E1-4 – Targets related to climate change mitigation and adaptation
Rentenbank has defined climate-related targets that form a central component of its climate strategy and transition plan.
The main focus of these targets is on reducing financed greenhouse gas emissions, as these account for the majority of Rentenbank’s overall climate-related impact. In addition, Rentenbank pursues targets for reducing emissions from its own banking operations, as well as expansion targets for financing climate-relevant investments, particularly in renewable energy and natural climate change mitigation.
The climate-related targets are linked to the actions presented in Chapter E1-3. Progress is measured annually as part of the organisation-wide GHG accounting.
Structure and disclosure of climate-related targets
Rentenbank has set climate targets both for its banking operations and for the emissions it finances. In line with our funding logic, the targets for financed emissions are divided into quantitative and qualitative targets.
As with the PCAF standard for the calculation of financed emissions, Rentenbank uses both absolute and intensity-based targets.
The base year for the targets relating to financed emissions is 2023, as the initial GHG accounting carried out in 2024 is based on data from the previous year. The target year of 2030 was initially selected for the financed emissions targets because science-based scenarios for agriculture currently extend only to that year. An extension of the targets beyond 2030 is planned once a suitable climate scenario becomes available.
For Rentenbank’s own operations, 2040 was selected as the target year. We aim to achieve net climate neutrality for these emissions by 2040. We do not exclude the possibility of offsetting any remaining emissions in the target year once reduction measures have been exhausted. However, this would be permitted only through legally recognised emission reduction measures in accordance with the United Nations Clean Development Mechanism, the Gold Standard or a comparable standard. We adhere to the following principle: avoidance, reduction and, only where unavoidable, offsetting.
Our GHG inventory is prepared annually. It is used to measure progress and monitor the achievement of our targets. The calculation is an integral part of the climate strategy and is published together with it on Rentenbank’s website.
Our climate targets for financed emissions are gross targets; emission reductions through offsetting, credits or avoided emissions are not counted towards target achievement.
Climate targets
Emission reduction targets
| Scope | Target year | Base year | Target | Reference scenario | |
|---|---|---|---|---|---|
| Absolute | Relative | ||||
| Scope 1 & 2 | 2040 | 2019 | 0 t CO₂e (netto) | − 100 % | Own decarbonisation pathway |
| Scope 3.15 | 2030 | 2023 | 18,110 kt CO₂e | − 20 % | UBA 2024 MMS scenario |
The target is based on Rentenbank’s steering capacity within the scope of its promotional mandate and its indirect promotional model based on the onlending principle. It covers the main portfolio areas, in particular the special promotional lending business.
Intensity targets for financed emissions
Reduction targets for the GHG intensity of material financed emissions
| Portfolio area | Target by 2030 | Base year 2023 | Metric |
|---|---|---|---|
| Total programme loans | 0.44 | 0.55 | kg CO₂e/ EUR balance |
| Agriculture division | 1.03 | 1.26 | kg CO₂e/ EUR balance |
For us as a promotional bank, intensity targets are the key metric for monitoring our climate efforts. Only this analysis allows us to make a meaningful statement about the climate impact of our promotional activities, since a reduction in absolute GHG emissions could otherwise be achieved simply by reducing business volumes. The intensity targets allow us to manage the transformation process consistently while at the same time changing the volume of funding. As a promotional bank, our focus is on the transformation of the sector as a whole, even if this means that our financed GHG emissions will decline only gradually.
Expansion targets with a climate-related effect
| Portfolio area | Metric | Cumulative target by 2030 |
|---|---|---|
| Renewable energy | Emissions avoided (kt CO₂e) | > 45,000 |
| Natural climate change mitigation | New business (EUR million) | > 600 |
Our expansion targets complement the emission reduction targets and relate to the financing of climate-relevant investments. The calculation of emissions avoided is carried out independently of the calculation of financed emissions in accordance with the methodology of ZSW (Centre for Solar Energy and Hydrogen Research Baden-Württemberg) and can be accessed on Rentenbank’s website. Any netting against emissions is excluded on methodological grounds. The targets are consistent with the system boundaries defined in E1-6.
Progress towards climate-related targets
| Target | Metric | Base value (base year) |
Target value (target year) |
2025 | % of target |
|---|---|---|---|---|---|
| Banking operations | kt CO₂e | 465.7 (2019) | Net zero (2040) | -1 | - |
| Banking business | |||||
| Special promotional programmes | kt CO₂e | 22,642 (2023) | 18,114 (2030) | 19,161 | 76 % |
| kt CO₂e/ EUR balance | 0,55 (2023) | 0.44 (2030) | 0.5 | 45 % | |
| Agriculture | kt CO₂e/ EUR balance | 1,26 (2023) | 1.03 (2030) | 1.17 | 43.5 % |
| Renewable energy | Emissions avoided (kt CO₂e) | 7,901 (2023) | 45,000 (kumuliert bis 2030) | 21,096 | 47 % |
| Natural climate change mitigation | New business (EUR million) | 62 (2023) | 600 (kumuliert bis 2030) | 217 | 36 % |
Scientific basis and assumptions
Rentenbank’s climate targets are based on scientific climate pathways, in particular the with existing measures scenario (Mit-Maßnahmen-Szenario; MMS) in the projection report of the Federal Environment Agency (Umwelt-bundesamt; UBA). This scenario maps sectoral developments in German agriculture, taking into account existing policy instruments, and serves as a reference for realistic reduction pathways.
The Federal Environment Agency points out that projections are model-based estimates and are not forecasts. As greenhouse gas emissions from agriculture are largely the result of biological processes, complete climate neutrality in this sector is not achievable in real-economy terms. Rentenbank’s targets are therefore geared towards transformation pathways that are achievable in the real economy.
External scientific validation is not currently planned. Rentenbank regularly reviews the target methodology as part of the update of the climate strategy.
Decarbonisation levers and contribution to target achievement
At present, the overall quantitative contribution of the decarbonisation levers referred to in E1-3 to target achievement cannot be determined reliably, owing to the indirect mode of action and the high degree of heterogeneity in agricultural production systems.
Scope of the targets
The climate-related targets relate to Rentenbank’s entire credit portfolio, with a particular focus on the agricultural portfolio as the main driver of financed emissions, as well as on selected segments with a particularly significant climate impact. As Rentenbank’s promotional mandate is limited exclusively to financing activities in Germany, the targets apply solely within this framework.
Adaptation to climate change
Rentenbank has not currently defined any separate quantitative targets for climate change adaptation. However, aspects of climate change adaptation are implicitly included in promotional programmes aimed at resilience, operational stability and long-term sustainability.