BBVA’s Shocking €300bn Climate Pledge: Outpacing Rivals & Redefining Green Finance!

BBVA’s Bold Steps in Sustainable Financing

BBVA has taken significant strides in sustainable financing, committing to channel €300bn (US$327.3bn) by 2025. The bank has already achieved a remarkable milestone by mobilizing €252bn (US$275.1bn) towards this goal, with 77% allocated to combating climate change and preserving nature, and 23% promoting inclusive growth.

BBVA’s Chair, Carlos Torres Vila, emphasized the need for a profound transformation across all sectors of society to tackle climate change. This, according to him, presents a great opportunity for long-term growth, necessitating major investments. The goal has been raised several times, reinforcing BBVA’s position as a climate-ambitious bank.

Founded in 1857, BBVA has grown into a global financial powerhouse. With a presence in over 25 countries, it is the largest financial institution in Mexico, boasting more than 123,000 employees and 75.5 million active clients. Renewable energy projects and climate tech are at the core of BBVA’s sustainability efforts.

BBVA’s Corporate Banking unit has significantly contributed to this progress, seeing a 57% increase in sustainable business compared to the previous year. By focusing on energy efficiency, reducing water footprints, and renovating vehicle fleets, the unit channels funds into cost-saving and sustainable initiatives.

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Remarkable Growth and Record-Breaking Achievements

In the first half of 2024, BBVA channeled €46bn (US$50.2bn) into sustainable business, setting a new quarterly record by mobilizing €26bn (US$28.4bn) in the second quarter alone. This represents a 37% increase compared to the first half of 2023, showcasing BBVA’s commitment to leading in sustainable finance.

Javier Rodríguez Soler, Global Head of Sustainability and CIB at BBVA, highlighted the significant momentum in project finance, which saw a triple-digit growth of over 149% in the first six months of 2024. This growth was primarily driven by financing for renewable energy and cleantech, marking a pivotal shift towards greener initiatives.

BBVA’s Corporate and Investment Banking (CIB) segment has also seen substantial progress, challenging €25bn in the first half of 2024, a 32% increase. The financing of renewable energy projects has doubled, contributing €402m in the quarter, underscoring BBVA’s dedication to climate tech and sustainability.

BBVA’s holistic approach to sustainability includes:

• Boosting corporate efficiency
• Investing in renewable energy projects
• Focusing on innovative climate technologies

These strategic priorities have positioned BBVA as a leader in sustainable finance, driving impactful change across various sectors.

BBVA’s Emission Reduction Targets

BBVA has set ambitious emission reduction targets across ten key sectors, including real estate, aluminium, oil and gas, power generation, automotive, steel, cement, coal, aviation, and shipping. The company aims to be net zero in carbon emissions by 2050, encompassing both its own emissions and those of its borrowers.

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Carlos Torres Vila outlined BBVA’s roadmap, which includes interim targets for reducing financed emissions by 2030 for several sectors. This commitment aligns with the Net Zero Banking Alliance framework, ensuring that BBVA remains at the forefront of the global sustainability movement.

Earlier in the year, BBVA Colombia, in partnership with the International Finance Corporation (IFC), launched the finance sector’s first biodiversity bond. This innovative bond funds projects related to reforestation, natural forest regeneration, mangrove conservation, climate-smart agriculture, and wildlife habitat restoration, among other initiatives.

“Sustainability is the path to a brighter and more prosperous future,” said Carlos Torres Vila. By integrating sustainability with innovation, BBVA continues to invest in cutting-edge cleantech funds, participating in pioneering projects and gaining valuable knowledge to better advise companies leveraging these technologies.

Pioneering a Sustainable Future

BBVA’s unwavering commitment to sustainability extends beyond climate financing. The bank is actively working on increasing its emission reduction targets and expanding its focus to other industries. This comprehensive approach ensures that BBVA remains a leader in driving positive environmental change.

Through its innovative initiatives and strategic investments, BBVA is not only contributing to a greener planet but also setting a benchmark for other financial institutions. The bank’s record-breaking achievements in sustainable finance reflect its dedication to making a significant impact on global sustainability efforts.

BBVA’s efforts are a testament to the power of sustainable banking. By mobilizing substantial funds towards climate tech and renewable energy, the bank is paving the way for a sustainable future. These initiatives highlight the vital role of financial institutions in addressing climate change and promoting inclusive growth.

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As BBVA continues to lead by example, its groundbreaking contributions to sustainable finance will inspire others to follow suit. The bank’s ambitious goals and record-breaking achievements underscore the importance of sustainability in driving long-term growth and prosperity for all.