Deutsche Bank has released an updated Transition Plan, reaffirming its commitment to net-zero emissions and signaling its determination to align with tightening global regulations and stakeholder scrutiny.

In contrast to several major lenders such as HSBC and Wells Fargo, which have scaled back or delayed climate pledges, Deutsche Bank is intensifying its climate ambitions. Originally launched in 2023, the plan has been refined to bolster the bank’s 2030 and 2050 financed emissions reduction targets, alongside its overarching net-zero goal.

Among the key updates is the rollout of Divisional Carbon Budgets across its corporate and investment banking units. These budgets are now tied directly to the compensation framework for the Management Board, embedding climate accountability at the highest leadership level.

The bank has also deepened the integration of climate and transition risks into its risk management systems, supported by internal frameworks on sustainable finance, ESG investments, green instruments, and environmental and social due diligence.

Furthermore, Deutsche Bank reports tangible progress in reducing emissions. Its corporate loan portfolio, one of the most carbon-intensive segments, recorded a 5% decline in 2023. Meanwhile, emissions from its European residential real estate portfolio fell by 44% since 2022, underscoring measurable momentum in cutting financed emissions while expanding support for transition-related financing.

Looking forward, the bank said it will continue reducing exposure to carbon-intensive activities, channel more financing into clean energy infrastructure, and step up engagement with high-emitting clients to support decarbonization. It also signaled a willingness to phase out relationships with companies unwilling to transition away from fossil fuels.

At a time when many peers are retreating from ambitious climate targets, Deutsche Bank’s updated plan underscores its intent to position itself as a leader in steering financial services toward global decarbonization.

Source:

https://www.esgtoday.com/deutsche-bank-maintains-net-zero-goals-in-updated-transition-plan/