Governance structure
Holistic integration of sustainability at all levels of Commerzbank
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”).
Growth and Transformation
, Sustainability in the corporate strategySince 2020, we have incorporated environmental, social and governance targets and measures into our corporate strategy.
Our enhanced “Momentum 2030” strategy places clients, investors and employees at its centre, bringing together the interests of these three key stakeholder groups. The strategy focuses on maintaining and strengthening stakeholders’ trust in Commerzbank. The key drivers are security, reliability, delivery capability and responsibility. For us, responsibility means considering environmental, social and governance aspects in selected management and decision-making processes.
The transformation towards a sustainable economy affects our customers and us in equal measure. We want to play an active role in shaping this transformation. In this context, we see responsibility as a key guiding principle that underpins our holistic ESG approach. Our targets are to achieve the United Nations Sustainable Development Goals (SDGs) and the Paris climate goal of limiting global warming to well below 2 degrees Celsius. To this end, we are steadily expanding our range of innovative products and our solutions for customers.
Second, we are steadily driving forward the transformation of our banking operations. The main focus of our sustainability strategy is our commitment to combating climate change, to which our Net Zero targets contribute significantly. In addition, we are increasingly addressing issues that are moving into the focus of the sustainability debate, such as the protection of biodiversity.
Governance structure for ESG topics at Commerzbank
Commerzbank’s sustainability strategy is reviewed regularly and refined where necessary. Appropriate governance structures have been established to coordinate, implement and monitor the strategy across the Bank, embedding sustainability in relevant committees, functions and corporate processes.
ESG Committee of the Supervisory Board
The Supervisory Board also advises and monitors the Bord of Managing Directors regarding sustainability issues. To reflect the increasing importance of sustainability for the bank, the Supervisory Board established the Environment, Social and Governance (ESG) Committee in 2022.
Board of Managing Directors
The Board of Managing Directors develops the strategy for the Commerzbank Group, discusses it with the Supervisory Board and ensures its implementation. Sustainability issues are incorporated into the annual strategy process for the overall bank strategy and are discussed in Board of Managing Directors meetings as and when appropriate. Each member of the Board of Management is responsible for implementing sustainability measures in his or her own area of responsibility. The central sustainability management function reports to the Chairman of the Board of Managing Directors and regularly informs him about progress on sustainability issues and activities.
Group Sustainability Board
With the Group Sustainability Board, the cross-cutting issue of sustainability is firmly anchored in the bank's organisation. The board defines the bank's strategic sustainability goals and monitors the measures taken to implement and manage them.
Group Sustainability Management
With Group Sustainability Management as the overarching sustainability area within the strategy unit, Commerzbank underscores the strategic priority of the topic. The unit is responsible for the ongoing development of the sustainability strategy and comprehensive governance. At the same time, Group Sustainability Management manages the “Sustainability 360°” group-wide program and thereby coordinates the sustainability work of Commerzbank in an overarching way.
Sustainability 360°
The overarching Group programme "Sustainability 360°" serves to implement our sustainability strategy. The customer divisions, Risk Management and numerous other relevant Group divisions are involved in this programme. It provides a framework for all sustainability activities and ensures a close link between cross cutting issues, a coordinated approach and rigorous tracking
Sustainability Advisory Board
In 2022, to ensure this key dialogue with our stakeholders, we established an external Sustainability Advisory Board under the patronage of the Chairwoman of the Board of Managing Directors. It provides impetus for the further development of our sustainability strategy and is made up of representatives from business, science, society, politics and non-profit organisations such as non-governmental organisations, foundations and associ ations.
