For a sustainable transformation of the economy and society
What does Sustainable Finance mean?
Sustainable finance encompasses all financial products and services that promote positive environmental and/or social purposes. As a financial institution, we can channel financial flows into projects and technologies that reduce greenhouse gas emissions and promote climate change resilient development. This includes innovations that combat climate change (climate change mitigation) as well as adapt to the unavoidable consequences of climate change (climate change adaptation). We fund technologies that support these two approaches and thereby make a measurable contribution to our net-zero target by 2050. In doing so, we are guided by the Sustainable Development Goals (SDGs) and the EU taxonomy.
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.
How is it determined what counts as Sustainable Finance?
Sustainable use of proceeds
First, we check whether the intended use can be assigned to a criterion in our list of sustainable financial activities.
If the financing is not a dedicated transaction with a special or sustainable purpose, we check the sustainability of the company according to or based on the KPIs of the companies calculated in the taxonomy.
ESG Linked Product
Alternatively, certain products classified as sustainable can also be allocated to our Sustainable Finance portfolio.
Measuring the climate impact of the loan portfolio
Science Based Targets Initiative
The SBTi advocates the reduction of greenhouse gases on the basis of science-based targets. This will enable companies to align their climate policies with the objectives of the Paris climate agreement and effectively counteract climate change. We use this method to calculate and reduce the CO2 emissions associated with our credit portfolio.
Creating a uniform understanding of sustainable finance
The EU taxonomy is a definition of sustainable financial products established by the EU and as such is part of the overarching European Green Deal. Commerzbank's definition of sustainable finance is based on the EU taxonomy.
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.
ESG - Dimensions of Sustainability
ESG is the abbreviation for "Environmental Social Governance" and is used to assess the sustainability of a company on the basis of criteria from the environmental, social and governance areas. E and S criteria form the basis of our Sustainable Finance classification.