Case study: How Commerzbank takes action on its PRB targets: climate protection (net zero targets), biodiversity and women in management positions
Commerzbank is the premier bank for small and medium-sized enterprises (the Mittelstand) and serves as a partner to approximately 25,500 corporate client groups, along with nearly 11 million private and small-business customers across Germany. The bank provides a wide-ranging suite of financial services through two main divisions: Private and Small-Business Customers, and Corporate Clients. Commerzbank is a signatory of the Principles for Responsible Banking (PRB) and has, accordingly, set and published three targets which address three different areas of most significant impact Commerzbank identified in its impact analysis. Tweet This!
This case study is based on the 2023 Non-Financial Report by Commerzbank, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Which Principles for Responsible Banking have been addressed?
The Principles for Responsible Banking (PRB) addressed in this case are:
- Principle 2: Impact and Target Setting
- Principle 4: Stakeholders
Abstract
Commerzbank has set targets for climate protection (net zero targets), biodiversity and women in management positions. In order to show that it has implemented the actions it defined to meet the set targets, Commerzbank took action on:
- SMART Target 1: Climate protection (net zero targets)
- SMART Target 2: Biodiversity
- SMART Target 3: Women in management positions
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With this case study you will see:
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- Which are the PRB targets Commerzbank has set and published;
- How Commerzbank proceeded with stakeholder identification and consultation, and
- What actions were taken by Commerzbank on its PRB targets
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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.
Corporate responsibility also involves engaging in regular dialogue with both external and internal stakeholders. Commerzbank actively and transparently communicates with these groups to understand and meet their expectations and needs, integrating their perspectives into its corporate strategy and sharing its own viewpoints.
Commerzbank particularly engages in dialogue with the following stakeholder groups:
- Shareholders and investors
- Research and academia
- Customers
- Suppliers
- Media
- Employees
- Competitors and the financial sector
- Non-governmental organizations (NGOs)
- Political entities
- Civil society
Commerzbank maintains relationships with numerous organizations and groups that approach it with requests, demands, or suggestions. The bank prioritizes engagement with stakeholder groups that significantly influence or are heavily impacted by its economic, environmental, or social performance.
The discussions on key issues related to social, economic, and financial policy are of great importance to Commerzbank.
To foster a constructive and critical engagement with its stakeholders, Commerzbank has established an external Sustainability Advisory Board. Comprising experts from politics, academia, society, NGOs, trade unions, and small and medium-sized enterprises, this board offers diverse insights and contributes to the ongoing development of Commerzbank’s sustainability strategy.
A comprehensive overview of Commerzbank’s stakeholder engagement can be found in its Sustainability Report (GRI Report).
What actions were taken by Commerzbank on its PRB targets, climate protection (net zero targets), biodiversity and women in management positions?
In its 2023 Non-Financial Report Commerzbank reports that it took the following actions on its PRB targets, climate protection (net zero targets), biodiversity and women in management positions:
- SMART Target 1: Climate protection (net zero targets)
- KPI 1: Commerzbank’s portfolio targets are outlined in its ESG framework, where they, along with the progress towards achieving them, are regularly updated.
- KPI 2: By the end of 2023, Commerzbank Aktiengesellschaft had mobilized €238 billion for sustainable financial products, towards a target of €300 billion by the end of 2025.
- KPI 3: In 2023, Commerzbank Aktiengesellschaft’s total CO2-equivalent emissions amounted to 76,591 tonnes. Commerzbank reached its interim goal of a 30% reduction in greenhouse gas emissions by 2025 (based on 2018 levels) ahead of schedule, with emissions of 78,402 tonnes in 2022—a reduction of 34.9%.
- SMART Target 2: Biodiversity
- Commerzbank set out its deforestation target in December 2023.
- SMART Target 3: Women in management positions
- By the end of 2023, women occupied 36.1% of management roles throughout the Group.
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.
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References:
This case study is based on published information by Commerzbank, 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.commerzbank.de/ms/documents/en/non-financial-report-2023.pdf
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