Banco Sabadell actively supports economic and social transformation by committing to sustainable development and climate action. Aligning with the Sustainable Development Goals, the bank organized its efforts around four strategic pillars: strengthening its sustainable asset base, guiding customers through the transition to a sustainable economy, mobilizing more than 65 billion euros in sustainable finance, and delivering investment opportunities that foster sustainability and social cohesion from 2021 to 2025.
Accompanying the client in his ecological transition
In helping clients transition to a greener economy, the bank offers a full range of products and services focused on energy efficiency, renewable energy, and mobility. To ensure the right support, Banco Sabadell uses its Internal Compliance Guide, developed in line with the European Union green taxonomy. It also evaluates environmental impact and incorporates physical and transition risks into credit decisions in its risk assessment processes.
The next phase emphasizes advisory services to help companies meet current rules in the most accessible way. A key part of client conversations with relationship managers is the ESG survey (Environmental, Social, and Governance), which assesses the client’s activities and their readiness for change. ESG findings guide tailored solutions that fit a company’s transition needs.
If needed, the bank facilitates support through European recovery funds, determining the most suitable subsidy, aiding in processing, and estimating or co-financing the grant amount. A team specialized in this area helps access funds such as the New Generation EU programs. Training is also provided through the Company Headquarters. A third step in the client journey is delivering sustainable finance through transactions tied to sustainability objectives.
In 2021, Banco Sabadell launched more than 11 billion euros in financial products and services and in sustainable finance solutions, including financing that links to sustainability, capital markets, and social finance.
sustainable products
Working toward a sustainable economy, Banco Sabadell has developed a selection of green products including a green mortgage and sustainable leases (eco real estate leases and self-consumption leases), financing for photovoltaic plants, and eco-friendly vehicle leasing for those with eco or zero-energy labels, all aimed at both businesses and individuals.
Other offerings include Eco Reform Expansion Loans, Eco Fixed Amortization Loans, proprietary community loans, and Eco Agricultural Credit, products aligned with government incentives and opportunities.
The bank also assists clients with placements in green and sustainable bonds exceeding 3.5 billion euros and participates in public initiatives. Renewable energy projects, such as wind farms and photovoltaic plants, are supported through its subsidiary Sinia Renovables, including equity participation in firms that install and operate solar panels for mid-size companies.
Evidence of the bank’s conviction is seen in sustainability-focused lending: 45.7% of loans to large corporates relate to sustainability, with 30 structured finance projects completed and 97% aligned with Equator Principles for renewable energy projects.
There are many examples of Banco Sabadell’s commitment to sustainability and climate action, including opportunities for sustainable investments via its own framework for publishing bonds tied to the SDGs and the issue of three green bonds totaling 1,120 million euros over the past two years, with 500 million issued in 2021.
international alliances
Banco Sabadell has long collaborated with other sectors and participates in major international initiatives that advance climate action and social development. It is a signatory to the United Nations Global Compact and its ten principles across human rights, labor, environment, and anti-corruption. Since 2011, the Equator Principles have guided environmental and social criteria in large-scale financing and corporate lending.
The bank also adheres to the United Nations Principles for Responsible Banking and supports measures such as the Collective Commitment to Climate Action, the Climate Financial Disclosure Task Force, and the Carbon Disclosure Project, underscoring its commitment to global climate issues.
In October of the previous year, Banco Sabadell joined the Net-Zero Banking Alliance, an international coalition led by UNEP FI, committing to neutral net greenhouse gas emissions across loan and investment portfolios by 2050 as a bold objective within the Paris Agreement framework.
Reducing carbon footprint and own consumption
Banco Sabadell has reduced its carbon footprint by half since 2019. This milestone accompanies other measures in the climate effort. By this plan, 99.9% of the bank’s energy consumption comes from renewable sources. Additionally, more than 3,600 tonnes of CO2 emissions from Scope 1 and 2, along with business travel, were offset in line with a forestry project initiative approved by the Ministry of Ecological Transition and set to take effect in 2022.
The institution also aims to cut resource use further, including reductions in paper, plastic, and water, achieving 93.7% less plastic use and 42.2% reductions overall since 2019.
How is this strategy governed? It is overseen by the Sustainability Department, reporting to the CEO and supported by the Sustainability Committee and the Strategy and Sustainability Commission.