“Sustainable development” is a relatively new concept and was first defined in 1987, in the Brundtland Report. A report that recognised that social development was taking place at a very high cost to the environment. In it, the concept of sustainability was defined as being something that “meets the needs of the present without compromising the ability of future generations to meet their own needs”.

The involvement of the financial sector, specifically of the banking sector, in the development of a more sustainable society that ensures a viable future is essential. 70% of project funding in Europe, comes from the banking sector. For that reason, this sector has a huge role to play in meeting the challenge of sustainability.

The rise in global energy consumption in recent years has been extremely high and unstoppable. The latest forecasts for world population growth show that it would be unsustainable for the planet to continue generating energy at this rate.

With the Paris Agreement, signed by 175 countries and negotiated in 2015 during the XXI UN Climate Change Conference (COP 21), a set of global objectives were established to combat the threat of climate change, and to support sustainable development and efforts to eradicate poverty. The objectives to be followed by those countries who are signatories to the agreement in relation to reducing emissions are based around these pillars:

• Limit global warming to 1.5°C. This would reduce the risks and effects of climate change.
• Promote low greenhouse gas emission development without compromising food production.

BBVA has taken action and in its Commitment 2025, adopts a climate change and sustainable development strategy.  BBVA’s ambition, through the mobilisation of 100,000 million euros between 2018 and 2025, is to:

Green finance:

• Through green loans to companies and institutions with the aim of providing funding for the fight against climate change, and for conservation and energy efficiency.
• Brokerage of green bond issues.
• Green investments in funds and equities

Financial inclusion and entrepreneurship:

• Helping those segments of the population that have the most difficulty accessing credit, to do so.

Infrastructures and agribusiness (or businesses related to the agricultural sector):

• Projects and loans for companies focused on education, health and affordable housing.