BBVA Raises Sustainable Finance Goal to More than $700 Billion by 2029
Spanish Bank BBVA announced the launch of a new goal to channel €700 billion (USD$735 billion) in sustainable finance between 2025 – 2029, with a focus on climate change and inclusive socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. development projects.
The new target is more than twice the bank’s previous goal to mobilize €300 billion from 2018 – 2025, and over a significantly shorter period of five years, rather than eight years.
BBVA set an initial €100 billion 2025 sustainable finance goal in 2018, increasing it to €200 billion in 2021, and then raising the target again in 2022 to the €300 billion ambition.
The banks said that the new goal comes as it reached €304 billion in sustainable finance mobilization as at the end of 2024, exceeding its target a year ahead of schedule.
BBVA said that its sustainable finance initiatives over the next five years will be focused primarily on climate change and natural capital, including water, agriculture and circular economy, as well as the promotion and financing of socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. initiatives, such as socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates., educational and health infrastructure, support for entrepreneurs and fledgling companies, and the financial inclusion of the most underprivileged segments of society.
Of the sustainable finance capital mobilized form 2018 – 2024, 78% was directed towards climate change mitigation and adaptation projects and the preservation of natural capital, and 22% to inclusive growth initiatives.
By business lines, 59% of the financing was generated from BBVA’s Corporate and Investment Banking unit through investment and corporate banking transactions for large clients, followed by companies at 27% and retail customers at 14%.
Javier Rodríguez Soler, Global Head of Sustainability and Corporate and Investment Banking at BBVA said:
“At BBVA we continue to view sustainability as a strategic priority and a key driver of differential growth. We believe that the business opportunity in the second part of the decade will be driven by solid investment in infrastructure and by the maturity of certain new clean technologies, which will make them ―many of those that are not yet― profitable.”
