ESG Investing Solutions

Our ESG Investments Framework1 explains how certain ESG considerations can be integrated into the investment decision-making process. We screen investment products within the scope of our ESG Investments Framework using a combination of quantitative criteria and qualitative due diligence methodologies, using third-party data and ratings as well as our in-house expertise.

ESG investing: key approaches

 

The following types of investing represent the main ways through which selected ESG factors may be integrated into investment decisions. You can find more information and methodology in our ESG Investments Framework. We periodically review our ESG capabilities that are outlined in our Framework in line with regulatory and market requirements.

  • Exclusionary screening: excluding certain investments in companies that for example violates global standards such as the UN Global Compact, or exceeds defined exposure thresholds in selected sectors such as tobacco as outlined in our ESG Investments Framework. 
  • Positive Screening: identifying investments with ESG ratings that compare favourably to a defined peer-group based on third-party data.
  • Thematic: investments with exposure to environmental and/or social related themes such as energy transition as defined in the respective product documentation.

 

1 The ESG Investments Framework sets out criteria and evaluation processes to report investments as ‘ESG Investments’ in the context of Deutsche Bank Group’s sustainable finance, transition finance and ESG investment target. The purpose of the Framework, which may be updated from time to time, is to have a single, consistent methodology for the classification of financial instruments and managed portfolios to be reported as Assets under Management under the Bank’s Target.

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In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive.

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ESG is an acronym that stands for Environmental, Social and Governance.

There is currently a lack of uniform criteria and a common market standard for the assessment and classification of financial services and financial products as sustainable/social or considering ESG criteria. This can lead to different providers assessing financial services and financial products differently in terms of ESG considerations.

In addition, there are various existing and new regulations on ESG and Sustainable Finance, which need to be substantiated, and further draft regulations and amendments to regulations are currently being developed, which may lead to financial services and financial products currently labelled or described as considering ESG criteria not meeting future legal requirements for qualification in this context.

We utilize data as well as ESG assessment methodologies that are supplied by independent third-party provider(s). These third-party assessment methodologies and corresponding ratings are therefore subject to change, which may result in turnover in investments within a portfolio to remain in line with an agreed ESG baseline.

ESG ratings are regulated in the EU by EU Regulation (EU) 2024/3005 on the transparency and integrity of Environmental, Social and Governance (ESG) rating activities. Nevertheless, it is important to note that there is a selection of ESG data providers in the market, and methodologies between these can vary leading to different ratings for the same instruments.

ESG principles may result in a less diversified, more concentrated portfolio. ESG investing may result in the exclusion of specific industries.