Banking & Insurance

Deutsche Bank Establishes Fresh Net-Zero Aims for Industries with High Emissions

We want to document transparently where we stand

SMEBROctober 20, 18:48
Deutsche Bank Sets New Net-Zero Targets for High-Emitting Sectors

Germany's largest lender is laying out a transition roadmap and tightens targets for high-carbon sectors. Deutsche Bank has unveiled a transition plan detailing concrete steps and milestones to align its business with net-zero emissions by 2050. 

The plan covers the bank's own operations, supply chain, and crucially - its loan portfolio. New targets were announced for highly-polluting sectors including coal, cement and shipping.  

By end-2022, net-zero pathways were in place for sectors responsible for 55% of financed emissions from Deutsche Bank's 107 billion euro corporate loan book. The total quantified emissions from lending activities stood at 34.4 million tonnes of CO2 equivalent.  

Additional targets require coal miners to cut emissions 97% by 2050. Cement makers face a

98% cut by mid-century. Shipping firms must align to a zero emissions score under industry guidelines.  

To hit these goals, Deutsche Bank will partner with clients on clean technologies while phasing down exposure to unabating sectors like thermal coal. A new forum assesses deals over 25 million euros in high-carbon industries.

The bank has also made efforts to slash emissions from internal operations, now targeting a 30% drop in energy use by 2025 compared to 2019. Renewables should provide 100% of its electricity within two years.

On supply chains, 80% of key vendors will need to disclose emissions data by 2025. Deutsche Bank aims to reduce procurement emissions 46% by the end of the decade.

"We want to document transparently where we stand," said CEO Christian Sewing. "Decoupling growth from emissions will be decisive."

The comprehensive plan sets Deutsche Bank apart as sustainability leader, enabling transparent tracking of progress against concrete metrics. Continued focus and follow through will be key in the years ahead.