“The energy industry is essential to the economic and social development of the countries where we operate. With this commitment, we seek to support the transition to more sustainable business models,” explained Luisa Gómez Bravo, Global Head of Corporate & Investment Banking at BBVA.
BBVA will align its exposure to the oil and gas sector with the net zero emissions 2050 scenario following the measurement of absolute emissions. Between December 2021 and December 2030, it will reduce emissions from its credit portfolio in exploration, drilling and extraction activities in this sector by 30% in accordance with the most stringent scenario at present (not to exceed a temperature increase of 1.5°C in 2050) . In addition, BBVA has committed not to provide financing directly related to exploration, drilling and extraction projects in this industry.
By taking this step in a key sector such as the energy industry, BBVA is advancing in its commitment to be a carbon neutral bank by 2050, not only in its own business, where it has already been carbon neutral for 2020, but also in its borrower activities.
To enable its customers to reduce their emissions, BBVA will first help them to create solid plans and set clear emission reduction targets. Secondly, BBVA will support its customers in their transition to other forms of low-carbon energy production through the necessary investments that will facilitate their diversification and decarbonization.
This announcement is part of the objective of accelerating the green transition in Europe in accordance with the REPowerEU plan and guidelines of the International Energy Agency (IEA). According to the IEA Net zero emissions roadmap by 2050a “massive and immediate investment in clean and efficient energy” is necessary. According to the report, “if renewable energy is successfully developed soon enough, the result will be that the demand for oil and gas will be reduced, and there will be no need to develop new fields”.
In 2019, BBVA made sustainability one of its strategic priorities and announced in 2021 the creation of its Global Sustainability area. That year, the bank announced its goal of eliminating its exposure to coal clients by 2030 in developed countries and by 2040 globally (as outlined in BBVA’s environmental and social framework). BBVA then set intermediate targets to decarbonize its portfolio in four emissions-intensive sectors by 2030. These sectors, together with coal, accounted for 60% of global carbon emissions.
Target distribution