World Energy Day has been celebrated every 14 February since 1949. This day has the objective of raising awareness in society about the importance of making responsible use of energy resources, always prioritising those that come from clean and renewable energy sources. Coinciding with this day, we are strengthening Banco Sabadell’s commitment to society and to the energy transition process, recalling some of our initiatives in this field to reduce our carbon footprint and support our customers in reducing theirs.
Over the last year, the volatility in electricity prices has once again put the spotlight on the importance of renewable energy. Obviously, as a source of clean energy. But also because it is cheaper than other energy sources. This context, together with the European objectives to combat climate change and improve energy efficiency, embodied in the “Fit for 55” package of measures by the European Commission and -at national level- by the National Integrated Energy and Climate Plan, make this event even more relevant every year.
As does Banco Sabadell’s more than 25 years’s experience investing in and financing renewable energy projects, which today consolidates us as a benchmark bank in this sector.
Today, we are one of the most active financial entities in our country, in everything related to investment in renewable energies. On the one hand, through our subsidiary Sinia Renovables, which has more than 25 years’ experience in wind, photovoltaic, solar thermal, mini-hydro, cogeneration and biogas projects. On the other hand, through the financing of such projects. As early as the 1990s, we began fostering the first solutions of this type, maintaining our leadership in the market via Project Finance, with formalised new construction projects – among others – that add new clean production capacity to the Spanish energy system (known as greenfield projects).
An experience that takes on relevance in the current context, in which our society faces the challenge of decarbonising the functioning of its economic structures to achieve net zero emissions in 2050. A challenge of monumental dimensions involving all actors. To achieve this, it will be necessary to deeply renew, not only many of our most ingrained habits, but also a good part of our machinery and infrastructure. Which in turn implies having to make very important economic investments and identify the technologies necessary for the transformation and that will need to be financed through various mechanisms and public aid. The financial system therefore becomes one of the key actors in expediting the energy transition.
First goal: reducing our own internal carbon footprint and becoming carbon neutral
For Banco Sabadell, one of our first objectives was to make progress in our processes and to reduce our carbon footprint as soon as possible. Thanks to our commitment to electricity consumption from renewable energy sources since 2015, the initiatives to reduce consumption and the implementation in recent years of photovoltaic panels at our corporate centres, we have achieved several objectives. In 2022, we reduced 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.
Accompanying our customers to reduce their carbon footprint
From the financial sector we also accompany our clients – companies and individuals – on the one hand, in decarbonisation, helping to mitigate CO2 emissions and to adapt economic activities, with the mobilisation of financing to the real economy, making it easier for them to face structural challenges such as innovation, digitalisation and – above all – sustainability.
Sabadell Commitment to Sustainability
To publicly offer more information about our commitment to the environment, last year we made public our sustainability strategy, Sabadell Sustainable Commitment, available on the corporate website (can be viewed here), where the environmental, social and governance commitments (ESG) are specified. This framework aligns our business objectives with the Sustainable Development Goals (SDGs) and establishes action levers for transformation and momentum regarding four strategic axes:
- Becoming a more sustainable bank
- Supporting clients in the transition towards a sustainable economy
- Providing investment opportunities that contribute to sustainability
- Working together for a sustainable and cohesive company
Accompanying decarbonisation
Consistent with our ESG framework, Sabadell Sustainable Commitment and with the commitments assumed as a signatory of the Collective Commitment for Climate Action (CCCA) and a member of Net Zero Banking Alliance (NZBA), we have set interim targets for the most CO2 intensive sectors such as Electricity, Oil and Gas, Cement and Coal (the report is available here).
The target-setting methodology has focused on those sectors with the greatest climate impact and, within these, on the phase of the production chain whose reduction could have the greatest impact on the overall reduction of emissions.
In the electricity sector, thanks to our track record dating back to the 1990s in financing and investing in renewable energy projects, the energy portfolio currently has the lowest level of emissions intensity compared to the main European peers that have published 2030 commitments. In this context, the Bank is committed to maintaining the level of CO2 emission intensities in a range between 85-45 kg CO2e/MWh in order to ensure that all customers are accompanied in their transition process. This strategy is aligned with the REPowerEU plan and the ambitious targets for the deployment of renewable generation in the European Union.
New investments to implement new technologies
Over the next few years, all companies will have to significantly reduce their CO2 emissions. This is a process that affects all economic sectors.
With a view to responding to the “green finance” needs that companies will logically have in the short and medium term, at Banco Sabadell we have already set up the necessary internal mechanisms to accompany them in this transformation process, detecting their main needs and developing internal circuits and tools to facilitate the whole process.
Assistance in obtaining public subsidies
We should also note the significant public grants put in place to assist in processes as important as the refurbishment of all kinds of old building to make them as energy-efficient as possible. To benefit from those grants, you have to know what grants are available and how to apply for them. At Banco Sabadell, we now have specialists in this field, who can help manage your request, making the entire process easier.
It’s time for SMEs
Large companies have already started their transformation processes, and we are already working with many of them. A second phase is now getting underway that will be of great importance: forced by many of the new legal regulations that have already been implemented or will be implemented in the near future, these large companies will now need their suppliers (in many cases SMEs) to start reducing their own carbon footprint as well, and to be able to certify that they have done so.
We are at their disposal to help them in this process, which is key for all of us, and which has only just begun.
Accompanying individuals
In the case of individuals, Banco Sabadell offers its customers a range of solutions aimed at energy saving, offering solutions for the purchase and refurbishment of homes, sustainable mobility and the installation of renewable energies.
