Commerzbank : ESG Presentation

Commerzbank

ESG Presentation

December 2023

Commerzbank, Group Investor Relations, Frankfurt

Agenda

Agenda

1. Sustainability approach
2. KPI details
3. Client business sustainability
4. ESG framework
5. Governance and organisation
6. Social dimension
7. Additional information

Commerzbank ESG Presentation

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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Sustainability

approach

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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Sustainability, ESG and sustainable Finance are different aspects of the same topic

Sustainability		ESG		Sustainable Finance
	Environmental, Social, Governance

"Sustainable development is	"All three components -	"The Federal Government understands
environmental, social and	sustainable finance as, financial market players
development that meets the needs
governance (ESG) - are integral	take sustainability aspects into account in their
of the present without
parts of sustainable economic	decisions. An appropriate integration of
computing the ability of the future
development and financing."	sustainability-related risks into the risk
generations to meet their own
	management of financial market actors is
needs."	The European Commission (2018)
essential"
Brundtland Report (1987)
	BMF Monthly Report (2020)

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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Regulatory and voluntary commitments set the framework for our sustainable transformation

Legal requirements

EU-Taxonomy

Framework for climate and environmentally friendly activities and investments

Voluntary commitments1

Principles for Responsible Banking (PRB)

Framework for ensuring that signatory banks' strategy and practice align with SDGs and Paris Agreement

Supply Chain Act

German law requiring companies to monitor human rights and environmental risks in their supply chains

Taskforce on Climate-related Financial Disclosures (TCFD)

Disclosure of climate-related risks and opportunities

ECB Guide & Climate

Stresstest

Assessment of how well banks are able to cope with financial and economic shocks

1) Exemplary excerpt
December 2023	Commerzbank, Group Investor Relations, Frankfurt

SBTi

Collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) for set a science-based climate target

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Management view and core beliefs

With the strategy update sustainability is firmly anchored in all areas of the bank

"We have established a robust framework to steer the green transformation that has received the approval from SBTi. Our target to become net-zero by 2050 has been drilled down to the different industries in our portfolio by applying this methodology."1

Sustainability as a business		Sustainability has to be
opportunity		approached holistically
● Every client is affected by transformation - we		● We understand sustainability across all
offer innovative products and services to		dimensions
support our clients in the best way		● Sustainability affects all segments of our bank
● Customers expect sustainable banking - only		- operations, product offering, risk
if we offer credible products and solutions we		management
will sustain
● Digitisation and sustainability go hand in hand
- we want to use those synergies

Sustainability needs to be

managed consequently

• Climate and ESG related risks are potential risks for our clients and for us - we identify, monitor and manage these risks consequently
• Customer relationships which are not sharing our core beliefs will be carefully looked at

Status Quo

1. • Sustainability in CEO responsibility - establishment of Group Sustainability Management and Group Sustainability Board
   • "Moving Forward 2027" strategy is based on the three pillars growth, excellence and responsibility - with responsibility representing the entire sustainability spectrum of "Environment, Social and Governance (ESG)" and seen as a duty for our customers, society and future generations
   • Establishment of ESG Committee within the Supervisory Board to ensure a holistic anchoring of the topic
   • Implementation of "Environmental Risk Control" unit to ensure standards and overarching management of ESG risks and targets
2. Manfred Knof at Commerzbank's Capital Markets Update, November 2023

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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Our ESG Strategy follows a holistic view

Our overarching goal is directed by our commitment to meet the global challenges as a responsible partner for sustainable economic and social development.

E		S		G

• Working steadily on reducing our ecological footprint
• Facing and supporting the transformation process of economy to reach Paris climate goal
• Offering customers environmentally friendly products and services according to demand of todays needs
• Accompanying customers sustainable transition as a valued partner

• Being a supportive and attractive employer for our employees and future talents
• We are only satisfied with our performance if our stakeholders are satisfied with us
• Actively supporting and fostering community work and employee engagement, especially in times of pandemic
• Diversity & inclusion as a strategic and integral part of the entire bank

• Foster compliance, responsibility and transparency as elements of our corporate culture and act in accordance with the law
• Assuming responsibility for our actions, our products and services, and their impact
• Ensuring Commerzbank's long-termprofitability by assessing risks comprehensively
• Good corporate governance through a collaboration between the Supervisory Board and the Board of Managing Directors (two-tier- system)

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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The foundation of our sustainability strategy: we become net-zero

2020

2021

2040

2050

Joining the	Joining the	Banking	Customer
Science-	Net-zero	operations	portfolio
Based	Banking	net-zero	net-zero
Targets	Alliance
initiative

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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Definition of scope 1, 2 and 3 emissions

Scope 1: direct emissions

• Emissions directly caused by the organization, organization as the source of the emission
• Within Commerzbank mostly caused by

normal business continuity

Scope 2: indirect emissions

• Indirect emissions caused by the organization through the use of energy
• Within Commerzbank, this could be the power consumption of our IT infrastructure

Scope 3: further indirect emissions

• Emissions caused by our business activities, without any source in the organization
• Scope 3 emissions for Commerzbank could be divided into:

Other "bank" emissions

• This is caused, e.g. by business travel

Financed emissions

• By financing CO2-intensive companies and

households

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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Ongoing progress in ESG according to plan

Main achievements 2022/ 2023

Targets 2023

€201bn

sustainable finance volume mobilised as per Q3 2023

Appointment Chief

Environmental Risk Officer

"CERO" incl. department

	External
ESG Committee	Sustainability
in Supervisory	Advisory Board
Board implemented	established

ESG-
Framework	SBTi targets set
published
and validated

Driving forward our
net zero- strategy
e.g. Launch of impact
solutions platform for
corporate clients
Employee training:	… besides others:
sustainability basics

initiative

joined!

Sustainable finance

volume of

€257bn

	Development and
	launch of new
	ESG products
Screening und steering of
additional ESG-related
topics such as biodiversity	Employee training
and social sustainability
	started:
	advanced sustainability

We continue to work diligently and drive our sustainability strategy forward

December 2023

Commerzbank, Group Investor Relations, Frankfurt

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