Well publicised pushbacks against parts of the ESG agenda have led to some institutions relegating it to an issue of compliance, delivering only the minimum sustainability standards needed to comply with regulatory requirements. Some banks, on the other hand, genuinely incorporate sustainability into their DNA and push to deliver a more sustainable economy and drive sustainable growth for society.
CaixaBank’s commitment to mobilise another €100 billion in sustainable finance through 2027 (in addition to the €81 billion of the past three years) is the latest example of such.
A commitment that not only represents a 56% increase in investment and financing for sustainable projects in comparison to the previous three-year period, but also sets new and achievable goals for the future.
Increased investment
The bank’s 2025-2027 Strategic Plan contains new intermediate targets for 2030 for those sectors in its credit and investment portfolio that have the highest greenhouse gas emissions, and it maintains the bank’s public targets for 2030 on reduction of financed emissions to continue advancing in its commitment to achieving net-zero emissions by 2050.
The bank will reduce its exposure in the electricity sector (-30%), the automotive industry (-33%), iron and steel (between -10% and -20%), commercial and residential real estate (-41% and -19%, respectively), aviation (-30%) and farming (qualitative objective).
It will also cut its total final emissions in the oil and gas sectors (-23%), in the naval sector in line with the percentage set within the Alignment Delta decarbonisation framework (-11.9%) and in thermal coal (-100%).
CaixaBank will also continue to work towards achieving a carbon-neutral investment and financing portfolio by 2050, and to provide consultancy and financing for businesses to help them transition to more sustainable business models.
More than going green
Sustainability, however, is not just about green financing and climate change – no matter how important they are. A truly sustainable economy requires solutions for financial inclusion, employability and financial health.
This is aligned with CaixaBank’s DNA – a bank founded and run on the premise that one of its critical functions is to generate broader social and economic development, not just short-term profits for shareholders.
Under this motto, the bank’s new sustainability plan has a strong focus on social and financial inclusion. This starts with the commitment to maintain a widespread presence in rural areas through mobile branches and ATMs, without leaving those towns in which CaixaBank is the only bank with physical presence.
It also includes multiple, innovative initiatives to increase physical and online accessibility. And the bank will continue to work towards the development of specific products and services for vulnerable people such as social accounts, protected assets accounts (for the economic protection of disabled people), micro-loans for families and inclusive insurance products.
The bank will also work to support entrepreneurship and to boost employability, focusing on improving education for employment, with a priority focus on young people, and on supporting entrepreneurs and self-employed workers through micro-financing, among other elements.
In addition, within the framework of the plan, CaixaBank will promote long-term financial planning through tailored solutions focused on savings and planning for the future, with the aim of reaching 33% of customers aged between 50 and 67 years with savings and forecast products.
The bank will also favour the well-being of senior citizens through an ecosystem of services that includes not only financial and insurance solutions, but also for vital accompaniment, with the aim of being the preferred bank for these customers.
A track record of achievement
It is easy to put a plan on paper, but harder to deliver on it. Going by its previous strategic plan, CaixaBank is well placed to do so.
The bank’s 2022-2024 Sustainable Banking Plan set targets for green, social and sustainability-related financing as well as sustainability intermediation (in lending and capital markets).
Its aims were to contribute to tackling challenges such as inequality, climate change and boosting the real economy. Its actions focused on fostering financial inclusion, driving businesses’ sustainable transition and promoting a responsible culture by being a benchmark in governance.
From 2022 until the end of September 2024, CaixaBank had mobilised €74.65 billion in sustainable finance, far exceeding its original target of €64 billion; it had defined sustainable financing objectives for nine economic sectors – the Net Zero Banking Alliance (NZBA) perimeter – and it had attained category A in a composite sustainability indicator, calculated on the basis of the results achieved in the ESG ratings of S&P Global-DJSI, Sustainalytics, MSCI and ISS ESG.
In 2023, it also topped the Refinitiv LSEG rankings for sustainable financing in Europe, completing 120 transactions worth US$18.74 billion this year alone.
Facing up to the climate challenge
Sustainability in banking is a combination of sustainable finance targets, decarbonisation goals and strong, transparent methodologies, under a sustainability layer that permeates the whole business.
There is a long way to go but, with its new plan, CaixaBank will continue to implement best governance practices via an ethical and responsible management, the specialisation and training of its teams, and transparency, to continue being the benchmark of sustainability in European banking.
These efforts underscore that CaixaBank’s sustainability initiatives are far from a mere regulatory box-ticking exercise. Instead, they reflect a deep-rooted commitment to embedding ESG principles into the core of its operations, championing a holistic approach to sustainability that prioritises balanced growth for both society and the environment.