Sustainability ratings and indices
Parameters for future-oriented corporate governance
Sustainability ratings are becoming increasingly more important for valuation in the financial market. Going beyond financial key figures, they focus on the so-called ESG aspects (Environment, Social and Governance). For instance, they examine how a company responds to ecological challenges, how it ensures good corporate governance, and how it fulfills its responsibility via-à-vis employees, clients and society as a whole. Against this backdrop, investors and fund managers regard sustainability ratings as a parameter for future-oriented corporate management.
Deutsche Bank is assessed by leading international sustainability ratings agencies such as EIRIS-imug, oekom research AG, Sustainable Asset Management (SAM), Sustainalytics, and vigeo. In addition, the Carbon Disclosure Leadership Index (CDLI) compiled by the non-profit Carbon Disclosure Project (CDP) organization evaluates transparency with regard to direct and indirect climate protection data.
The ratings also serve an internal purpose: they help us to determine where our company can improve even more and how we can optimize our business processes with regard to sustainability. That also applies to the design of products and services as well as the creation of guidelines and internal processes with sustainability relevance.
Results 2010
In the Carbon Disclosure Leadership Index (CDLI), Deutsche Bank achieved 73 out of 100 points this year. In the sustainability rating of Sustainalytics, one of the internationally leading sustainability agencies, Deutsche Bank advanced to second place. A total of 93 international financial services providers were examined in that context. In the SAM sustainability rating, Deutsche Bank also achieved even better results in comparison with the previous year – in the individual areas of economy, ecology, and social investments as well as in the overall assessment. As in previous years, the positive assessments were the basis for the listing of our company’s stock in the following indices:
- ASPI (Advanced Sustainable Performance Indices) Index;
- Dow Jones STOXX Sustainable Indices: DJSI World , DJSI STOXX, DJSI EURO STOXX;
- FTSE4GOOD and ECPI Ethical Indices: ECPI Ethical Index Global, ECPI Ethical Index Euro, ECPI Ethical Euro Tradable and ECPI Ethical Index;
- NASDAQ OMX CRD Global Sustainability 50 Index.
Sustainalytics
Deutsche Bank advances to second place in sustainability rating
Deutsche Bank has further improved its position in the sustainability rating of Sustainalytics: it has moved up from last year’s fourth place to second place. Sustainalytics is one of the internationally leading sustainability agencies. In 2009 it examined a total of 93 international financial services providers.
The Sustainalytics study is modeled on the ESG approach and thus investigates the areas of Environment, Social, and Governance. Deutsche Bank was able to score points particularly in the environmental area. Its more stringent ecological standards for lending, the growing use of renewable energies, and the detailed programs aimed at reducing greenhouse gases had a positive impact in that regard. Similarly, Deutsche Bank was also given top marks for its social standards in the lending business. The bank’s strategy for preventing corruption and bribery was also evaluated as convincing.
Deutsche Bank also achieves over-average results in a cross-industry comparison of stock-exchange-listed companies in the DAX 30 index. In the environmental area it is in second place right behind BMW, and in the overall comparison it is in tenth place.
Sustainalytics GmbH specializes in the analysis and evaluation of the sustainability performance of companies and countries. Until the end of 2008 it operated under the name scoris; it is part of the Dutch company Sustainalytics BV, the majority of which belongs to Triodos Bank.
SAM (Sustainability Asset Management)
Deutsche Bank improves its sustainability rating even further
The Corporate Sustainability Assessment of the SAM (Sustainability Asset Management) Group has confirmed that Deutsche Bank made additional progress in the sustainability area in the year 2010. In comparison with the previous year, the bank succeeded in increasing the number of points scored in the overall assessment as well as in the three sustainability dimensions – economy, ecology, and social aspects. As it already had in 2009, the bank achieved outstanding results primarily in the environmental area: at 82 percent, Deutsche Bank pulled very close to the industry leader in this area, which achieved 87 percent. Overall that means that Deutsche Bank is one of those 10 percent of companies in the financial sector that integrate sustainability best into their core business.
The sustainability ratings of the SAM Group form the foundation for the Dow Jones Sustainability Indexes (DJSI) and offer asset managers recognized benchmarks for sustainability-related investments. The company belongs to the asset management company Robeco, a subsidiary of the Rabobank Group. The SAM Group analyses more than 2,000–stock–exchange listed companies every year for its Corporate Sustainability Assessment. To derive the results, the assessment of each individual company is compared with the business sector average and with the best and poorest companies in the business sector group under examination. A scale of zero to 100 percent is used as the basis.
Deutsche Bank achieved excellent values for its environmental policy and management system as well as for environmental reporting (97 percent respectively). Within the industry, it was also given top marks for its risk and crisis management, its sustainability standards for suppliers, as well as for its personnel development. Its results for all criteria exceeded the industry average. Deutsche Bank has been listed in DJSI World and DJSI Europe since 1999.
Carbon Disclosure Leadership Index (CDLI)
Deutsche Bank advances in climate change ranking list
Deutsche Bank has improved its position in the ranking list of this year’s Carbon Disclosure Leadership Index (CDLI) of the Carbon Disclosure Project. It achieved 73 out of 100 points, compared with 66 points the previous year. The assessment incorporates information about direct and indirect greenhouse gas emissions, the analysis of risks and opportunities, as well as the establishment of processes needed to be able to react to the challenges of climate change.
The index of the Carbon Disclosure Project (CDP) evaluates the transparency of direct and indirect climate protection data. Every year CDP gathers data from over 4,700 large companies in 50 countries for this purpose. This year that included 119 financial companies worldwide, 49 of which were banks. CDP maintains the world’s largest database with climate data on companies.
CDP was founded in London in the year 2000 and has also been active in Germany since 2006. The goal of this independent international organization is to establish the treatment of CO2 emissions by companies as an important economic success and risk factor. To this end, CDP also evaluates the extent to which companies observe the impact of their business activities on climate change and incorporate it into their reporting. The organization collects the data in the name of over 500 institutional investors. The results are made available to the capital market. Participation in the data collection is voluntary for the companies.
According to the latest report, CDP expects opportunities as well as risks for the financial sector in the near future. New financial products with reference to climate change as well as responsible investments in innovative technologies can lead to additional revenues. At the same time, more stringent guidelines and laws as well as the reputational damage that may ensue can also lead to risks.