Finance - March 7, 2022
Deutsche Bank Provides Disclosure on Financed CO2 Emissions
Deutsche Bank disclosed data on its financed GHG gas emissions, part of its wider commitment to net zero CO2 emissions by 2050 and to provide further disclosure on financed emissions of its loan portfolio and sector-specific decarbonization targets, by the end of 2022.
The investment bank is using the standards established by the Partnership for Carbon Accounting Financials, an industry-wide initiative (PCAF Standards), Scope 1 and 2 financed emissions of the global corporate industry loan book were calculated at 30.8 million tons of CO2 equivalent per year (MtCO2e/y) as at year-end 2021.
The transparency provides details of its corporate loan portfolio - financed emissions are concentrated in a few sectors and a very limited number of companies. Three sectors account for around 68% of the total Scope 1 and 2 emissions: oil & gas; utilities, including power generation; and steel, metals and mining. Total lending to these sectors as of year end 2021 was € 17 billion, 16% of the bank’s corporate industry loan book and around 3.5% of total loans.
The PCAF Standards and client data indicate that around 1% of corporate industry clients account for approximately 70% of the financed emissions in the bank’s corporate industry loan book.
In 2021, financed emissions in these sectors were as follows:
- Oil & gas: financed emissions of 9.7 MtCO2e/y, or 32% of overall financed emissions in the corporate industry loan portfolio, on loan exposures of € 8.2 billion
- Utilities including power generation: financed emissions of 7.7 MtCO2e/y, or 25% of the corporate industry loan portfolio total, with loan exposures of € 4.5 billion;
- Steel, metals & mining: financed emissions of 3.5 MtCO2e/y, 11% of the corporate industry loan portfolio’s financed emissions, on loan exposures of € 4.3 billion;
The automotive sector accounts for a relatively modest portion of Scope 1 and 2 financed emissions, but forms part of Deutsche Bank’s net zero pathway analysis due to its contribution to Scope 3 emissions.
“These disclosures are an important step on our pathway to net zero,” said Christian Sewing, CEO of Deutsche Bank and Chairman of the Group Sustainability Committee in a statement. “We are on track in embedding carbon intensity in Deutsche Bank’s reporting, governance and risk management processes.”
Deutsche Bank re-affirms its commitment to publishing 2050 net zero targets for key carbon-intensive portfolios, together with intermediate targets for 2030 by the end of 2022.