How banks can help to Sustainable finance
In the last two years four forces have shifted their perspective on sustainable issues. First, the global agenda has included sustainability in its goals with two key milestones: Paris agreement on climate change and Sustainable Development Goals by United Nations.Second, enterprises have understood that SDG mean a huge market and a new scope of opportunities. A new 12 trillion dollars market per year and 70 trillion dollars investment before 2030.Third, relevant investors have changed their perspective and therefore their way of seeking engagement on environmental and social issues. And finally, there has been an increase in regulation and soft-regulation related to this topics. Task Force on Climate - related Financial Disclosures (TCFD) or the High Level Expert Group from the European Commision are two good examples of it.
Without any doubt, today we live an age of opportunities for sustainable finance, but also an age of challenges.
Sustainable Finance is, nowadays, one of the top priorities for BBVA´s Board. There are many ways and tools that can be used in order to offer clients the chance of developing themselves in a sustainable way. Thus, BBVA, at wholesale banking is the most active player in Spain in green bonds and world leader in green finance.
At retail banking, BBVA is boosting financial inclusion and entrepreneurship. Both are key milestones to achieve some of the Sustainable Development Goals for United Nations.
But BBVA wants to go further by developing a new Environmental and Social Framework based on three commitments:
- Financing: Helping mobilize capital and investments to fight against climate change and fulfill some of the SDG
- Mitigate: Minimize environmental impacts, both direct and indirect.
- Engage: Bring together all relevant actors in the financial sector on climate change fight.
BBVA welcomes all the initiatives regarding climate change, especially those recommendations coming from the FSB such as the Task Force on Climate - related Financial Disclosures. UNEP FI and High Level Expert Group from the European Commission work should also be highlighted.