Deutsche Bank Ag · XETR:DBK
Deutsche Bank — Nomura SRI Conference London 2014
37 slides from Deutsche Bank's conference presentation, Jun 26, 2014
Slide 1: Sustainability at Deutsche Bank
Deutsche Bank Sustainability at Deutsche Bank Viktoriya Borysova (Group Sustainability) Dr. Antje Stobbe (Investor Relations) Deutsche Bank, Investor Relations, Communications, CSR & Public Affairs/Group Sustainability London, 26 June 2014
Slide 2: Contents
Contents 1 Sustainability Approach 2 Governance & Effective Controls 3 Risk s Management a age e t & Susta Sustainability ab ty in tthe e Co Core e Business us ess 4 Further Information (Appendix) Deutsche Bank, 1 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability London,
Slide 3: Starting point
Starting point Sustainability reconnects the bank with its stakeholders Economic elements — Business continuity/ Risk — Sustainability limits financial data security Management and reputational risks — Shareholder value — Stakeholder value Opportunity — Sustainability creates opportunities — Transpa
Slide 4: Sustainability milestones 2013
Sustainability milestones 2013 Conducted 180 anti-fraud, anti-bribery and anti-corruption risk assessment workshops across all major hubs, which will enhance our fraud, bribery and corruption risk management framework The Supervisory Board intensified its oversight of ethics through the creation of
Slide 5: Contents
Contents 1 Sustainability Approach 2 Governance & Effective Controls 3 Risk s Management a age e t & Susta Sustainability ab ty in tthe e Co Core e Business us ess 4 Further Information (Appendix) Deutsche Bank, 4 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability London,
Slide 6: Holistic risk management and governance approach
Holistic risk management and governance approach External commitments Internal guidelines ― UN Guiding Principles on Business and Human Corporate Governance/Human Resources Rights — Code of Business Conduct and Ethics ― UNEP-FI Declaration of Sustainable Development — Policies and standards ― Princi
Slide 7: Broad culture change program irreversibly initiated
Broad culture change program irreversibly initiated Then Now Education/ Broad training program, Non-completion impacts pay and training focus on reminders for non-completion non completion promotion compliance li Deferral: 3 years max; limited Deferral: 5 years max; Compensation clawbacks strengthen
Slide 8: Culture: 2013 a year of fundamental progress
Culture: 2013 a year of fundamental progress 2013 2014/2015 roadmap Foundations firmly established ― Feedback from 52,000 staff collected Listen Embed values & beliefs in ― Independent Compensation Review Panel core systems and processes ― Defined new values & beliefs Turn values & beliefs into ― Ex
Slide 9: 2013: Values and beliefs launched after extensive discussion and reflection
2013: Values and beliefs launched after extensive discussion and reflection Our Integrity Sustainable Client Centricity Innovation Discipline Partnership values Performance Our ― We live by the ― We drive value ― We earn our ― We foster ― We protect the ― We build diverse beliefs highest standard fo
Slide 10: Dedicated Risk Culture Program
Dedicated Risk Culture Program Overview Five Risk Culture behaviours … ― A Bank-wide Risk Culture program was launched in 2010 in order to embed a strong Risk Culture across the organisation. ― Risk Culture is an important aspect of the Bank’s culture and is a significant focus of the bank’s regulat
Slide 11: Targeted initiatives help embed a strong risk culture
Targeted initiatives help embed a strong risk culture Comprehensive Training Communications and Engagement ― Comprehensive mandatory Risk Culture training curriculum ― Highly visible messages at Group and divisional level introduced in 2010 ensure employee awareness of the Bank’s risk culture standa
Slide 12: Ensuring strong governance
Ensuring strong governance ― Consistently enhanced anti-money laundering (AML) function: “We are spending EUR 1 bn to reinforce ― Strengthened anti-fraud, anti-bribery and anti-corruption program enhanced our systems and controls and adapt these policies, procedures and controls to changes in regula
Slide 13: Board compensation: Transparent compensation structure implemented in 2013
