Anti-Financial Crime (AFC)
AFC encompasses protection against financial and reputational losses incurred by financial crimes. Deutsche Bank manages this by assessing, controlling, and mitigating risks, which is consolidated in a comprehensive risk management framework that covers Anti-Money Laundering (AML), Sanctions, and Embargoes, as well as fraud and the fight against bribery and corruption.
Bribery and Corruption (ABC)
Bribery is the practice of offering, promising, authorizing, receiving or accepting gifts or other advantages to serve a particular purpose. Bribery can affect the public or private sector. Deutsche Bank takes a zero-tolerance approach to bribery and corruption. Its ABC Policy sets out minimum standards of behavior expected by all employees and third parties associated with the Bank.
Processes are defined as carbon neutral if they do not lead to any carbon emissions or if they achieve net zero carbon emissions through balancing released carbon by purchase and retirement of carbon credits.
Center for Sustainable Finance (Deutsche Asset Management)
The Center for Sustainable Finance aims to position the Bank’s Asset Management division as a thought leader and catalyst for sustainable finance management. The Center publishes research about ESG topics and focuses on ESG-related assessments for the economy as a whole, on strategic recommendations and product innovations.
Community Reinvestment Act (CRA)
The CRA is a US federal law enacted in 1977 with the intention to encourage commercial banks and saving associations to help meet the credit needs in all segments of the communities in which they operate. This includes the needs of borrowers both from low- and moderate-income neighborhoods.
The 2015 United Nations Climate Change Conference was held in Paris, France. It marks both the 21st yearly session of the Conference of the Parties (COP21) to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and the 11th session (of the Conference of the Parties) to the 1997 Kyoto Protocol.
Corporate Citizenship (CC)
CC is part of Deutsche Bank’s corporate responsibility. CC involves the Bank’s initiatives in the area of social responsibility, including donations, activities of the Bank’s foundations, as well as the support of corporate volunteering.
Deutsche Bank Code of Business Conduct and Ethics
Deutsche Bank’s Code of Business Conduct and Ethics describes the Bank’s values and beliefs. All employees are required to follow the letter and spirit of the Code.
Embargoes and sanctions
National authorities, economic blocs such as the European Union, and multilateral institutions like the United Nations all have the power to impose restrictive measures, known as embargoes or sanctions, against countries, organizations, groups, entities, and individuals who infringe internationally accepted behaviors and norms.
Environmental and Social (ES) Policy Framework
Deutsche Bank’s ES Policy Framework specifies the Bank’s approach to manage risks that arise due to business relations with clients, as well as transactions associated with sectors, that have a high potential for significant negative ES impacts. The Framework defines responsibilities, processes, and requirements for assessment processes.
ESG stands for “Environment, Social, and Governance” and expresses if and how environmental and social aspects, as well as the governance type, are being considered or evaluated during the decision-making process of companies and during the assessment of a company.
The ESG Engine is a proprietary in-house software solution of Deutsche Bank. It algorithmically assesses corporate activities on compliance, violations of accepted international norms and environmental, societal, and business ethics standards. The automatic screening process is based on data from external leading ESG rating agencies.
EU Non-Financial Reporting Directive
The EU Directive 2014/95/EU requires disclosure on non-financial information such as environmental aspects, employee-related and social aspects, human rights, and anti-corruption/bribery aspects, considering own operations, value chain, and business relations.
Global Impact Tracking (GIT)
With the Deutsche Bank’s GIT tool, we monitor on an annual basis the impact of our central and regional social projects. The analysis of the results provides evidence for the sustainable effect of the projects on persons/entities involved.
Global Reporting Initiative (GRI)
The GRI established independent reporting standards for sustainability information. These standards help corporations, governments, and other institutions to evaluate and communicate their impacts on issues such as climate change, human rights, and anti-corruption.
Green Bonds are bonds that are especially used for the purpose to finance corporate assets in the area of environmental projects and climate change and usually include requirements regarding impact measurement.
Green Climate Fund (GCF)
The Green Climate Fund (GCF) was passed by 194 countries at the 2010 UN Climate Change Conference in association with the financing mechanism of the UNFCCC and is the central and global investment tool to fight the consequences of climate change.
Greenhouse Gas (GHG) Protocol
The GHG Protocol sets a worldwide standard for how to quantify, manage, and report emissions of greenhouse gas. These standards and GHG tools are used by companies and organizations globally to manage their emissions, thriving to become more efficient, prosperous, and resilient organizations or companies.
Impact Investments are investments made into businesses and social sector organizations, directly or through funds, with the intention of generating a measurable, beneficial social and environmental impact alongside a financial return.
International Integrated Reporting Council (IIRC)
The IIRC is a global coalition of investors, regulators, non-governmental organizations (NGOs), companies, standard setters, and the accounting profession that aims to align corporate behavior and capital allocation to wider goals of sustainability and financial stability through integrated thinking and reporting.
ISO 14001 is an internationally recognized standard that sets out the requirements for an environmental management system.
