CaixaBank to Mobilise €100bn for Sustainability by 2027

Recognition in the field of sustainable finance has recently showered on CaixaBank. Just this year, the Spanish finance giant has pocketed a whopping five awards, a testament to its commitment towards embedding sustainability in its operations.

Now, as we edge towards the end of the year, CaixaBank makes a significant stride with an announcement that sticks out: a plan to funnel no less than €100bn (US$105bn) into sustainable finance by 2027.

This fresh venture is set to unfold under the umbrella of CaixaBank's 2025-2027 Strategic Plan. This comes after its recent three-year roadmap, which spanned from 2022 to 2024.

The newly earmarked fund represents a bold 56% hike in the bank's financial commitments towards Earth-friendly and socially responsible projects compared to the past period.

A dual-purpose strategy

Revealed on November 27, 2024, CaixaBank's newly refined strategy aims to serve a dual purpose—pushing the wheel towards a more sustainable economic framework while also pumping up the economic and social growth of individuals.

Sitting at the heart of CaixaBank's journey towards net zero, this huge investment is poised to help the bank meet its ambitious 2030 targets and ensure long-term sustainability by 2050.

The bank plans to bolster investments in cutting-edge solutions like renewable energy, clean mobility, and industrial decarbonisation.

On the social front, the investment is expected to touch the lives of about 150,000 individuals, focusing primarily on financial and social inclusion, future planning, senior wellbeing and enhancing support for entrepreneurship and employability.

This commitment grabs additional relevance in wake of the fierce floods recently lashing through parts of Spain. Given these calamities, CaixaBank's focus on community support and resilience acquires a new depth.

Setting reduction targets for specific sectors

In a bid to meet its sustainability objectives, CaixaBank has laid down specific targets for emission reduction across various sectors. The bank is determined to decrease its involvements in the electricity sector by 30%, and by 33% in the automotive industry.

Similar targets are set for iron and steel industries (-10% to -20%), commercial real-estate (-41%), residential sectors (-19%), aviation (-30%) and farming, which will focus more on qualitative objectives.

Further reductions are foreseen in the total final emissions for the oil and gas sectors where it targets a decrease of 23%, the naval sector by 11.9%, and an ambitious -100% in thermal coal, which underscores a clear shift away from fossil fuel reliance.

Social inclusion and ESG credentials

Another interesting aspect of the strategy dwells on how CaixaBank plans to engage its senior clientele. The objective here is engaging 33% of customers aged between 50 and 67 with specific savings products meant to forecast financial needs.

Additionally, the bank aspires to build a holistic ecosystem of services aimed at pushing financial wellness among senior citizens, extending beyond traditional financial products.

The strategy's broad scope effectively blends environmental, social and governance (ESG) considerations, making it a well-rounded approach.

This comprehensive plan not only reflects CaixaBank's strides towards surpassing its earlier sustainability goals but also reasserts its standing as a frontrunner in the European sustainable banking landscape.

As CaixaBank kickstarts this robust plan, and with Spain picking up the pieces post-floods, the bank's robust commitment to sustainable finance and heightened community support is likely to play a pivotal role in the nation's recovery and resilience building efforts.

The forward momentum is clear, and the commitment palpable. In words of Gonzalo Gortázar, CaixaBank's CEO, "In sustainable financing, CaixaBank is the European leader, according to the Refinitiv LSEG ranking, securing first place with 120 transactions valued at US$18.74bn." He adds, "This not only reflects our growth and commitment to finance the transition but also our capability to lead by example in the financial sector."

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