Deutsche Bank Transition toward a sustainable and climate-neutral economy Non-Financial Report 2022 Environmental and social due diligence Building up on the policy in force since 2016, in March 2023 Deutsche Bank updated its thermal coal policy (*). In 2022, the bank began preparing a portfolio review of its coal clients in the Asia-Pacific region. The preparations included defining the scope of clients covered by the review as well as updating the related questionnaires. The review is scheduled to start in 2023. A similar review for coal power clients in the United States and Europe in 2021 led to insights into the clients’ progress with regard to their carbon footprint and existing transition plans. Building on this, a process for a client transition dialogue is being developed to support clients on their way to a more sustainable business model. In 2022, t he bank also continued to perform the systematic review of its global business activities in the Oil and Gas sector, set a target for Oil and Gas (upstream) to significantly reduce the volume of financed emissions (Scope 3) by 2030 for the sector, and started the dialog with its clients on their decarbonization strategies. These strategies along with clients’ carbon footprint are important criteria for how the bank continues to engage in this sector (see also the “Risk management strategy and processes” section of the “Climate risk” chapter). Deutsche Bank’s strategy, processes and progress as of year end 2022 regarding its commitment to align the bank’s portfolio with net zero by 2050 is outlined in the “Strategy” and “Risk management, metrics and targets” sections of the “Climate risk” chapter. Transactional reviews GRI FS3 Group Sustainability is responsible for designing environmental and social standards and policies, including the Sustainable Finance Framework, and overseeing business adherence. As part of its oversight responsibility, Group Sustainability conducts transactional and client reviews pursuant to the bank’s Environmental and Social and Sustainable Finance standards. For environmental and social due diligence, the number of reviews initiated in 2022 rose by approximately 45% compared with 2021. The strong increase by 89% of reviews related to metals and mining was an important driver. The overall review ratio increased to 31.2% (2021: 26.7%), mainly because of more deals meeting the internal referral criteria. 1 Transactions and clients reviewed under the Environmental and Social Policy Framework Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Number of transactions and clients by sector Metals and mining 176 93 94 Oil and gas 79 69 71 Industrials and infrastructure2 59 53 47 Industrial agriculture and forestry 59 27 30 Utilities 72 52 27 Chemicals 8 16 5 3 Other activities 8 7 10 Total reviews initiated 461 317 284 Number of transactions and clients on which final decisions have been made 403 248 222 Thereof approved 384 232 206 Thereof declined 12 5 8 Thereof referred to the respective committees 7 11 8 Thereof approved 6 9 8 Thereof declined 1 2 0 1 Please note that this table also includes the figures of the table “Transactions assessed under the Equator Principles”, see the section “Equator Principles”. 2 Includes engineering firms, equipment manufacturers, and other companies linked to sensitive sectors 3 Includes sectors with high carbon intensity and/or potential human rights violations. Examples include companies in the consumer goods, transportation, infrastructure, technology, commodity trading, and healthcare sectors whose supply chain exposes them to sensitive sectors An overview of transactions assessed under the Equator Principles can be found below in the “Equator Principles” section of this chapter. An overview of the deal classification reviews under the Sustainable Finance Framework is presented in the table “Transactions assessed under the Sustainable Finance Framework” in the section “Governance” of the “Sustainable finance” chapter. 55