• DZ BANK

    Sustainability

Financial Products with Sustainability Aspects

DZ BANK offers a wide range of sustainable financial products that combine environmental protection, resource conservation and social responsibility.

Investing Sustainably

Promotional Loans

Both for private and corporate customers, investments to improve energy efficiency are becoming increasingly important. Another focus is on measures that accompany demographic change. These include social programmes that promote the age-appropriate reconstruction of apartments and buildings. DZ BANK supports ecologically and socially sustainable development by providing low-interest public financing assistance. This applies in particular to development loans in the areas of environmental protection and sustainability.

Project Financing

Since signing the Equator Principles in 2013, DZ BANK has continuously subjected project financing with an investment volume of more than USD 10 million and project-related corporate financing with an investment volume of more than USD 50 million to an audit in accordance with these principles.

This also allows us to document publicly our long-standing practice of taking sustainability-related standards into account in project financing. At the same time, DZ BANK is meeting the requirements of forward-looking risk provisioning, particularly in the area of large-volume project financing.

Renewable Energies

Financing renewable energies in Germany is the focus of our project financing. In the areas of wind, photovoltaics and biogas/biomass, the volume of credit limits for project financing committed by DZ BANK reached a total of €7.9 billion in 2024. Wind power remains the most important renewable energy source.

Public Private Partnership

Public-private partnerships (PPP) have become a successful procurement model for important public service projects in Europe in recent years. DZ BANK regularly works with partners from the cooperative financial network on PPP projects, for example to enable the construction and operation of roads/traffic routes, schools, hospitals, and administrative buildings.

Sustainable Investment Products

Sustainable and successful: In November 2021, DZ BANK issued its third green bond, following on from 2018 and 2020. The bond, which has a seven-year term and is valued at €300 million, was very well received by investors in Germany and abroad. The bank itself implemented the transaction on the basis of its proven expertise in sustainable financing and structured the bond in accordance with the current Green Bond Principles of the International Capital Markets Association (ICMA). The rating agency Standard & Poor's Global Ratings (S&P), which was commissioned to carry out an independent sustainability assessment, rates the bond with a very high environmental rating of 86/100 based on its Green Transaction Evaluation and a strong assessment of governance and reporting.

DZ BANK has been active in the sustainable bond market segment since 2013 and is one of the leading European syndicate banks in this segment. In 2024, DZ BANK has supported green, social and sustainable transactions with a total volume of around €22.7 billion.

Exclusion Criteria and Sector Principles

DZ BANK is aware of its responsibility to people, the environment and corporate governance. Lending is one of DZ BANK's most important core activities. In this area in particular, the topic of responsibility is of great importance: As a lender, we systematically check loan requests for relevant sustainability aspects as part of the loan review process.

Setting Clear Signals: The Processes for Sustainable Lending

DZ BANK is aware of its responsibility to people, the environment and corporate governance. Lending is one of DZ BANK's most important core activities. In this area in particular, the topic of responsibility is of great importance: As a lender, we systematically check loan requests for relevant sustainability aspects as part of the loan review process.

The sustainability check in DZ BANK's lending business is carried out both for traditional lending and credit substitute business and for debt capital market business and treasury's own investments (excluding asset-backed securities). Every commitment, including corporate, project, export, foreign trade, acquisition, real estate, leasing and asset financing, must be checked for sustainability aspects. Loans to cooperative banks and companies in the DZ BANK Group as well as exposures that are being restructured are excluded from the review. Other exceptions include, among other things, special product variants in joint credit business with the cooperative banks, generally approved limits, and exposures below the rating requirement threshold.

The basis for the sustainability check in the lending process consists of five elements: our exclusion criteria, our sector policies, our RepRisk DZ BANK ESG checklist, our ESG credit risk score, and the overall assessment of sustainability risks.

Sector Principles

DZ BANK assesses loan applications from companies in sectors that are particularly vulnerable from a sustainability perspective using its sector principles in addition to the sustainability assessment. These lay down general principles for lending and ensure that minimum ESG standards are taken into account. They are applied to projects, transactions and companies that fall within the ESG scope of application and that generate more than 50 per cent of total revenue, both directly and indirectly, in the respective sector and that act as credit recipients of DZ BANK.

Sector policies are in place for the following sectors: dams and water infrastructure, extractive industries, forestry, fisheries, maritime industry, palm oil and agriculture.

The sector policies are listed in detail in the Sustainability Report 2024 and in the DZ BANK policy on exclusion criteria, sector policies and sustainability checks.

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