CaixaBank S A : creates a new Climate Risk Unit

Kio Towers

• The new unit will be in charge of coordinating the deployment of climate and environmental risk management and analysis pursuant to the growing regulatory framework, the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the guidelines of the European Commission on non-financial reporting.

• At present, the Sustainability Directorate has five core units, which include Sustainability Strategy and Monitoring, led by Severiano Solana; Sustainability Risks, led by Xavier Fortuny; Sustainable Business and Product Coordination, led by Álvaro Colino; ESG Communication, led by Javier Tomé; and Climate Risk, led by Stefan Rodia García-Petit.

• CaixaBank has decided to create this new unit in order to foster its commitment to decarbonising its own activity and that of its customers through a sustainable business and management model that includes climate risk in its operations analysis.

After the merger of CaixaBank and Bankia, Spain's leading financial institution decided to commit to sustainability as a core element to its development. This commitment is further evidenced through the creation of the new Climate Risk Unit as part of the Sustainability Directorate, led by Eugenio Solla. This structural change strengthens the bank's commitment to sustainability, one of the pillars of the new 2022-2024 Strategic Plan, in order to promote sustainable economic and social development.

The Climate Risk Unit will be in charge of coordinating the deployment of climate and environmental risk management and analysis pursuant to the growing regulatory framework, the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the guidelines of the European Commission on non-financial reporting.

Led by Stefan Rodia García-Petit, the new unit stands at the same level as four existing units, which include Sustainability Strategy and Monitoring, led by Severiano Solana; Sustainability Risks, led by Xavier Fortuny; Sustainable Business and Product Coordination, led by Álvaro Colino; and ESG Communication, led by Javier Tomé.

The Sustainability Directorate currently features 30 professionals working to foster cross-division sustainability throughout all areas of the bank.

Decarbonisation as a core element of the new unit

Sustainability is transforming companies' business cultures and the business models themselves. In fact, it is a lever for transforming the economy through social balance and caring for the environment and the climate.

This is why at CaixaBank, sustainability has taken on a leading role and is being deployed throughout all the bank's activities, products and services.

One of the primary elements to bring the entity closer to United Nations goals is its decarbonisation work. This is a gradual and key process to reduce CO2 emissions until they reach net zero in 2050.

To meet the global challenge posed by climate change, decarbonisation means a great many changes in daily consumption habits. The main stakeholders involved include businesses of all sizes, which are faced with the challenge of transforming their operations to adapt their activity through developing carbon-neutral strategies. In order to achieve this goal, several international commitments have been created and adhered to, such as the United Nations' Race to Zero Emissions, as well as business partnerships, including the Net-Zero Banking Alliance - with CaixaBank being a founding member - in order to expedite this boost.

CaixaBank is committed to assuming its responsibility to providing support to its customers in developing complex environmental and climate strategies which require major injections of capital. It does so through its leading role in channeling capital and economic resources in Spain, giving the financial institution a key role in redirecting financing and investment for sustainable purposes.

This advice also lays down restrictions on the financing of carbon-intensive sectors and compliance with specific conditions, including having specific and achievable decarbonisation targets in line with the Paris Agreement.

However, as an exception, activities in sectors in certain countries in which the energy transition could be particularly complex or have a material adverse social impact can be exceptionally funded.

CaixaBank has thus decided to create a new Climate Risk Unit in order to foster its commitment to decarbonising its own activity and that of its customers through a sustainable business and management model that includes climate risk in its analysis of customers and operations. Besides addressing this global challenge, it represents an extraordinary global opportunity for business and economic growth. According to the International Renewable Energy Agency, the transition to renewable energy could involve upwards of $130 trillion of investment to reach net-zero targets by 2050.

CaixaBank, a European performance benchmark in sustainability

CaixaBank's sustainability initiatives seek to drive the energy transition of businesses and society, including, among others, the development of solutions for individuals that focus on sustainable mobility and housing, while also promoting investments with ESG (environment, social, governance) criteria.

Within the framework of the new 2022-2024 Strategic Plan, CaixaBank aims to mobilise €64 billion in sustainable financing by promoting various initiatives focused on the product range, ESG advisory services, awareness-raising actions and training.

According to the Refinitiv ranking, CaixaBank has been the leading bank in sustainable financing in Europe during the first half of 2022 as CaixaBank achieved first place on the EMEA Top Tier Green & ESG-Linked Loans ranking.