Commitment to sustainability 1

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Driving transformation to 2030

Banco Sabadell views sustainability as a core lever for contributing responsibly to business and social development and for creating long-term value. With this in mind, we promote Sabadell’s Commitment to Sustainability 2030, the framework that guides our actions and initiatives in response to the main global challenges.

 

This commitment is based on theprogress made and the lessons learnt over 2021‑2025.During this period, we integrated ESG principles into our strategy,strengthened our governance arrangements and mobilised solutions to support amore sustainable and inclusive economy. Building on this, we embark on a newphase that furthers our ambition and help us amplify the impact of ouractivity.

 

With a 2030 time horizon, this commitment is materialised through 20 targets, structured around 3 action pillars:

•Be a leading sustainable institution, by reducing our footprint, promoting diversity and strengthening ethical and responsible management.

 

•Support customers and investors with their transition, by offering expert advice and solutions that position sustainability as a competitive advantage.

 

•Work together for a sustainable and cohesive society, by strengthening financial inclusion, talent, education, culture and cybersecurity.

 

With a 2030 outlook, we renew our commitment to create lasting value for people, businesses and society, while maintaining our vocation to be approachable, responsible and focused on economic and social progress.

Decarbonisation targets

Since 2021, the Institution has followed the guidelines of the voluntary Sabadell’s Commitment to Sustainability, framework, led by the United Nations Environment Programme Finance Initiative (UNEP FI), with the aim of achieving net‑zero emissions by 2050 across its investment and lending portfolios. Banco Sabadell has established targets and support measures to reduce its carbon footprint and, to that end, it has prioritised setting interim targets for the most carbon-intensive industries.

 

In December 2022, the Bank published its first decarbonisation targets for four emissions-intensive sectors (Power, Oil & Gas, Cement and Coal) and continues to build upon its strategy to fight climate change, setting new decarbonisation targets in December 2023 for a further three industries, namely Iron & Steel, Automotive and Aviation.

 

In 2024, the Institution completed its decarbonisation strategy by setting decarbonisation targets for four new sectors: Residential real estate mortgages, Commercial real estate, Aluminium and Maritime transport (shipping sector).

 

The activities covered by the aforesaid targets centre on the stage of each sector’s production chain where transition is most likely to reduce the overall volume of greenhouse gas emissions.

 

To reinforce its commitment to the decarbonisation of the economy and to the targets of the Paris Agreement and the, Banco Sabadell has a decarbonisation strategy that permeates all of its activities, through its strategic action framework, business development and risk management, utilising cross-cutting and sectoral levers to that end.

 
 
Sector Value chain Emissions scope Scenario Metric Base year Base year metric 2030 Target % reduction
Power Electricity generation 1 and 2 IEA Net Zero 2050 Physical intensity Kg CO2e/MWh 2020 61 45-85 -
Oil and gas Upstream & Downstream (incl. refining) 1, 2 and 3 IEA Net Zero 2050 Absolute emissions ktCO2e 2020 6,300 4,851 -23% vs 2020
Cement Manufacture 1 and 2 IEA Net Zero 2050 Physical intensity Kg CO2e/tonne cement 2020 660 510 -23% vs 2020
Coal Mining activity Not applicable IEA Net Zero 2050 Exposure Million euros 2020 2.9 ~0 -100% vs 2020
Iron & Steel Production 1 and 2 IEA Net Zero 2050 Physical intensity Kg CO2e/tonne steel 2022 1,593 1,172 -26% vs 2022
Automotive Manufacture / OEMs(1) 3 IEA Net Zero 2050 Physical intensity gCO2e/vkm(2) 2022 211 124 -41% vs 2022
Aviation Airlines 1 and 2 IEA Net Zero 2050(3) Physical intensity gCO2e/rpk(4) 2022 94 65 -31% vs 2022
Residential real estate mortages Owner 1 and 2 CRREM 1.5ºC (5) Physical intensity KgCO2e/ m2 2023 20.9 16.8 -20% vs 2023
Commercial real estate Owner 1 and 2 CRREM 1.5ºC (6) Physical intensity KgCO2e/ m2 2023 25.7 12.6 -51% vs 2023
Aluminium Production 1 and 2 IAI 1.5ºC (7) Physical intensity KgCO2e/ tonne aluminium 2023 645 549 -15% vs 2023
Maritime transport Operator 1 and 3 IMO (8) Alignment Delta (AD%)(9) Delta gCO2e/tnm (10) 2023 Delta + 25% Delta 0% -
Farming       Analysisi in progress: focus on customer engangement        
 
 

Notes about methodology applied:

Base year and 2030 targets data are based on the large corporations segment.
To determine sectors’ commitments based on the reduction of physical intensity, the average emissions intensity has been calculated based on emissions and output attributed according to the amount of financing granted. Commitments to reduce absolute emissions are measured in terms of the amount of finance used. Commitments to reduce exposure are measured in terms of the amount of finance granted.

 

The commitments have been determined based on the methodology of the Science-Based Targets initiative (SBTi) o for all industries except power, residential real estate, and maritime transport ( Alignment Delta).

 

(1) OEM, Original Equipment Manufacturer. Scope 3 emissions are those linked to the use of sold vehicles (category 11 - Use of sold products).

(2) vkm: vehicle kilometre.

(3) A correction factor has been added to the scenario to remove the distortion caused by Covid-19 in the forecasts data for the 2019-2030 period, due to the lower aircraft occupancy rate during the pandemic.

(4) rpk: revenue passenger kilometre.

(5) CRREM: Carbon Real Risk Estate Monitor for Spain and Portugal, specific to the residential real estate sector for the EU.

(6) CRREM: Carbon Real Risk Estate Monitor for Spain and Portugal, adapted to proportions per type of asset in stock of non-residential properties.

(7) Decarbonisation pathway determined by the International Aluminium Institute (IAI) for recycled aluminium.

(8) International Maritime Organisation (IMO).

(9) Annual Efficiency Ratio (AER), which measures the efficiency of a vessel’s carbon emissions associated with its transport work over a one-year period, representing the grams of CO2 emitted per tonne-nautical mile (gCO2/tnm) and per tonne of cargo transported (gCO2t).
Alignment Delta (AD%), a metric that measures the extent to which the carbon emissions intensity of a vessel or portfolio of vessels is aligned with the underlying decarbonisation trajectory for each type of asset that meets the target of the International Maritime Organisation.

(10) tnm: tonne-nautical mile.

 
  Decarbonisation Strategy
  Decarbonisation targets 2025