Board compensation: Transparent compensation structure implemented in 2013 Old structure New structure as of 1 January 2013 Base Salary Base Salary Monthly cash payment Monthly cash payment Total Bonus Annual Performance Award (APA) Plan vs. Actual RoE Actual RoE Discretionary assessment on the basi
Slide 14: Board compensation: Annual & Long-term Performance Award
Board compensation: Annual & Long-term Performance Award Components and assessment approach Relevant KPIs Weight 3 Financial KPIs Common Equity Tier 1 ratio and Leverage ratio (Capital), CIR (Costs), 3 x 15% Value-added (Competencies) Annual Performance Award 1 Culture KPI 1 x 15% (APA) Employee p y
Slide 15: Contents
Contents 1 Sustainability Approach 2 Governance & Effective Controls 3 Risk s Management a age e t & Susta Sustainability ab ty in tthe e Co Core e Business us ess 4 Further Information (Appendix) Deutsche Bank, 14 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability London,
Slide 16: Managing reputational risks
Managing reputational risks Risk escalation process Operating responsibly means weighing the risks against the value created Group Reputational Risk Committee Regular meetings Discussions concerning escalated reputational risks GRRC Final decision concerning transaction Regional/ Regional/divisional
Slide 17: Environmental and Social Reputational Risk Framework
Environmental and Social Reputational Risk Framework Increased number of transactions reviewed ― The Environmental and Social Reputational Risk Framework (ES Risk Framework) requires environmental and social due diligence ― Set of Environmental and Social Impact Assessment Guidelines help business u
Slide 18: Environmental and Social Reputational Risk Framework
Environmental and Social Reputational Risk Framework Key positions on sensitive topics — Group Policy on Cluster Munitions put into practice in 2012. Cluster munitions — Policy prohibits business with conglomerates that manufacture or distribute cluster munitions, including key components, banned un
Slide 19: Environmental and Social Reputational Risk Framework
Environmental and Social Reputational Risk Framework Implementation in core business May 2014: campaign by several NGOs asserts that Deutsche Bank is most likely to finance expansion at Abbot Point due to an alleged g financing g of a p prior expansion. p Facts: ― Deutsche Bank’s only involvement wi
Slide 20: Managing assets for our clients
Managing assets for our clients Establishing an ESG strategy ― Establishment of ESG Head Office in DeAWM in 2013 ― Responsible for coordination, development and strengthening of ESG investment capabilities across the platform ― Implementation of a new ESG strategy ― Strategy defined by three pillars
Slide 21: Business with retail clients (1)
Business with retail clients (1) Advising clients responsibly DB Group PBC Exclusion criteria for active product offering in… Mission + Common Statement Essentials ― Speculating on the scarcity of food … are the nucleus of the PBC Product Code commodities or short-term ― We create long-term value in
Slide 22: Business with retail clients (2)
Business with retail clients (2) Measuring performance for clients ― Creating value for clients as well as shareholders is essential to responsible banking This is at the core of the FairShare™ principle ― Anchored in private and business client division since 2012 ― The FairShare™ principle refle
Slide 23: Contents
Contents 1 Sustainability Approach 2 Governance and Effective Controls 3 Risk s Management a age e t & Susta Sustainability ab ty in tthe e Co Core e Business us ess 4 Further Information (Appendix) Deutsche Bank, 22 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability Londo
Slide 24: Sustainability in DB's business with corporations
Sustainability in DB’s business with corporations Fostering the transition to low-carbon low carbon growth Investors, companies and governments are increasingly acting on environmental issues e.g. climate change. ― Set up of renewable energy targets & feed feed-in in tariffs ― Over 40 national and 2
Slide 25: Sustainability in DB's business with corporations
