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 gave Deutsche Bahn their top rating of A in 2022, once again recognizing us as one of the world's leading companies in our commitment to combating climate change. This is the sixth time in a row that we have received the highest rating, putting us in the top group with around 280 companies worldwide.
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 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.
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.
The annual MSCI ESG Rating upgraded Deutsche Bahn from A to the second-best rating AA. This makes us one of the world's best-rated companies in the road and rail transport sector, putting us in a strong position within the industry.
MSCI ESG ratings measure a company's resilience to long-term, industry-critical environmental, social and governance (ESG) risks. MSCI uses a rules-based methodology to identify industry "leaders" and "laggards" based on their exposure to ESG risks and how well they manage those risks relative to their peers. MSCI's ESG ratings range from leading (AAA, AA) and average (A, BBB, BB) to lagging (B, CCC).
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+).