Deutsche Bank : Green Financing Instruments Report 2023

Deutsche Bank

Green Financing Instruments Report 2023

Content

2 - Deutsche Bank's Green Financing Framework summary­

5 - Asset allocation and impact reporting

6 - Composition of Deutsche Bank's Green Asset Pool

7 - Impact report for the period January 1, 2023 to December 31, 2023

9 - Impact of Deutsche Bank's Green Asset Pool

10 - Annexure: Green Financing Instruments as of December 31, 2023

13 - Disclaimer

Deutsche Bank	Deutsche Bank's Green Financing Framework summary
Green Financing Instruments Report 2023

Deutsche Bank's Green Financing Framework summary

Being a global financial intermediary, Deutsche Bank is committed to supporting and, where possible, accelerating the transition toward sustainable growth and a low-carbon economy in line with, among other things, the Paris Agreement and the United Nations Sustainable Development Goals (UN SDGs).

Green Bonds are one of the key tools to finance such transition, and Deutsche Bank actively participates in the development of this market segment.

• May 2020: Publication of Deutsche Bank's first Green Bond Framework
• September 2020: Renamed into Green Financing Framework and expansion of the green financing toolbox to allow the issuances of green financing instruments including (Covered) Bonds, Commercial Papers, Repurchase Agreements, and Deposits
• June 2022: Update of the Green Financing Framework by adding the following eligible sectors: Green Buildings - Residential Real Estate, Clean Transportation, and Information and Communications Technology (ICT)
• January 2024: Update to add social eligibility criteria; framework renamed "Sustainable Instruments Framework". No changes to green eligibility criteria versus the 2022 framework

Since 2020, the bank has issued several Green Bonds, underlining its commitment to the development of the sustainable finance market.

Deutsche Bank's Green Financing Framework aligns with the 2021 edition of the Green Bond Principles (GBP), administered by the International Capital Market Association (ICMA), and follows its four core components: Use of Proceeds, Process for Asset Evaluation and Selection, Management of Proceeds, and Reporting. It also follows the GBP's recommendation regarding an external review.

An amount corresponding to the net proceeds from any Green Liabilities shall be used to finance Deutsche Bank's Green Asset Pool. Deutsche Bank has expressed an intention to have the aggregate funded amount of loans in the Green Asset Pool at all times match or exceed the net proceeds of any Green Liabilities at issuance. As a matter of principle, net proceeds of Green Liabilities will mainly be used to refinance loans which previously have been added to the Green Asset Pool.

This Green Financing Instruments Report covers the reporting period from January 1, 2023 to December 31, 2023. It provides relevant information and documents that detail the allocation and impact of Deutsche Bank's Green Financing Instruments in line with the bank's Green Financing Framework. Due to rounding, numbers presented throughout this document may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures.

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Deutsche Bank	Deutsche Bank's Green Financing Framework summary
Green Financing Instruments Report 2023

The table below provides a summary of Deutsche Bank's Green Financing Framework.

Component Detail1

Use of proceeds

Eligible for the Green Asset Pool / SDG mapping:

Renewable Energy:SDG 7: Affordable and clean energy, SDG 13: Climate action

Loans or investments in corporations, assets, or projects related to renewable energy projects, including, but not limited to, wind (onshore/offshore), solar (photovoltaic / concentrated solar power), geothermal energy, hydro power, and biomass.

Energy Efficiency: SDG 7: Affordable and clean energy, SDG 13: Climate action

Loans or investments in corporations, assets, or projects related to the development and implementation of products or technology that reduce the use of energy. Examples include, but are not limited to, energy efficient lighting (e. g. LEDs), energy storage (e. g. fuel cells), and improvement in energy services (e. g. smart grid meters).

Green Buildings: SDG 7: Affordable and clean energy, SDG 11: Sustainable cities and

communities, SDG 13: Climate action

Loans or investments in corporations, assets, or projects related to the construction, acquisition, operation, and renovation of new and existing buildings (with a minimum energy-efficiency upgrade), and individual energy efficiency measures in the commercial and residential real estate sector.

For its loan portfolio related to residential real estate activities, Deutsche Bank worked with engineering consultants to develop a robust methodology for selecting energy-efficient residential mortgages from its loan portfolio.

Clean Transportation: SDG 9: Industry, innovation, and infrastructure, SDG 11: Sustainable

cities and communities, SDG 13: Climate action

Loans or investments in corporations, assets, or projects related to the development, manufacture, acquisition, financing, leasing, renting, and operation of means of clean transportation, including required and dedicated components, for rail and road transport (passenger and freight), water transport (passenger and freight), personal mobility or transport devices, and infrastructure for low-carbon transport (land and water).

