Climate Change Data

flatexDEGIRO AG

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Energy and emissions
  • Training and further training
  • Health protection
  • Employee satisfaction
  • Compliance
  • Corporate ethics
  • Capital market access and capital accumulation
  • Data protection and security
  • Customer focus
  • Innovative products and services
  • Fostering sustainable financial investment

Environmental Achievements

  • Switched to LED lighting at some locations, with plans to complete the switch by end of 2021.
  • Dismantled older infrastructure and replaced it with more efficient alternatives.
  • Successively switched from classic PCs to thin clients or notebooks.
  • Implemented a travel policy that extensively rules out domestic flights in Germany.
  • Equipped all locations with new video conference technology to reduce business trips.

Social Achievements

  • Successfully integrated DEGIRO, creating an international working environment.
  • Introduced a dedicated HR management system (to go live in Q2 2021).
  • Offered mobile working from home since February 2020.
  • Improved Net Promoter Score (NPS) to 47 in 2019 (compared to 41 in 2018 and 26 in 2017).
  • Reinforced customer service with new recruits.
  • Launched flatex-next with an intuitive user interface.

Governance Achievements

  • Appointed an ESG officer.
  • Signed the UN Global Compact.
  • Implemented a whistleblower system.
  • Conducted compliance training focusing on anti-money laundering, anti-corruption, data protection, IT security, and occupational safety.
  • Harmonized IT security processes between flatexDEGIRO and DEGIRO.

Climate Goals & Targets

Long-term Goals:
  • Establish itself as the leading independent European financial supermarket by 2025.
Medium-term Goals:
  • Increase the number of securities transactions processed to over 100 million per year by 2025.
  • Grow customer base to at least three million by 2025.
  • Further extend flatex-next and introduce it into further countries.
Short-term Goals:
  • Complete the switch to LED lighting by end of 2021.
  • Implement a data recording tool for emissions from 2021.
  • Switch locations to green electricity.
  • Introduce climate-neutral correspondence within Germany from mid-2021.
  • Implement CO2 compensation for vehicle fleet from April 2021.

Environmental Challenges

  • Integrating DEGIRO's culture and operations.
  • Maintaining data protection and security with a growing customer base.
  • Reducing energy consumption and emissions from data centers.
  • Addressing health concerns related to sedentary work.
  • Coronavirus pandemic impacting in-person interactions and training.
Mitigation Strategies
  • Implementing a new HR management system.
  • Strengthening IT security measures and systems.
  • Investing in energy-efficient technologies and infrastructure.
  • Promoting mobile working and ergonomic workspaces.
  • Offering online training and communication channels.

Supply Chain Management

Responsible Procurement
  • Purchasing hardware directly from manufacturers to avoid additional transportation.
  • Exchanging information with suppliers about product developments and sustainability aspects.

Climate-Related Risks & Opportunities

Transition Risks
  • CO2 taxation
Opportunities
  • Reducing energy consumption and emissions

Reporting Standards

Frameworks Used: CSR-RUG

Certifications: ISO 27001 (information security management)

Sustainable Products & Innovation

  • Filter function for sustainable products in flatex-next

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:919.4 tCO2 (site-based, before offsetting)
Scope 2 Emissions:290.6 tCO2 (site-based)
Renewable Energy Share:100% for German office locations in 2022
Total Energy Consumption:2,368 MWh (estimated for some locations)

ESG Focus Areas

  • Financial education
  • Employee development
  • Corporate governance
  • Environmental protection
  • Sustainable investments

Environmental Achievements

  • Switched all German office locations to green electricity in 2022.
  • Reduced Scope 1 and Scope 2 emissions (after offsetting) by -28.6% from 685.3 metric tons of CO2 (2021) to 489.2 metric tons of CO2 in 2022.
  • Achieved 43% electric or hybrid vehicles in the company fleet by the end of 2022.

Social Achievements

  • Attracted more than 460,000 new customers in 2022.
  • Launched "DEGIRO Women" initiative to promote financial literacy among women.
  • Increased employee satisfaction (NPS) for flatex to 46 (from 43 in 2021) and DEGIRO to 55.
  • Expanded workforce by over 300 employees in 2022.
  • Employee turnover of 17.9% in 2022 (16.6% in 2021).

Governance Achievements

  • Joined the United Nations Global Compact (UNGC) in 2021.
  • Implemented a uniform Group-wide occupational safety strategy in 2022.
  • Improved ESG risk rating from medium to low risk by Sustainalytics.

Climate Goals & Targets

Medium-term Goals:
  • Reduce Scope 1 and Scope 2 emissions by at least 70% by 2026.
  • Reduce Scope 3 emissions by up to 30% by 2026.
  • Extend the switch to green power to all European office sites by the end of 2024.
Short-term Goals:
  • Increase the proportion of suppliers committing to the Business Partner Code of Conduct to at least 40% by 2023.
  • Maintain the number of training courses per year at a high level.
  • Continue driving forward the electrification of the vehicle fleet.

