank published its initial transition plan.” Elmendorf stated that a year after setting up a “net zero forum” of senior executives to assess loan deals of over 25 million euros that will increase emissions. The body reviewed 41 and kicked back 25% to be renegotiated.
HE stated reasons for initially rejecting a transaction could include a company having a weak net-zero plan. They do not include reporting of Scope 3 emissions, which are those tied to a company’s value chain. Eigendorf said the bank would aim to reduce absolute emissions from coal mining by 49% by the end of this decade and by 97% by 2050. All from a 2022 baseline of 7.9 million metric tons of carbon dioxide equivalent.
Deutsche Bank’s targets do not include emissions linked to its underwriting of stocks and bonds, a significant source of company finance. The lender said it planned to account for so-called facilitated emissions once industry-agreed methodologies were available. Eigendorf said the new targets follow Deutsche Bank’s existing targets for upstream oil and gas, power generation, steel and autos. Also, emissions linked to its oil and gas sector loans slid 29% in 2022 from 2021 levels. Moves to exit Russian clients, trim loans to other large clients, and carbon accounting gains in energy prices.