Spanish financial services giant BBVA has announced plans to channel €700 billion into sustainable business between 2025 and 2029, an increase on its previous commitment of €300 billion between 2018 and 2025.
“At BBVA we continue to view sustainability as a strategic priority and a key driver of differential growth,” commented Javier Rodríguez Soler, BBVA’s global head of sustainability and corporate and investment banking.
“We believe that the business opportunity in the second part of the decade will be driven by solid investment in infrastructure and by the maturity of certain new clean technologies, which will make them ―many of those that are not yet― profitable.”
The newly-announced target is also set for a shorter five-year period compared to the previous eight-year timeframe.
Sustainable financing
Sustainable business financing will include projects related to climate change and natural capital; the promotion and financing of social initiatives; support for entrepreneurs and fledgling companies; and financial inclusion for disadvantaged groups.
The bank’s previous €300 billion commitment – which was initially set up as a €100 billion finance pledge – was achieved ahead of schedule, with BBVA channelling €304 billion into sustainable businesses by December of last year.
Support for clients
Of the total amount pledged as part of this commitment, which ran from 2018 to 2024, 78% was allocated to climate change mitigation, adaptation, and natural capital conservation, while 22% was allocated to inclusive growth initiatives.
Looking at the allocation by business segment, 59% was directed to corporate and investment banking for large clients, 27% was directed to corporate clients, and 14% to retail customers.
‘For BBVA, it is essential to support its customers and clients by financing their investments and advising them throughout this transition process, which will be accompanied by a strong focus on innovation and expertise in new technologies,’ the bank added. Read more here.