Information and Communications Technology (ICT): SDG 9: Industry, innovation, and

infrastructure, SDG 13: Climate action

Loans or investments in corporations, assets, or projects related to acquisition and capital expenditure relating to energy-efficient data centers and equipment (buildings, cooling, power and data distribution equipment, and monitoring systems) for data processing, hosting, and related activities - storage, manipulation, management, movement, control, display, switching, interchange, transmission, or processing of data through data centers, including edge computing.

Excluded from the Green Asset Pool:

• Fossil fuels (exploration and production)
• Nuclear and nuclear-related technologies
• Weapons, alcohol, tobacco, gambling, adult entertainment
• Deforestation and degradation of forests

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Deutsche Bank	Deutsche Bank's Green Financing Framework summary
Green Financing Instruments Report 2023

Project	- Green asset screening and preselection: Preselection of eligible assets by Deutsche Bank's
evaluation and	originating businesses based on category-specific selection criteria
selection2	- Quarterly validation of preselected assets by Deutsche Bank's Group Sustainability to confirm
	compliance with the Green Financing Framework's criteria and to ensure that eligible assets
	do not have material negative environmental and/or social impact
	- Annual evaluation through external verifier of the Green Asset Pool's compliance with the
	Green Financing Framework criteria
Management of	- An amount corresponding to the net proceeds of Deutsche Bank's green financing
proceeds	instruments is used to finance the Green Asset Pool
	- Selected and validated eligible green assets are recorded in the Deutsche Bank Green Asset
	Inventory
	- Routine internal monitoring of Deutsche Bank's Green Asset Inventory to detect potential
	shortfalls and take corrective action
Reporting	- Annual publication of Green Financing Instruments Report on the Investor Relations website,
	including i) allocation reporting and ii) impact reporting
External review	- Pre-issuance review has been obtained in the form of a Second Party Opinion
	- Annual verifier to assess compliance of all issued Green Financing Instruments with the
	methodology set out in the Green Financing Framework

1. Detailed eligibility criteria are outlined within the Deutsche Bank Green Financing Framework.
2. Certain refinements have been made to the Bank's project evaluation and selection process - the current approach is described on page 7 of theSustainable Instruments Framework.

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Deutsche Bank	Asset allocation and impact reporting
Green Financing Instruments Report 2023

Asset allocation and impact reporting

Green Asset Pool and Liabilities

In the full year 2023 reporting period, Deutsche Bank expanded its Green Asset Pool by adding € 2.9 billion of eligible assets, versus € 5.4 billion during 2022. The slowdown is mainly driven by a general reduction of loan origination across the industry in the context of a higher interest rate environment. In total the Green Asset Pool stands at € 12.1 billion as per year-end 2023.

In the reporting period, Deutsche Bank issued 15 Green Bonds and eight Green Structured Notes and entered into multiple Green Deposits. Five Green Structured Notes issued before 2023 were reclassified as Green Bonds in the reporting period and five Green Structured Notes were redeemed in 2023. Overall, the amount of Green Liabilities under the Green Financing Framework increased by more than € 0.4 billion, reaching a total of almost € 6.0 billion.

Institutional Shareholder Services (ISS ESG), an independent consultant, provided the Second-Party Opinion (SPO) on Deutsche Bank's Green Financing Framework. The SPO is published on the bank's Investor Relations website.

Allocation report as of December 31, 2023

Eligible Green Asset Portfolio

Asset category		Number of Ioans		Funded amount (in € m.)
Renewable Energy
Solar	44	1,380
Wind	17	401
Hydropower	1	14
Biomass		1		11
Energy Efficiency		2		68
Clean Transportation	3	264
Information and Communications Technology
Data Center	5	359
Green Buildings
Commercial Real Estate	35	3,302
Residential Real Estate		37,661		6,270
Total	37,769	12,070

Green Liabilities

		Number of
Instrument Type		instruments		Amount (in € m)
Bonds1		83		4,670
Structured Notes1		70		754
Deposits		49		541
Total	202	5,965
1 Instrument-level details to be found in Annexure: Green Financing Instruments as of December 31, 2023.
Net Proceeds of Green Liabilities allocated to Eligible Green Assets				100%
Percentage of Eligible Green Asset Portfolio allocated (usage)				49%
Unallocated eligible Green Asset Portfolio (in € m.)			6,105

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Deutsche Bank	Asset allocation and impact reporting
Green Financing Instruments Report 2023

