Deutsche Bank Transition toward a sustainable and climate-neutral economy Non-Financial Report 2022 Sustainable finance Governance GRI 2-9/23/24, 3-3, FS1, FS3 Deutsche Bank’s Sustainable Finance Framework (*), established in 2020, outlines the methodology and associated procedures for classifying financial products and services offered by Deutsche Bank as sustainable financing and investments. The framework specifies the classification logic, the eligibility parameter criteria, the applicable environmental and social due diligence requirements, the verification and monitoring process and is complemented by other policies, providing additional information on specific topics. A robust framework for defining sustainable financing and investments is essential for target- setting, decision-making, enforcement and credibility with stakeholders. In the Corporate Bank and the Investment Bank, the validation against the framework is conducted on a deal-by-deal basis and according to a 6-eyes-principle. As a first step, coverage teams screen client’s sustainability profile and map transactions in scope against the framework. Initial due diligence prior to deal closing is conducted in cooperation with product teams and ESG product champions. After that, ESG product champions review the classification rationale, proof points and conduct plausibility checks. Finally, Group Sustainability performs its due diligence, reviewing the classification rationale, proof points and any additional information required. Only after successful completion of these validation steps, a deal can be classified as compliant with the Sustainable Finance Framework, and the transaction can be counted towards the sustainable finance target. The validation statistics for Corporate Bank and Investment Bank are presented in the following table. Transactions assessed under the Sustainable Finance Framework (Corporate Bank and Investment Bank) Dec 31, 2022 Dec 31, 2021 Number of transactions on which final decisions have been made 885 1,036 Thereof approved 719 979 Parameter 1 - Use of proceeds 471 605 Parameter 2 - Company profile 69 73 Parameter 3 - Sustainability linked products 179 301 Thereof declined 159 48 Thereof referred to the respective committees 7 9 Thereof approved 3 4 Thereof declined 4 5 To support the decision making of those conducting transactions and performing validation under the framework and as part of the bank’s overall sustainability governance, the Sustainable Finance Governance Forum was established in February 2021. The forum is chaired by the Chief Sustainability Officer. The forum's members are tasked with the interpretation and methods of applying the Sustainable Finance Framework's definitions and product classifications. For instance, the members’ view may be consulted regarding specific sustainable finance transactions as well as clients, general or product-specific sustainable finance criteria for selected activities or industries. If appropriate, the forum’s recommendations are submitted to either the Group Sustainability Committee or through the Reputational Risk Framework (for more information on the Group Sustainability Committee, see the chapter entitled “Sustainability strategy and implementation”). In the Private Bank, the “Sustainable Investment Classification Criteria Framework” was introduced in 2021. Based on Deutsche Bank’s Sustainable Finance Framework, it outlines the sustainable investment criteria to be considered within the process of discretionary portfolio management services and mandates, for mutual funds and exchange-traded funds, bonds and structured products. Based on the development of the regulatory environment, the framework was refined in 2022 taking into consideration sustainability criteria as defined under the amended Markets in Financial Instruments Directive (MiFID II). It will be further reviewed and updated on a regular basis to reflect the emerging regulations and related guidelines. Training and awareness GRI 2-12/24/29, 3-3, 404-2 Deutsche Bank aims to develop expertise across all its employees, in particular by building awareness and engagement. The bank believes it is vital that everyone understands the financial implications of ESG issues and is aware of the steps governments and regulators are taking to address these problems and how they will impact business and clients. The Chief Sustainability Office plays a key role in reinforcing the businesses’ awareness of the bank’s sustainability strategy. In 2022 front-office staff continued to receive live video-training to enable them to understand the Sustainable Finance Framework and to identify opportunities for clients to transition to more sustainable and low-carbon business models. In line with the target to offer training on the bank’s Sustainable Finance Framework to all of the relevant front-office staff in its divisions (Investment Bank, Corporate Bank and Private Bank) by the end of 2022, sustainable finance training has been integrated into the bank’s internal training platform “LearningHub”. In addition, the businesses set up the following division specific ESG training programs in 2022: 18