[ad_1]
Deutsche Bank releases new Sustainable Finance Framework, outlining methodology and procedures, including environmental and social criteria and categories, used by banks to classify transactions and financial products as ‘sustainable’ announced.
The new framework is the second announced by Deutsche Bank, following the first Sustainable Finance Framework launched in July 2020. The goal was to expand. The bank has since raised its target several times and now aims to reach €500 billion in sustainable lending and investment between 2020 and 2025.
Earlier this month, Deutsche Bank revealed that at the end of 2023, funding towards sustainable finance and investment goals reached €279 billion.
According to Jörg Eigendorf, Chief Sustainability Officer at Deutsche Bank, key updates in the new framework include stronger eligibility criteria and guidance from market associations such as ICMA, LMA and ISDA to better understand evolving market practices. Includes built-in transparency improvements. A commitment to publish progress on sustainable financing and investment volumes as part of quarterly and annual financial results and annual non-financial reports.
Eligibility criteria for sustainable finance and investments under the framework of activities classified as “environmentally sustainable” include climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources. It is based on the six guiding objectives of the EU taxonomy, including: Transitioning to a circular economy, preventing and controlling pollution, protecting and restoring biodiversity and ecosystems. For socially sustainable activities, the framework includes access to basic infrastructure, access to essential services, affordable housing, small business financing and microfinance, job creation, food sustainability and It outlines classifications based on objectives such as sustainable food systems, socio-economic progress and empowerment.
Deutsche Bank also received a second-party opinion from rating agency and consultancy ISS ESG, which said the framework “reflects market practice” and is in line with the bank’s existing sustainability standards. He said he confirmed that.
In a social media post announcing the framework, Eigendorf said:
“€279 billion – this is the amount of sustainable financing and ESG investments we promoted from 2020 to 2023. But what is sustainable? and social?
“Our newly updated Sustainable Finance Framework provides the answers and is open to everyone. It comprehensively outlines sector-specific classification thresholds and social classification criteria. Furthermore, we also define the environmental and social requirements that are essential to our due diligence process, which serve as the basis for achieving our ambitious sustainability goals based on reliable standards.”
Click here to access the Sustainable Finance Framework.
[ad_2]
Source link
