Spain is a key market to promote sustainability in BBVA. In the year In the first quarter of 2023, the bank offered 7.81 billion euros of sustainable business in this market – 40 percent of the same period last year and more than 50 percent of the total amount collected by the BBVA Group (approximately 14 billion euros). . “More than half of our sustainable business was distributed in Spain in the first quarter of the year, a new record,” BBVA’s CEO said at the 18th banking sector meeting organized by IESE this Wednesday.
The CEO of BBVA participated in a round table discussion on sustainability and banking Alejandra KindlanMEAB President, Moderator Christian EufingerProfessor at IESE Business School. At the beginning of his speech, Onur Genç pointed out that communities are facing three major environmental and social challenges; These are interlinked and require action by governments, companies, the financial sector and civil society as a whole: decarbonisation, conservation and expansion of natural capital and inclusive growth.
BBVA has made sustainability a strategic priority, created a dedicated department for this purpose two years ago and has tripled its size. Between 2018 and 2025, the sustainable financial goal will reach 300 billion euros. In the year By the end of March 2023, almost half of this figure had been reached. It also aims to decarbonize its own portfolio, both directly and indirectly (of its clients), and has joined the group. Net Zero 2050 commitment.
Onur Jensi remembered that 275 trillion dollars should be invested by 2050. To achieve a world with zero net emissions. This was the largest recession in history and represented 8% of global GDP to that date. To achieve this goal, Spain needs to invest more than 100 billion euros (more than 7% of the annual GDP) every year, he stressed.
In terms of inclusive growth – another pillar of BBVA’s sustainability along with climate action – he pointed out that the challenge lies in giving everyone a chance, leaving no one behind. According to the World Bank, 1.4 billion people do not have a bank account. “We have to make sure that society as a whole improves,” he said.
Commitment
BBVA committed €150 billion in sustainable business from 2018 to March 2023, which is about half of the €300 billion target for the 2018-2025 period. In 2022, nearly 14 billion euros were raised, an increase of nearly 20 percent compared to the same period. “Quarter after quarter, we are making good progress in achieving our sustainable business goals for 2025,” said Javier Rodríguez Soler. BBVA’s Global Head of Sustainability, commenting on these results.
Positive view of supervisors and supervisors
Onur Jense emphasized the importance of cooperating with regulators and supervisors to face the great challenge posed by the decarbonization of the economy. “The attitude of supervisors and regulators is positive. They are trying to help banks on their way to decarbonization,” he said. “We have to find a new way,” he said Harmonization of reportsHe said.
Genc emphasized that no one can be left behind. “We need to pay attention to the transition by promoting change in all companies,” he said. “Change is important,” he explained, not every company’s starting point.
The bank is carrying out various activities to support its customers. The transition to a decarbonized economy. For large corporate clients, BBVA has focused on low-carbon technologies and accompanying high-emission sectors in their transition. The bank has enhanced its teams’ advisory capabilities to support its clients’ transition strategies.
ODS plan of action and investment
BBVA published its customers’ progress towards decarbonisation in the first version of the Climate Transition Plan. The bank is one of the first in the world to implement the recommendations of the Glasgow Financial Alliance for Net Zero (GFANZ) to define a transition plan. Emissions have decreased in all sectors with published carbonation indicators. BBVA’s aim is to finance this emission reduction through its customers.
Standardized products and solutions are being developed for small companies Six thematic areas (energy, automobile, real estate, agriculture, supply chain and inclusive growth); And special teams have been created to help clients achieve their sustainability goals.
For retail clients, BBVA is using its digital transformation to expand its digital offering, creating an innovative and disruptive value proposition. For example, it has included non-bank customers. It has developed many sustainable solutions for retail clients (Such as green mortgages, solar panel financing and electric mobility), and is using data analytics to identify risks and opportunities in this field.
BBVA is also funding new sustainable technologies through venture capital funds. Hi 24Special in hydrogen, Low carbonFocused on carbon capture, utilization and storage technologies, and Fifth wallDedicated to sustainable building materials in the real estate sector (building materials, energy efficiency, etc.).
In conclusion, Onur Jense stressed that carbon cleanup is not just a challenge. It is an opportunity that Spanish banks are “taking very seriously”.