As Deutsche Bahn, we take responsibility for our planet. That is why we are consistently and transparently driving forward DB's green transformation. On this path, an independent and critical review by qualified rating agencies is a matter of course for us. In this way, we also secure the trust of our stakeholders.
The international rating organization CDP has given Deutsche Bahn an "A-" rating for 2023, downgrading us compared to the previous year. The drivers for the change include increased requirements (in the area of leadership) and an adjustment to the scoring methodology. With this result, we are still in the highest category "Leadership" and are among the top six percent in the climate change questionnaire.
CDP's annual rating process uses detailed, independent methodology to assign ratings ranging from A to D-. It evaluates the level of transparency and disclosure of climate data, awareness and management of environmental risks, and best practices related to environmental leadership, such as setting ambitious targets.
Deutsche Bahn is again among the top two percent in the rail transport sector in EcoVadis's 2023 rating. For our sustainability performance we were awarded a silver medal. Compared to the previous year, we were able to maintain our score at the high level of 68 points (as of July 2023). The objective of the EcoVadis Corporate Social Responsibility (CSR) rating is to measure the quality of a company’s CSR management system through its policies, actions and results.
The assessment focuses on 21 CSR criteria in four areas: environment, labor and human rights, ethics, and sustainable procurement. The overall EcoVadis score (0–100) reflects the quality of a company's CSR management system at the time of assessment.
In the ISS ESG Corporate Rating, we as Deutsche Bahn received a B- rating and maintained Prime status. The Group also has a decile rank of 1 (as of September 2023). The ISS ESG Corporate Rating indicates companies' sustainability performance in three areas: environmental, social and governance (ESG) criteria. Around one-third of the rating criteria are entirely industry-specific.
The ESG Corporate Rating uses a twelve-level grading system from A+/4.00 to D-/1.00. The rating has an absolute best-in-class approach. Prime status is awarded to companies that meet or exceed ISS ESG's defined sustainability requirements, the prime threshold, for a specific industry. In addition to the overall rating, the decile rank indicates performance relative to the industry. A decile rank of 1 indicates high relative performance, while a 10 indicates low relative performance.
In MSCI's ESG rating, Deutsche Bahn's rating was adjusted to "A" in December 2023. This rating puts us just below the average for the "Road & Rail Transport" sector. One of the main reasons for the adjustment is the change in the key issues assessed in the DB rating. We consider the justification for this change to be factually incorrect and have therefore entered into a dialog with MSCI.
MSCI ESG Research products and services are designed to provide companies around the world with in-depth research, ratings and analysis of environmental, social and governance-related business practices. ESG ratings, data and analysis are also used in the creation of the MSCI ESG Indices. For over 40 years, MSCI's research-based indices and analytics have helped investors around the world build and manage their portfolios. Deutsche Bahn has been rated by MSCI since 2013.
With a Sustainalytics's ESG Risk Rating of 22.1, Deutsche Bahn was classified as medium-risk in August 2023. This rating puts us in line with the industry average for the transport sector. Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm that supports investors with the development and implementation of responsible investment strategies.
Sustainalytics's ESG risk rating combines an assessment of the company's exposure to industry-specific material ESG issues and an assessment of how well companies are managing these risks. Companies are put into one of five different categories of risk severity: negligible (0-10), low (10-20), medium (20-30), high (30-40) and severe (40+).
Science-Based Targets initiative
Deutsche Bahn has received the seal of approval from the Science-Based Targets initiative (SBTi). This serves as scientific recognition of a simple fact: With our policies to reduce greenhouse gas emissions, DB has assumed responsibility for demonstrating that it is possible to meet the Paris Climate Agreement's target.
SBTi has set itself the goal of promoting science-based climate targets in companies. It is a leader in this field. SBTi was founded jointly by the CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).