Most Bankssuch as ING Germany, UBS, Deutsche Bank, DZ Bank or Commerzbank are now pursuing their own climate plansaccording to which they will grant loans to companies in the future. One of the main criteria is increasingly the submission of a net-zero plan. Such a roadmap to carbon neutrality is required, for example, for 90 % of all energy-intensive corporate customers of Deutsche Bank by 2026 if they wish to apply for or draw down loans in the future. With the CO₂ savings measures as a prerequisite for business loans banks want to prevent capital from being invested in companies that continue to rely on fossil fuels. This change in lending strategy is in line with the EU taxonomy and the coming EU net-zero industry law. Both European Union measures aim to channel private money flows into strategic cleantech technologies in particular. Through a green industrial plan, the EU wants to achieve the climate and energy targets for 2030 and the climate neutrality target for 2050.
Banks part with customers without plans for CO₂ savings measures
As part of the European standardization process, the Banks under increasing pressure with their lending criteria. The CSRD reporting obligationthe taxonomy and the two planned directives such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the net-zero industry law are becoming increasingly intertwined. This leaves Hardly any more loans for fossil fuel projects. Driven by their own climate plans, many banks are already foregoing new business and even part with existing customersunless they are prepared to draw up their own net-zero plans. Oil, gas and coal companies are already having problems generating fresh capital for their plans. Banks are gradually shedding existing customers from these sectors. However, energy-intensive companies in the steel and cement industries as well as the aviation, shipping and automotive sectors are also already affected by the transition plans.
Stricter environmental standards for financing
Banks are increasingly focusing their business activities on decarbonization projects and supporting nature and biodiversity. As part of their own climate targets, they are expanding their offerings in the area of ESG-linked finance further. This development is already noticeable in companies in the Supply chains for corporations. A scale divides companies into "green", "in transition" and "brown", depending on their contribution to climate change and their Efforts to reduce CO₂. ESG-linked finance ties loan conditions to the fulfillment of ESG criteria. Companies or projects that meet these targets receive better financing conditions. Those that do not meet them must expect higher costs. This creates incentives for sustainable business practices and social responsibility.
The implementation of ESG-linked finance involves the establishment of relevant ESG criteria and the definition of targets and key performance indicators. This is applied to various financial instruments and transactions and promotes the sustainability and responsibility of companies. Lower risks for lenders and there are competitive advantages for everyone involved. Another 30 banks are already implementing their own climate plans and are focusing on CO₂ savings measures as a prerequisite for new corporate loans.