Deutsche Bank has announced the end of its global business activities in coal mining by 2025 at the latest.
The adoption of a new fossil fuels policy will cover financing as well as capital transactions.
Deutsche Bank has also committed not to finance any new coal-fired power plants and review its portfolio in Europe and the US by the end of 2020, while in Asia the review will start in 2022.
The financial institution has also set limits for the oil and gas sector, deciding to stop financing oil and gas projects in the Arctic region, ventures which use drilling techniques in countries with scarce water supplies and new oil sand plans.
In addition, the bank has signed the so-called ‘Equator Principles’, which is a risk management framework for assessing the environmental and social risk of financing projects.
This set of rules will ensure that every project development will follow strict environmental and social standards and will be subjected to monitoring.
The revised fossil fuels policy and the Equator Principles form part of the bank’s sustainability strategy.
Chief Executive Officer and Chairman of Deutsche Bank’s Sustainability Council Christian Sewing said: “In its current form, the policy sets us ambitious targets and enables us to help our long-standing clients with their own transformation.
“It will allow us to play our part in protecting the climate and helping the EU to achieve its goal of being climate neutral by 2050.”
In May this year, the bank announced at least €200 billion (£182m) of sustainable financing and investments by 2025 and it issued its first green bond in June.
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