Deutsche Bank says it will no longer invest in fracking or Arctic oil as banks turn away from fossil fuels
- Deutsche Bank said it will no longer finance oil sand or energy projects in the Arctic as part of its new fossil fuels policy.
- The German lender is cutting ties with fracking projects in countries with scarce water supply, and aims to end business activities in coal mining by 2025.
- By the of end 2020, Deutsche Bank will review all existing oil-and-gas businesses in Europe and the US, it said.
- For businesses in Asia, a review is expected to conducted in 2022 but that will likely take longer as the region is highly dependent on coal power.
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Deutsche Bank said on Monday it would no longer fund oil sand or new energy projects in the Arctic region, as banks become more conscious of their carbon footprint, and contributions to climate change.
The German bank also said it would end all fracking projects in countries with short water supply, and halt global business activities in coal mining by 2025.
By the end of 2020, Deutsche Bank said it would review all planned business activities that are highly dependent on coal in Europe and the US.
A similar review of businesses in Asia is scheduled to begin in 2022, although this is expected to take longer owing to the region's high dependence on coal power compared to much of the world.
The moves are part of the bank's new fossil fuels policy that contribute to wider sustainability targets set in May this year.
The revamped fossil fuels policy provides a "strict framework" for financing and capital market transactions towards bank activities tied to coal, oil, and gas.
Chief executive Christian Sewing said the policy sets the bank's "ambitious targets" and will help "the EU to achieve its goal of being climate neutral by 2050."
Deutsche Bank issued its first own green bond, a bond tied to an environmental project, in June.
In February, JPMorgan said it would stop all business with coal companies and restrict financing to those that drill in the Arctic. The bank still provides some loans to coal businesses, but aims to phase those out by 2024.
The Institute for Energy Economics and Financial Analysis last year estimated that over 100 financial institutions would move away from coal lending "including 40% of the top 40 global banks and 20 globally significant insurers."
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