Commercial, GHG Emissions, Industrial - October 25, 2023
Deutsche Bank Sets Net Zero Targets for High-Emitting Sectors
Deutsche Bank set new emission reduction goals that were published in its initial Transition Plan as well as net zero pathways for three additional carbon-intensive industries in the bank’s corporate loan portfolio.
The investment bank increased its goal to reduce total energy consumption from 20% to 30% by 2025 compared to its 2019 baseline, following outperformance against original targets from 2019-2022.
For its supply chain emissions, or Scope 3, the bank’s goal is for 80% of its total vendor spend to submit GHG emissions to the Carbon Disclosure Project (CDP) by 2025.
Deutsche Bank has also made progress in decarbonizing its supply chain, where around three-quarters of emissions arise from purchased goods and services. The bank has cut emissions by around 290,000 tons of CO2e/y, or 15%, between 2019 and 2022, and is on track to meet its target of 46% reduction by 2030.
The bank also set new net zero targets for high-emitting industries in the corporate loan portfolio for Scope 3, including the coal mining, cement and shipping sectors. As of year-end 2022, 55% of total financed emissions of the corporate loan portfolio are covered by net zero pathways, and the published financed emissions figures totaled 34.4 million tons of CO2 equivalent per year (MtCO2e/y) — covering approximately 60% of total loan exposure.
The bank’s plans for these sectors include the following:
- Coal Mining: 49% reduction in Scope 3 financed emissions by 2030 and 97% reduction by 2050,
- Cement: 29% reduction in Scope 1 and 2 physical emission intensity by 2030 and 98% reduction by 2050 and
- Shipping: Scope 1 scoring of 0% achieved by 2030 and 2050 based on the Poseidon Principles Portfolio Level Alignment Score.
“We are committed to playing our part in fighting climate change, and we want to document transparently where we stand on our path to net-zero,” said Christian Sewing, Chief Executive Officer, in a statement. “We are convinced that it is imperative for a global bank headquartered in Europe to position itself as a sustainability leader if it is to have lasting success in serving its clients. Decoupling economic growth from CO2 emissions and the extensive use of natural resources will be decisive as our planet’s ecosystem comes close to tipping points.”
Read These Related Articles:
Stay Up-To-Date
