AmazonScience/document-haystack

1Our Impact on Climate Change2GRI 201-2; 3-3; 305-53Highlights4– Cumulative 5.2% decrease in the inflation-adjusted WACI from the 2019 baseline in the first 5two years6– Publication of “DWS Coal Policy” – our new policy governing our investments in thermal 7coal related activities8Management Approach9To mitigate climate change, transformation is required across all parts of the real economy. 10Reflecting on our responsibilities as an asset manager, we are committed to supporting our 11clients in navigating this transformation by providing our expertise and bespoke investment 12solutions. 13Our intention is to become climate-neutral by 2050, in line with the Paris agreement, both at 14the operational and portfolio level. As a founding member of the NZAM, we have set specific 15net-zero interim targets for 2030 for both levels. In navigating the path to net zero, we intend 16to focus on systematic engagement with key stakeholders along the entire investment value-17chain, such as our clients, investee companies but also index providers. Further details on our 18engagement can be found in ‘Our Investment Approach’, as well as in our ‘Climate Report’ in 19the sections ‘Strategy – Active Ownership’ and ‘Strategy – Our Progress towards Portfolio Net 20Zero’.21In our CDP disclosure in July 2023, we reported that for our assets under management in-22scope for net zero targets, the inflation-adjusted WACI had decreased by a cumulative 5.2% 23from our 2019 baseline figure in the first two years.24The net zero relevant extract of our latest CDP disclosure including further details on the 25methodology, metrics and reconciliation of figures can be found in our Net Zero Annual 26Disclosure 2021 (h27ttps://www.dws.com/AssetDownload/Index?assetGuid=242d5412-28cf67-4ca6-a363-7b70d585bfef&consumer=E-Library). 29The guiding principle of our actions towards portfolio net zero is to support the transition of 30the real economy and to contribute to a real-world reduction in carbon emissions. Therefore, 31engagement rather than divestment, remains our preferred mechanism. For further details on 32our net zero engagements, please refer to ‘Stewardship’ in the section ‘Our Investment 33Approach – Targets and Measures’. 34Based on the initial SBTi methodology for Financial institutions (Version 1.0), in October 2021, 35we committed to develop a science-based target to be submitted to SBTi for official validation 36by October 2023 and intended to publish a Climate Transition Plan. Since then, SBTi further 37evolved its methodology and issued a draft Net Zero Standard for Financial Institutions in 382023 which was followed by a public consultation. We contributed to this consultation and 39now await the final Net Zero Standard that is expected to be published in 2024. As a result, in 40agreement with SBTi, the initial target setting deadline was extended. In consideration of the 41final standard, we will refine our decarbonization approach. 42Further details on our approach to combatting climate change can be found in our Climate 43Report. 44Organisational Structure45Our sustainability governance starts with the Executive Board, which has the overall 46responsibility for managing sustainability-related risks and opportunities. The Executive Board 47is supported by the Group Sustainability Committee, which is empowered to take decisions to 48implement our sustainability strategy. The Sustainability Oversight Office supports the Group 49Sustainability Committee and aims to ensure effective sustainability governance. Further 50details are outlined in our ‘Climate Report – Governance’ in the section ‘Supplementary 51Information’. 52Opportunities and Risks53As a corporation and fiduciary asset manager, we are committed to measuring, analysing and 54managing all material opportunities and risks, including those that relate to climate change. 55The policy on ESG integration in the risk management framework (formerly titled 56“Sustainability Risk Management Policy”), describes how sustainability risks, including climate 57risks, are integrated into our risk management framework. It requires sustainability risks to be 58incorporated into our operating model for impacted risk types and business functions. In 592023, we revised the policy by specifying in more detail the consideration of adverse impacts 60to the environment and society.61We identified several risk types and dimensions either affecting ourselves or investors that are 62impacted by sustainability factors, including climate. This includes investment risks in DWS 63managed products related to climate transition and physical climate events, and corporate 64risks from our strategic decisions and reputation in the market. Based on their relevance and 65materiality, we integrate climate-related risks in our risk management processes. 66        67To our Shareholders Summarised 68Management Report69Consolidated 70Financial Statements Compensation Report Corporate Govern-71ance Statement72Supplementary 73Information DWS 2023 Annual Report74 75Our Responsibility7627 Sustainable Action