Deutsche Bank

Corporate Responsibility
Report 2015

Climate change and renewable energy

  • Signed the Paris Pledge for Action, following COP21
  • Managed financing for Germany’s largest offshore wind farm
  • Became bookrunner for the first green bond to come out of China

As 195 leaders in Paris signed a historic agreement on climate change at the United Nations Conference of the Parties (COP21) in Paris in December 2015, we also signed the “Paris Pledge for Action”, committing us to accelerate the transformational changes needed to reduce global warming to within acceptable limits.

How we do it

We help clients to develop, acquire, and sell low-carbon businesses and assets. Deutsche Bank is one of the top six European-based private-sector project financiers of clean energy, and our financing and advisory services support other low-carbon and clean tech businesses. By the end of 2015, Deutsche Bank had provided US $5.03 billion in project finance for renewable energy projects generating over 3,496 megawatts. See chapter Asset management, see chapter Sustainable investment

Our Global Transaction Banking division was mandated for the acquisition financing of the Gode Wind 1 offshore wind farm in Germany. The project involves 55 wind turbines, with a combined output of 330 megawatts, enough to power approximately 340,000 homes. Together with sister project Gode Wind 2, it will be Germany’s biggest offshore wind farm. The €556 million ten-year investment grade bond offering was financed by institutional debt and arranged by lead manager Talanx along with a group of German asset managers and insurance companies. Across the world, we financed our first large-scale renewable energy project in South Africa, a 90-megawatt solar plant on which Deutsche Bank underwrote ZAR 2.1 billion in debt capital.

We fully support the Green Bond Principles, whereby the issuer will provide transparency on the use of the proceeds generated from the bond issuance. In 2015, we continued to be active in green bonds, supporting clients to issue €4 billion. We managed several of the most high-profile issues in this sector. These included:

  • The first green bond from China, Xinjiang Goldwind Science & Technology Co’s US$300 million, 2.50% issue. The US$300 million deal of a full-service wind energy solutions provider received orders of US$1.4 billion.
  • The first Brazilian green bond, a €500 million issue for food group BRF. Funds raised from the project will be used for green projects focused on energy efficiency, renewable energy, sustainable forests, water management, packaging, raw material use reduction and waste management.
  • A €1 billion dual tranche bond for the Franco–Dutch property group Unibail-Rodamco, which included a €500 million ten-year green tranche.
  • Joint bookrunner on the first GBP 400 million ten-year green bond for Transport for London (TfL). Proceeds will support the objectives of TfL’s Corporate Environmental Framework, including the reduction of air pollution in London, improvements in natural resource management, and preparation for the potential impacts of climate change.

In addition, Deutsche Bank invested €800 million into a portfolio of high-quality green bonds, as part of its goal of investing €1 billion into this developing market. This investment will be primarily in green bonds issued by countries, global businesses and agencies, as part of our liquidity reserve investments.

Looking ahead

The move to a carbon neutral economy is a significant economic challenge for the current age: Bloomberg New Energy Finance estimates that around US$500 billion a year of investment will be needed by 2020 in order to cap global warming at 2°C. Deutsche Bank will, therefore, remain strongly committed to helping clients to meet their climate change obligations while also maintaining their commercial opportunities, and reducing our own direct impact.