5 March marks World Energy Efficiency Day. 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.

Imagen de la descarbonización de la economía de Banco Sabadell

The expansion of the El Perelló wind farm (Tarragona) was one of the latest renewable projects financed by Banco Sabadell

To reach de-carbonsation 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

Our institution 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 this end, the bank has published its first decarbonisation objectives for 2030 for the four sectors with the greatest climate impact, focusing on the transformation of large companies in the production chain of each sector whose transition can have the greatest impact on the global reduction of emissions.  These are:

  • Electricity Sector: businesses whose principal activity is the generation of electricity. Thanks to the bank’s track record since the 1990s in financing and investing in renewable energy projects, our portfolio already has the lowest level of emissions intensity and is at the expected intensity for 2036-2037. Nevertheless, two foci will continue to be leveraged. On the one hand, with corporate financing, accompanying clients in their transition and in the Project Finance modality, with a view to continuing to lead in the financing of new renewable energy plants and being a benchmark player in new construction projects (“Greenfield”) in Iberia. On the other hand, through Sinia Renovables, the renewable energy and sustainability equity investment division, with experience in all types of technologies and geographies, offering comprehensive solutions from the start-up to the commissioning of the project.
  • Oil and Gas sector, in businesses linked to the upstream and downstream of hydrocarbons (including refining activity). We have set a target to reduce total emissions from positions in this sector by 23%. The main levers for this reduction are the production of low-carbon products (e.g. green hydrogen, e-fuels, biofuels), boosting their power generation businesses and improving the efficiency of emission-intensive processes.
  • Cement sector, with a focus on companies with manufacturing activity. We aim to reduce the emissions intensity per tonne of cement produced by 23%. Reduction measures include the deployment of renewable generation and the use of low-carbon fuels, as well as improving the efficiency of current production processes.
  • Coal sector. For companies with mining-related activities, the 2030 target is to have no exposure at all.

For more information you can consult the report “Decarbonisation objectives”, as well as other related documents, at this link.   

Sustainable finance for business and individuals

In relation to support for clients, the Bank has committed to mobilise €65,000 million in sustainable finance by 2025. To date, more than €25 billion have been mobilised of which €14.8 billion were provided in 2022.

Among the principal measures that form part of our support for clients in relation to energy efficiency, the following are worthy of note:

For companies:

Two types of finance (SAF and SLF):

  • Sustainable Application Financing (“SAF”) available when the company invests in a good or service previously defined as “taxonomically eligible” by the EU (photovoltaic panels, efficient rehabilitation…). It includes renewable energy Project Finance operations, clients developing activities aligned with the EU Taxonomy and bond issues and private placements with a specific green and/or social purpose. Bonus payments are available. The deployment of EU Next Generation Recovery Funds is a clear boost to this type of finance.
  • Green Finance (included in 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.  Throughout 2022, the bank has mobilised more than €1.1 billion to companies with a green purpose.
  • With a view to 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. It is worth remembering that, in this area, Banco Sabadell represents 30% of the market share of homeowners’ associations and has agreements with 100% of property administrators.
  • 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. By the end of 2022, the Bank has mobilised more than 500 million in sustainability-related financing for companies and SMEs with exclusively green objectives, mainly focused on reducing CO2 emissions.

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 reduced price on our entire mortgage offer to encourage the purchase, construction or renovation of homes with an energy certificate B or higher.
  • 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:

  • Anticipating grants.
  • Supplementing them if they do not cover the whole investment, or
  • Guaranteeing the administration the possible guarantees 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 Bank’s commitment to energy efficiency

Another priority line of approach is to reduce as soon as possible our own carbon footprint. In this regard, in 2022 we managed to reduce the entire carbon footprint in Spain by 49% compared to 2019 and we have made progress in our own internal footprint, being neutral through energy management, consumption reduction and offset with reforestation projects.

At the entity level, you can consult our commitment to the fight against global warming and support in the transition to a sustainable economy through our framework ESG Sabadell Sustainable Commitment, presented publicly in 2022. All its details and objectives with regard to ESG (Environmental, Social and Governance) criteria are available on this website (https://www.grupbancsabadell.com/corp/es/sostenibilidad/compromiso-sostenible.html).