Innovation

Deutsche Bank improves carbon footprint, ends fracking

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July 28, 2020

Deutsche Bank is taking steps to reducing its carbon footprint and contributions to climate change and will no longer fund oil or new energy projects in the Arctic region.

The German bank will also end all fracking projects in countries with short water supply, and end its global coal mining business by 2025, according to a press release.

By the end of 2020, the bank plans to review all its business activities in Europe and the U.S. that are rely heavily on coal. A similar review will be conducted in Asia, beginning 2022, but is expected to take more time given the region's high dependence on coal.

The reviews and decisions are part of the bank's sustainability program and newly revised fossil fuels policy.

The revamped policy provides direction for financing and capital market transactions toward bank activities tied to coal, oil, and gas.

The revised policy will help "the EU to achieve its goal of being climate neutral by 2050," CEO Christian Sewing said in the release.

The Institute for Energy Economics and Financial Analysis last year estimated over 100 financial institutions would move away from coal lending "including 40% of the top 40 global banks and 20 globally significant insurers."