Wolfgang Vitzthum, who leads a nationwide team of experts in Sustainable and Transition Finance at Commerzbank, is convinced that environmental protection is becoming increasingly crucial for the economy. For his clients, top priorities include secure energy supply from renewable sources and efficient resource utilisation – aspects that play a significant role when deciding on replacement and expansion investments. “The market is currently very dynamic. Many companies, especially small and medium-sized enterprises in the manufacturing sector, are looking to transform.” But how can this transformation be achieved most effectively? “First and foremost, it requires a multi-dimensional transition plan for reducing CO2 emissions, addressing not only investment costs but also profitability and technological innovation,” he says.

For Vitzthum, transition plans serve as a guiding tool. “We create these plans in close collaboration with our clients, keeping technical requirements, financial needs, and government funding opportunities firmly in mind. What matters to us is the individual business case,” he explains the advisory approach of the Bank. His team’s sector-specific perspective is particularly valuable: “With a holistic overview, we are able to understand, for instance, which technology fits which business model and how to integrate that into a typically long-term financing concept, either as a financier, a facilitator in the capital markets, or a combination of both.”

Net Zero Firmly in Focus

Sustainability is an integral part of Commerzbank’s strategy. “We aim for long-term success alongside our clients. Side by side,” says Vitzthum. Additionally, regulators such as the European Central Bank and the European Banking Authority require transparency from banks regarding the pace and methods by which they plan to reduce their financed emissions.

A central focus of the sustainability efforts at both Commerzbank and its corporate clients is the net zero target. The fundamental question here is: How can economic success and climate protection be combined in a way that reduces emissions in line with EU climate goals?

Transition Plans Help in Practice

“Sustainability is a business case best implemented step-by-step. A transition plan provides structure,” says Vitzthum. He stresses the importance of maximising sector-specific opportunities to reduce CO2 as well as fully meeting regulatory requirements. “This applies particularly to sectors that are challenging to decarbonise, such as the paper, glass or chemical industries. Careful transition planning is essential here.”

With a strategically designed transition plan that governs the financing of a sustainable business model from beginning to end, companies can maintain their economic flexibility and stability even during the transition phase. “The path to sustainable transformation is demanding, but with strategic planning and the right financial support, companies not only improve their cost structure but also enhance their resilience to crises,” concludes expert Vitzthum.