ESG Rating in Germany: DKB Defends Top Position

The international rating agency ISS ESG has awarded DKB the highest rating for the 8th time. This means that the Berlin-based direct bank was once again able to take the top position among 270 banks in the peer group “Public & Regional Banks” with regard to its sustainable business model.

The ISS ESG rating agency has been evaluating the sustainability performance of companies in various industries internationally since 2014 and analyzes more than 8,000 companies worldwide, around 300 of them in Germany, Austria, and Switzerland, with regard to environmental, social, and governance (ESG) aspects. In the process, the US sustainability agency once again confirmed DKB’s ESG corporate rating.

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Holistic impact internally and externally

The further development of investment and financing principles in lending, the further development of the sustainability strategy with specific targets for customer groups, and the newly developed sustainable finance training for all DKB employees were responsible for the very good performance in the 2022 assessment period. In addition, specific targets and measures for the protection of biodiversity were defined.

In its lending activities, DKB focuses on business customers in sustainable sectors of the future in Germany: renewable energies, housing, education, health/care, agriculture, and municipalities and infrastructure. In this context, around 79 percent of loans (EUR 66 billion) contribute significantly to the United Nations’ Global Sustainability Goals (SDGs).

Dr. Andreas Gruber, Head of Sustainability at DKB: “The renewed top position shows how resilient our sustainability principles are. This is not about selective CSR measures, but real impact on the economy and society through the targeted management of sustainable lending. Financing is geared to people’s needs and thus makes an important contribution to a sustainable society. DKB’s sustainability strategy is based on the Paris Climate Agreement, the Sustainable Development Goals (SDGs) of the United Nations and the related objectives of the German sustainability strategy.”

Expand position as the most sustainable bank among the Top20 in Germany

By 2030, 85 percent of the loan portfolio, or €80 billion, is to contribute significantly to the SDGs. In addition, DKB wants to continue to expand its pioneering role for sustainable banking among the Top20 banks in Germany and bring its entire product portfolio into line with the 1.5-degree limit of the Paris Climate Agreement as quickly as possible, but by 2040 at the latest.

DKB is already the market leader in Germany in the renewable energy sector, with a lending volume of €12 billion. Since 1996, the bank has financed over 6,500 wind turbines, biogas, and solar plants. 5.9 million 2-person households have green electricity as a result. By the end of 2027, a total of 14 GW of installed capacity in wind, solar, and biogas plants is to be financed, thus also contributing to the federal government’s RE expansion target.

Sustainable investments for private customers

DKB offers its customers sustainable funds with a focus on climate protection, the EU Green Deal, and SDGs. Through citizen savings and crowd investing, it involves regional citizens in sustainable projects and refinances them through green and social bonds.

DKB also joined various initiatives in 2021, including the UN Global Compact and the Principles for Responsible Banking. Both serve as frameworks to help achieve the United Nations Sustainable Development Goals (SDGs) and the 1.5-degree target. The UN Global Compact forms the world’s largest cross-industry initiative for responsible corporate governance. With its signature, DKB is now part of a network of 17,500 companies that are committed to ten principles of minimum social and ecological standards, including, for example, the promotion of fundamental human rights and the fight against corruption.

In addition, DKB has been a member of the Partnership for Carbon Accounting Financials (PCAF) since June 2021. The industry initiative provides a standardized methodology that BayernLB and DKB will use to calculate emissions in the product and credit portfolio for the first time in the foreseeable future.

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(Featured image by Alexas_Fotos via Pixabay)

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