Composition of Deutsche Bank's Green Asset Pool

(All amounts in € m)

Total Green Asset Pool

Funded amount by country		Funded amount by eligible asset category

Germany	6,555
USA	3,638
Australia	495
India	312
Singapore	199
Canada	196
Japan	185
Sweden	105
Others	383

Green Building	9,572
Renewable Energy	1,806
Clean Transportation	264
ICT	356
Energy Efficiency	68

Renewable Energy

Funded amount by renewable energy technology

Solar	1,380
Wind	401
Hydropower	14
Biomass	11

Green Buildings

Funded amount by certification		Funded amount by usage

Residential Mortgages1	6,270	Residential	6,270
CRE: LEED2	Gold	2,209	Office	2,333
CRE: LEED2	Platinum	871	Hotel	344
CRE: BREEAM3 Excellent	74	Retail	252
CRE: NABERS4 5 Star	71	Others	373
CRE: EPC		32
CRE: DGNB5 Gold	45

• For eligibility criteria, seeGreen Financing Framework↗
  2 Leadership in Energy and Environmental Design
  3 Building Research Establishment Environmental Assessment Methodology
  4 National Australian Built Environment Rating System
  5 Deutsche Gesellschaft für Nachhaltiges Bauen

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Deutsche Bank	Impact report for the period January 1, 2023 to December 31, 2023
Green Financing Instruments Report 2023

Impact report for the period January 1, 2023 to December 31, 2023

Deutsche Bank is determining the impact of its Green Asset Pool based on the following indicators:

• Expected avoided carbon emissions (in metric tons of CO2e)
• Expected or actual renewable energy produced (in MWh)
• Installed capacity of renewable energy constructed or rehabilitated (in MW)
• Expected or achieved energy savings for Green Buildings (in MWh)
• Average annual Power Usage Effectiveness (PUE) for data centers

If Deutsche Bank did not finance an entire asset, it adjusted the impact calculation by the share of financing attributable to the bank. All assets considered in this impact report were part of the Green Asset Pool for a minimum of one month in the reporting period. Assets that did not meet this threshold were excluded from the assessment. All impacts reported represent estimates.

Impact reporting overview according to asset category

								Jan 1, 2023 - Dec 31, 2023
				Final energy						Avoided
		Average Annual		savings		Installed		Production		emissions
Asset		PUE		(in MWh/		capacity		(in MWh/		(in tCO2e/
category		(data center)		year)		(in MW)		year)		year)
Renewable Energy
Solar		-		-	13,462	20,932,412	2,327,407
Wind		-		-	4,202	12,487,192	1,343,971
Biomass		-		-	25	174,677	17,687
Hydropower		-		-	20	57,710	3,066
Energy Efficiency		-		-1		-		-		-1
Green Buildings
Residential Real Estate		-	510,737		-		-	109,823
Commercial Real Estate		-	60,1222		-		-	17,5582
Information and Communications Technology
Data center	1.35		-1		-		-		-1
Clean transportation		-		-1		-		-		-1
Total	1.35	570,859	17,709	33,651,991	3,819,512

1. Due to insufficient data and/or estimates, the appropriate calculation of impact was not possible at this point in time.
2. Due to insufficient data availability, impact could not be calculated for some Commercial Real Estate assets in the Green Asset Pool.

Renewable Energy

By financing renewable energy, Deutsche Bank strives to support the development of a low-carbon energy supply. The bank used the indicator "(Expected) avoided CO2e emissions" calculated in metric tons of CO2e to determine the impact of renewable energy projects contained in the bank's Green Asset Pool. For the impact calculation, the bank used the annual average carbon intensity (grams of CO2 per kWh) of the electricity mix of the country where the project is located and the expected electricity production of the project.

The annual average carbon intensity for a given country for the period January 1, 2023 to December 31, 2023 was derived from data provided by Enerdata, an energy intelligence and consulting company. For this impact reporting, Deutsche Bank assumed that renewable energy has zero or negligible CO2 emissions, except in the case of biomass projects.

Information on expected or actual electricity generation and capacity of the renewable energy projects was taken from the technical information on the project. At the reporting date, "Renewable Energy" assets constituted 15.0% of the bank's overall Green Asset Pool.

Energy Efficiency

For assets financed by Deutsche Bank in the "Energy Efficiency" category, no impact was estimated or calculated due to a lack of data. At the reporting date, "Energy Efficiency" assets constituted 0.6% of the bank's overall Green Asset Pool.

