The definition of these objectives for 2030 represents further progress in the 2021-2024 Responsible and Sustainable Banking Action Plan and in its commitment to continue supporting its customers in the sustainable transition. ABANCA also responds to the commitment at the Net Zero Banking Alliance (NZBA) of UNEP FI, which have the objective of achieving the decarbonisation of credit and investment portfolios by 2050 to meet the goals of the Paris Agreement.
ABANCA establishes new objectives and commits to reducing emissions by 2030 in three key sectors, such as: the fossil fuel, automotive and aluminum sectors, to move towards net zero emissions in its credit portfolio in 2050. This commitment is added to the one published in 2022, where emissions reduction targets were established for the steel, aviation, cement sectors and stop financing carbon by 2030.
ABANCA commits that between 2022 and 2030 it will reduce the carbon emissions intensity of its credit portfolio by 30% in fossil fuel; 25% in the automotive sector; and 20% in aluminum production.
The entity’s highest governing body, the Board of Directors, which monitors progress, has approved the decarbonisation path. In 2024, the bank intends to establish new alignment targets for other sectors that are intensive in greenhouse gas emissions..
» ABANCA is adopting a gradual approach to the publication of these targets, which allows the company to adapt its targets to the changes taking place in the regulatory framework and to the information published by the main emitters. The decarbonization path will be revised as more companies publish their carbon footprint data and the methodologies used as a reference will be refined.
» ABANCA has participated in a sectoral project, coordinated by AEB, CECA, UNACC, in which other Spanish entities have participated with the aim of establishing a common methodology and tool for calculating CO2 emissions and reduction targets.
» The reduction targets follow emissions intensity metrics per unit of production, with a starting point in 2021 and a target by 2030 for all seven sectors (out of the sectors identified by the NZBA as most intensive). These metrics follow the Sectoral Decarbonisation Approach methodology, which takes into account certain elements of PACTA (Paris Agreement Capital Transition Assessment).
» Taking into consideration the EBA's request for ESG templates for Pillar III, and with respect to the 2022 publication, the NACE criteria that configure the different sectors have been aligned in accordance with template 3 of the Pillar III report. This redefinition has meant a slight variation in the intensity in the base year in the steel sector from 0.832 to 0.790 tCO2/t-steel.
» The 1.5ºC scenarios have been taken as a reference, specifically the net zero emissions scenario of the International Energy Agency and the calculation methodology developed by the Partnership for Carbon Accounting Financials (PCAF). This initiative aims to establish an international methodology to measure and disclose greenhouse gas emissions financed by banks and investors.
» This disclosure does not include the fixed income and variable income portfolio.