Sustainability and ESG
More than environmental protection – why a holistic perspective matters.
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 ESG mean?
Environmental (E)
The “E” refers to environmental protection, including the protection of nature and the climate. The primary focus is often on climate action, mitigating climate change and reducing greenhouse gas emissions. It also includes the use of natural resources in a way that safeguards their long-term availability. Responsible use of water and energy plays a particularly important role in this context. Conscious and efficient use helps conserve resources and reduce environmental impacts. Protecting healthy ecosystems is also essential for preserving and promoting biodiversity. This includes protecting endangered animal and plant species as well as restoring damaged ecosystems. The loss of species and habitats reduces biodiversity and has an impact on ecosystem functions and human health.
Social (S)
The "S" refers to activities and measures relating to people. For companies, this means in particular ensuring a safe and fair working environment, contributing to the promotion of health and education and social commitment. This also includes topics such as diversity, inclusion and equal opportunities in society, as well as compliance with human rights along the entire supply chain.
Governance (G)
Governance refers to responsible corporate governance. It includes compliance with laws and regulatory requirements as well as related internal policies that guide business operations. Examples include data protection, the prevention of corruption, effective control and risk management processes, and transparency in corporate communications and reporting.
Implementation at Commerzbank, Integration of ESG aspects into the corporate strategy
| EnvironmentTarget E1: Net zero CO₂ emissions from our loan and investment portfolio by 2050 To the Implementation Plan | SocialTarget S1: 40 % women in leadership roles by 2030 | GovernanceTarget G1: Zero tolerance for corruption and comprehensive measures to prevent and detect corruption |
| EnvironmentTarget E2: Permanently allocate at least 10 percent of our new loan business to green and social projects and business models, as well as to our clients’ transformation measures To the Implementation Plan | SocialTarget S2: Maintain or improve employee satisfaction on a lasting basis | GovernanceTarget G2: Permanently achieving top scores in the Culture of Integrity Score, which measures our integrity as part of the Risk Culture Assessment |
| EnvironmentTarget E3: Net zero CO₂ emissions (Scope 1 and Scope 2) in our banking operations by 2040 To the Implementation Plan | SocialSupporting diversity and wellbeing through targeted initiatives and programmes | GovernanceOur ESG Framework covers the key elements of our sustainability strategy and includes our Climate Transition Plan |
| EnvironmentA selected range of products incorporating climate-related criteria | SocialA range of employee development programmes | GovernanceESG, compliance and risk management are embedded in organisational structures |
| EnvironmentBiodiversity is considered across key areas of our strategy. | SocialSocial commitment, for instance by means of our Commerzbank Foundation | GovernanceWe provide information on environmental, social and governance topics in various reporting formats, including disclosures in line with the Corporate Sustainability Reporting Directive (CSRD) See our sustainability reporting |
| Environmentand much more. | Socialand much more. | Governanceand much more. |
Tackling ESG together
Taking environmental, social and governance considerations into account across business and society requires collaboration and a shared understanding of key principles. Accordingly, our approach draws on selected international ESG-related frameworks and standards, and we participate in selected initiatives.
- Memberships & Initiatives
To fulfill a social obligation
- Sustainable Development Goals
Transforming our economy: As part of society, Commerzbank is making its contribution to achieving the 2030 Agenda for Sustainable Development
- ESG-Positions & Guidelines
Defining Responsibility – Our Positions, Exclusions, and ESG Commitment
Investment and financing solutions incorporating selected ESG considerations
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.
Things to know, What others are interested in about the topic of ESG
Various ESG reports and ratings can help investors and other stakeholders understand how companies report on, and are assessed in relation to, environmental, social and governance matters.
This includes, in particular, sustainability reporting in accordance with the Corporate Sustainability Reporting Directive (CSRD). Additional insights into a company’s environmental, social and governance matters may be provided through disclosures aligned with standards and frameworks such as the Global Reporting Initiative (GRI), the Principles for Responsible Banking (PRB), the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD).
ESG ratings assess company data relating, for example, to environmental impacts and working conditions. They are produced by a range of providers, including MSCI, Sustainalytics and ISS.
Crucial to successful risk management are the identification of all significant risks and risk drivers, the independent measurement and assessment of these risks, and risk- and earnings-oriented management based on this as part of a forward-looking risk strategy.
This also includes the early identification of environmental, social or ethical risks and the adequate handling of such risks. After all, sustainability risks resulting from climate change, the loss of biodiversity, or human rights violations are potential financial risks for the real economy - and thus also for the financial industry.