Sustainability at Deutsche Bank .Deutsche Bank Sustainability at Deutsche Bank Dr. Wolfgang Schnorr

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Transcript of Sustainability at Deutsche Bank .Deutsche Bank Sustainability at Deutsche Bank Dr. Wolfgang Schnorr

  • Deutsche Bank

    Sustainability at Deutsche Bank

    Dr Wolfgang SchnorrDr. Wolfgang SchnorrDeputy Head Investor RelationsDr. Ottmar KayserDeputy Head Group SustainabilityDeputy Head Group Sustainability

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11 London, 31 May London, 31 May 20112011

  • Agenda

    Core aspects of Deutsche Banks sustainability strategy1

    2 Environmental aspects

    3 Social aspects

    4 Governance aspects

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    1

  • Key accomplishments in 2010

    Further implementation of our climate strategy Reduction of Deutsche Banks carbon emissions by approximately 60 % compared to the 2007

    baseline figures (offsets included)

    Ebaseline figures (offsets included)

    Further development of sustainable funds and thematic funds of DWS Investments and DB Advisors with a total of EUR 2.8 bn of invested assets at the end of 2010

    Named "Best Renewable Energy Finance House 2010 - Europe" based on a reader survey by Environmental Finance and Carbon Finance magazineEnvironmental Finance and Carbon Finance magazine

    Fostering of gender diversity by grooming female candidates for executive positions within the bank

    Sbank Accomplished Top Leaders Advancement Strategy (ATLAS)

    Further development of Deutsche Banks leadership in the microfinance industry Launch of e-learning tool on sustainability available for all Deutsche Bank employees

    G Reward governance structure further enhanced Expansion of Deutsche Banks risk management framework

    I l i f f i k i t d ith t ti i b i t i i d t iG Inclusion of a focus on risks associated with transactions in carbon-intensive industries (green filter-statement) Regional alignment of our sustainability management system with the ISO 14001 standard

    Certification of our Italian and Japanese locations in 2010

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    2

  • Governance of Deutsche Banks sustainability managementC tifi d d ISO 14001Certified under ISO 14001

    Management Board

    Environmental St i C itt

    Group Reputational Ri k C itt

    Group SustainabilityGroup Sustainability Officer

    Steering Committee (ESC)

    Risk Committee (GRRC)

    Unit Sustainability OfficersUnit Sustainability Officers

    Business U it

    Infrastructure U it

    Regional U itUnits Units Units

    reporting lines; flow of information

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    3

  • Holistic risk management approach

    External commitmentsUN Global Compact

    Internal guidelinesCorporate Governance/Human UN Global Compact

    UNEP-FI Declaration of Sustainable Development

    UN Declaration of Human Rights

    Corporate Governance/Human Resources Code of Conduct Code of Ethics Sustainability Policies and standards

    Environmental aspects

    g Principles for Responsible

    Investment (PRI) World Bank standards

    OECD id li f

    Risk Management Credit Directives adressing

    environmental issues, embargoes & related restrictions, betting & gambling, defence equipment pornographySocial OECD guidelines for

    multinational companies Wolfsberg Principles Financial Task Force on Money

    defence equipment, pornography Industry analysesCompliance/Anti-Money Laundering Global Compliance Core Principles Anti-Money Laundering Policy

    aspects

    a c a as o ce o o eyLaundering (FAFT)

    ISO 14001

    New Client Adoption Reputation Risk PolicyCorporate Development Acquisition and Due Diligence Standards

    Governance aspects

    Global Sourcing Global Sourcing Policy Travel Policy

    Our commitment to international standards is an integral part of our internal policy framework

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    4

    Our commitment to international standards is an integral part of our internal policy framework

  • Reputational risk escalation process

    Regular MeetingsDiscussion of escalated reputational risk issues

    Group Reputational Risk Committee

    Escalation, if reputational risk

    issue is not resolved(otherwise normal approval Di i f l t d t ti l i k i

    Discussion of escalated reputational risk issuesFinal decision of transaction

    Regional/Divisional Review(otherwise normal approval

    process of transaction)Discussion of escalated reputational risk issues

    Regular Meetings

    Business review supported by Control GroupsBUSINESS REVIEW

    supported by Control GroupsIdentification of reputational risk issue of client transactions

