Science Based Targets Initiative, Portfolio Targets
Our Path to Net Zero in the Loan and Investment Portfolio by 2050
We pursue the ambition of achieving net-zero financed CO₂ emissions in our loan and investment portfolio by 2050. This ambition is aligned with the definition of the Science Based Targets initiative (SBTi) Financial Institutions Net-Zero Standard. Net-zero emissions comprise the substantial reduction of relevant Scope 1, Scope 2 and Scope 3 emissions, as well as the neutralisation of any remaining residual emissions by the companies within the portfolio in accordance with a recognised standard.
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”).
Our target architecture
The loan and investment portfolio covered by the Net-Zero ambition is based on the portfolio boundary defined by the SBTi for financial institutions (SBTi Financial Sector Science-Based Targets Guidance Version 1.2). It includes regulatory-relevant outstanding volumes of on-balance-sheet lending and investment activities.
As the emissions associated with a loan and investment portfolio depend largely on the transition progress of the companies being financed, implementation primarily focuses on supporting clients throughout their transition journey and providing selected financing solutions.
Our target architecture is based on three levels:
- Net-Zero Ambition 2050
- SBTi-validated interim targets 2030
- IEA-based steering targets 2030
More detailed information on the definition of Net Zero, the portfolio boundary and the implementation plan can be found in the ESG Framework.
Science Based Targets Initiative (SBTi)
The Science Based Targets Initiative (SBTi) supports companies and financial institutions in developing science-based climate targets aligned with the goals of the Paris Agreement.
The initiative was founded by CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and is today considered one of the leading standards for science-based climate targets.
Commerzbank has been a member of the SBTi since September 2020.
SBTi Interim Targets 2030
To operationalise our Net-Zero ambition, we have established interim targets for 2030 and 2026. Using the SBTi Sectoral Decarbonisation Approach (SDA), we have defined specific decarbonisation targets for emissions-intensive sectors within our loan and investment portfolio. These sectors include energy, aviation, automotive, commercial real estate finance, cement, and iron and steel. For other parts of the portfolio, interim targets up to 2026 were established using the SBTi Temperature Rating Approach.
Our targets were first validated by the SBTi in 2023. Following the transition of our financed emissions calculations to the internationally recognised Partnership for Carbon Accounting Financials (PCAF) Standard, the adjusted targets were successfully revalidated by the SBTi in 2025. Residential mortgages were not included in the 2025 SBTi revalidation, as this portfolio is not required under the SBTi framework. Nevertheless, Commerzbank continues to pursue a dedicated 2030 interim target for this portfolio and has aligned it with the International Energy Agency (IEA) Net Zero Scenario (~1.5°C) since 2026 (see section below).
IEA Interim Targets 2030
In 2025, the ongoing assessment of selected portfolios indicated that actual decarbonisation rates in certain sectors were progressing more slowly than originally assumed. As a result, targets based on International Energy Agency (IEA) scenarios were introduced in early 2026.
The IEA scenarios are updated regularly and incorporate developments in technology, regulation, energy markets and economic conditions. This allows current market developments to be reflected more effectively within the target framework.
The following portfolios currently apply IEA-based interim targets for 2030: Residential Mortgages IEA Net Zero Scenario (~1.5°C), Commercial Real Estate (commercial and residential use) IEA Announced Pledges Scenario (~1.7°C) and Aviation IEA Announced Pledges Scenario (~1.7°C).
For the commercial real estate portfolios and the aviation portfolio, the SBTi-validated 1.5°C targets remain in place as transparent reference points. Since 2026, operational portfolio steering has been based on the corresponding IEA interim targets.
Further information
The ESG Framework provides detailed information on the Net-Zero Ambition 2050, the interim targets and target values up to 2030, the definition of the loan and investment portfolio, and the externally reviewed implementation plan. The results of the external review of the implementation plan are also published in the ESG Framework.
Commerzbank reports annually on progress regarding financed emissions and target achievement, as well as any material changes, in its externally assured Group Sustainability Report.