Science Based Targets Initiative
Science-based CO₂ reduction targetshttps://www.xing.comhttps://www.xing.com
What is the Science Based Targets Initiative (SBTi)?
SBTi is committed to the reduction of greenhouse gases and offers companies support on their way to net zero CO₂ emissions. The reduction is based on science-based targets. Through the initiative, companies can align their decarbonization targets with those of the Paris Climate Agreement.
The initiative was created in collaboration between CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). It is also one of the commitments of the We Mean Business Coalition.
Membership objective
Coinciding with its official support of the Task Force on Climate-related Financial Disclosure (TCFD), Commerzbank joined the Science Based Targets Initiative (SBTi) in September 2020.
As a supporter of the TCFD and by joining the SBTi, we are pursuing in particular the goal of making climate risks in the portfolio transparent and comparable. In addition, we continue to set targets to reduce emissions intensities and design reduction pathways in line with the requirements of the Paris Climate Agreement.
How have we set up our SBTi targets in the loan and investment portfolio?
Our ambition is to support our clients in their transformation process and to sustainably reduce the financed emissions in our portfolio. We pursue the strategic sustainability objective of reducing the CO₂ emissions of our entire loan and investment portfolio to net zero by 2050. To this end, in 2022 we analyzed the CO₂ intensities of the lending and investment portfolio of Commerzbank AG and set near term targets until 2030 in line with SBTi.
Using the SBTi Sectoral Decarbonization Approach (SDA), we have defined concrete targets for the emissions-intensive sectors of our loan and investment portfolio. These are power generation, aviation, automotive manufacturing, commercial real estate financing (residential and commercial), and the production of cement as well as iron and steel.
For the remaining portfolio that is not covered by the SDA targets, we have set targets until 2026 using the SBTi Temperature Rating approach. Our targets were validated by the SBTi in the 2022 reporting year.
In September 2023, we joined the Partnership for Carbon Accounting Financials (PCAF) and accordingly adjusted our calculation methodology to the internationally recognized PCAF standard. As part of applying this standard, we also recalculated the baseline 2021 and derived new target values for 2030. The level of ambition of the targets has remained the same or has been slightly increased, as the sectors cement as well as iron and steel were updated from a 1.8°C pathway to a 1.5°C pathway. Due to the Corona pandemic, the base year for the aviation sector was set by the SBTi to 2023 and adopted accordingly by us. The revalidation of the adjusted targets by the SBTi took place in 2025. The specific SBTi target values for our loan and investment portfolio are published in the ESG framework.
In 2025, the SBTi steering revealed that three sectors are facing a market environment that is slowing down decarbonisation. For the aviation sector and commercial real estate financing (residential and commercial purposes), a more balanced 1.7°C target (so-called steering target) for 2030 was therefore formulated, which will apply from 2026 onwards. Further details regarding targets, transition plan and steering are published in the 2025 Commerzbank Group Sustainability Report.