Case study: How DZ BANK works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

DZ BANK actively engages in dialogue with its customers and other stakeholders to gather feedback and better understand their needs and expectations. Key stakeholders include representatives from companies and organizations that influence DZ BANK’s activities at an economic, environmental, or social level, as well as those affected by its operations. These stakeholders encompass shareholders, retail and corporate clients, employees, institutional investors, service providers, suppliers, representatives from academia and politics, non-governmental organizations (NGOs), rating agencies, media representatives, and the general public.

Additionally, DZ BANK is involved with significant organizations focused on science and sustainability and participates in various initiatives and associations, such as:

– Climate Bonds Initiative (CBI)

– Equator Principles Association

– Green Bond Principles (GBP)/International Capital Markets Association (ICMA)

– Green and Sustainable Finance Cluster Germany (GSFCG)

– ICC Commission on Environment & Energy (ICC)

– Net Zero Banking Alliance Germany (NZBAG)

DZ BANK regularly conducts stakeholder surveys as part of its materiality assessment. In its Sustainability Report, the bank addresses key issues raised by its stakeholders and shares relevant findings.

Moreover, DZ BANK carries out periodic customer satisfaction surveys.

How did DZ BANK work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Sustainability Report DZ BANK reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

DZ BANK employs various dialogue formats to share ideas and information related to sustainability with its customers. These formats include an annual sustainability conference aimed at cooperative banks and an annual Sustainability Day tailored for institutional and corporate clients.

Sustainability considerations are integrated into customer discussions in multiple ways. For instance, a discussion guideline has been established for customer relationship managers, and the outcomes of the SDG classification are utilized. In 2023, DZ BANK also introduced a mandatory training program on sustainability for all its employees.

The sustainability portal serves as a central hub for sustainability-related information for cooperative banks. It is organized into three main content areas: the sustainability cockpit (for assessing maturity levels), network services (support offerings for partners in the cooperative financial network), and best-practice exchange (best-practice examples from other local cooperative banks).

At DZ BANK, loan applications undergo a systematic evaluation based on relevant sustainability criteria as part of the credit assessment process. This includes exclusion criteria and sector-specific criteria, as well as the RepRisk DZ BANK ESG checklist, which is grounded in the ten principles of the UN Global Compact, along with an ESG credit risk score. Both the checklist and the credit risk score were developed in 2023 and have been implemented since then. This comprehensive approach ensures that financing for particularly harmful and unsustainable economic activities is effectively prevented from the outset.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), ISEP Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by DZ BANK, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.dzbank.com/content/dzbank/en/home/we-are-dz-bank/corporate-responsibility/reports_und_downloads.html

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