Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced operational emissions due to remote work and reduced travel (specific figures provided in Metrics section)
• Commitment to climate neutrality in line with the Paris Agreement
• Joined the Net Zero Asset Managers Initiative (NZAMI)

Social Achievements

• Increased corporate engagements (454 in 2020 vs 250 in 2019)
• Increased proxy voting (1859 companies in 2020 vs 1722 in 2019)

Governance Achievements

• Established a Group Sustainability Office (GSO), Group Sustainability Council (GSC), and an external ESG Advisory Board (EAB)

Climate Goals & Targets

Environmental Challenges

• Managing climate-related risks and opportunities across the entire organization
• Achieving net-zero emissions by 2050
• Meeting client demand for decarbonizing portfolios
• Addressing potential “greenwashing” concerns

Mitigation Strategies

• Implemented Smart Integration for enhanced due diligence on sustainability risks
• Developed a Climate Strategy aligned with TCFD recommendations
• Set interim targets and action plans
• Collaborated with stakeholders and investor initiatives (e.g., NZAMI, IIGCC, SBTi, Climate Action 100+)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods

Transition Risks

• Market shifts related to climate change
• Regulatory changes

Opportunities

• Development of sustainable investment products

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• DWS Invest Qi Global Climate Action Fund
• ESG versions of existing funds

Environmental Metrics

ESG Focus Areas

• Climate Change
• Ocean Sustainability

Climate Goals & Targets

Environmental Challenges

• Rising water temperatures and acidification
• Destruction of coastal habitats
• Plastic waste
• Chemical run-off
• Overfishing
• Whale hunting and ship strikes

Mitigation Strategies

• Expand marine protected areas to 30% of the oceans by 2030
• Foster sustainable, people-centered fishing
• Legally protect coastal areas
• Ban harmful practices (bottom trawling, seabed mining, whale hunting, shark finning)
• End new offshore fossil fuel exploration and production
• Ensure all wastewater pollution sources are bound by regulations
• Ensure shipping & marine industries pay for damage
• Introduce a tax for investment funds not addressing environmental damage
• Facilitate investment in floating kelp forests and restore mangroves, coral reefs, seaweed, and wetlands
• Reduce plastic use, improve circularity, help pay for ocean plastic cleanup
• Cut corporate water pollution and agricultural water pollution
• Encourage adoption of sustainable and people-friendly fishing practices
• Foster the Blue Economy
• Cleanup offshore oil & gas practices; Cease new exploration & production
• Expect and require green shipping practices and technologies

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise
• Ocean acidification
• Marine heatwaves
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts towards sustainable practices

Opportunities

• Development of sustainable ocean technologies
• Investment in blue carbon projects

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)

The report's recommendations contribute to these goals by promoting ocean conservation, sustainable practices, and climate change mitigation.

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced operations energy consumption by 28% vs 2019 baseline
• 96% of electricity consumption from renewable sources

Social Achievements

• Increased ESG AuM to €117.0 bn.
• Improved CDP rating from B to A-

Governance Achievements

• Established a dedicated Sustainability Strategy team and a Sustainability Oversight Office
• Transformed the Group Sustainability Council into a decision-making committee

Climate Goals & Targets

Environmental Challenges

• Data limitations and reporting lags
• Geopolitical uncertainties and energy crisis impacting decarbonization rates
• Challenges in converting long-term climate risks into medium-term financial risks
• Meeting evolving stakeholder expectations regarding ESG and climate-related products

Mitigation Strategies

• Developed a coal policy for wider implementation in 2023
• Launched Net Zero Pathway, Paris aligned ETFs
• Enhanced engagement framework for portfolios and mandates
• Continued to refine sustainability approach to meet stakeholder needs
• Developed and implemented a portfolio sustainability risk governance process

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, heatwaves)
• Long-term climate change effects (sea-level rise, unstable weather)

Transition Risks

• Policy changes
• Technological changes
• Changes in customer preferences

Opportunities

• Growth in ESG AuM
• Development of low-carbon products and solutions

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Net Zero Pathway, Paris aligned Xtrackers ETFs

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 74.70% of the financial product’s net assets were invested in sustainable economic activities that contribute to an environmental and/or social objective, in accordance with Article 2 (17) SFDR. Exposure to Very Severe Controversies reduced from 0.56% to 0.00%, Exposure to Worst-in-Class issuers reduced from 0.56% to 0.00%, and Controversial Weapons Involvement reduced from 0.56% to 0.00%.

Social Achievements

• 74.70% of the financial product’s net assets were invested in sustainable economic activities that contribute to an environmental and/or social objective, in accordance with Article 2 (17) SFDR. Active engagement with investee issuers, using proxy voting and engagement to drive change for the benefit of clients.

Governance Achievements

• Any securities that violated the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights were excluded by the financial product’s Reference Index. DWS applied an Engagement Policy and Corporate Governance & Proxy Voting Policy.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG exclusions applied to investee companies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SFDR, EU Taxonomy

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 9

The Reference Index is designed to reflect the performance of the shares of companies that are associated with a positive contribution to Sustainable Development Goal 9

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed