Classify Deka ESG: What companies derive from the fund field for their own obligations

With the Disclosure Regulation SFDR (EU 2019/2088) since 2021 and the CSRD Directive (EU 2022/2464) since 2024, the EU has closely linked the reporting obligations on sustainability for financial market participants and the real economy. Anyone looking for Deka ESG is usually looking for classification: How does a large asset manager classify products according to Art. 8 and Art. 9 SFDR, and what consequences does this have for companies in which these products invest?

This article explains the logic of the SFDR framework, classifies the ESG product categories from DekaBank and comparable providers, and shows what data requirements arise from this for companies subject to reporting requirements. The focus is on the operational question: Which key figures, which processes, which representatives do you need to meet the increasing requirements of capital market and supply chain partners.

The Sustainable Finance Disclosure Regulation (SFDR), Regulation (EU) 2019/2088, sorts financial products into three categories. Art. 6 SFDR covers all products and requires a statement as to whether sustainability risks are taken into account when making investment decisions. Art. 8 SFDR addresses products that promote ecological or social characteristics. Art. 9 SFDR addresses products with a sustainable investment goal within the meaning of Art. 2 No. 17 SFDR.

For Deka, DWS, Union Investment, Allianz Global Investors and comparable providers, this means: Each fund is assigned to a category, documented in the sales prospectus, in the appendix to the annual financial reporting (RTS templates according to EU-DelVO 2022/1288) and on the website of Product.

Practically relevant is the subsequent level: An Art. 8 or Art. 9 fund must continually demonstrate that the advertised features or the investment goal are actually achieved. This requires data on greenhouse gas emissions (Scope 1-3), on social indicators (diversity, working conditions, LkSG conformity), on governance (executive board remuneration, anti-corruption). This data comes from the real economy, i.e. from companies in which the fund invests.

The leverage on companies results from this mechanism: Anyone who wants to remain in an Art. 8 or Art. 9 portfolio must provide verifiable ESG data. Anyone who does not deliver will be excluded, which is measurably reflected in refinancing costs.

The three major German providers, DekaBank (Sparkassen-Finanzgruppe), DWS (Deutsche Bank) and Union Investment (Genossenschaftliche FinanzGruppe), pursue comparable structures, with differences in the details.

All three operate in-house ESG research teams that evaluate companies based on publicly available data, direct surveys and external rating providers (MSCI, Sustainalytics, ISS ESG). All three maintain exclusion lists for controversial business areas (coal, controversial weapons, tobacco), supplemented by thresholds for controversial activities (e.g. fossil fuels).

Differences can be seen in the strictness of the definition of sustainable investment according to Art. 2 No. 17 SFDR. Some providers set restrictive thresholds (minimum share of 75% sustainable investments for Art. 9), others work with aggregated models. The trend since the EU Q&A 2023 has been one of intensification: providers have downgraded funds from Article 9 to Article 8 because the data did not support the original classification.

For companies that are required to report, this means that the requirements will become more consistent, but also deeper. Anyone who receives investor questionnaires sees similar structures, often based on the PAI indicator set of Annex I of EU-DelVO 2022/1288. A central, verifiable database is therefore mandatory, not optional, and the task of the ESG representative.

The Corporate Sustainability Reporting Directive (Directive EU 2022/2464) replaces the old NFRD and gradually expands the circle of users. Capital market-oriented large companies (NFRD portfolio) report for the 2024 financial year. For 2025, further large companies will follow in accordance with Section 267 Paragraph 3 of the German Commercial Code (HGB), and for 2026, listed SMEs with a transition phase will follow.

The reporting standard is the European Sustainability Reporting Standards (ESRS), issued as Delegated Regulation (EU) 2023/2772. ESRS includes two cross-sectional standards (ESRS 1, ESRS 2), five environmental standards (E1 climate, E2 pollution, E3 water, E4 biodiversity, E5 circular economy), four social standards (S1 own workforce, S2 supply chain, S3 affected communities, S4 end users) and one governance standard (G1).

The core obligation is the double materiality analysis: which topics are material from the perspective of the impact on people and the environment (inside-out), which from the perspective of the financial impact on the company (outside-in). Both perspectives are documented, methodically justified and checked by the auditor. From the 2028 financial year, an audit with reasonable assurance is planned, before that with limited assurance.

The operational consequence: data points must be audit-proof. Audit proof, documented, ESRS proof. Estimates are permitted, but must be methodologically justified and used consistently over the years.

Any reporting company that receives questionnaires from investment companies such as Deka, DWS or Union will see a recurring set of data points. The structure follows the PAI Annex (Principal Adverse Impacts) of the SFDR-RTS.

Climate indicators: Scope 1 (direct emissions), Scope 2 (purchased energy) and Scope 3 (upstream and downstream value creation) in tonnes of CO2 equivalent. Energy intensity per million euros of sales. Share of non-renewable energies in consumption and production. Investments in fossil fuel activities.

Social indicators: Gender pay gap, unresolved incidents according to OECD guidelines and UN guiding principles, collective bargaining, work accidents per million working hours, training hours per employee. As part of the LkSG, supply chain information has been increased since 2023: proportion of suppliers with risk analysis, complaint mechanism, corrective measures.

Governance: proportion of independent supervisory boards, proportion of women on the board, code of conduct, anti-corruption program, whistleblower system according to HinSchG, ISO/IEC 27001:2022 for IT security.

Taxonomy conformity: proportion of sales, CapEx and the OpEx, which are considered ecologically sustainable according to the EU taxonomy (Regulation EU 2020/852). This ratio is one of the toughest key figures because it has to withstand a complex substance test against the technical evaluation criteria.

There is no formal legal obligation to appoint a sustainability officer under German law. In fact, it arises from the combination of CSRD, LkSG, EU taxonomy and SFDR investor pressure. Anyone who wants to have an annual sustainability report audited according to ESRS needs a responsible function with a clear mandate.

Typical tasks are: maintaining the materiality analysis, coordinating data collection across areas and locations, interface to auditors and investor relations, setting up and maintaining the ESG data model, annual report to the management, event-related reports in the event of incidents with reputational or compliance risk.

In corporations, the reporting line usually goes to the CFO medium-sized companies directly to the management. A dual role with compliance or risk management is possible if the responsibilities are clearly documented. The appointment certificate, signed, filed, verifiable.

Resources are often underestimated. One to two full-time equivalents in a 500-employee company are realistic, supplemented by IT support, external advice for the initial materiality analysis and a tool for data aggregation. Anyone who is too lean here will find themselves in trouble for explanations during the first auditor's examination.

False or misleading ESG statements are not just a reputation issue, but also have their own legal damage record. Three vectors are relevant.

First: competition law. Section 5 UWG prohibits misleading business activities, including inaccurate sustainability statements. Competitors and consumer protection associations have successfully filed several double-digit lawsuits against greenwashing campaigns in the last three years. The EU Empowering Consumers Directive tightens this requirement from the date of implementation.

Second: capital market law. BaFin has supervisory powers over SFDR-compliant disclosures by German asset managers. Incorrect classifications can trigger fines and correction orders. The following applies to real-economy companies: CSRD reports are part of the management report and are therefore subject to the responsibility of management in accordance with Section 264 of the German Commercial Code (HGB).

Third: criminal law. Section 264a StGB criminalizes investment fraud. Anyone who provides incorrect information about material circumstances in advertising literature for investment assets (and this includes ESG features as soon as they are advertised) risks imprisonment for up to three years.

Operationally, only a consistent separation of marketing and reporting provides protection. Statements in marketing materials must pass the same substance test as the ESRS report. Coordination between the ESG officer, marketing and legal departments before any external communication is standard, not a convenience.

The most common operational vulnerability is the data model. Many companies collect ESG data in a collection of distributed Excel files, with annual consolidation closer to reporting deadline. This method works formally, but fails due to audit requirements and investor questionnaires that come during the year.

The next maturity level is a central data model with defined data points (typically 200 to 400 in a medium-sized company), clear data origins (factory controlling for energy, HR for social data, purchasing for supplier data), automatic aggregation and versioning. Data is updated quarterly, checked for plausibility internally and rounded in the annual report.

The connection to the compliance file is important. ESG data is part of the compliance universe because it affects supervisory obligations according to Section 130 OWiG. An incident in the supply chain that must be reported to an investor is at the same time an LkSG incident that can be reported to BAFA and a potential reputational event.

These strands come together in an integrated compliance platform. An incident is recorded once and transferred to all relevant reports: ESRS appendix, LkSG report, supervisory board report, if necessary investor report. This saves effort and reduces the risk of contradictory statements across different reporting channels.

Investor questionnaires come irregularly, often with short response deadlines. If you don't establish a routine, you will either answer late or superficially. Both are harmful to the classification.

A proven routine consists of four steps. Step one: input channeling. Every questionnaire is sent via the ESG function, not directly to departments. Step two: Mapping. The questions are mapped against the internal data model. 60 to 80% of the answers can be used from the standard set, the rest require research.

Step three: Consolidation. Answers are approved by those responsible, checked by the legal department for consistency with the annual report, and approved by management for essential statements. Step four: archiving. Each answered questionnaire goes into the compliance workspace, with reference to the data points used and with a time stamp.

CIVAC is a compliance platform and officer-as-a-service. The workspace contains an ESG file with stored data points, audit templates for materiality analysis and report comparison, an integrated incident register and a reporting line to management. Licence the workspace for your internal ESG officer, or have our officers appoint one. Data is located exclusively in the EU.

Anyone who is classified as an investment target by Deka, DWS or Union will see a continuously increasing depth of data in the investor questionnaires over the next three years. Anyone who reports in parallel under CSRD and carefully checks under LkSG can meet these requirements with a consistent data model, or with three parallel strands that contradict each other. Others run compliance like a filing cabinet. We run it like software.

If you are about to conduct your first ESRS review, want to consolidate an existing materiality analysis, or are looking for an external ESG officer who is ready for action after two working days, talk to us. CIVAC provides 25 agent roles, 490 audit templates and a workspace with EU data residency. Turn reading into an assignment. Write to info@civac.de or use the contact form on civac.de. Within 48 hours you will receive an assessment of your ESG maturity and a proposal for the next 90 days, tailored to the industry, reporting date and investor landscape.