Deutsche Bank Transition toward a sustainable and climate-neutral economy Non-Financial Report 2022 Climate risk ESG related developments are covered by Group Audit as part of ongoing discussions with representatives of 1st and 2nd Line of Defense, (Chief Sustainability Office and Enterprise Risk Management teams respectively). In 2022, Group Audit conducted, a number of audits covering ESG-related risks, including an audit on ESG Governance, an audit on Risk and Control Assessment including Greenwashing, a targeted review on the Climate Risk Stress Testing of the European Central Bank and an audit on climate and environmental risks in Credit Risk Management of corporate and investment bank divisions. Furthermore, Group Audit developed guidance on auditing ESG, established a dedicated ESG team and a global working group, as well as defined a comprehensive audit coverage plan. Risk management strategy Deutsche Bank’s management of climate risks and opportunities is part of its broader sustainability strategy and supports the commitment to align the bank’s portfolio with net zero by 2050. Other components of the bank’s sustainability strategy, including growth in sustainable financing and investment volumes and broader Environmental and Social Policy Framework, are described in the “Sustainable finance” and “Environmental and social due diligence” chapters of this report. Climate risks and opportunities GRI 3-3, FS5 Climate change and environmental degradation may lead to the emergence of new sources of financial and non-financial risks. Transition risks to the bank’s portfolios are increasingly likely to materialize in the short-to-medium term as governments introduce ambitious climate-related targets and policies, as society adapts its behavior and as investor appetite for carbon intensive clients / sectors becomes more selective. These risks have been exacerbated by the current geopolitical environment and the war in Ukraine, which put additional strain on the global energy market and has increased the need to develop independent energy-efficiency measures across industries. Acute and chronic physical climate risk factors arising from higher global temperatures are expected to increase in severity even if decarbonization efforts prove successful, impacting Deutsche Bank’s operational risks and the risk to the assets of the bank’s clients. As explained in more detail in the sub-chapter Risk management framework – Risk identification and materiality assessment below, Deutsche Bank has conducted a structured materiality assessment to estimate potential impacts of these risk drivers across risk types and established policies, procedures and dedicated risk appetite to manage risks, including: – Interim (2030) and final (2050) net-zero aligned targets for key carbon intensive sectors to manage transition risks, which are fully embedded into internal governance structures and risk appetite frameworks – Environmental and Social policy frameworks and restrictions – Integration of ESG risk assessment into credit rating models and decision making – Specific requirements to assess and mitigate physical risks to immovable real estate collateral – Liquidity risk stress testing – Business Continuity and 3rd party risk management frameworks 40