Even as Germany continues to cling to coal-fired power, Deutsche Bank has reportedly placed more restrictions on financing projects related to thermal coal. The bank published its initial Transition Plan as well as net-zero pathways for three additional carbon-intensive industries in the bank’s corporate loan portfolio, saying it marks two further milestones in Deutsche Bank’s Net-Zero Banking Alliance.
The Transition Plan focuses on three dimensions of decarbonization: the bank’s own operations, supply chain and the financing it provides to clients. It targets three industries specifically: coal mining, cement production and shipping.
“We are committed to playing our part in fighting climate change, and we want to document transparently where we stand on our path to net-zero,” said Christian Sewing, CEO, Deutsche Bank. “We are convinced that it is imperative for a global bank headquartered in Europe to position itself as a sustainability leader if it is to have lasting success in serving its clients. Decoupling economic growth from CO2 emissions and the extensive use of natural resources will be decisive as our planet’s ecosystem comes close to tipping points.”
The Transition Plan sets out Deutsche Bank’s three-pronged approach to implementation. This includes financing the development and scale-up of clean energy technologies; engaging with high-emitting clients to support and finance their transition; and steadily phasing out business with not-to-abate industries such as thermal coal, and with clients not willing to align to the bank’s transition pathway.
