SDG 13: Climate Action SDG 13: Climate Action

Take urgent action to combat climate change and its impacts

To lead by example, we have also set ourselves a clear and controllable goal: Net-Zero Banking. As one of the first institutions worldwide, we are committed to completely neutralize greenhouse gas emissions across our entire loan and investment portfolio by 2050 at the latest, thus becoming a Net-Zero Bank. In April 2021, we therefore joined the Net-Zero Banking Alliance of the UNEP FI as first signatory. To manage our portfolios, we use the scientific approach of the Science Based Targets Initiative (SBTi), which we were also the first German institution to join in 2020.

In addition, Commerzbank adopted a new fossil fuel policy in 2022 with the aim of accelerating the coal phase-out by 2030. In the two years prior to this, we had already halved our coal portfolio. At the beginning of 2022 it stood around 1 billion euros, representing only around 0.2% of the bank’s total portfolio. With the new directive, the threshold for companies with coal purchases will be significantly lowered and put on an equal footing worldwide: Existing customers that currently generate 20% or more of their sales or electricity from coal have until 2025 to develop a plan for phasing out coal by 2030. To this end, Commerzbank will enter into an intensive exchange with its customers. Commerzbank will not enter into any new business relationships with companies that currently generate more than 20% of their revenue or electricity from coal. The same applies to potential new customers with expansion plans. With the new guideline, Commerzbank is also regulating its dealings with companies in the oil and gas sectors in a binding manner for the first time: Existing business relationships in these sectors are regularly reviewed for environmental and social aspects. In addition, we do not enter into any new business relationships with companies that are pursuing expansion plan in oil and gas. The financing of new oil-fired power plants as well as oil and gas production projects is also excluded as a matter of principle. This applies to both conventional and unconventional production methods.

Furthermore, we are actively involved in numerous initiatives and have, among others, recently signed the UN Principles for Responsible Banking and the Climate Protection Commitment of the German financial sector, and have joined the Task Force on Climate-related Financial Disclosure (TCFD).