Climate change

The BBVA Foundation Frontiers of Knowledge Award in the Humanities and Social Sciences category goes to American psychologist Elke Weber in recognition of her research into “environmental decision-making and human responses to climate change.” Weber was the first psychologist to join the IPCC, a group of experts to which she brought her knowledge of decision-making theory.

SALT, Garanti BBVA’s cultural organization, is presenting ‘Is this Our Last Chance?’, a series of documentaries on the effects of climate change. It will be running at the walk-in cinema in SALT’s Beyoğlu facilities and can also be watched online at saltonline.org between February 29 and March 24.

The BBVA Foundation Frontiers of Knowledge Award in the Climate Change category has gone to five European scientists for their analysis of Antarctic and Greenland ice samples to prove the “fundamental coupling” between greenhouse gas concentrations and rising air temperatures across the planet over the past 800,000 years.

BBVA Chair Carlos Torres Vila, together with over 100 chairs or CEOs of large global companies, signed a declaration calling on the global leaders participating in the upcoming United Nations Climate Change Conference in Dubai (COP28) to commit to “transformative policies and actions.” “Every fraction of a degree counts in the race to net zero,” explains this open letter from the Alliance of CEO Climate Leaders promoted by the World Economic Forum (WEF).

BBVA Chair Carlos Torres Vila stated that "the investment necessary for the economy to function without emissions must make economic sense, since a large part of it will come from the private sector." At a round table hosted by UNEP FI in Madrid, he stressed that "decarbonization will occur when investments in emerging green technologies prove profitable."

World Meteorological Organization (WMO) experts have just warned that El Niño, a natural phenomenon that arises in the Pacific Ocean and shapes weather around the world, has started up again. So their forecasts, which a few months ago indicated that there was a 55% chance that El Niño would re-emerge in the second half of 2023, have proven to be accurate. But this is bad news. Because El Niño poses the danger of a new global temperature change.

Garanti BBVA, as main sponsor of the Turkish division of CDP (Carbon Disclosure Project), the world's largest environmental reporting platform run in Türkiye by the Sabancı University Corporate Governance Forum, welcomed the results announced at the 13th Climate Change Conference and Award Ceremony of CDP Turkish chapter. Garanti BBVA Sustainability Manager Seray İmer received the award on behalf of the bank, which is once again on the A List at the global level according to the CDP 2022 results.

In the last decade, the average social well-being in the countries that make up the Organization for Economic Cooperation and Development (OECD) would have declined approximately two percent if the damage caused by CO2 emissions had been internalized, thus avoiding the worst future scenarios of global warming, according to BBVA Research.

BBVA Chair Carlos Torres Vila stated that “Mexico is going to be a clear winner in the current context” in which U.S. companies are moving production to closer regions. This trend, known as ‘nearshoring’, is going to accelerate due to the tax incentives the U.S. has designed to promote investment in the fight against climate change in the country (the Inflation Reduction Act, or IRA). He stressed this at CERAWeek, the benchmark global event for the energy sector, which is being held in Houston throughout this week.

Paleoclimatologists James Zachos (University of California at Santa Cruz, USA) and Ellen Thomas (Yale University and Wesleyan University, USA) identified an anomalous episode  in the planet’s history in which massive emissions of CO2 into the atmosphere occurred, causing a global temperature rise of between 5 and 6 ºC and a massive extinction of species in the deep ocean, which has provided “a very valuable analogy of anthropogenic climate change”, according to the jury of the BBVA Foundation Frontiers of Knowledge Award in Climate Change.

Garanti BBVA was once again included in CDP’s global ‘A list’ for its climate change program thanks to the bank’s sustainability efforts, especially in climate change and inclusive growth. CDP’s climate change program is considered one of the world’s most important reporting platforms. Garanti BBVA has been reporting to the organization’s climate change program, and the public, since 2009, and to the CDP water program since 2015. The bank continues to be the main support of CDP in Türkiye.

BBVA Chair Carlos Torres Vila, alongside other leaders of major global companies, has signed a statement calling on world leaders and participants at the Sharm El Sheikh United Nations Climate Change Conference (COP 27) to commit convincingly to a just transition. "This transition needs a radical rethinking of how we do business," explains the statement from the Alliance of CEO Climate Leaders promoted by the World Economic Forum (WEF).

This week, the BBVA Chairman participated in the COP26 in Glasgow, where he called for concrete commitments and credible actions from everyone, public and private sector, to move toward the decarbonization of the planet. Carlos Torres Vila pointed out the need to “increase investment” in new non-polluting technologies to fight climate change. For this to happen, private capital, and specifically banks, “play a critical role” in helping and engaging with clients in their transition towards a more sustainable future with finance and advice.

