- The financial institution has presented its new Decarbonisation Targets Report which sets specific targets in four key areas: residential mortgages, commercial property, aluminium and shipping.
- These targets are in line with the strategy initiated in 2022 and continued in 2023, which already set emission reduction targets in areas such as electricity, oil and gas, cement, coal, iron and steel, automotive and aviation.
- Banco Sabadell’s decarbonisation strategy is embedded in all its activities and is based on three pillars: its strategic action framework, support for customers in the transition and risk management.
23 December 2024
Banco Sabadell is making steady progress in its commitment to the fight against climate change by presenting its new Decarbonisation Targets Report, which sets specific targets in four additional emission-intensive sectors: residential mortgages, commercial property, aluminium and shipping. These targets reinforce the strategy initiated by the financial institution in 2022 and continued in 2023, which has already set emission reduction targets in sectors such as electricity, oil and gas, cement, coal, iron and steel, automotive and aviation.
With this initiative, the bank strengthens its commitment to align its financial activity with the objectives of the Paris Agreement, the European Green Pact and Agenda 2030. At the same time, it contributes to limiting the global temperature increase to +1.5°C above pre-industrial levels, in line with the guidelines of the Net Zero Banking Alliance (NZBA). The ultimate goal is to achieve emission neutrality of its investment and financing portfolio by 2050.
For General Director and Director of Sustainability and Efficiency of Banco Sabadell, Elena Carrera, “the publication of this report reflects our tangible commitment to the decarbonisation of key sectors. We have set specific targets in areas where we can have a greater impact, such as residential mortgages and commercial property, and we continue to support our clients with financial solutions and technical advice tailored to their needs. But we are not just setting targets, we are measuring, evaluating and adjusting our strategies to ensure concrete results. This vision allows us to meet global climate neutrality commitments and actively contribute to the transformation of the economy’s productive fabric towards a more sustainable model”.
Commitment to decarbonization objectives in intensive sectors key to the transition
Among the new objectives, Banco Sabadell has focused on residential mortgages and commercial real estate, two fundamental areas for the decarbonization of the Spanish economy. In this sense, the bank has set the goal of reducing the intensity of its retail mortgage portfolio in Spain by 20% between the period 2023 – 2030. In the case of commercial real estate, the commitment is even more ambitious, with a reduction of the intensity of its portfolio by 51%, in the same time horizon.
On the other hand, in intensive industrial sectors such as aluminum, a key material for the transition due to its lightness and resistance, the bank will work with its clients to reduce the intensity of its supply by 15% until 2030. In the naval sector, crucial For global decarbonization due to its impact on international transport, the bank establishes its objective of reducing the intensity of its naval portfolio in Spain, aligning with the objectives of the International Maritime Organization (IMO) for the period 2023-2030.
In addition to setting new targets, it has monitored progress in the seven priority sectors identified in previous years: electricity, oil and gas, cement, coal, iron and steel, automotive and aviation. In the case of the electricity sector, for example, the bank’s portfolio intensity remains well below expected levels thanks to continued support for renewable energy projects.
In sectors such as oil and gas, Banco Sabadell’s exposure has decreased significantly, with a 23% reduction in absolute emissions since 2020. Similarly, it has strengthened its commitment to sectors such as cement and iron and steel, facilitating the transition of companies in the sector that are committed to adapting to a low-carbon economy and whose ESG performance is in line with the bank’s expectations.
Strategic framework for action, customer support and risk management
Banco Sabadell’s decarbonisation strategy is embedded in all its activities and is based on three pillars: its strategic action framework, support for customers in the transition and risk management.
With regard to its strategic framework, the bank considers it a priority to ensure the alignment of the portfolio to its decarbonisation objectives and to this end has included decarbonisation in its risk appetite frameworks, policies, sector planning processes and has set out road maps to achieve these objectives.
Supporting customers in the transition is at the heart of Banco Sabadell’s decarbonisation strategy. The institution is committed to offering specific financial solutions, specialised technical advice and sustainable investment assessment tools. This is done through expert teams working with large companies and SMEs to identify opportunities for improvement.
It should be noted that, in sectors where robust methodologies or comparable data do not yet exist, such as agriculture and livestock, Banco Sabadell remains committed to continuing to work alongside its clients. The bank is focused on active engagement with companies in the sector, assessing their performance and drawing up decarbonisation plans as soon as it is feasible to set solid quantitative targets.
With regard to credit risk management, the bank integrated ESG criteria into all its credit risk admission and monitoring processes. It assesses the environmental performance of its clients and analyses the potential impact of the operations financed on the decarbonisation pathways defined. In addition, the evolution of emissions is constantly monitored, with the aim of ensuring compliance with the targets set for 2030.
For more information on the decarbonization objectives, you can consult the report published on the corporate website, available in the Sabadell Sustainable Commitment section.
