The current global situation in the fight against climate change is related to the prevailing need to lower emissions of carbon levels. Given the intense rebound in global warming, there are many companies and organizations that are organizing and mobilizing to reverse this circumstance. To do this, it is essential to undertake decarbonization in the different sectors of activity, such as electricity, cement, coal, and oil and gas.
Banco Sabadell is an example of commitment to the environment, taking another step in its fight against climate change. The bank has updated its decarbonization objectives to impact the most intensive sectors in CO₂ emissions worldwide. These actions are based on the approaches of the Paris Agreement and continue to advance in its alliance with the main climate commitments such as the Net Zero Banking Alliance (NZBA) of UNEP FI.
These ambitious goals involve setting decarbonization paths by limiting the rise in global temperature to +1.5 °C from pre-industrial levels, with the aim of achieving climate neutrality by 2050. In the short term, Banco Sabadell has set its ESG action framework for 2021 , Sabadell Sustainable Commitment, which includes the goal of mobilizing 65,000 million euros in sustainable finance by 2025.
Sabadell Sustainable Commitment includes the objective of mobilizing 65,000 million euros in sustainable finance by 2025
Thanks to its long history of commitment to sustainability, Banco Sabadell has an energy portfolio with a lower level and intensity in emissions compared to its main counterparts in Europe. This is due to its extensive journey since the 90s in projects based especially on wind and solar technologies, to the point that in some sectors such as electricity the intensity is already lower than those established for 2030.
Objective by sectors
In its climate transition strategy, Banco Sabadell has prioritized the electricity, cement, coal, and oil and gas sectors. The methodology for setting these goals has focused on those with the greatest climate impact and, within these, on the phase of the production chain, the reduction of which can have a greater effect on the overall cut in emissions.
The Director of Sustainability and Efficiency of Banco Sabadell, Elena Carrera, indicates in this regard that “it is making progress in its commitment to accompany its clients in decarbonization, setting objectives for 2030 for the sectors with the greatest climate impact, acting to this end, in the phase of the productive chain whose reduction can generate a greater impact in the global reduction of emissions.”
“We act in the phase of the production chain whose reduction can generate a greater impact”
In line with expectations as a member of the Net Zero Banking Alliance (NZBA), the bank will have zero carbon mining activities by 2030. In reference to the cement and oil and gas sectors, the Bank has set itself the goal of reducing by a 23% the intensity of emissions per ton produced in the cement sector and reduce the same percentage in the total emissions financed in the case of oil and gas.
Banco Sabadell has solar panels in its facilities.BS
Regarding electricity, the financial institution for maintaining the level of intensities in CO₂ emissions in a range between 85-45 CO2e/MWh. This approach is in line with the REPowerEU plan and the ambitious goals of implementing renewable generation in the European Union.
future challenges
Although Banco Sabadell has gained a lot of ground to achieve the goals set for the coming years, the financial entity has made progress in its sector specialization and has developed various management tools. Likewise, to accompany clients in this transition process, the Bank has specific financing solutions and continuous advice offered by specialized teams.
Banco Sabadell has specific financing solutions and continuous advice
In the meantime, this company plans to continue setting additional intermediate targets for the rest of the intensive sectors identified by the Net Zero Banking Alliance (NZBA). Likewise, the evolution of the commitments assumed previously exposed will be informed and an action plan will be demonstrated to ensure compliance with them.
For more information on the decarbonization objectives, you can consult the report published on the corporate website, available in the Sabadell Sustainable Commitment section.
