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Deutsche Bank Tightens Energy Investment Strategy; Cuts All Funding for Oil Sands, Arctic

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   |    Tuesday,July 28,2020

Deutsche Bank has reworked its plans for energy sector investments, including completely nixing funding for projects focused on the Canadian oil sands and Arctic.

Per its newly-adopted a new Fossil Fuels Policy, Deutsche Bank will no longer finance the following projects in the oil and gas sector:

• Oil and gas projects that use hydraulic fracturing in countries with scarce water supplies

• New oil and gas projects in the Arctic region

• New oil sand projects (involving exploration, production, transport or processing)

Furthermore, the bank will perform a systematic review of all its global business activities in the oil and gas sector by the end of 2020 with the aim of subsequently setting limits for its overall business activities in the coming years.

Deutsche Bank will also end its global business activities in coal mining by 2025 at the latest.

In addition, Deutsche Bank has signed the so-called Equator Principles – a risk management framework for assessing the environmental and social risk of financing projects.

CEO Christian Sewing, who also chairs Deutsche Bank’s Sustainability Council, said: “Our new Fossil Fuels Policy sets us a strict framework for our business activities in the oil, gas and coal sector. 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.”