    Informal discussionFormal review incl. Senior Management

    Control groups (legal, risk, compliance etc.,in case of ESG issues: Group Sustainability)

    Deutsche Bank Policies

    New Client Adoption

    New Product Approval

    Credit Directives

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    5

  • Credit Directives core principles for our banking business

    D f i tDefence equipmentWe will not consider any involvement in transactions connected with specific types of weapons, in particular antipersonnel landmines, cluster bombs or ABC weapons.

    Pornography/Red Light AreaDeutsche Bank will not enter into business relationships with counterparts belonging or being close to the pornographic sector or adjacent areas (red light area).

    Betting & gambling industryWe specifically do not want to be connected to counterparties within this industry which show signs of proximity to problematic areas (e.g. red light sphere) or which are prone to serve as basis for illegal activities, as for example the handling of cash entails the possibility of money laundering.

    Environmental issuesDeutsche Bank regards the responsible treatment of the environment as an integral part of its corporate identity. []In addition to complying with the legal provisions relating to environmental protection, we undertake to protect natural resources such as air, water, and soil. [] We will not finance certain globally banned products, e.g. CFC, asbestos.

    Embargos & related restrictionsAll European embargoes apply to the entire Deutsche Bank Group. In addition, local regulations that go beyond the restrictions introduced by the EC have to be followed by those directly affected thereby..

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    6

  • Green Filter special focus on carbon intensive industries

    Green Filter Question part of the Reputational risk management program policy

    Does the transaction relate to activity which may be described as harmful to the environment?

    policy

    Is the transaction consistent with the Banks aspiration to be a leader in the transition to a low-carbon society?

    Is the transaction consistent with the Banks intention to contribute to greater carbon efficiency accepting that in some circumstances it will still be necessary to finance carbon intensive industries as the transition to a lowin some circumstances it will still be necessary to finance carbon intensive industries as the transition to a low carbon society?

    Does the risk extension facilitate a commercial business activity that increases the carbon footprint of a counterparty active in the areas of coal, forestry, agriculture, mining, cement or chemicals sector?

    Are the economics of the transaction likely to be materially affected if anticipated changes to the regulation of greenhouse gases are introduced?greenhouse gases are introduced?

    Deutsche Banks climate strategy is the foundation of the Green Filter

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    7

  • DWS ESG Policies

    DWS principals for engagement controversial investments and extended due dilligence DWS principals for engagement, controversial investments and extended due dilligence

    Based on global norms, e.g. UN Global Compact Principles OECD Guidelines for Multinational Companies

    Engagement process: Dialogue with companyg p y Public dialogue Possible exclusion, if no improvements mid- to long term

    Extended due diligence: Extended due diligence: Serious offense against international ESG standards and/or law Unsuccessful engagement beforehand

    Integration in proprietary systems

    Monitoring by internal processes

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    8

  • Agenda

    1 Core aspects of Deutsche Banks sustainability strategy

    2 Environmental aspects

    3 Social aspects

    4 Governance aspects

    Sustainability at Deutsche BankDr. Schnorr, Dr. Kayser

    Deutsche BankInvestor Relations 05/11

    9

  • Deutsche Banks climate strategyFi ld f ti it ithi li t t tFields of activity within our climate strategy E S G

    Financial Intermediary Eco Efficiency Manager Climate Ambassador

    Green technology/renewables

    Energy efficiency in buildings

    Emissions trading

    Energy efficiency in buildings

    Eco-efficient IT

    Use of renewable energies

    Informing clients and the general public (website Banking on Green, DB Research, mandates)g

    Infrastructure for natural resources

    Support of innovative projects

    g

    Neutralization of inevitable emissions through strictly regulated certificates

    Proac