The activity of financial institutions comes under the goals for adapting to climate change and plays a fundamental role in fulfilling the Paris Agreement and the 2030 Agenda.
The activities and initiatives undertaken by financial institutions to advance the decarbonisation of the economy are key in the fight against climate change. An example of this are the various global climate action commitments, and their progress in important areas, such as governance or high-level management of the institutions involved, as well as their operations and the information they regularly publish to report on business evolution.
Among 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 Principles for Responsible Banking, 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.
On the other hand, the annual publication of Non-Financial Information Reports, which includes ESG aspects (Environmental, Social, and Governance) such as carbon footprint disclosure, strengthens transparency in the policies, goals, performance measurement and the impacts of financial institutions.
Banco Sabadell has an ESG (Environmental, Social, and Governance) action framework: Sabadell’s Commitment to Sustainability, 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 more sustainable organisation
- In 2022, we reduced our total carbon footprint in Spain by 49% compared to 2019, and advanced in our internal footprint, achieving neutrality through energy management, consumption reduction and compensation with reforestation projects.
- Since 2021, we have been offsetting our own CO2 emissions through investments in forestry projects.
- By the end of 2022, we expanded the scope of our offsetting to 5,542 tonnes of CO2, including all scope 1, 2, and 3 emissions in Spain, Mexico and the USA. That is, emissions from our direct activities (such as diesel consumption), indirect activities (such as electricity consumption), and derived activities (such as water, paper and plastic consumption, and public transport use). This was achieved by purchasing credits in forest absorption projects.
- One of our 2022 offsetting goals was the recovery of degraded land and the creation of a biodiverse forest mass through a reforestation project registered with the MITERD, Ministry for Ecological Transition and Demographic Challenge. Moreover, this move was made considering the social impact on the local community, including hiring individuals from various vulnerable groups or those with difficulty accessing the labour market.
- In the UK, TSB offset its scope 1 and 2 emissions in 2022, totalling 1,669 tCO2 equivalents, through Forest Carbon’s ArBolivia reforestation project (Plan Vivo afforestation), through which TSB has planted over 55,800 trees, and will invest in UK forests to offset future emissions.
- Regarding energy management, since 2014, we have reduced our CO2 emissions from electricity consumption in Spain by 99%, opting for energy with renewable origin guarantees.
- We also introduced an environmental management system in 2006, which is compliant with the ISO 14001 global standard. 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 customers.
2) Supporting customers in the transition towards a sustainable economy
As well as our efforts to reduce our carbon footprint, we are also implementing the following lines of action intended to help our customers to achieve the same goals under international agreements signed up to by financial institutions.
- Setting decarbonisation commitments for 2030, focused on four intensive sectors.
- Establishing a social and environmental risk framework in order to integrate and circumscribe 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 to mobilise €65 billion in sustainable finance solutions for the 2021-2025 period, of which over €25 billion have already been mobilised in the 2021-2022 period, with €14.8 billion corresponding to 2022.
- Channelling public assistance (NFGEU), 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 new issuances of bonds linked to sustainable development goals (€825 million), having already issued green bonds totalling approximately €1.7 billion in 2022.
- Supporting entrepreneurship programmes such as #BStartupGreen.
4) Working together for a sustainable, cohesive society
- Supporting environmental research and development with initiatives such as the award for research into marine sustainability of the Banco Sabadell Foundation.
- Through Sabadell Seguros, with “Insurance with a cause”, linking each of its products to a specific cause, notably environmental conservation and habitat restoration. A demonstration of this commitment to addressing the needs of our society is the collaboration with Xarxa per a la Conservació de la Natura, which involved a first donation in 2022 for the purchase of land in Pobla de Claramunt, Barcelona. On this land, an arboretum with 1,300 fruit trees is planned, featuring 250 native varieties at risk of extinction. This initiative will help create one of the most important arboreta in Catalonia, contributing to the preservation of the region’s agronomic, genetic and gastronomic heritage.
For more information about Banco Sabadell’s commitment to the environment, you can consult the following links:
– 2022 Non-Financial Information Statement (See the section on Commitment to climate and the environment. It includes governance, strategy, risk and impact management, as well as the carbon footprint). It can be accessed on the corporate website here.
– Sabadell Commitment to Sustainability. Our ESG framework, which includes nearly 60 objectives organised into four strategic pillars and considers climate issues transversally.
