Deutsche Bank has reportedly set emissions targets for loans to clients in the cement sector as part of the bank’s net-zero target for 55 per cent of its financed emissions. According to Reuters, the bank, which is Germany’s biggest lender, is under increasing pressure from policymakers and investors to encourage clients to reduce their greenhouse gas emissions.
Twelve months ago the bank set up a ‘net zero forum’ of senior executives tasked with assessing loan deals of more than EUR25m that would lead to big increases in emissions. According to the bank’s Chief Sustainability Officer, Jörg Eigendorf, the forum has assessed 41 such loans so far and sent back 25 per cent of them to be renegotiated. The reasons for rejecting a loan could be due to a company offering a weak net-zero plan, explains Mr Eigendorf.
In the cement sector, the bank hopes reduce the intensity of emissions linked to the operations and energy use of its clients by 29 per cent by 2030 and by 98 per cent by 2050. It has also set individual targets for the coal mining industry and shipping sector.