ISO 14064 is a standard for environmental management that defines rules in accordance with the GHG Protocol for the organizational definition of a GHG emissions balance sheet.
ISO 27001 is an internationally accredited standard that specifies the requirements for an information security management system within the context of an organization.
ISO 50001 is an international standard for an energy management system for companies that can be used in Germany to meet the requirements of the German energy audit law according to the EU Energy Efficiency Directive.
Know Your Customer (KYC)
KYC describes the process to identify and verify the identity of a client. Deutsche Bank’s KYC policies consist of strict requirements, aiming at protecting the Bank from criminal abuse.
Limited Assurance refers to a restriction of the scope of testing of information and data by an external auditor that complies with certain standards. In the case of the Corporate Responsibility Report, limited assurance refers to the tests of processes and plausibility of the reported content as chosen by the client.
Mandatory Time Away (MTA)
MTA is an anti-fraud control for the prevention and detection of unauthorized or inappropriate activity by employees in sensitive positions that may result in serious financial loss or reputational damage to Deutsche Bank.
Process to define issues that may have a direct or indirect impact on an organizationʼs ability to create, preserve, or possibly reduce economic, environmental, and social value for itself, its stakeholder, and for society.
Microfinance refers to providing (small) loans, investments, and limited philanthropic grants to the microfinance sector towards the goal of enabling the poor throughout the developing world to access credit for self-employment as a poverty alleviation strategy and as means for the development of economic structures.
Money laundering is the intentional movement of cash and/or assets derived from illegal and criminal activities such as corruption, robbery, or arms trade into legal financial and business systems, eliminating audit trails.
OHSAS 18001 is an international standard that supports companies in improving their occupational health and safety management and in complying with legal requirements through best practices.
Red Flag Process
The Red Flag Process provides a link between risk-related conduct from employees and their performance management. Through Red Flags, Deutsche Bank is able to monitor adherence to certain risk-related policies and processes, whereby a breach leads to an appropriately risk-weighted Red Flag. Individual Red Flag results are considered in promotion, compensation, and performance management decisions.
Reputational Risk Framework
Deutsche Bank’s Reputational Risk Framework defines consistent standards for the management of reputational risks. It entails the Bank’s global Reputational Risk Principles and Guidelines.
Socially Responsible Investment (SRI)
SRI encompasses sustainable and responsible investments, as well as impact investing. This includes all investment approaches that aim at both a financial return and a broader social impact through addressing ESG criteria.
Soft Commodities’ Compact (of the Banking Environment Initiative and Consumer Goods Forum)
The Soft Commodies’ Compact is an initiative led by the leading producers of consumer goods. The initiative works together with the banking industry aiming at transforming soft commodity supply chains to achieve zero net deforestation by 2020.
Sustainability Accounting Standards Board (SASB)
The SASB is an independent and non-profit US organization formed in 2011 to develop and to spread sustainability reporting standards among companies.
Terrorism financing means providing, depositing, distributing, or collecting funds, by any means, intended to be used, or knowing that they are to be wholly or partially used, for committing terrorist acts. It is irrelevant whether such funds are of legal or illegal origin.
Three Lines of Defense (3LoD)
3LoD is a model to manage and to mitigate risks. The first LoD usually lies in the respective business divisions that are responsible for client relationships. The second LoD comprises control functions such as Risk Management and Compliance. The third LoD entails audit functions assuring the effectiveness of control systems.
The Thun Group is an informal group of financial sector representatives who have come together to share insights on human rights and to implement the UN Guiding Principles on Business and Human Rights.
UK Modern Slavery Act
The UK Modern Slavery Act describes measures to eradicate slavery, servitude, and forced or compulsory labor, as well as human trafficking, and to provide better protection of victims.
UN Environment Programme (UNEP)
The UNEP is the leading global environmental authority that sets the global environmental agenda, coordinates the environmental activities of the United Nations, and serves as a determining advocate for global environmental protection.
UN Environment Programme Finance Initiative (UNEP FI)
The UNEP FI includes banks, insurers, and investors who work together with the UNEP to create a paradigm shift in finance and to support sustainability and sustainable development.
UN Global Compact
The UN Global Compact is the largest corporate sustainability initiative that encourages companies with the help of ten principles to operate and develop strategies in alignment with universal principles on human and labor rights, environment, and anti-corruption, as well as to take actions to achieve broader societal goals.
UN Guiding Principles on Business and Human Rights
The UN Guiding Principles on Business and Human Rights, endorsed by the UN Human Rights Council in June 2011, are a set of guidelines for companies and countries to fight against and to remedy human rights abuses deriving from business activities.
UN Principles for Responsible Investment (PRI)
The UN PRI are an independent organization supported by the UN that encourages investors to incorporate ESG factors into investment decisions with the help of six principles.
UN Sustainable Development Goals (SDGs)
The SDGs define global priorities and aspirations for 2030, enforced through the UN in 2016. The SDGs include 17 goals concerning social needs such as equality, education, and health, as well as goals targeted at economic growth and environmental protection.
For reasons of intelligibility and brevity, the explanations do not claim to be all-embracing.