BBVA Raises Sustainable Finance Target to €700 Billion

BBVA, a leading global financial services group, has announced a significant increase in its sustainable finance target, raising it to €700 billion by 2030. This ambitious goal, up from the previous target of €300 billion, reflects the bank's commitment to supporting the transition to a low-carbon economy and promoting sustainable development.



The new target, announced by BBVA Chair Carlos Torres Vila at the Institute for International Finance (IIF) annual meeting in Washington, DC, is a testament to the bank's dedication to sustainability as a business opportunity. With an estimated $275 trillion in investment required by 2025, the sustainable finance market presents a significant growth opportunity for financial institutions like BBVA.



BBVA's commitment to sustainable finance is not new. In February 2018, the bank set its initial target of mobilizing €100 billion in sustainable financing by 2025. In July 2021, the target was doubled to €200 billion, and in October 2022, it was tripled to €300 billion. The bank has consistently exceeded its targets, reaching €304 billion by December 2024, one year ahead of schedule.

The bank's approach to sustainable finance balances innovation and financial prudence. By setting ambitious yet achievable targets, BBVA demonstrates its commitment to supporting the transition to a low-carbon economy while maintaining financial stability. The bank's involvement in innovative funds focused on climate action, strategic partnerships with global investment companies like KKR, and the creation of sustainability hubs in key markets like Houston further illustrate its dedication to promoting sustainable development.

BBVA's increased sustainable finance target aligns with its risk management strategy, focusing on mitigating climate-related risks and supporting the transition to a low-carbon economy. The bank's comprehensive climate-related risk assessment framework, sector-specific targets, and collaboration with international alliances like the Net-Zero Banking Alliance (NZBA) demonstrate its commitment to managing potential risks associated with its ambitious goal.

As market trends and opportunities continue to evolve, BBVA remains committed to adapting to changing conditions. The bank's expansion of its intermediate emission-reduction targets for 2030 to include new sectors, such as the real estate industry in Spain and the global aluminum sector, reflects its dedication to addressing the challenges posed by climate change and promoting sustainable development.

In conclusion, BBVA's increased sustainable finance target to €700 billion by 2030 underscores the bank's commitment to supporting the transition to a low-carbon economy and promoting sustainable development. By balancing innovation and financial prudence, BBVA demonstrates its dedication to managing potential risks and adapting to evolving market conditions. As a leading global financial services group, BBVA continues to play a crucial role in driving the sustainable finance agenda.