Banco Sabadell positions itself among the banks with the lowest CO2 emissions, aligning with Sustainable Development Goals that cover both environmental and social dimensions. Its Sabadell Sustainable Commitment acts as an ESG framework designed to create opportunities, offer ESG solutions, reduce environmental impact, and support both companies and individuals.
Struggles
A primary challenge for Banco Sabadell is discovering new technologies and financing models that help small and medium-sized enterprises decarbonize. Many of these firms may not fully understand their current emissions profiles and often require guidance to cut emissions effectively. What measures are being taken to reduce environmental impact and accelerate a low-carbon transition?
Banco Sabadell has identified four core axes in its sustainability strategy:
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Advancing a sustainable asset base by adopting reference actions such as using renewable electricity, entering into energy purchase agreements, and investing in afforestation projects. Strengthening social alliances through ESG is also a priority.
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Guiding customers through decarbonization with expert managers, setting precise targets, offering consultancy, and delivering sustainable finance solutions.
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Providing savings and investment opportunities by distributing a broad range of bonds and sustainable funds, and investing in renewable energy projects and new technologies like biomethane and hydrogen. This involves building alliances and fostering entrepreneurship.
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Contributing to a sustainable and cohesive society by supporting financial education, inclusion initiatives, volunteer programs, and social management of residences.
Engage with customers and promote sustainable practices
To involve customers in adopting sustainable practices, Banco Sabadell trains its staff on industry-specific sustainability solutions. It hosts seminars, conferences, and webinars through its own platforms such as Hub Empresa, while forming partnerships to deliver sustainable solutions. Sustainability training is provided to all employees, with managers and analysts receiving sector-focused instruction. As stated by Elena Carrera Crespo, the bank’s CEO and Director of Sustainability and Efficiency, customer guidance is essential on the journey to a sustainable future. The bank now assesses investments and financing using both financial and ESG criteria and operates under a framework with more than 60 targets, many of which are already being exceeded.
Supplier and partner selection criteria
The bank sets sustainability targets for its suppliers and evaluates ESG factors across environmental impact, human rights, and related social issues. Given the scale of the bank’s investments, this approach is essential in selecting suppliers and business partners. ESG ratings are monitored to ensure collaboration only with entities that align with Banco Sabadell’s objectives. A data-driven platform manages the rating system.
Recent projects and initiatives
Banco Sabadell has led and participated in various sustainability-driven initiatives. Examples include the creation of investment products in renewable energy, biomethane, and energy production. The bank has also developed entrepreneurship programs and, in collaboration with its Foundation, announced awards to recognize Spanish scientists advancing sustainable resource use and the replenishment of natural capital.
Long-term vision
The institution aims to reach carbon neutrality across its operations and the funded portfolio by 2050, with ongoing decarbonization targets disclosed. Its long-term focus centers on supporting SMEs in their decarbonization efforts. The sustainability strategy emphasizes investing and financing sustainable and renewable solutions, signaling a strong commitment to decarbonization and sustainable development. By embedding sustainable practices and promoting cleaner technologies, the bank seeks to lead in the transition to a low-carbon economy.
Royal commitment
In 2022, Banco Sabadell planted 23,580 trees in collaboration with CO2 Revolution to restore 20.6 hectares of forest affected by fires in Galicia, offsetting 5,542 tons of CO2.
Banks play a pivotal role in promoting sustainability and decarbonization globally. Their functions include financing sustainable projects such as renewable energy, energy efficiency, and clean transportation; integrating ESG criteria into investment decisions; developing green bonds, sustainable loans, and socially responsible funds; advising clients through the transition; maintaining transparency about sustainability performance; collaborating with governments and regulators; and adopting internal sustainable practices like using renewable energy and reducing emissions.
[Citation: Banco Sabadell sustainability initiatives and framework]