Company: ADZCF
Filing Date: 2025-03-13
Form Type: 20-F
Source: 0001159508-25-000020
Chunk: 282

Company: DEUTSCHE BANK AKTIENGESELLSCHAFT
Filing Date: 2025-03-13
Form: 20-F
Chunk 282
---
 Deutsche Bank’s country risk ratings represent a key tool in its assessment of country risk. They include: – Sovereign rating (set and managed by ERM Risk Research): A measure of the probability of the sovereign defaulting on its foreign or local currency obligations – Transfer risk rating (set and managed by ERM Risk research): A measure of the probability of a “transfer risk event”, i.e., the risk that an otherwise solvent debtor is unable to meet its obligations due to inability to obtain foreign currency or to transfer assets as a result of direct sovereign intervention All sovereign and transfer risk ratings are reviewed, at least on an annual basis.

| 73 |

| Deutsche Bank      |
| Annual Report 2024 |

Climate and environmental risk management The bank established a dedicated framework for the management of climate and environmental risks. The framework sets out key requirements around governance, risk identification and materiality assessment, risk appetite, risk monitoring, controls and stress testing. Concentrations of climate and environmental risks are monitored, via dedicated reports, by key committees of the Bank (e.g., Enterprise Risk Committee and the Group Risk Committee), and are managed through: – Risk Appetite thresholds around the bank’s decarbonization targets, established for eight priority sectors (Upstream Oil and Gas, Power Generation, Automotives - Light Duty, Steel, Coal Mining, Cement and Aviation) and the overall financed emissions of the Corporate Loan Book – Early Warning Indicators, established across different portfolios (Corporates, Sovereigns and Fis) for climate-transition, climate-physical and nature-related risks New transactions with a significant impact on the bank’s financed emissions and/or net-zero targets are reviewed by the Group Net-Zero Forum consisting of senior representatives from the Business, Risk, and the Chief Sustainability Office. The review of the forum’s members includes an assessment of client sustainability disclosures, transition strategies, decarbonization targets and governance. New transactions must fit within Deutsche Bank’s internal sectoral risk appetite aligned to net-zero targets. In 2024, the Group-level sectoral risk appetite metrics were cascaded to the divisions, to enhance their responsibility and support their business strategies. In this context, dedicated Divisional Net-Zero Fora in the Corporate Bank and the Investment Bank have been established. Product/Asset class specific risk management Complementary to the bank’s counterparty, industry and country risk approach, Deutsche Bank has a framework to manage certain asset class risk concentrations and sets limits or thresholds where required for risk management purposes. For purposes of DB’s internal portfolio risk management