Memberships & Initiatives

The SBTI wants to push forward a science-based objective as an effective way to increase the competitive advantage of companies in the transition to a low-carbon economy. The initiative was created in cooperation by CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and is one of the commitments of the We Mean Business Coalition.

Our commitment / our efforts since September 2020

We calculate and reduce the CO₂ emissions associated with our credit portfolio (the so-called "financed emissions") according to the SBTI methodology. As a partner of our customers, especially in small and medium-sized enterprises, we want to support their transformation toward a low-carbon economy.

As a concrete first step, the Bank identified the CO₂-intensive sectors of its overall portfolio, identified the level of CO₂ exposure associated with these sub-portfolios, and calculated mitigation paths that are in line with the aims of the Paris Climate Agreement.

Example application Private mortgage loans

Private mortgage loans account for a large part of Commerzbank's loan portfolio with private and corporate clients. Measured in terms of CO₂ emissions, the residential property sector in Germany is of great importance. It is therefore particularly important for us to set a concrete interim target for this portfolio by 2030 on the way to "Net Zero" by 2050 at the latest.

Our objective: CO₂ emissions in the Private Construction Finance portfolio will be reduced by 57% by 2030.

Did you know?

On the basis of emission intensities, the associated approximate greenhouse gas emissions can be attributed to a single portfolio. Emissions intensities indicate how much g or kg of CO₂ equivalents (carbon dioxide and other greenhouse gases, e.g. Methane) are to be estimated in electricity generation per kilowatt hour.

PCAF is an industry-wide partnership to create transparency and accountability for the financial industry in relation to the Paris Agreement. The aim is to develop and implement a harmonised approach to the assessment and publication of GHG emissions from loans and investments. These uniform methods serve as the basis for science-based targets (SBT) and for the alignment of the portfolio according to the Paris Agreement.

PCAF was founded in 2015 by 14 Dutch financial institutions and has since been continuously developed, so that the PCAF standard is now applied globally. The methods developed by PCAF currently cover the following asset classes: listed companies & corporate bonds, loans and unlisted companies, project finance, construction finance, commercial real estate and auto finance.

Our commitment / our efforts since April 2023

Commerzbank uses the PCAF standard for the calculation of portfolio intensities as part of the SBTI reduction targets. The PCAF membership, furthermore, comes with the access to databases that are arithmetically relevant for science-based targets.

The task force has set itself the overarching goal of shifting global financial flows away from non-natural outcomes. To this end, they develop a risk management concept that enables organisations to report and act on developing natural risks. TNFD funding is provided by the United Nations, philanthropic foundations and governments, including Germany, France, the Netherlands, Norway, Switzerland and the United Kingdom. The TNFD recommendations provide the basis for consistent and comparable reporting on the effects of biodiversity loss. They are based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Our commitment / our efforts since April 2023

Commerzbank is an official supporter of the Task Force on Nature-related Financial Disclosures (TNFD). In this way, we make natural opportunities and risks transparent for our credit portfolio.

In 2022, we carried out an impact and dependency analysis for the first time in order to lay the foundation for future management of the topic of biodiversity. This enables a scientific link between economic activities and biodiversity-damaging effects. On this basis, we will develop future measures to protect biodiversity and variety of species.

For the 2024 reporting year, we have published our first independent nature and climate report in accordance with the TNFD and TCFD standards.

The initiative arose due to the increasing risks from climate change. In the risk management of companies and banks, physical risks, such as the effects of natural disasters, and transitory risks from the process of change toward a more sustainable economy, are becoming increasingly important factors. The recommendations of the TCFD provide the basis for consistent and comparable reporting on the impacts of climate change.

Our commitment / our efforts since September 2020

Commerzbank is an official supporter of the Task Force on Climate-related Financial Disclosures (TCFD). In this way, we make the opportunities and risks of climate change transparent for our credit portfolio.

We want to transform our credit portfolio accordingly in the coming years and provide our stakeholders with decision-relevant information based on clear and comparable benchmarks.

Since the 2024 reporting year, we publish an independent nature and climate report in accordance with the TCFD and TNFD standards.

