ESG - Dimensions of Sustainability
More than environmental protection - Why a holistic view is crucial.
Sustainability, or ESG, is a much-used term. This page explains what it means, its relevance for Commerzbank and how Commerzbank takes the complex of issues into account and implements it.
What does ESG mean?
E = Environmental
The "E" refers to the area of environmental and climate protection. Often, the focus here is primarily on climate protection or the mitigation of climate change and thus the reduction of greenhouse gas emissions. However, the sustainable use of resources also falls under this category. The careful use of water and energy in particular plays a central role. Conscious use and effective utilisation can conserve resources and reduce the burden on the environment. In addition, the protection of healthy ecosystems is important for the preservation and promotion of biodiversity. This includes protecting endangered animal and plant species and restoring degraded ecosystems. Loss of species and habitats reduces biodiversity and impacts ecosystem functions and human health.
S = Social
The "S" refers to activities and measures relating to people. For companies, this means in particular ensuring a safe and fair working environment, contributing to the promotion of health and education and social commitment. This also includes topics such as diversity, inclusion and equal opportunities in society, as well as compliance with human rights along the entire supply chain.
G = Governance
The term "governance" refers to compliance with laws and legal requirements as well as additional internal policies that guide the company's operations. These include, for example, compliance with data protection laws, prevention of corruption, and disclosure of reports and creation of transparency in communications.
Implementation at Commerzbank, Responsibility for the world of tomorrow
| EnvironmentNet zero CO₂ emissions by 2050 | SocialComprehensive programs for personnel development | GovernanceESG Framework for transparency |
| EnvironmentClimate neutral supplier portfolio by 2040 | SocialEstablished diversity and health management | GovernanceEstablishment of governance structure on ESG topics |
| EnvironmentProduct range with a focus on climate protection | SocialContinuous extension of accessibility | GovernanceStrong compliance program & risk management |
| EnvironmentProtection of biodiversity anchored in strategy | SocialSocial support, through Commerzbank – Foundation among others | GovernanceDetailed sustainability reporting |
| Environmentand much more. | Socialand much more. | Governanceand much more. |
Tackling ESG together
The sustainable alignment of business and society requires teamwork and a uniform understanding as a basis. That is why we base our orientation on international standards and are involved in global initiatives.
Initiative
, Principles for Responsible InvestmentCommerzbank’s Asset Management is a signatory to the Principles for Responsible Investment (PRI), an investor initiative in partnership with the United Nations.
The PRI initiative is dedicated to the practical implementation of its principles for responsible investment. The aim is to improve understanding of the impact of investment activities on ESG criteria, i.e. environmental and social aspects as well as sustainable corporate governance.
Agenda 2030
, Sustainable Development GoalsThe Sustainable Development Goals (SDGs) of the United Nations are intended to ensure sustainable development from an economic, social and ecological perspective. They were adopted by consensus by the United Nations General Assembly in New York in September 2015 and will run until 2030. The 17 goals with a total of 169 subgoals address economic growth, inequalities in living standards and equal opportunities, sustainable use of natural resources and human rights.
Banking. Sustainable., ESG-oriented products for our customers
Interest in sustainable management is steadily increasing. Particularly among the younger generation, ecological and social awareness is on the rise. An investment in sustainability means an investment in the future.
We therefore offer our private customers the opportunity to invest their money responsibly with the help of various products and also support climate friendly investments with special financing offers.
For our small business customers and corporate clients, we are a partner in the transformation to a more sustainable economy and have also developed appropriate product solutions in this area.
Things to know, What others are interested in about the topic of ESG
Various ESG reports and ratings can help investors and other stakeholder groups gain a better understanding of a companies' ESG performance.
These include the GRI report, in which a company's sustainability performance is explained using the standards of the Global Reporting Initiative (GRI), or the non-financial report, which must be prepared in accordance with the requirements of the CSR Directive Implementation Act.
ESG ratings are based on an assessment of company data such as environmental impact or labor conditions and are provided by various providers, such as MSCI, Sustainalytics or ISS.
Crucial to successful risk management are the identification of all significant risks and risk drivers, the independent measurement and assessment of these risks, and risk- and earnings-oriented management based on this as part of a forward-looking risk strategy.
This also includes the early identification of environmental, social or ethical risks and the adequate handling of such risks. After all, sustainability risks resulting from climate change, the loss of biodiversity, or human rights violations are potential financial risks for the real economy - and thus also for the financial industry.