Environmental Challenges

  • BaFin conducted a special audit in 2022, ordering improvements in business organization, risk management, and money laundering prevention.
  • Sedentary nature of computer workstations impacting employee health.
  • Increasing phishing and ransomware attacks.
Mitigation Strategies
  • Implementing measures to address BaFin's audit findings.
  • Offering health-related preventive check-ups, vaccinations, and ergonomic work environments.
  • Utilizing state-of-the-art software and technologies for data protection and security.

Supply Chain Management

Supplier Audits: Major suppliers (measured in terms of sales) are required to sign the Business Partner Code of Conduct since 2022.

Responsible Procurement
  • Business Partner Code of Conduct based on flatexDEGIRO Code of Conduct, UN Global Compact, UN Universal Declaration of Human Rights, and ILO core labor standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001 (data centers)

Awards & Recognition

  • "Best Online Broker" in Germany (Brokerwahl)
  • "Best ETF & Funds Broker" in Germany (Brokerwahl)
  • "Best Daytrade Broker" in Germany (Brokerwahl)
  • "Best Fund and ETF Broker" in Germany (BrokerVergleich)
  • "App-Award Online-Broker" in Germany (Deutsche Gesellschaft für Verbraucherstudien mbH)
  • "Highest Recommendation 2022" from Focus-Money
  • "Best Discount Broker" and "Best Broker for Stock Trading" (BrokerChooser)
  • "Best Stock Broker 2021" in Spain, Portugal and Italy (Rankia)
  • "Best ETF Broker" from Rankia in Portugal
  • "Best Online Broker" and "Best Broker for ETFs and Investment Funds" in Italy (QualeBroker)
  • Test winner in the "Online Broker" category in Austria (Gesellschaft für Verbraucherstudien)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:878.4 tCO2e/year (Scope 1 & 2, net)
Scope 1 Emissions:607.5 tCO2e/year
Scope 2 Emissions:270.9 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:77% of total energy use
Total Energy Consumption:5169.1 MWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Transitioned all German office sites to green electricity in 2022.
  • Reduced Scope 1 and Scope 2 emissions from 919.4 metric tonnes of CO2e (2022) to 878.4 metric tonnes of CO2e in 2023 (adjusted for offsetting, -12.8%).
  • Achieved a Power Usage Effectiveness (PUE) of around 1.3 in German data centers (below the German average of 1.55).

Social Achievements

  • Acquired approximately 340,000 new customer accounts.
  • Increased total customer base to more than 2.7 million private investors.
  • Launched the “Anyone Can Invest!” initiative to promote diversity.
  • Achieved a high employee participation rate (86%) in the global employee survey.
  • Employee turnover decreased from 17.9% in 2022 to 15.8% in 2023.
  • Maintained a high level of training (over 30 hours per employee per year).

Governance Achievements

  • Joined the United Nations Global Compact (UNGC) in 2021.
  • Implemented a whistleblower system.
  • Conducted a Group-wide risk analysis to review corruption risks (no significant risks identified).
  • Successfully remediated key findings of a special audit by BaFin.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 and Scope 2 emissions by at least 70% by 2026 (2020 baseline).
  • Reduce Scope 3 emissions by up to 30% by 2026 (2020 baseline).
Short-term Goals:
  • Increase the proportion of suppliers adhering to the Business Partner Code of Conduct to at least 40% by 2024.

Environmental Challenges

  • Decreased trading activities year-on-year due to the market environment.
  • Fee adjustments impacting Net Promoter Score (NPS).
  • Special audit by BaFin resulting in a fine for administrative offences.
  • Fine paid due to an order by the Italian competition authority (legal action underway).
Mitigation Strategies
  • Revised credit strategy focusing on low-risk securities-backed credit business.
  • Continuous improvement of customer experience.
  • Implemented measures to eliminate deficiencies identified by BaFin.
  • Increased workforce in functional areas related to Internal Audit, Internal Control Systems, Regulatory Reporting, and Anti-Money-Laundering.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Business Partner Code of Conduct (major suppliers required to sign since 2022).

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001 (data centers)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • flatex green search function for ESG products
  • flatex wealth with sustainable investment strategies

Awards & Recognition

  • Top Employer
  • Best Online Broker (BrokerTest and BrokerComparison)
  • Best ETF & Fund Broker (BrokerTest and BrokerComparison)
  • Audience prize from CashCow (Netherlands)
  • Rankia award as “Best International Broker for Stocks”
  • Best customer service from “Corriere della Sera” (Italy)
  • Best European Discount Broker (Investing)
  • Best stock trading app (BrokerChooser)