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Deutsche Bank has taken a significant step towards achieving its ambitious sustainability goals with the launch of its updated Sustainable Finance Framework. This comprehensive guideline outlines the bank’s approach to classifying financial products and transactions as “sustainable,” incorporating rigorous environmental and social criteria.
Building upon its initial framework launched in July 2020, this update reflects Deutsche Bank’s escalating commitment to sustainability. The bank has progressively raised its target for sustainable financing and investment volumes from €200 billion to €500 billion by the end of 2025, and is well on its way, having already facilitated €279 billion as of 2023.
The framework’s enhancements center around three key areas:
- Refined Eligibility Criteria: The framework incorporates the latest market standards informed by leading associations like ICMA, LMA, and ISDA, ensuring the bank’s approach adapts to evolving best practices.
- Enhanced Transparency: Deutsche Bank demonstrates its commitment to transparency by pledging to regularly update stakeholders on its progress towards its sustainability goals. This includes publishing information on sustainable financing and investments within quarterly and annual financial reports, as well as its annual non-financial report.
- Credibility and Alignment: The framework’s credibility is reinforced by a second-party opinion from ISS ESG, a renowned rating agency and consultancy, confirming its alignment with market practices and Deutsche Bank’s existing sustainability criteria.
The framework meticulously defines sustainable activities, adhering to the six EU Taxonomy objectives for environmental sustainability and addressing social sustainability concerns like access to essential services and socioeconomic empowerment. This ensures clarity and consistency in Deutsche Bank’s approach to sustainable finance.
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Jörg Eigendorf, Chief Sustainability Officer at Deutsche Bank, emphasizes the framework’s role in achieving their ambitious sustainability goals: “€279bn – that is the amount of sustainable financing and ESG investment we have facilitated from 2020 to 2023. But what is sustainable, what do we classify as environmental and social? Our newly updated Sustainable Finance Framework gives the answer and it is public for everyone.“
By providing clear criteria and adhering to recognized standards, Deutsche Bank’s updated framework not only strengthens its commitment to sustainability but also fosters transparency and contributes to the broader development of sustainable finance practices.
View Full Sustainable Finance Framework