BBVA is taking its sustainability commitments one step further. The bank has set itself the target of reducing emissions from its oil and gas portfolio by 30% by 2030.
The bank, which has proposed to channel up to 200 billion euros in sustainable financing between 2018 and 2025, set similar targets last year in four other sectors that are intensive in C02 emissions.
Specifically, it set itself to stop financing coal by 2030 in developed countries and by 2040 in the rest; to reduce by then the carbon intensity of its credit portfolio by 52% in electricity generation; 46% in automobile manufacturing; 23% in steel production and 17% in cement production. Together with coal, these four sectors alone account for 60% of global CO2 emissions.
"The energy sector is fundamental to the economic and social development of the countries in which we operate. With this commitment, we want to collaborate in the transition towards more sustainable business models," explained Luisa Gómez Bravo, BBVA's global head of Corporate & Investment Banking.
With the latest commitment BBVA will align its balance sheet in the oil and gas sector according to the scenario of zero net emissions in 2050 following the absolute emissions metric. This means that it will reduce the emissions of its loan portfolio in exploration, drilling and extraction activities in this sector by 30% compared to the 2021 figures and according to the most demanding scenario at this time (not to exceed 1.5ºC temperature increase in 2050).
In addition, the entity indicated that it has committed not to dedicate financing directly linked to exploration, drilling and extraction projects in this sector.
Its ultimate goal is to be carbon neutral by 2050. It has been so since 2020 in its own activity and now seeks to be so also in the activity it finances for its clients, whom it said it will help in the transition.
To this end, it will accompany and help the client to "define solid plans and clear objectives to reduce emissions", also contributing with financing so that they can move their activity towards other forms of generating clean energy.