BBVA : makes headway toward its decarbonization targets in key industries and cuts its emissions by 24 percent in the oil and gas sector

New sectors with objectives

BBVA is working to establish decarbonization targets for the other CO2-intensive sectors, such as aluminum, commercial and residential real estate, and agriculture, in accordance with the goals and objectives of the NZBA.

As for the strategy being pursued to overcome the risks associated with climate change, "BBVA is working to measure the impact of various climate scenarios -encompassing both transition and physical risks- on its strategy and business," according to the TCFD report.

These challenges not only carry risks, but they also offer opportunities, which BBVA is well aware of and aims to seize as it looks to position itself amid all the disruption caused by climate change. These opportunities vary by sector and include the electrification of the oil and gas industry, the development of green hydrogen as an alternative energy source, and the refurbishment of buildings and industrial premises to make them more energy efficient and install self-consumption technology, to name but a few.

Low exposure to emission-intensive sectors

As far as the business is concerned, and according to this report "the analysis being carried out and the available results point to a position of resilience, given the relatively low exposure to customers and sectors with higher climate-related risks." Notably, BBVA's exposure to emission-intensive and transition risk-sensitive activities represents roughly 5.9% of the Group's total exposure at December 31, 2023, compared to 6.7% in 2022.

This TCFD report outlines BBVA's progress towards its transition plan, "following the guidelines and recommendations for financial institutions published by the Glasgow Financial Alliance for Net Zero (GFANZ)."