AmazonScience/document-haystack

1Further details on our integration approach for sustainability risk can be found in the section 2‘Risk Report – Risk Framework – Risk Management – Sustainability Risk and Adverse Impacts 3to the Environment and Society’ and climate-related opportunities and risks are further 4elaborated on in our ‘Climate Report’.5Targets and Measures6Extract of our latest NZAM annual disclosure including further details on methodology, metrics and 7reconciliation of figures8Assets under management in-scope for net zero 9commitment10€ 302.9 billion or 36.9% of total AuM as of 31 December 112022 12Target of 50% reduction in inflation-adjusted WACI by 132030 versus 2019 baseline for in-scope assets14Report a cumulative 5.2% decrease from the 2019 baseline in 15the first two years16We apply the inflation-adjusted WACI instead of the standard WACI to strip out the effect of 17price increases from the decarbonisation metric. Otherwise, a nominal increase in revenues 18due to inflation would lead to a reduction in the financial carbon intensity of companies, 19although there is no decarbonisation in real terms. The surge in inflation in recent years has 20highlighted the importance of adopting this approach.21In the 2019 baseline, the WACI amounted to 170.5 tonnes of CO2 equivalents per million USD 22of revenue (“tCO2 e/mnUSD”). In 2021, this changed to 154.5 tonnes of CO2 e/mnUSD. 23Stripping out the effect of inflation, this amounts to an inflation-adjusted change of 5.2% over 24two years.25Due to a lag in reporting and availability of emissions data, these calculations are based on 26our portfolio holdings as of year-end 2022 using the emissions data from the previous year of 27those respective holding companies, which is 2021. Similarly, the baseline figure was based 28on year-end 2020 portfolio holdings and 2019 emissions. 29The main drivers for change in WACI of our portfolios is the combined result of three main 30underlying effects: 31— Changes to portfolio holdings due to fund flows, market movements, or other portfolio 32considerations 33— Changes to the carbon intensity of holding companies themselves34— Changes to our product mix, i. e. existing products being closed or new product launches35Throughout 2023, we continued with our climate-related activities and disclosures as 36described by the Task Force on Climate-related Financial Disclosures (TCFD). In accordance 37with the recommendation made by the Financial Stability Board to incorporate TCFD 38information in our mainstream financial filings, we have combined our Climate Report with 39our Annual Report for the first time. As such, all further information on our climate-related 40activities can be found in the ‘Supplementary Information’ to this report.41Biodiversity and Water42GRI 3-343Highlights44— We started a project to lay the groundwork to address biodiversity risks.45— We launched our first thematic biodiversity product range, focusing on investing in 46companies that have a lower negative impact on biodiversity than average.47— We published new research reports in the context of water and oceans.48Our Management Approach to Biodiversity and Water49Introduction50In line with Taskforce on Nature-related Financial Disclosures and Network for Greening the 51Financial System definitions, we consider the term “nature” as all life on earth (i. e., 52biodiversity), together with the geology, water, climate, and all other inanimate components 53that comprise our planet. Therein, biodiversity refers to variability among living organisms, 54which includes the diversity within species, between species, and of ecosystems.55Actions Taken in 202356As biodiversity has increasingly come onto the agenda of investors, we started a project in 57collaboration with the World Wide Fund For Nature Germany to increase understanding and 58build up capabilities to address biodiversity opportunities and risks. In this project, we are 59working on three pillars:60— Thought leadership: Publication of research reports to enhance the understanding of 61biodiversity dependencies, risks, and impacts, in investments.62— Awareness raising: Internal training series to raise awareness about biodiversity loss and 63its implications for asset managers.64— Capabilities building: Evaluation of potential data, methodologies, and frameworks as a 65basis for assessing biodiversity opportunities and risks for investments.66        67To our Shareholders Summarised 68Management Report69Consolidated 70Financial Statements Compensation Report Corporate Govern-71ance Statement72Supplementary 73Information DWS 2023 Annual Report74 75Our Responsibility7628 Sustainable Action