<\/i>THE POSITIVES<\/strong>
\n<\/b><\/p>\n<\/div>\n- Deutsche Bank extended the scope of companies covered in its approach with the lowering of its relative threshold and the adoption of absolute thresholds for both coal mining and coal power companies. The latter is particularly important because it is the only way to be able to cover large conglomerates which are very diversified and thus below the 50% or 30% relative thresholds. But even if these thresholds are exceeded, they do not trigger an automatic exclusion;<\/li>\n
- The German banking giant has, for the first time, provided some details\u00a0 of its definition of a \u201ccredible transition plan\u201d, setting an expectation of interim targets for some companies, and the adoption of coal phase-out deadlines for all companies in scope.<\/li>\n<\/ul>\n<\/div>
<\/i>POINTS FOR IMPROVEMENT
\n<\/b><\/p>\n<\/div>\n- Deutsche Bank has failed to immediately exclude companies that are planning and developing new coal projects. The concept of expansion is not even explicitly addressed by the bank. According to the Global Coal Exit List (GCEL), there are 371 coal developers,which are below the 50% threshold that triggers the expectation to reduce the share of coal in their activities over time. Collectively, they are still planning195 GW of new coal power capacity, almost the equivalent of the current US coal fleet, and they represent 75% of the 490 coal developers listed in the GCEL.\u00a0 Among the companies not covered are some coal developers that have previously been supported by Deutsche Bank, including those in the table below.<\/li>\n
- The relative and absolute thresholds do cover a significant number of companies listed in the GCEL, but the absolute threshold for coal power remains too high to cover some important coal power producers such as Berkshire Hathaway Energy and Vedanta Resources, which given their size should be covered. Above all, these thresholds are not exclusion thresholds, they only define the scope of companies for which Deutsche Bank \u2018requires\u2019 a \u2018credible transition plan\u2019 with specific \u2018expectations\u2019. The bank will only proceed with exclusions after a period of engagement, which could last until 2025 or even after, and only as a \u2018last resort\u2019;<\/li>\n
- The exceptions to the coal phase-out deadlines expected in a \u201ccredible transition plan\u201d are also significant as they cover important state-owned companies in countries that have adopted a Just Energy Transition Partnership: Indonesia, Vietnam and South Africa. As part of these partnerships, some measures will be put in place to accelerate the coal phase-out in these countries. Yet, none of their main coal operators, i.e. PLN in Indonesia, EVN in Vietnam or Eskom in South Africa have guaranteed that they will phase-out their operating coal assets by the deadline, despite their net zero commitments. In fact, they still plan\u00a0 additional coal power capacity\u00a0 with more than 6 GW, 5 GW and 1 GW respectively, according to the GCEL.<\/li>\n<\/ul>\n<\/div>
Coal developers supported by Deutsche Bank (1)
\n<\/b><\/p>\n<\/div>\n\n
\n\n\n| Coal developer<\/b><\/th>\n | Total financing (lending and underwriting, US$ million) from 2019 to November 2021<\/b><\/th>\n | Company that is still involved in…<\/b><\/th>\n<\/tr>\n<\/thead>\n\n\n| Adani<\/td>\n | 400.09<\/td>\n | 8 new coal mining projects in Australia (including the Carmichael project) and India, as well as over 12 GW of additional coal power capacity in 6 different projects throughout India<\/td>\n<\/tr>\n | \n| Glencore<\/td>\n | 1,217.16<\/td>\n | 9 new coal mines\/expansion of existing mines in Australia and South Africa<\/td>\n<\/tr>\n | \n| SDIC<\/td>\n | 76.32<\/td>\n | Almost 7 GW of new coal capacity in 5 projects in China<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n | |