Our commitment / our efforts since 2019

As Commerzbank, we are among the first signatories of the Principles for Responsible Banking. In doing so, we stress the high relevance of responsible banking for Commerzbank and that we are aware of the impact of our actions on society.

Signatories of the PRBs undertake to formulate target plans for all major business areas and to publish them.

The six principles

The principles cover both the strategic and operational levels.

1. Alignment: We will align our business strategy to be consistent with and contribute to individuals’ needs and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.

2. Impact: We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products and services. To this end, we will set and publish targets where we can have the most significant impacts.

3. Customers and consumers: We will work responsibly with our clients and our customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.

4. Interest groups: We will proactively and responsibly consult, engage and partner with relevant stakeholders to achieve society’s goals.

5. Corporate governance and objectives: We will implement our commitment to these Principles through effective governance and a culture of responsible banking.

6. Transparency and accountability: We will periodically review our individual and collective implementation of these Principles and be transparent about and accountable for our positive and negative impacts and our contribution to society’s goals.

Our commitment / our efforts
By implementing the PRI and thus integrating ESG criteria into our investment approach, we want to create added value for our customers and actively advance in a changing society.

The six principles

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 6: We will each report on our activities and progress towards implementing the Principles.

The initiative acts as a platform for dialog in order to continuously develop biodiversity management. By discussing best practices, companies and economic actors are meant to learn from each other. At the national and international level, the members of this initiative foster an open dialogue between business, politics, science, non-governmental organisations and society in order to improve the understanding of shared responsibility, accelerate sustainable solutions and promote diverse natural alliances.

The companies organised in the "Biodiversity in Good Company" initiative act as the voice of the economy in order to achieve a reliable political framework that promotes the potential of entrepreneurial commitment to the protection of biodiversity in the best possible way under conditions of global competition.

Our commitment / our efforts since March 2022

Since March 2022, Commerzbank has been part of the BiGCI initiative.

The loss of biodiversity causes irreversible damage, with far-reaching consequences for us all. For this reason, we also started the Commerzbank environmental internship together with German national parks back in 1990.

The implementation of the three goals of the International Convention on Biodiversity (CBD) is an essential prerequisite for achieving the UN Sustainable Development Goals (SDGs) and one of the major challenges of our time, apart from climate protection. By joining the BiGCI, we are committed to recognizing and supporting the CBD objectives:

• The conservation of biological diversity
• The sustainable use of the components of biological diversity
• The fair and equitable sharing of the benefits arising out of the utilisation of genetic resources

In addition, we will analyse the impact of our business activities on biodiversity and possible operational dependencies on it, in order to set verifiable goals for improving the protection of biodiversity and its sustainable use. As proof of our continued commitment, we will present a progress report to the initiative every two years, starting in 2024.

The United Nations Global Compact is a voluntary pact between companies, organisations and the UN, under which participating companies and organizations commit to promoting human rights, fair working conditions, environmental protection and the fight against corruption. Ten principles have been developed, to which participating companies are committed, and which are established and continuously developed through initiatives, projects, guidelines and training. The Global Compact pursues two complementary goals: Firstly, the ten principles should be integrated into corporate action at a global level, and secondly, measures should be promoted that support the general goals of the UN (e.g. Sustainable Development Goals).

Our commitment / our efforts since 2006

We have been participants in the UN Global Compact since 2006. Since then, we have been reporting annually on the progress made in implementing and integrating its objectives into the Bank's processes and structures in the context of sustainability reporting. We consistently support the objectives and principles of the UN Global Compact through a variety of initiatives and projects. We continue to develop our activities in order to continue fulfilling our commitment under the UN Global Compact.
The ten principles of the UN Global Compact:

Human rights:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.

Principle 2: Businesses should make sure that they are not complicit in human rights abuses.

Labour:
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour.

Principle 5: Businesses should uphold the effective abolition of child labour.

Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation.

Environment:
Principle 7: Businesses should support a precautionary approach to environmental challenges.

Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility; and

Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption:
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.