The investment banking firm is revamping its financing policies for the fossil fuel industry to contribute to the transformation towards a sustainable economy
Deutsche Bank seeks to drive the transformation to a sustainable economy. (Credit: hangela/Pixabay)
Germany’s investment banking firm Deutsche Bank has adopted a new Fossil Fuels Policy, under which it aims to end financing for coal mining by 2025.
The new policy outlines a stringent framework for its business activities in coal, oil and gas activities.
The German firm is revamping its financing policies for the fossil fuel industry to contribute to the transformation towards a sustainable economy.
As per the new Fossil Fuels Policy, Deutsche Bank will end its global business activities including financing and capital market transactions, in coal mining by 2025 at the latest.
Deutsche Bank signs risk management framework Equator Principles
Additionally, Deutsche Bank has signed a risk management framework, Equator Principles, to assess the environmental and social risk of financing projects.
The principles would ensure the Deutsche Bank-backed projects meet environmental and social standards during the development and construction phases.
Deutsche Bank CEO Christian Sewing said: “Our new Fossil Fuels Policy sets us a strict framework for our business activities in the oil, gas and coal sector.
“In its current form, the Policy sets us ambitious targets and enables us to help our long-standing clients with their own transformation. It will allow us to play our part in protecting the climate and helping the EU to achieve its goal of being climate neutral by 2050.”
By the end of this year, the bank plans to undertake a review of its existing business activities in Europe and the US, involved in coal power. It will be followed by a review in Asia in 2022.
Deutsche Bank said it would immediately cease financing approval for new projects in the Arctic region or oil sand projects.
By the end of 2020, the bank intends to review all its existing business activities involving oil and gas projects.
In November last year, BNP Paribas said that it would stop all its financing pertaining to the thermal coal sector in 2030 in the European Union, and in the rest of the world by 2040.