Climate Change Data

Banco de Sabadell, S.A.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:8,103 tonnes (market-based data) in 2022 (Spain, UK, Mexico, and USA)
Scope 1 Emissions:4,039 tonnes (2022) (Spain, UK)
Scope 2 Emissions:526 tonnes (market-based) (2022) (Spain, UK)
Scope 3 Emissions:3,539 tonnes (2022) (Spain, UK)
Renewable Energy Share:99.96% (Spain, 2022)
Total Energy Consumption:76,028 MWh (2022) (Spain, UK)
Water Consumption:265,892 m3 (2022) (Spain)
Waste Generated:1,646 tonnes (2022) (Spain)
Carbon Intensity:82.67 tCO2eq/€m (financed portfolio, 2022)

ESG Focus Areas

  • Corporate Governance
  • Value Creation and Solvency
  • Ethics and Integrity
  • Climate Change and Environmental Risks
  • Sustainable Finance and Investment
  • Diversity, Inclusion and Equality
  • Quality employment and talent management
  • Social commitment and Human Rights

Environmental Achievements

  • Reduced overall Scope 1 emissions by 24% compared to 2019 (Spain and UK).
  • Reduced CO2 emissions in Spain by 25.9% for Scopes 1 and 2 and 62.5% for Scope 3 compared to 2019.
  • Offset all Scope 1, 2, and 3 emissions in Spain, Mexico, and the USA by purchasing credits in a carbon capture project.
  • 99.96% of energy consumed in Spain came from 100% renewable sources.
  • TSB continues to acquire 100% renewable energy.

Social Achievements

  • Launched Relocation and Silver Programmes to support employees affected by redundancy, achieving a 61% labor market insertion rate for participants.
  • Mobilized more than 4,800 million euros in social financing for micro-entities.
  • Implemented the Social Contract, an innovative model for managing vulnerable customers, helping 2,369 people find work through the JoBS program.
  • Provided financial education to 163,779 students through the EFEC program.

Governance Achievements

  • Updated Sustainability Policy in February 2022 to provide a framework for all activities within ESG parameters.
  • Established a Board Strategy and Sustainability Committee that met 13 times in 2022.
  • Created a Sustainability Division in 2021 to define and manage the responsible banking strategy.
  • Incorporated ESG KPIs into the variable remuneration of employees (10% weight).

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050.
Medium-term Goals:
  • Mobilize €65,000M in sustainable finance by 2025.
  • Achieve net-zero emissions by 2050.
Short-term Goals:
  • Reduce water consumption by 1% annually by 2025.
  • Reduce paper consumption by 2% annually by 2025.
  • Reduce emissions by 14.2% for Scopes 1 and 2 and 48.3% for Scope 3 by 2025 (Spain).

Environmental Challenges

  • Supply chain disruptions due to the semiconductor crisis and raw material scarcity.
  • Delays in obtaining licenses for renewable energy projects.
  • Limited ESG information reported by companies.
  • Economic impact of higher interest rates on vulnerable customers.
Mitigation Strategies
  • Developed alternative sourcing strategies for vehicle supplies.
  • Improved calculation model for carbon footprint of financed portfolio.
  • Increased efforts to gather ESG data from customers (ESG KYC).
  • Proactively offered solutions to customers with variable-rate mortgages experiencing difficulties.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Extension to the supply chain of the Group’s own commitment to socially responsible practices and its undertaking to uphold workers’ rights, freedom of association and environmental rights.

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Forest fires
  • Rising sea levels
  • Droughts
  • Hurricanes
Transition Risks
  • Regulatory changes
  • Technological changes
  • Market shifts
Opportunities
  • Increased exposure to green financial assets.
  • Advising customers on their transition to a sustainable economy.
  • Offering ESG investment opportunities.

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation (EU Regulation 2020/852), Principles for Responsible Banking, TCFD

Certifications: ISO 14001

Third-party Assurance: Independent third-party assurance for carbon footprint of financed portfolio (Q4 2022)

UN Sustainable Development Goals

  • SDG 7 (Affordable and clean energy)
  • SDG 8 (Decent work and economic growth)
  • SDG 9 (Industry, innovation and infrastructure)
  • SDG 10 (Reduced inequalities)
  • SDG 13 (Climate action)

The Bank's initiatives contribute to these goals through sustainable finance, talent management, social commitment, and climate action.

Sustainable Products & Innovation

  • Green and Social Loans (GSLs)
  • Sustainability-Linked Loans (SLLs)
  • Green bonds
  • Sustainable savings and responsible investment solutions
  • Green mortgages
  • Sabadell green renovation loans
  • ECO car loan

Awards & Recognition

  • First prize in the Social Commitment category (Sogeviso, 2022)
  • Four times recognized in the category of “Most sustainable transaction of the month” (Sabadell Renting, 2022)