Science Based Targets Initiative
Science-based CO₂ reduction targets
What is the Science Based Targets Initiative (SBTi)?
SBTi is committed to the reduction of greenhouse gases and offers companies support on their way to net zero CO₂ emissions. The reduction is based on science-based targets. Through the initiative, companies can align their decarbonization targets with those of the Paris Climate Agreement. In this way, they effectively counteract climate change.
The initiative was created in collaboration between CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). It is also one of the commitments of the We Mean Business Coalition.
Coinciding with its official support of the Task Force on Climate-related Financial Disclosure (TCFD), Commerzbank joined the Science Based Targets Initiative (SBTi) in September 2020.
As a supporter of the TCFD and by joining the SBTi, we are pursuing in particular the goal of making climate risks in the portfolio transparent and comparable. In addition, we continue to set targets to reduce emissions intensities and design reduction pathways in line with the requirements of the Paris Climate Agreement.
How do we manage our Net Zero goals in an SBTi-compliant manner?
We are pursuing the strategic sustainability goal of reducing the CO₂ emissions of our entire credit and investment portfolio to net zero by 2050. To this end, we have analysed the CO₂ intensities of Commerzbank AG's credit and investment portfolio in 2022. In addition, we have defined sector-specific target values in accordance with the Paris Climate Agreement. In doing so, we methodically adhere to the SBTi.
We have set ourselves concrete sector-specific targets using SBTi's Sectoral Decarbonization Approach (SDA). In this way, we are reducing the CO2 intensities associated with our credit and investment portfolio and will ultimately achieve our Net Zero Commitment.
We aim to manage all portfolios specified in accordance with the SBTi method, with a particular focus on the emissions-intensive sectors. These include power generation, automotive manufacturing and the production of cement, iron and steel. We also take into account the private construction financing portfolio, which is optional under SBTi. In the 2022 reporting year, we formulated corresponding emission intensity reduction targets for these portfolios, and SBTi has validated these. The portfolio targets according to SBTi are published in the ESG framework. The status of target achievement is regularly updated there. Our ambition is to support companies in the real economy in their transformation process and to sustainably reduce the financed emissions in our portfolio.