Climate Change Data

BBVA

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Sustainable Finance
  • Climate Change
  • Social Impact
  • Governance

Environmental Achievements

  • Committed to being carbon neutral by the end of 2020
  • Provided the first green loan to a utility (€500m for Iberdrola)
  • Provided the first green loan to a corporate in Mexico
  • Participated in the world’s first green bond issuance in 2007

Social Achievements

  • Issued a social bond to alleviate the impact of the Covid-19 crisis
  • Set up its Global Sustainability Office and launched a specialized sustainability advisory service

Governance Achievements

  • Adopted sustainability as one of the 6 strategic priorities of BBVA
  • Joined 4 other international banks in the Katowice commitment in 2018
  • Signed the Principles for Responsible Banking with 131 other banks in 2019
  • First Spanish financial entity to sign Equator Principles in 2004

Climate Goals & Targets

Medium-term Goals:
  • Mobilising €100 billion of sustainable finance by 2025

Environmental Challenges

  • Varying levels of ESG awareness and sophistication among clients in different regions (e.g., more advanced in Europe, nascent in some parts of Latin America)
  • Some clients primarily focused on pricing of sustainable finance products, requiring education on the strategic alignment of ESG with business goals
  • Challenges for some developing countries needing reliable and cheap power generation, disrupted by stricter ESG requirements on certain projects (e.g., coal-fired power plants)
Mitigation Strategies
  • Providing sustainability advisory services to support clients on ESG targets, benchmarking, reporting, and sustainable finance products
  • Strategic dialogue with clients to help improve their sustainability profile and propose clear roadmaps
  • Broadening the approach to sustainable finance beyond renewable energy to include public transport, hospitals, and social infrastructure
  • Offering sustainable alternatives to all its products in the coming years

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Equator Principles

Sustainable Products & Innovation

  • Sustainable bonds and loans
  • Sustainable transaction banking framework
  • Green derivatives
  • Green FX transactions