Sustainability in DB’s business with corporations Green Bond Principles The Green Bond Principles (GBP) … — create a common,, voluntaryy framework and standard disclosures,, — support transparency and integrity for investors in this rapidly growing market, and — will help this market to develop — cu
Slide 26: Sustainability in DB's business with corporations
Sustainability in DB’s business with corporations Selected renewable energy and clean technology deals and transactions Corporate & Investment Bank Volume, o u e, in EUR U m 2011 0 2012 0 2013 0 3 Public Merger & Acquisition transactions(1) 5,435 2,200 - Equity and debt issuances 2,290 231 5,512 Pro
Slide 27: Banking services for individuals and businesses
Banking services for individuals and businesses Sustainable products Selected sustainable products In EUR m 2013 2012 2011 KfW loans granted to private and business clients in Germany 623.0 578.5 624.6 KfW green loans granted to private clients in Germany 501.0 470.0 507.8 Green loans granted to pri
Slide 28: Deutsche Bank's ESG-assets under management
Deutsche Bank’s ESG-assets under management Global growth ― Individuals and institutions increasingly view environmental, social and governance risks and opportunities as significant for long term returns. ― A Assetst invested i t d according di tto ESG strategies t t i have h continued ti d tto gro
Slide 29: Alternative investments
Alternative investments Responding to public tenders from governments and international agencies, Deutsche Bank has jointly structured and invested in funds with specific environmental and social objectives and acts as investment manager: ― The European Energy Efficiency Fund (EEEF) manages assets o
Slide 30: Achieving carbon neutrality
Achieving carbon neutrality ― Deutsche Bank achieved its target to make operations carbon neutral by the end of 2012. ― Deutsche Bank maintained carbon neutrality for its operations in 2013. ― Invested in energy efficiency projects to reduce energy use and purchased and generated renewable electrici
Slide 31: Increasing eco-efficiency
Increasing eco-efficiency ― Intent to gain Leadership in Energy and Environmental Design (LEED) certification for all the Bank’s major j bbuildings. ildi Green 37 buildings within the bank’s portfolio are LEED-certified buildings ― Green lease program ensures buildings comply with sustainability s
Slide 32: Deutsche Bank as an employer
Deutsche Bank as an employer Number of employees Regional deployment of staff Employee qualification Full time equivalents at year's end Full-time In % at year's end In % of total number of employees Europe (excl. Germany, University degree Middle East, Africa) High school degree Germany Americas As
Slide 33: Diversity
Diversity Initiatives to foster female leadership (1) — ATLAS (Accomplished Top Leaders Advancement Strategy) initiative was l launched h d iin 2009 b by th the Ch Chairman i off th the Management Board and Group Executive Committee. Goal: increasing the number of women in senior management position
Slide 34: Diversity
Diversity Initiatives to foster female leadership (2) — Along with the other DAX (German share index) companies, Deutsche Bank signed a declaration in 2011 to increase the proportion of female senior managers to 25% (Managing Director and Director levels) and for all officer titles to 35% by the end
Slide 35: Deutsche Bank is listed in most important ESG/SRI indices
Deutsche Bank is listed in most important ESG/SRI indices Indices Listed since Indices Listed since Sustainalytics ECPI Stoxx ESG Leaders 2001 ECPI 2002 ECPI Ethical Index 2006 SAM FTSE DJSI World 1999 - 2011 FTSE4GOOD 2001 DJSI STOXX 2006 - 2009 Europe Index DJSI Europe 2010 - 2011 (EUR) 2008 Bank
Slide 36: Corporate Responsibility – reporting
Corporate Responsibility – reporting Corporate Reporting 2013 CR Report Annual Review Financial Report Website www.db.com/responsibility Deutsche Bank, 35 Investor Relations, Communications, CSR & Public Affairs/Group Sustainability London, 26 June 2014
Slide 37: Cautionary statements
Cautionary statements This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical f t they facts; th i l d statements include t t t about b t our beliefs b li f andd expectations t ti and d the th assumptions ti underlying d l i th them. T