Sustainability criteria as a high benchmark, Banking Business
We divide our financial products into general finance and sustainable finance. While both categories meet our basic social and environmental ESG requirements, Sustainable Finance also meets even stricter sustainability criteria.
Sustainability and ESG are widely used terms. Sustainability describes a forward-looking perspective in which environmental, social and economic aspects are considered over the long term in order to preserve the foundations of life and business for future generations. In the corporate and financial sectors in particular, these aspects are commonly summarized under the term ESG (Environmental, Social and Governance). Sustainability is defined differently across regulatory, scientific, and economic contexts. Regulatory requirements, such as the EU Taxonomy or the EU Sustainable Finance Disclosure Regulation, provide a framework for individual sustainability aspects while leaving room for company-specific specification.
The specific meaning of sustainability for Commerzbank AG’s products, services, and business activities is set out in the ESG Framework. It defines the relevant criteria and distinguishes, in particular, between the Bank’s own business and external client investment and insurance business, including asset management and securities business (“third-party business”).
What does Sustainable Finance mean?
Sustainable finance products play a central role in promoting a responsible financial world and real economy. For Commerzbank, sustainability means supporting ecological and environmentally friendly investments. At the same time, it is about assuming social responsibility and supporting projects that contribute to the betterment of society and to social justice. Our sustainable financial products in the areas of loans, bonds, investment products, pensions, trade finance, own investments, own bonds and deposits therefore aim to meet both environmental and social objectives to ensure a holistic approach to promoting sustainability and social prosperity.
Sustainable Finance Products as the Basis for Sustainable Transformation
It is both the expectation of the EU and the German government of the financial industry and Commerzbank’s own aspiration to finance the enormous demand for investment and innovation resulting from the transformation of the economy and society. As a universal bank, Commerzbank is fulfilling this task across its individual business areas. By providing sustainable finance products, we give our customers the opportunity to actively opt for them and thus contribute to the transformation.
„As a strategic partner, we support our corporate clients on their path to long-term success with tailored financing solutions.“
Deputy Chairman of the Board, Corporate Clients division
Sustainable Loans, What does the sustainable lending business consist of?
Green & social loans
Green loans finance projects such as renewable energy, energy efficiency measures and conservation initiatives to promote environmental sustainability. Social loans support projects with a positive social impact, such as health and education projects, programmes to combat poverty, or social integration initiatives. With its green loans and social loans, Commerzbank aims to promote investment in projects and companies that positively impact sustainability.
Transition Loans
Transition loans focus on financing the transition of companies and sectors to more sustainable business models. Commerzbank’s aim is to help companies become carbon neutral in the long term. Transition loans are therefore an important building block for achieving the goals of the Paris Agreement on climate change.
Measuring the climate impact of the loan and investment portfolio
, Science Based Targets InitiativeThe SBTi advocates the reduction of greenhouse gases on the basis of science-based targets. These targets enable companies to align their climate strategies with the goals of the Paris Agreement and actively contribute to combating climate change. Based on this, we steer our loan and investment portfolio to promote sustainable and climate-friendly financial decisions.
Understanding the EU Regulation for sustainable financing
, EU taxonomyThe EU taxonomy is a definition of sustainable financial products established by the EU and as such is part of the overarching European Green Deal. Financings that meet the requirements of the EU Taxonomy are classified by Commerzbank as Sustainable Loans.
Sustainable Development Goals
Currently, the SDGs and the principles of the UN Global Compact provide us with guidance in the social area of our Sustainable Finance definition. Here, we pay particular attention to the protection of human rights, fair working conditions and equal opportunities. We also fight corruption and other forms of economic crime for which financial services can be misused.