Deutsche Bank announced a series of finance and due diligence commitments aimed at strengthening its ocean protection policies, including the implementation of a freeze on direct financing of deep-sea mining projects.
According to the bank, the new announcement forms part of its commitment to the #BackBlue initiative. Backed by the UN, and led by blue economy-focused organization the Ocean Risk and Resilience Action Alliance (ORRAA), the Blue Finance Commitment (#BackBlue) initiative was launched in 2021 with a goal to incorporate Ocean considerations in finance and insurance decisions.
As part of the initiative, Deutsche Bank said that it aims to work on developing financial solutions supporting ocean protection, and the bank also committed to review its internal policies on ocean-related activities.
Key changes announced by Deutsche Bank under the ocean-related policy update include a new guideline on maritime transport and infrastructure, with provisions to monitor compliance with the environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. conventions of the UN and its specialized agencies International Maritime Organisation (IMO) and International Labour Organisation (ILO); exclusions and due diligence provisions to ensure stronger protection of sensitive marine areas and critical habitats; expansion of the bank’s fisheries guideline with new due diligence requirements for marine aquaculture, and; a prohibition, “for the time being,” on direct finance of deep-sea mining projects, considering the gaps in regulation and science-based understanding of the impact of deep-sea mining.
Markus Müller, Chief Investment Officer ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. & Global Head of Chief Investment Office at Deutsche Bank Private Bank, and Co-Chair of the bank’s Nature Advisory Panel, said:
“A healthy global economy requires a healthy ocean. Our understanding of this connection has improved dramatically in recent years, and with it our sense of urgency about the need to conserve the marine environment. This step is just one of many that will be required to build a truly sustainable blue economy. We are committed to transformation and want to help our clients navigate the associated risks and opportunities.”