According to the BBVA Chairman the upcoming Glasgow Climate Summit (COP26) is the most important one since Paris in 2015. For this reason, on Friday he called for “commitments and credible actions” by governments and the private sector to curb emissions by 45 percent by 2030. Carlos Torres Vila pointed out that “faced with the decarbonization challenge, emerging economies should be among those leading the race:” And, for this to be possible, developed countries "should support emerging countries in their journey to decarbonization with more financing" he said speaking at the annual meeting of the Institute for International Finance (IIF).

On the occasion of its 30th anniversary, the European Bank for Reconstructionand Development (EBRD) recently held a conference on climate change. Ebru Dildar Edin, Executive Vice President of Garanti BBVA explained how the BBVA Turkish Unit’s climate related strategic decision have helped itstrengthen its position against eventual crises.

BBVA has published an update of its report on the risks and opportunities of climate change in accordance with the Task Force Climate-related Financial Disclosure (TCFD) standard, with data as of December 2020. This report reflects BBVA's progress in sustainability. Since its first publication in October 2020, it has already incorporated climate risk into the management of all the bank's businesses and its commitment to accompany customers towards a more sustainable future.

The World Economic Forum's (WEF) Alliance of CEO Climate Leaders, released a letter today, calling on the G7 and other world leaders to support a just transition. BBVA Chairman Carlos Torres Vila, the sole representative of a Spanish bank, has signed, together with 78 other CEOs or heads of large global companies, a declaration whose objective is to promote the contribution of the private sector in the fight against climate change.

The BBVA Chairman believes that 2020 has been a turning point in the drive for sustainability. He explained that climate change and decarbonisation represent not only a risk but also an enormous opportunity for both the economy and for banks. Firstly, because of the investments involved, and secondly, because of the importance of advising customers on their ecological transition. "Banks are moving fast to tackle this change head on, involving the whole organisation, because sustainability and climate change affect all businesses".

BBVA Chairman Carlos Torres Vila stressed today that the energy transition poses a great opportunity because many existing activities will see enormous growth as new activities will emerge. “Spain has a competitive advantage in the energy transition,” he said. “We have the natural resource - the new oil, which is the sun and the wind,” he added during his presentation on the second day of Wake up Spain, the energy transition symposium organized by El Español, Invertia and D+I.

ESG criteria refer to environmental, social and corporate governance factors that are taken into account when investing in a company. Although their origin dates back several decades, they have become a reference for socially responsible investing in recent years.

BBVA has updated its Corporate Social Responsibility (CSR) policy with several new additions following the recommendations of Spain’s financial market regulator, the CNMV, and the bank’s growing commitment to its role in sustainable banking.  Furthermore, BBVA’s Board of Directors also approved the General Policy on Sustainability, which defines and establishes the general principles, main objectives and guidelines for the management and control of the Group in terms of sustainable development, with the aim of striking a balance among economic development, social development and environmental protection.

BBVA commits to reporting ESG metrics, as part of the Measuring Stakeholder Capitalism initiative, adopted by 61 member companies of the Davos World Economic Forum and a group of top executives who are part of its International Business Council (IBC).

BBVA, which recently launched its line of business ‘Quantitative Investment Strategies’ (QIS) for institutional investors, has augmented its first QIS index family specialized in sustainability, with the incorporation of two pioneering climate indexes of its own creation: ‘Solactive BBVA Climate Action PAB Europe’ and  ‘Solactive BBVA Climate Action CTB Europe’.

The BBVA Foundation distinguishes Neil Adger, Ian Burton and Karen O’Brien with a with a Frontiers of Knowledge Award in the Climate Change category for the contributions of their studies on social adaptation to climate change. This social perspective transforms a paradigm of research and action that was previously limited to the curbing of greenhouse gas emissions

December 4 is the International Day of Banks. This year we must also celebrate that there are already 200 banks, including BBVA —which is among the founders— that have signed the Principles of Responsible Banking declaration. Together, they form the largest international coalition of financial institutions working together to integrate sustainability at the heart of their businesses and to align this with their commitments to the Paris Agreement on Climate Change and the Sustainable Development Goals.

The Glasgow Climate Change Conference, which was planned for November, will have to wait until 2021 due to the pandemic. The global problems that existed prior to the arrival of COVID-19, which are still affecting the planet and will have an impact in the future, have not disappeared. The climate crisis cannot wait and remains a central topic on the agenda of all main actors - from governments and non-profits to the private sector. The upcoming preparatory meetings in London and Paris are proof that the organization is continuing its roadmap to remind us of just how much the planet has at risk.

Over the course of the last decade, a number of global financial banks – including BBVA- have aligned with the recommendations on non-financial reporting and disclosures issued by different international organizations. Including, the Financial Stability Board and its recommendations through the Climate-Related Financial Disclosures Working Group (TCFD), the UN Environment Programme - Financie Initiative (UNEP FI), or the different national legislations . These suggestions are intended to help companies raise awareness about their environmental commitment by including and disclosing information on climate related risks and opportunities.