In a world marked by the urgency of fighting climate change and building a more sustainable future, energy efficiency and renewable energy are key elements of the transformation of the energy model. In that context, Banco Sabadell has become a leader in promoting these solutions, actively committing to decarbonisation of the economy and the promotion of a greener energy future for the planet.
World Energy Efficiency Day is marked on 5 March World Energy Efficiency Day started in 1998 at the first International Energy Efficiency Conference in Austria. Its goal is to raise awareness of the need to reduce our energy consumption through sensible, sustainable use. Meeting that goal is fundamental to dealing with one of the major challenges that we face today: decarbonising the economy to fight global warming. Financial institutions – and other actors – have a key role in achieving it. In this post, we explain what Banco Sabadell has done so far.
To reach decarbonisation goals, the finance industry must over the next few years concentrate on a number of objectives, notably the following:
- Mobilising the necessary resources
- Managing climate risks
- Identifying the changes required in processes and technology and supporting their implementation
- Supporting the creation of new opportunities
- Financing the investment needed to launch this new economic model
In this article, we describe how Banco Sabadell is already identifying opportunities and solutions in the face of the challenges of decarbonisation, supporting steps to encourage energy efficiency in business and at home.
High-CO2 emission industries: from challenge to opportunity
The Bank is a member of the Net Zero Banking Alliance, an international alliance of financial institutions under the auspices of the United Nations, who together manage 40% of global banking assets. One of their principal objectives is alignment of their loans and investments with the goal of zero emissions by 2050 across the world.
To that end, the Bank has published new 2030 decarbonisation targets for seven industries that are the heaviest emitters of CO2 (Electricity, Oil and Gas, Cement, Coal, Iron and Steel, Automotive and Aviation), with a focus on transforming the large companies in the chain of production in each industry whose transformation can have the greatest impact on the reduction of global emissions.
For further information, you can read the Decarbonisation goals report, and related documents.
Sustainable finance for business and individuals
In relation to support for clients, the Bank has committed to mobilise 65,000 million euros in sustainable finance by 2025. To date, more than 38,600 million euros have been mobilised of which 15,000 million euros were provided in 2023.
Among the principal measures that form part of our support for clients in relation to energy efficiency, the following are worthy of note:
For business:
Two types of finance (SAF and SLF):
- Sustainable Application Finance (SAF), for businesses to invest in goods or services listed in the Eligibility Guide, determined principally using the EU’s Taxonomy and market best practice, such as the Green Loan Principles (photovoltaic panels, energy efficiency upgrade of buildings…). SF includes project finance transactions for renewable energy, the issue of bonds and private placings for specific green and/or social purposes. The rollout of EU Next Generation Recovery Funds is a clear boost to this type of finance.
- Green Finance (part of SAF): by way of loan, finance lease, lease-hire, for projects that meet the criteria of the Bank’s Eligibility Guide, Green Finance is focused principally on Construction and Real Estate, Energy, Mobility, Water and waste management.
- With the aim of improving its support to businesses in such projects, the Bank has entered into agreements with partners in different industries and can offer turnkey solutions:
- Photovoltaic electricity generation: Through partnerships with third parties, we can provide a complete service which includes photovoltaic systems and maintenance and improvement services to ensure clients have the best installation.
- Refurbishment: Thanks again to agreements with specialist firms, we can manage the whole project, including the grant process.
- Sustainability linked Finance (SLF) to make any new or existing finance sustainable, incentivising the achievement of sustainability goals and linking the price of the transaction to specific key performance indicators or KPIs.
For private individuals:
We provided solutions focused on energy saving and renewable energy, as well as offering finance for the acquisition and refurbishment of homes. Examples of projects and our principal projects are:
- Sabadell loan for ecological refurbishment: This loan supports refurbishments and/or property acquisitions that improve sustainability and energy saving of main or second homes. The Bank offers favourable finance terms for improvements to (window and door) closing systems, refurbishment of heating and cooling systems to make them more efficient and the purchase of energy efficiency A-rated or better white goods.
- Ownership Association Sustainable Loan. Intended for ownership associations who want to improve the sustainability of whole buildings. More information here.
- Green Finance (green mortgages): We offer a lower price on all our mortgages to incentivise the acquisition, construction, and refurbishment of homes that have one of the highest energy use classifications under the national classification system and under the Bank’s Eligibility Guide.
- ECO car loan: This loan is for the purchase of 0 Emission or ECO classifications on favourable terms.
For further information and for all the details of these finance products, do not hesitate to schedule an appointment at your local branch Request an appointment – BANCO SABADELL
Next Generation EU and energy efficiency
Financial institutions have an opportunity to supplement the funds provided by European institutions to amplify their positive impact. The Bank sees its role as fundamental to help the distribution of those funds reaches every part of the business community, including SMEs.
To that end, the Bank can:
- Lend against grants before they are made
- Supplement grants if they do not cover the whole investment, and
- Provide guarantees to the government as required.
We have already had several campaigns to disseminate knowledge about grants and to offer turnkey solutions. Including noteworthy solutions related to energy efficiency:
- Photovoltaic self-supply: with a package of public grants intended to support self-supply and energy storage and renewable thermal systems.
- Refurbishment: with grants for the refurbishment of homes and buildings related to projects to improve energy efficiency and renewable energy. The main recipients are ownership association. The amount of the grant will vary in function of the savings achieved through the refurbishment.
For further information, you can visit:
- The information portal for Next Generation Funds.
Banco Sabadell’s Public Aid searcher, which incorporates a free newsletter providing information about all new greats by business sector.
The Bank’s commitment to energy efficiency
Another priority line of approach is to reduce as soon as possible our own carbon footprint.
100% of the electricity that we used in Spain in 2023 came from completely renewable sources and has in overall terms our consumption has fallen by 35% over 2019. A self-supply photovoltaic panel installation at our Corporate Centre in Sant Cugat del Vallès provided 1.21% of our total electricity consumption. We continue to be emission neutral thanks to energy management, reduced consumption and offsetting through reforestation schemes. You can learn more about these topics and others in our latest Non-Financial Disclosures Report.
At Banco Sabadell, decarbonisation of the economy and the fight against climate change are fundamental elements of our strategy. We realise how urgent it is to act and we commit to continue to promote the financing of renewable energy projects, supporting businesses and private individuals in their transition to an energy model that is more sustainable and we also commit to improving the energy efficiency of the Bank year after year.
Our extensive experience, specialist knowledge and holistic approach make us a strategic partner for anyone who wants to contribute to a greener future. Together, we can build a sustainable energy future for the world, a prosperous, resilient future in harmony with the planet.
