IbercajaNZBA TARGETS
Since April 2021, Ibercaja has been one of the founding members of the Net Zero Banking Alliance (NZBA), an initiative that encompasses banking entities in the financial sector and is promoted by the United Nations that aims to achieve the decarbonization of credit portfolios and investment by 2050, thus advancing in meeting the objectives of the Paris Agreement.
2030 DECARBONISATION TARGETS
2030 DECARBONISATION TARGETS
In compliance with the NZBA commitments, Ibercaja defined in 2022 a series of intermediate decarbonization targets for part of its credit portfolio for 2030, with the objective of achieving neutrality in greenhouse gas emissions by 2050. These decarbonization targets of the financed portfolio were established for three sectors, all of them relevant to the vision of transition towards a low-carbon economy and action against climate change: power generation, iron and steel manufacturers, and the residential real estate portfolio.
Furthermore, in 2024, Ibercaja published two new targets for the rest of the material sectors for the credit portfolio, Commercial Real Estate and Thermal Coal Mining.
Furthermore, in 2024, Ibercaja published two new targets for the rest of the material sectors for the credit portfolio, Commercial Real Estate and Thermal Coal Mining.
(1) No decarbonization targets are set for the aluminum, cement, aviation, oil and gas, automotive, and shipping sectors as they are not considered material in Ibercaja's credit portfolio.
(2) For the agricultural sector, the Entity is working on expanding its knowledge of its clients and obtaining data to set a target in this sector.
(3) The base year is 2021 for the sectors of Power Generation, Iron and Steel manufacturers, and Residential Real Estate; 2022 for Commercial Real Estate; and 2023 for Coal.
(4) Data for 2023 is not definitive, pending updated emission intensity data for clients in the portfolio
(5) To calculate the emission intensity (kgCO2e/m²/year) of the Real Estate sector, each type of building and its estimated or actual energy consumption based on Energy Performance Certificates (EPC) is considered, as well as the average emission factors of the energy source corresponding to each type of building.
(6) Clients whose revenue from thermal coal mining for the exploitation, development, or export of coal for energy purposes represents more than 25% of their total income (in accordance with the current Ibercaja’s Exclusions Policy). Exceptions are made for those clients who have a diversification or decarbonization strategy in line with the Paris Agreement and can demonstrate progress in this regard.
The defined targets represent a 10% decrease in emissions from the Entity's credit portfolio towards the power generation sector, an intensive industry, whose decarbonization will also act as a lever for other productive sectors.
In the iron and steel sector, Ibercaja has proposed reducing the emissions intensity by 10%. Currently, the sector is working on the development of new less emissions-intensive iron and steel smelting and treatment technologies; Ibercaja will accompany its clients in this transition, supporting them in their decarbonization and transformation process.
For the Residential Real Estate porfolio, Ibercaja is committed to reduce its associated emissions by 16% by 2030, fundamentally supporting the financing of sustainable homes and promoting the improvement of efficiency in homes that have the lowest energy certifications.
In the Commercial Real Estate sector, Ibercaja has proposed to reduce emissions intensity by 28% in 2030, following the projections bases in the current Spanish National Energy and Climate Plan (PNIEC).
For the thermal coal mining sector, Ibercaja is committed to do a phase out in the sector by 2030, although it is true that it is estimated that this objective will be met sooner, since the loans exposition is very low.
It is important to highlight that Ibercaja has been neutral in its own emissions since 2020: 100% of the Entity's electricity consumption comes from renewable sources and it invests in compensating direct emissions (scope 1) through ZeroCO2 projects. Since 2016, the year in which the Bank began calculating its carbon footprint, it has reduced its emissions by 90%.
In the iron and steel sector, Ibercaja has proposed reducing the emissions intensity by 10%. Currently, the sector is working on the development of new less emissions-intensive iron and steel smelting and treatment technologies; Ibercaja will accompany its clients in this transition, supporting them in their decarbonization and transformation process.
For the Residential Real Estate porfolio, Ibercaja is committed to reduce its associated emissions by 16% by 2030, fundamentally supporting the financing of sustainable homes and promoting the improvement of efficiency in homes that have the lowest energy certifications.
In the Commercial Real Estate sector, Ibercaja has proposed to reduce emissions intensity by 28% in 2030, following the projections bases in the current Spanish National Energy and Climate Plan (PNIEC).
For the thermal coal mining sector, Ibercaja is committed to do a phase out in the sector by 2030, although it is true that it is estimated that this objective will be met sooner, since the loans exposition is very low.
It is important to highlight that Ibercaja has been neutral in its own emissions since 2020: 100% of the Entity's electricity consumption comes from renewable sources and it invests in compensating direct emissions (scope 1) through ZeroCO2 projects. Since 2016, the year in which the Bank began calculating its carbon footprint, it has reduced its emissions by 90%.
TRANSITION PLAN
According with the commitments acquired with the NZBA and the expectations of key stakeholders, Ibercaja has defined the Transition Plan, which contains the main elements to consider in understanding how it will achieve the intermediate decarbonization targets in each of the three industrial sectors for which decarbonization targets have been defined. This Transition Plan has been developed primarily following the guidelines and recommendations for Financial Institutions published by the Glasgow Financial Alliance for Net Zero (GFANZ).
Through this Plan, Ibercaja provides a more detailed insight to its stakeholders on how it will approach the transition to decarbonization and the path it is following to achieve.
Throughout the 2024, the deployment of the Plan has begun, The main lines of action were:
Through this Plan, Ibercaja provides a more detailed insight to its stakeholders on how it will approach the transition to decarbonization and the path it is following to achieve.
Throughout the 2024, the deployment of the Plan has begun, The main lines of action were:
- Commercial actions: launching of a pilot project to promote energy efficiency reform in the mortgage portfolio. The Bank has also made progress in exploring models of one-to-one conversations on decarbonisation with its corporate customers.
- Partnerships: deployment of a pilot to offer decarbonisation-related services such as sustainability reports and CO2 footprint calculations.
- Advice on public subsidies: throughout the year, the bank has provided a service to its customers to support them in processing public subsidies such as Next Generation funds
- Internal training related to decarbonisation: consisting of general training available to all Bank staff and specific training on NZBA sectors aimed at business managers and risk analysts.
- Evolution and adaptation of the range of ESG products: the Bank has reviewed its ESG product offering, changing the purpose of one of these products to adapt it to the requirements of the taxonomy. It also launched a sustainable mortgage product aimed at companies and expanded its savings-investment range.
- Customer profile analysis: the Bank has progressed in technological developments to include both the home energy efficiency certificate for mortgage loans and the customer decarbonisation form developed within the framework of the Transition Plan. Additionally, the Bank monitors the increase in actual data related to its customer decarbonisation parameters.
- Events: the Bank has organised various events on decarbonisation in collaboration with chambers of commerce and business organisations. Several of these events were held in the Xplora space, located at Ibercaja's headquarters in Zaragoza, designed as a meeting point to better understand the environment and explore new management solutions.