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Deutsche Bank	Impact report for the period January 1, 2023 to December 31, 2023
Green Financing Instruments Report 2023

Green Buildings

The real estate sector is a key sector requiring energy efficiency and decarbonization efforts. At 79.3%, the "Green Buildings" category constituted the largest share of the bank's Green Asset Pool at the reporting date.

For evaluating the impact of the bank's green Commercial Real Estate asset portfolio, the bank used a methodology developed with industry experts. To determine the impact of this category, the bank used the indicator "Expected or achieved energy savings" calculated in MWh per year. The associated "expected avoided carbon emissions" were calculated in metric tons CO2e. Respective reductions in energy consumption and avoided carbon emissions were calculated by comparison with national reference benchmarks for energy and carbon intensity. The following data sources were used: Building Performance Database 2023 (USA), National Energy Code of Canada for Buildings 2020 (Canada), Energy Star® Portfolio Manager® (USA, Canada), Partnership for Carbon Accounting Financials (PCAF) database (Germany, United Kingdom). For Commercial Real Estate assets, where the expected building-specific energy savings and avoided carbon emissions are available based on technical information on the project, actual values were used for reporting.

For the Residential Real Estate assets, Deutsche Bank used a mixed approach to calculate the two core indicators "Expected avoided carbon emissions" in metric tons of CO2e and "Expected or achieved energy savings" in MWh. Actual energy consumption and emissions values were used in cases where Energy Performance Certificates (EPC) data was available for the assets, while an estimation approach was used for remaining assets. "Expected GHG emissions avoided" were calculated through a comparison of available / estimated carbon emissions of the Residential Real Estate assets with average national carbon emissions taken from the PCAF database. Based on this calculation, "Expected or achieved energy savings" were calculated using a conversation factor between energy consumption and carbon emissions that is based on available EPC data.

Information and Communications Technology (ICT)

For assets financed by Deutsche Bank in the "Information and Communications Technology (ICT)" category, which includes financing and investments related to energy-efficient data centers, the bank reports on the impact indicator "average annual power usage effectiveness (PUE)." At the reporting date, "ICT" assets constituted 3.0% of the overall Green Asset Pool and consisted solely of energy-efficient data centers in construction or operation.

The average annual PUE is a widely accepted metric for measuring data center energy efficiency. It reflects the ratio of the total amount of power needed to operate the datacenter (which includes cooling and lights), divided by power used to run computer equipment. The lower the number, the less additional power is used to operate the facility beyond what is required for servers/networking equipment. As recently as July 2023, the Uptime Institute has surveyed data center operators and reported global average PUE for data centers as 1.58, indicating that global PUE levels have remained flat over the past four years.

The average annual PUE of the financed data centers reported in the impact reporting table, represents the average value of the design PUEs for data center under construction and of the operating PUEs for data center in operation. For data center under construction, Deutsche Bank expects that an average annual design PUE is calculated with an assumed 25% customer load factor or below to account for the risk of underutilization. Exceptions to this calculation method for design PUEs are only acceptable where the risk of underutilization is limited, e.g., due to pre-known tenants.

Clean Transportation

For assets financed by Deutsche Bank in the "Clean Transportation" category, no impact was estimated or calculated due to a lack of data. At the reporting date, "Clean Transportation" assets constituted 2.2% of the overall Green Asset Pool.

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Deutsche Bank	Asset allocation and impact reporting
Green Financing Instruments Report 2023

Impact of Deutsche Bank's Green Asset Pool

(All amounts in t CO₂e)

Total Green Asset Pool

Expected avoided emissions by country		Expected avoided emissions by eligible asset category

USA	1,620,991	Green Building	127,381
Australia	1,184,697	Renewable Energy	3,692,131
Spain	185,390
Japan	183,225
India	181,807
China	131,197
Renewable Energy
Taiwan	130,497
Germany	109,960
Expected avoided emissions by renewable energy technology
Chile	70,616
Others	21,132

Solar	2,327,407
Wind	1,343,971
Biomass	17,687
Hydropower	3,066

Green Buildings

Expected avoided emissions by certification		Expected avoided emissions by usage

Residential Mortgages1	109,823	Residential	109,823
CRE: LEED2	Gold	12,747	Office	9,690
CRE: LEED2	Platinum	2,143	Retail	2,327
CRE: NABERS3 5 Star	1,376	Hotel	1,896
CRE: BREEAM4 Excellent	919	Others	3,645
CRE: EPC		373

• For eligibility criteria, seeGreen Financing Framework↗
  2 Leadership in Energy and Environmental Design
  3 National Australian Built Environment Rating System
  4 Building Research Establishment Environmental Assessment Methodology

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