Deutsche Bank has published its first energy transition plan as it aligns with net zero shipping targets adopted by the Poseidon Principles group of banks.
The huge German lender is not a Poseidon Principles signatory but said it will aim to align with the group’s 2050 decarbonisation targets.
Its success or failure will be expressed in the form of a climate alignment score expressed in percentages, a spokesperson for the lender told TradeWinds.
“A positive percentage score means our portfolio is above the decarbonisation trajectory, while a zero or negative percentage score means our portfolio is aligned.”
Deutsche Bank is aiming for 0% by 2030.
As for signing up officially, the spokesperson said: “We regularly review our membership of all relevant industry-led/other organisations as well as working groups developing solutions for decarbonisation pathways and monitoring.”
The lender has also agreed new targets for coal mining and cement, following aims for upstream oil and gas, power generation, steel and cars already agreed.
This means 55% of total financed emissions in the €107bn ($113bn) corporate loan portfolio are covered by net zero pathways, the bank said.
The plan marks a milestone in Deutsche Bank’s Net-Zero Banking Alliance commitments since joining the group in spring 2021.
“We are committed to playing our part in fighting climate change, and we want to document transparently where we stand on our path to net zero,” said chief executive Christian Sewing.
Plan to be refined
Chief sustainability officer Jorg Eigendorf added: “As the economy progresses toward net zero, regulations, reporting standards and the role of the banking industry will evolve. This will allow us to continuously refine our own transition plan.”
At the beginning of October, the Poseidon Principles agreed on a “significant” revision to its reporting framework to move shipping portfolios closer into line with Paris climate targets.
The 30 signatories said the move also aligns with “ambitious” new International Maritime Organization decarbonisation goals.
They will now aim for net zero emissions in their portfolios in or around 2050.
The lenders, which are committed to measuring and reporting the carbon intensity of their loan portfolios, represent about 65% of global ship finance.
