DZ Bank

RATING

SECTOR

Banking and Financial Services

WEBSITE

CONTACT

Platz der Republik
60325 Frankfurt am Main
Germany

Postal address:
60265 Frankfurt am Main

Telephone: + 49 69 7447-01
Telefax: + 49 69 7447-1685
Email: mail@dzbank.de

STOCK EXCHANGE

Not listed.

LISTING

  • Union Investment undergoes annual PRI: top grade of A+ in 2020

EMPLOYEES

31,162

CHIEF SUSTAINABILITY OFFICER

Marcus Pratsch

AWARDS

CONTENT SOURCE

FURTHER READING

Report created by Emilia Sharples

DZ Bank

SECTIONS :  Sustainability Targets    Evaluation  •  Key Points  •  Overview

 

Company Activity

DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, is acting as the central bank, corporate bank and parent holding company of the DZ BANK Group.

Their objective is to offer relevant products, exemplary services and efficient processes – and thereby develop themselves into a leading financial services group.

As a central bank, DZ Banks serves as the subsidiary partner of about 800 local cooperative banks. They conceive, develop and provide products and services aimed at every relevant customer segment for the primary banks to market, and provide them with liquidity balancing and reliable refinancing management services.

As an internationally oriented corporate bank they serve SME customers directly and provide them with the full range of Corporate Finance products to fund both operations and investments. In Investment Banking, they are specialised in Fixed Income and private-customer-focused securities services. They put the exceptional placing power of the integrated cooperative financial services sector to work at the interface between the capital markets and the custody account institutions. Their International division provides a worldwide hub for the primary banks and their customers.

As a holding, they coordinate the efforts of the cooperative sector’s comprehensive range of specialised services in order to achieve synergies and grow market potentials for the benefit of their local cooperative banks. Among others Bausparkasse Schwäbisch Hall, R+V Versicherung, Union Investment, DZ HYP and VR Smart Finanz belong to the DZ BANK Group.

 

Company Sustainability Activity

Sustainability is firmly embedded in the corporate values and strategy of DZ BANK AG and the DZ BANK Group. They incorporate the United Nation’s Sustainable Development Goals and the Paris Climate Agreement into their core business and their finance function.

Highlights

  • With a lending volume of €5.7 billion in 2020, DZ BANK was one of the biggest funding partners for renewable energy projects in Germany
  • In Germany, R+V is the third biggest provider of insurance for renewable energy installations
  • Union Investment is one of Germany’s largest providers of sustainable investments with €61 billion of AuM
 

Targets

 

Progress

The bank does not disclose this information.

Certificates

  • DZ BANK is certified as an ECOPROFIT organization in Frankfurt and Düsseldorf. ECOPROFIT (ECOlogical PROject For Integrated environmental Technology)
 

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3: Good Health and Well-Being

  • The DZ BANK Group wants to offer its employees a motivational, healthy, and secure workplace, encourage them to perform well and acquire new skills, and be an employer of choice for the next generation

SDG 7: Affordable and Clean Energy

  • With a lending volume of €5.7 billion in 2020, DZ BANK was one of the biggest funding partners for renewable energy projects in Germany

SDG 8: Decent Work and Economic Growth

  • Important stakeholders of the DZ BANK Group are representatives of companies and organizations that are impacted at an economic, environmental, or social level by the activities of the DZ BANK Group.

SDG 9: Industry, Innovation and Infrastructure

  • Dealings with customers and shareholders are shaped by the cooperative principles, which also had a bearing on the eight values that were developed in 2020 to guide the network’s actions, namely innovation, consistency, performance, courage, sustainability, partnership, security, and cosmopolitanism

SDG 11: Sustainable Cities and Communities

  • Safe and solid investing is part of the core business and a core competency of R+V 
  • In order to live up to this special responsibility, the finance department of R+V developed a new organizational and procedural approach to sustainability in 2020
  • Alongside the objectives of quality, security, profitability, and liquidity, which are enshrined in law, R+V has expanded the focus of its proprietary investment goals
  • R+V strives to use its investment activities to promote the transformation of the economy and society toward more sustainable ways of living and doing business to the best of its ability

SDG 12: Responsible Consumption and Production

  • They want to limit any negative impact on the environment caused by their business operations by reducing their resource consumption and CO2 emissions

SDG 13: Climate Action

  • The DZ BANK Group’s climate strategy, published at the beginning of 2018, targets a reduction of at least 80 percent in the aggregate CO2 emissions of the eleven participating entities over the period to 2050

SDG 15: Life on Land

  • In terms of DZ BANK’s approved funding volume, wind power is the renewable energy source that features most prominently which helps alleviate biodiversity degradation.
 
 

DZ Bank takes on a few sustainability initiatives and has minimal targets toward sustainability.

Despite having few certificates, awards and listings, the financial company produces a report with plans for reducing their CO2 emissions, energy consumption, renewable energy, human rights, and health in alignment with the UN Sustainable Development Goals. 

in 2020, DZ BANK was one of the biggest funding partners for renewable energy projects in Germany. Despite this, DZ Bank has contributed $1.561 B to the fossil fuel industry since the adoption of the Paris Agreement. Furthermore, DZ Bank increased its investment since 2019.

DZ Bank has made some progress toward sustainability but can do much more to improve.

Therefore, this company has been rated a D. 

Analyst Outlook: Positive

The company has made some efforts to align itself with the UN SDGs. However, the lack of certifications and listings does not support the company’s initiatives and strategies.

DZ Bank would receive a higher rating if it decides to decrease its investments in the fossil fuel industry.

 

Key Points

  • MSCI rated AA since 2015 (confirmed in January 2021)
  • Sustainanalytics rating of 22.6 (20-30 = medium)
  • DZ BANK is a member of various other associations and initiatives with a link to the field of sustainability.
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