Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity
• Governance
• Compliance
• Risk management
• Stakeholder engagement
• Human rights
• Sustainable lending
• Sustainable investment
• Operational ecology

Environmental Achievements

• Reduced carbon emissions by 63.8% by the end of 2020 compared to 2009. Switched to green electricity and improved heat generation and distribution efficiency.
• Increased financing activities in renewable energies to €5.97 billion by the end of 2021.

Social Achievements

• Launched various financial literacy programs benefiting over 90,000 young people.
• Increased proportion of women in managerial positions to 23.1% (2020: 22.5%).
• Maintained an Organizational Commitment Index (OCI) score of 80 (2020: 78).

Governance Achievements

• Implemented a whistleblowing hotline for the prevention of white-collar crime.
• Revised group-wide climate strategy in 2021, committing to carbon neutrality by 2045.
• Maintained a prime status rating from ISS ESG and an AA rating from MSCI ESG Research.

Climate Goals & Targets

Environmental Challenges

• Slow approval procedures for wind farms leading to project delays.
• Insufficient data availability for comprehensive EU Taxonomy reporting.
• COVID-19 pandemic impacting commuting, travel, and events, potentially increasing emissions.

Mitigation Strategies

• Developed alternative sourcing strategies and mitigation measures for supply chain disruptions.
• Implemented a phased approach to EU Taxonomy reporting, with granular analysis planned for 2023.
• Continued efforts to reduce emissions through green electricity, efficiency improvements, and promoting public transport.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability requirements for suppliers based on UN Global Compact principles and BME code of conduct.
• Sustainability questionnaire for supplier assessment using Ecovadis software.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters, floods

Transition Risks

• Legislative initiatives, changes in consumer behavior

Opportunities

• Development of energy-efficient products and services, growth in renewable energy financing.

Reporting Standards

Frameworks Used: GRI, UNGC, UN PRB

Certifications: ISO 14001 (R+V, Union Investment), EMAS (TeamBank)

Third-party Assurance: PricewaterhouseCoopers Wirtschaftsprüfungsgesellschaft GmbH

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Financing activities supporting renewable energies, infrastructure, economic growth, and social development.

Sustainable Products & Innovation

• Green bonds, social bonds, sustainability-linked bonds, green loans, ESG-linked loans, sustainable investment certificates.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Sustainable Finance
• Human Rights
• Diversity & Inclusion
• Governance

Environmental Achievements

• Reduced CO2 emissions by 600,000 tons in 2022 through financing of sustainable building.
• €7.4 billion financing volume in renewable energies in 2023 (especially wind power and photovoltaics).
• Total volume of sustainable bonds and promissory note loans managed amounted to €25.1 billion and €2.4 billion respectively in 2023.

Social Achievements

• Successful implementation of five core objectives within the framework of Verbund First 4.0, strengthening employee loyalty and cooperation.
• Wide-ranging social commitment focusing on education through DZ BANK Foundation and Active Citizenship.
• Implementation of human rights due diligence in loan screening process, excluding financing of companies violating international human and labor rights.

Governance Achievements

• Establishment of the Group Sustainability Committee (GSC) at the Board of Managing Directors level to oversee sustainability implementation.
• Development of a comprehensive sustainability-related training concept for employees.
• Implementation of a whistleblowing system across all group entities.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transition risks) impacting credit risk, reputational risk, operational risk, and actuarial risk.
• Need to align finance portfolio with the 1.5°C target and 'net-zero future' principle.

Mitigation Strategies

• Integration of sustainability risks into risk management, particularly in lending and project financing.
• Following the PACTA methodology and using the 'net zero by 2050' climate roadmap of the IEA, IMO, and CRREM for climate alignment.
• Implementation of exclusion criteria and sector criteria for sustainable lending.
• Active support for customers’ transformation processes towards sustainability.

Supply Chain Management

Responsible Procurement

• Sustainability in Purchasing Guideline (since 2018), aligned with UN Global Compact, ILO Core Labour Standards, and BME Code of Conduct.
• Compliance with German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG).

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and floods

Transition Risks

• Legislative initiatives and changes in consumer behavior

Reporting Standards

Frameworks Used: UN Global Compact, Equator Principles, PACTA, International Energy Agency (IEA) Net Zero Emissions Roadmap, International Maritime Organization (IMO), Carbon Risk Real Estate Monitor (CRREM)

UN Sustainable Development Goals

• Various SDGs, with the largest positive impacts in climate, infrastructure & innovation, and economic growth.

2/3 of DZ BANK AG's loan portfolio has a positive impact on the SDGs.

Sustainable Products & Innovation

• Green bonds
• Sustainable loans
• ESG advisory services
• Sustainable investment products