Deutsche Bank has released an update to its Transition Plan, reaffirming its commitment to achieving climate-related goals and net-zero ambitions. This update follows the bank’s initial Transition Plan published in 2023 and comes amid a broader industry reassessment of climate strategies, with several major banks worldwide adjusting or abandoning their climate commitments.
Despite these trends, Deutsche Bank has reiterated its sector-focused financed emissions reduction targets for 2030 and 2050 and its overarching net-zero goal for 2050. Jörg Eigendorf, the bank’s Chief Sustainability Officer, emphasised the importance of maintaining this path, viewing it as a societal responsibility and a component of prudent risk management and business opportunities. He highlighted the urgency of addressing climate change while protecting the bank’s operations and balance sheet against increasing catastrophic events and transition risks.
The updated Transition Plan details several initiatives Deutsche Bank has undertaken since its initial publication. These include implementing Divisional Carbon Budgets within its corporate and investment banks and linking these budgets to the compensation of the bank’s Management Board. The bank is also embedding climate and transition risks within its risk management framework, client and transaction approval processes, and portfolio monitoring. Additionally, it has established various frameworks and policies, such as a Sustainable Finance Framework and an ESG Investments Framework.
Financed emissions, particularly “Scope 3, Category 15,” represent the majority of Deutsche Bank’s climate impact. Within this, the €118 billion corporate loan portfolio accounts for 93% of financed emissions, while the €166 billion European residential real estate portfolio represents 7%. The bank has maintained its decarbonisation targets for eight carbon-intensive sectors, including Oil & Gas and Power Generation. As of the end of 2024, the corporate loan portfolio’s emissions fell by 5% compared to 2023, and the European residential real estate portfolio’s emissions decreased by 44% since 2022, partly due to reduced new mortgage business.
Deutsche Bank is focused on systematically reducing financing for carbon-intensive activities and increasing support for net-zero initiatives. This includes financing clean energy infrastructure, engaging with high-emitting clients to assist their transition, and potentially phasing out high-emitting assets when necessary.
The report also highlights progress in reducing operational emissions, with a 79% reduction in Scope 1 and 2 emissions and a 45% reduction in non-financed Scope 3 emissions since 2019, despite a slight increase in 2024.
Eigendorf stated that the Transition Plan outlines what clients and the public can expect as the bank contributes to decarbonising the economy. As regulations and reporting standards evolve, Deutsche Bank intends to continuously refine its approach to achieve net-zero by 2050.
For more details, access Deutsche Bank’s updated Transition Plan [here](https://www.db.com/what-we-do/responsibility/sustainability/transition-plan/?language_id=1&kid=transitionplan.redirect-en.shortcut).
