Deutsche Bank has tightened its coal financing policies but has not yet changed its criteria for the oil and gas industries, drawing criticism from climate activists.
Germany’s biggest bank said it would not accept as new clients companies that generate more than 30% of their revenue from coal and do not present a “credible diversification plan”, a figure more in line with industry norms and below the 50% previous.
The bank said it does not offer financing for thermal coal projects.
Deutsche said it “plans to update its oil and gas policy,” without giving a timetable.
“In any case, coal is a dying industry, so it’s not surprising that banks want to distance themselves from it,” Kate Cahoon, an activist for 350.org, said before the announcement. “We are really interested in seeing stronger commitments around oil and gas in particular.”
In recent years, Deutsche Bank has portrayed itself as a lender companies can turn to as they transition to a greener future, a strategy it sees as critical to its own turnaround and increased profits.
Climate activists fear that the financial sector will allow industries such as coal and oil to continue polluting, saying that Deutsche Bank in particular has not done enough.
In February, a group of investors managing assets worth more than $1.5 trillion wrote to the bank urging it to stop directly financing new oil and gas fields this year.
The bank has previously faced pressure from Amundi and Nordea (ST:NDASE) Asset Management to toughen its stance on coal.
Deutsche stated that its funding of the oil and gas sector fell by more than 20% last year, which it attributed to the bank’s exit from Russia and its cessation of support for Russian gas companies, rather than a decision actively stop financing certain providers.
This corresponded with a 28.9% drop in carbon emissions associated with the bank’s lending to the oil and gas sector, although this was partly a consequence of rising share prices, which meant that the Deutsche’s global financing and issuance quota was reduced.
The International Energy Agency stated in 2021 that investment in new oil, gas and coal supply projects must halt to achieve net zero emissions by mid-century.