Vater und Tochter betrachten Solarmodule auf dem Hausdach
Vater und Tochter betrachten Solarmodule auf dem Hausdach

DKB Sustainability Strategy: ESG in action

  • Decarbonisation and biodiversity are key themes in our strategic thinking

  • Automation and harnessing the value of data are transforming ESG from a reporting dimension into a management dimension

  • We see transformation as an opportunity for both ourselves and our clients, while remaining true to our values

Sustainability embedded in our strategy

Markets, business models and the requirements placed on banks are changing. Climate and environmental issues, social developments and new regulatory requirements all play an important role.

Our ESG 2030 Sustainability Strategy looks at these changes from several perspectives: What do they mean for our portfolio? What opportunities do they create for our clients and our business? What data do we need to make informed decisions? And what values and principles guide us?

Four strategic priorities provide direction

  1. Transforming the portfolio

    Our financing activities are a key lever: we are addressing the decarbonisation of carbon-relevant portfolios and giving greater consideration to biodiversity in our financing and management approaches. For the carbon-intensive energy (power generation) and real estate sectors, we have developed strategic guidelines that provide the framework for our portfolio decisions in these areas. We assess further relevant areas using internal monitoring metrics. Biodiversity is also becoming an increasing focus. We are examining biodiversity-related impacts and dependencies and working to integrate appropriate criteria more extensively into our financing and management approaches on a step-by-step basis.

  2. Harnessing the opportunities presented by transformation

    Transformation does not just mean new requirements and risks. It also changes investment needs and can open up new business opportunities. For this reason, our strategic approach includes understanding the challenges facing our clients and assessing where we can support them with sector expertise and suitable financing solutions.

  3. Data for greater strategic foresight

    Good decisions require good data. As a consequence, we are continuing to develop our ESG data base and working to consolidate information more consistently, improve its quality and further automate processes. This does more than support our ability to meet regulatory reporting requirements. Available and reliable data also provide the basis for analyses, risk assessments and strategic decisions.

  4. Translating values into decisions

    For us, ESG encompasses more than climate, data and regulation. Human rights, equality, diversity and social engagement are equally integral to our values and are enshrined in our Diversity Strategy and our Policy Statement on Human Rights. The principles and responsibilities set out in these documents help us take these issues into account in our organisation and our business activities.

Eight action areas put ESG 2030 into practice

We translate our four strategic priorities into eight action areas. They provide a structure for our work and are underpinned by measures and management metrics.

  1. Decarbonisation

    Targets and monitoring for carbon-relevant areas of our loan portfolio – such as power generation, real estate, heating and agriculture.

    Strategic Framework for Decarbonisation
  2. Biodiversity

    Further develop methods and data foundations and gradually integrate biodiversity considerations more extensively into analysis and management.

  3. Equality and social engagement

    Embed diversity, inclusion, human rights and social engagement as corporate values through strategies, guidelines and processes (e.g. through the Diversity Strategy and the Policy Statement on Human Rights).

  4. ESG business potentials and public services

    Understand our clients’ transformation needs and link them to our business.

    Sector perspectives
  5. Regulation

    Systematically embed ESG requirements in the bank’s processes and structures.

  6. ESG data

    Continue to improve the quality, availability and usability of relevant data.

  7. Governance

    Clearly establish ESG responsibilities and decision-making processes.

  8. Risk management

    Integrating ESG risks into our strategic risk management processes.

Clearly establish ESG responsibilities and decision-making processes

Our Sustainability Strategy sets our strategic direction. In our annual sustainability report, we provide information on the current status of our material ESG topics. This includes reporting on relevant developments and metrics as well as material impacts, risks and opportunities.