76 percent of BBVA lending portfolio to emission heavy sectors are to clients advancing in their transition
76 percent of BBVA’s lending portfolio corresponds to clients in emission heavy sectors that are making progress in their transition to net zero emissions, according to the latest update to BBVA’s sustainability strategy, published November 3rd. The document underscores how the bank promotes new businesses through sustainability.
“Sustainability is a competitive advantage for BBVA that makes it possible to capture incremental business, improve sustainable risk management and selectively boost growth while converting the portfolio to zero emissions,” the presentation stated.
The business opportunity is based on personalized advice to clients and customers, and meeting their needs:
- Corporate clients: proactive advice geared toward the opportunities of the transition, specialized for each one of the high emission sectors: gas and oil, power generation, automotive industry, steel, cement and coal. This has enabled selective growth of the client loan portfolio, with a focus on those making progress in their transition.
- Business clients: advice concentrating on sustainable solutions that bring economic savings in cross-cutting topics: energy efficiency, fleet renewal, water, circularity, social infrastructure and entrepreneurship. This approach has made it possible for 65 percent of all bankers to reach sustainable agreements (as of September 2023).
- Retail customers: personalized digital solutions for the individual and mass market, with a special focus on savings through mobility, self-consumption and solutions for customers without access to banking services. For example, from January to September 2023, BBVA financed the installation of more than 13,000 solar panels in Spain as part of its collaboration with partners.
Sustainability has been at the heart of BBVA’s strategy since 2019 and is fully integrated throughout the organization, with an established governance model and two main objectives:
- Promoting new business through sustainability, with the goal of channeling €300 billion by 2025. As of September 2023, the bank had mobilized €185 billion, 62 percent of its goal.
- Reaching net zero emissions by 2050. In addition to the decarbonization targets that were set for six sectors by 2030 (power generation, oil and gas, automotive industry, steel, cement and coal), BBVA is working to establish targets for other sectors as well, such as aviation, shipping, agriculture, and commercial and residential real estate.
BBVA is committing to having a positive impact on society, with education and support for entrepreneurship at the core. To this end, the bank participates in various initiatives and alliances, and is actively involved with all stakeholders to promote sustainability in the financial system. In this regard, the work of the BBVA Microfinance Foundation and the BBVA Foundation stand out, as well as the bank’s social and educational projects, such as ‘Chavos que inspiran’ in Mexico and ‘Aprendemos Juntos 2030’ on a global level.