26 March is World Climate Day under the UN’s 1992 Framework Climate Change Convention, intended to raise awareness and make people throughout the world realise the importance and influence of the climate and the impact of climate change on people’s lives.
Climate change is a global threat that demands urgent concerted action from the whole of humanity. Financial institutions like Banco Sabadell have a fundamental role to play, both in reducing their own carbon footprint and in supporting their clients and customers in the transition to a more sustainable economy.
Against that background, the actions of financial institutions are covered by the climate-change goals of the Paris Agreement and will be fundamental to keeping the rise in global surface temperature in the target range. Financial institutions are also key to sustainability initiatives under the five core pillars of the 2030 Agenda: planet, people, prosperity, peace, and partnership.
One way in which financial institutions are contributing to the decarbonisation of the economy is by financing projects and businesses that support adaptation to climate change and its mitigation. Three of the most notable initiatives are the Net-Zero Banking Alliance (NZBA), the goal of which is to achieve net zero CO2 emissions in investment and financing portfolios by 2050, the UN’s Finance Initiative Principles, as a framework to ensure a sustainable future, and the Task Force on Climate-related Financial Disclosures (TCFD) for the disclosure of climate change-related risks and opportunities.
As well as providing direct financing, financial institutions also play an important role in including environmental, social and governance (ESG) criteria in their lending and investment policies. That means that they assess the environmental impact of the business they lend money to and encourage more sustainable business practices.
Another aspect of the multifaceted role of financial institutions is their contribution to financial literacy, research and raising awareness of the importance of sustainability, which also includes working with NGOs, academic institutions and governments to develop innovative solutions for climate change.
Banco Sabadell’s commitment
Banco Sabadell has an ESG (Environmental, Social, and Governance) action framework: Sabadell Sustainable Commitment, which is aligned with the SDGs (the UN’s Sustainable Development Goals). In that framework, climate action (SDG 13) is one of the priority objectives of Banco Sabadell’s corporate strategy. We set out below some of our existing initiatives.
1) Becoming a sustainable business
- In 2023, we reduced our total carbon footprint in Spain by 45.6% relative to the 2019 baseline year, exceeding our original target of 36.1% by 2025. Our internal footprint is kept neutral, thanks to energy management, reduced consumption and offsetting through reforestation schemes.
- We have renewed our commitment to carbon footprint offsetting with 7,669 tonnes of CO2 equivalent, including Scopes 1, 2 and 3 in Spain, Mexico, and USA. That has been achieved through the purchase of credits in several reforestation projects. One of our offsetting targets in 2023 has been recovery of degraded soils and the creation of biodiverse forests. Further information here.
- 100% of our energy consumption in Spain has come from renewable sources, and 1.21% has been self-generated by solar panels at one of our main offices.
- We also introduced an environmental management system (EMS) in 2006 which is compliant with the global standard ISO 14001. We are continuing to work on our processes and facilities to reduce CO2 emissions through environmental plans, the installation of photovoltaic panels and waste management.
- We are continuing to work towards the net zero carbon footprint of our clients.
2) Supporting clients in the transition towards a sustainable economy
Banco Sabadell’s sustainable finance solutions have been developed to help its clients to reduce their environmental impact and improve their energy efficiency. Those solutions include loans for the installation of renewable energy systems, the purchase of electric vehicles and implementing circular economy projects.
As well as our efforts to reduce our carbon footprint, we are also implementing the following lines of action intended to help our clients to achieve the same goals under international agreements signed up to by financial institutions.
- Setting decarbonisation commitments for 2030 aimed at seven industries that our heavy emitters of CO2 (Electricity, Oil and Gas, Cement, Coal, Iron and Steel, Automotive and Aviation), and focused on transforming the large companies in the chain of production in each industry, whose transformation can have a greater impact on the reduction of global emissions.
- Establishing a social and environmental risk framework in order to integrate and delimit ESG risks.
- Offering sustainable finance solutions aimed at energy savings, renewable energy projects, the circular economy, mobility and the environmental transition for private clients, SMEs and large businesses.
- Committing the Bank to devote 65 million euros to sustainable finance solutions in 2021-2025, making available 15 million euros in 2023 for a cumulative total of 38.6 million euros, so achieving 59.5% of our 2025 target.
- Channelling public assistance (EUGND), lending against grants, topping them up if they do not cover all the investment needed or providing guarantees demanded by government. (https://fondorecuperacioneuropeo.bancsabadell.com/)
3) Providing investment opportunities that contribute to sustainability
- With the issue of sustainability bonds amounting to 3,565 million euros made in green emissions in 2023.
- Supporting entrepreneurship programmes such as #BStartupGreen.
4) Working together for a sustainable, cohesive society
Supporting environmental research with initiatives such as the award for research into marine sustainability of the Fundación Banco Sabadell. Further information about the most recent prize-winning project here.
Those are some examples of Banco Sabadell’s commitment to meet the climate change challenge and build a more sustainable future for the generations to come.
Banco Sabadell’s actions in the fight against climate change are an example of our corporate social responsibility. Our progress towards our climate change goals makes us even more convinced that a sustainable future is a prosperous future for all.
