Sustainability is the ability of present generations to meet their needs without compromising the ability of future generations to meet theirs. This ensures a balance between economic growth, care for the environment and social welfare, encompassing the ESG criteria: Environmental (environment), Social (social welfare) and Governance (good governance). The importance of this concept is increasing in companies, which are aware of the European commitment to be increasingly green, guaranteeing the future of the planet and making their activity respectful of their environment.
That is why Banco Sabadell has focused its fourth informative pill on this matter, available at laverdad.es, in which the entity’s director of European Funds and Sustainability, José Fuster Andrés, discusses the advantages of carrying out actions in this matter for companies as well as the support provided by Sabadell in this process.
These advantages, as detailed by the expert, are three: improved reputation and regulatory adaptation, a positive social impact and better access to investors and financing. «In these times, any company that positions itself and has its sustainability strategy clearly defined and visible will have a better reputation than those that do not. In addition, it will allow them to anticipate the regulation on sustainability that will come in the not too distant future,” said Fuster. In turn, this improvement will have a positive business impact, as your customers and suppliers will choose you over your competitors.
The fourth informative pill is now available at www.laverdad.es
On the other hand, those companies that have a clear and visible sustainability strategy will have better access to both public and private financing. “Public administrations give better points in their tenders to those sustainable companies compared to those that are not,” he clarifies.
In addition to all this, an incentive for companies to commit to sustainability are the ‘Next Generation’ funds, which will act as accelerators of this transition towards a more sustainable economy, since the Recovery, Transformation and Resilience Plan presented by The Government of Spain has as one of its four fundamental axes the Ecological Transition, with 40% of the plan’s budget.
«All those actions or projects carried out by companies in terms of energy efficiency, waste management, water use management or circular economy will be able to benefit from one of the Next Generation Fund subsidy lines», informed the Director of European Funds and Sustainability of Banco Sabadell.
The ‘Next Generation’ Funds allow companies to take advantage of subsidy lines based on the Ecological Transition
new solutions
Banco Sabadell wants to support companies so that they can move towards a more sustainable model and to this end they provide a vision of what green financing solutions can provide them to promote sustainable projects.
The main modality of this type of financing is that which has a sustainable application, that is, one whose purpose is to contribute to an environmental or social project, such as a wind or solar farm or a water collection and treatment facility. Another modality that is gaining more and more momentum is financing linked to sustainability, that is, financing that, although it may not have a sustainable purpose in itself, has conditions that vary depending on the sustainable objectives to which the company is committed. . An example of this is a company that sets a goal to reduce CO2 emissions within a period of five years and, if it achieves this annually reviewable goal, sees the interest rate lower than the initial one. If you don’t get it, the interest rate will be higher.
“In short, Banco Sabadell’s objective is to accompany our clients and facilitate their transition to a more sustainable economic and productive model, and encourage the incorporation of ESG criteria,” concluded José Fuster.
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