BBVA reaches its target of channeling €300 billion in sustainable business one year ahead of schedule
BBVA channeled €99 billion in sustainable business in 2024, setting a new annual record for the Group. BBVA reached this target of €300 billion in the 2018-2025 period one year earlier than planned.
“Sustainability is a great business opportunity. We have been seeing this for years at BBVA - an even bigger and more accelerated opportunity than we thought. After attaining this target one year ahead of schedule, we will continue to boost the transformation by supporting our clients in this global challenge. Financing the investment in decarbonization and new technologies is one of our strategic priorities,” said the Global Head of Sustainability and Corporate Banking at BBVA, Javier Rodríguez Soler.
BBVA channeled a total of €304 billion in sustainable business from January 2018 to December 2024, of which 78 percent corresponds to the fight against climate change and preservation of natural capital, and 22 percent to promoting and financing social initiatives.
On February 28, 2018, BBVA announced that it would mobilize €100 billion in sustainable business in the 2018-2025 period. BBVA has since raised this target on two occasions from the initial €100 billion to €200 billion in the first review in July 2021 and to €300 billion in the second review in October 2022, tripling the initial target.
At BBVA, channeling sustainable business encompasses climate change; natural capital (which includes activities related to water and the circular economy); promoting and financing initiatives for social, educational and health infrastructure, etc.; as well as support for entrepreneurs and young businesses; and the financial inclusion of underprivileged groups.
The energy transition, a profound transformation that is just getting started
Investment in a decarbonized economy is growing, boosted by higher energy demand and the profitability of renewables. It is also expanding into other types of technologies under development thanks to innovation. Current estimates show that nearly half of emission reductions will come from technologies that are still in the very early stages and have not yet been tested at scale, according to McKinsey.
Furthermore, there is growing interest in investments to improve productive processes and the value chain of activities that preserve natural capital - an asset whose depletion must be reversed due to its significant economic and financial impact.
Key developments in sustainability
In 2024, BBVA created a sustainability hub in Houston with the aim of increasing financing for the energy transition in the U.S., making sustainability a driver of growth and promoting decarbonization projects in this country. The new office in Houston joins the cleantech financing teams in New York, London and Madrid.
The bank identified decarbonization and green technologies as two priority areas for investment. BBVA is therefore present as an investor in some of the most cutting-edge, innovative funds in climate action. In addition, in September 2024, the bank and the global investment company KKR formed a strategic partnership through which BBVA will invest $200 million in KKR-s global climate strategy, which makes large-scale investments in solutions that propel the economic transition to a low-carbon economy.
In 2024, BBVA also expanded its intermediate emission-reduction targets for 2030 to include two new sectors: the real estate industry in Spain and the global aluminum sector. They join the list of targets for eight emission-intensive sectors previously set by the bank (oil and gas; power generation; the automotive industry; steel; cement; coal; aviation and shipping).