Extreme temperatures; the drought, heavy rains and floods; landslides; the rise in sea level; the acidification of the oceans or the loss of biodiversity are a constant in the news around the world. No one questions climate change or its effects, which are increasingly widespread and visible.. Something for which the European Union assumed in 2015, during the United Nations Conference on Climate Change held in Paris, the commitment to move towards carbon neutrality. An essential setting for limit global warming to 1.5 degrees Celsius, threshold that the IPCC (Intergovernmental Panel for Climate Change) considers safe for our existence.
According to United Nations data, since 1990, and despite progress in recent years, global carbon dioxide (CO2) emissions have increased by almost 50%. Hence, one of the Sustainable Development Goals established by the UN, specifically number 13, focuses on the adoption of urgent measures against climate change by developing countries. In his fight to reinforce that international message and achieve that carbon neutrality [cuando se emite la misma cantidad de CO2 a la atmósfera de la que se retira por distintas vías, lo que deja una huella cero], in December 2019 the EC presented the European Green Deal. A project that provides the roadmap to make Europe a climate-neutral continent by 2050.
Since then, the majority of European institutions and private companies have embarked on a process of strategic reflection to continue deepening their transformation and achieve this ambitious goal. And, luckily, there are examples of success that suggest that its achievement is possible. Some companies like BBVA have already achieved their goal of being direct carbon neutral by 2020 and they keep setting new goals and working to establish business policies to protect the planet.
Thus, the bank achieved its neutrality in this type of emissions by offsetting the entire carbon footprint with CO2 mitigating projects, which also generate a positive impact on the local communities where they are developed. The bank offset 120,562 tons of carbon dioxide with seven projects in four of the countries in which it operates (Turkey, Mexico, Bolivia and Uruguay) certified under prestigious international standards.
In fact, BBVA has exceeded all the objectives of its Global Eco-efficiency Plan 2016-2020 and its environmental footprint shows very positive data. 65% of the energy it consumes in its facilities comes from renewable energies, far exceeding its target set for 2020, which was 48%. Likewise, it has reduced its CO2 emissions by 58%, electricity consumption by 9%, water consumption by 6% and paper by 42% (all of them per user). In addition, the percentage of people who work in buildings with environmental certification has increased to 48%.
According to the United Nations, since 1990, and despite advances in recent years, carbon dioxide (CO2) emissions have increased by almost 50%
A bit of certainty in the face of a worrying situation: if society does not lower its levels of emissions into the atmosphere, scientific reports predict multiple risks. Impacts such as, for example, supply problems due to the collapse of crops, a decrease in drinking water – for the first time in history it is listed on the futures market, as if it were gold or wheat -, extinction of species, disappearance of entire ecosystems , the increase of hurricanes or typhoons, massive migrations due to climatic and geopolitical causes associated …
That is why it is vital to continue working with this philosophy of caring for the environment. Encouraging the use of clean energies and reducing greenhouse gas emissions are the two main objectives of the new Global Eco-efficiency Plan 2021-2025, on which the Spanish bank is already working. This implies achieving a 68% reduction in Scope 1 and 2 CO2 emissions for that year and consuming 70% of energy from renewable sources. In line with that last goal, BBVA has been a member of the RE100 initiative since 2018, through which companies around the world commit to make their energy 100% renewable by 2050.
It is about taking care of the planet and at the same time improving the business model. For the president of BBVA, Carlos Torres Vila, the energy transition is a great opportunity as there are many existing activities that will grow enormously, while new ones will emerge. “Spain has a competitive advantage in the energy transition,” he says.
A key element is the electrification and decarbonization of electricity. “We are going to multiply the installed power and there Spain is very competitive, because it has the natural resource, the new oil: wind and sun.” The latter, in his view, “is going to give us a second life more powerful than tourism yet,” he adds.
The bank is also part of the European Clean Hydrogen Alliance, an organization that aims to promote the extension and development of the use of Green hydrogen for a carbon neutral Europe by 2050. BBVA is the first national bank in this alliance, promoted by the European Commission.
Continuous effort from all industries
BBVA has set intermediate targets to decarbonise its portfolio in four CO2-intensive industries. After committing last March to stop financing coal in 2030 in developed countries and in 2040 in the rest, the financial institution has announced that it will reduce the carbon intensity of its loan portfolio by 52% in electricity generation between 2020 and 2030 ; 46% in the manufacture of automobiles; 23% in steel production; and 17% in cement production. These sectors, together with coal, account for 60% of global CO2 emissions. The bank will focus its efforts on accompanying its clients with financing, advice and innovative solutions in the joint decarbonization effort.
“Spain has a huge competitive advantage in the energy transition”
Carlos Torres Vila, president of BBVA
Torres Vila conceives the fight against climate change as one of the greatest disruptions in history, a task that must be undertaken with a rate of change that is also unprecedented. And although energy companies play a very important role in the process, it is a challenge that affects the entire society and requires the efforts of everyone to join in: consumers, public authorities, researchers, investors and companies from practically all sectors. .
In this transition, Carlos Torres Vila stresses that banks play a crucial role, as they are “catalysts for change.” In his opinion, “transition and innovation require financing”, and therefore they have “a very important role also advising our clients with innovative solutions to undertake this transition”. Banks undoubtedly play a prominent role in “analyzing investment opportunities and managing the risks associated” with climate change.
In short, BBVA has made sustainability one of its strategic priorities since 2020. In addition to reducing its direct impact and become CO2 neutral, through its activity, intends to accompany and help its clients to move towards a more sustainable world in the face of climate change and bet on inclusive growth. In addition, the bank has set itself the objective of being neutral also in indirect issues, that is, those generated by the clients it finances and which have a long history.
Thus, in Climate Action, actions aimed at promoting energy efficiency, the circular economy and the reduction of carbon intensity are included in the Group’s roadmap. And in terms of Inclusive Growth, mobilize investments to build inclusive infrastructures and promote entrepreneurship and inclusion and financial health. An example to take into account for those who seek an increasingly real way to protect the planet.
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