The banking sector plays a key role in financing the transition to a more sustainable economy. How is the Spanish banking sector supporting businesses and individuals in this process?

In Europe and Spain, banks provide about 70% of the financing needed by the economy: they play a major role, and this conclusion applies equally to the financing of the transition.

The Spanish banking sector is committed to a green, competitive, and inclusive transition, as evidenced by the international commitments they have made, the strategies of individual institutions, and the growing importance of these issues at all organizational levels—from boards of directors to sales, risk management, compliance, regulatory, legal, and public affairs departments, among others.

According to a report prepared by EY for the Ministry for Ecological Transition and the Demographic Challenge, Spanish banks issued loans for ESG initiatives (primarily environmental) totaling more than 90,000 million euros in 2024, and we expect figures to approach 100,000 million euros in 2025.

In addition to providing financing, these institutions support their clients throughout the transition and decarbonization process. For example, by building long-term relationships based on trust; providing specialized advice in various areas, such as obtaining public subsidies—sometimes with the help of external partners; and maintaining a deep understanding of cutting-edge technologies and their economic viability, thanks to highly specialized and internationalized investment banking departments.

Many companies, especially small and medium-sized enterprises (SMEs), need financing to adapt their business models to new environmental requirements. What measures do you consider necessary to ensure that this transition is also manageable for smaller companies?

A large company is well aware of the importance of ESG issues. For example, sustainable products are becoming increasingly popular among consumers; water conservation reduces costs; a well-defined ESG strategy facilitates access to certain institutional investors; and these issues are important from a reputational standpoint. Added to this are regulatory requirements from Brussels, such as those for reporting under the CSRD or the CS3D.

SMEs that are part of the value chain of large companies also take ESG issues into account, as they must supply goods and services that are aligned with more sustainable processes.

Some small and medium-sized enterprises (SMEs) have the capacity to establish ESG departments that instill the importance of these issues within the organization, while others—due to their line of business and clientele—must take them into account in their decision-making.

But for many small and medium-sized enterprises (SMEs)—especially the smallest ones—ESG issues take a back seat. They often lack specialized staff, have limited resources, or fail to recognize the economic benefits associated with sustainability, such as cost savings, revenue generation, or access to sustainable financial products, which typically offer favorable terms.

Generally speaking, SMEs are increasingly aware of the importance of sustainability for their businesses and for society, but they often lack the knowledge or resources to implement it. This conclusion is closely aligned with data from the SME Sustainability Observatory, a study conducted by FINRESP—the Spanish Center for Responsible and Sustainable Finance—in collaboration with the CEOE.

Sustainability is no longer limited to environmental impact; it also encompasses social and governance issues. How is this perspective on ESG criteria being applied to the operations of banks?

Sustainability is now an integral part of financial institutions’ strategy and day-to-day management. From an environmental perspective, the banking sector supports the decarbonization of the economy and manages risks related to climate change.

In the social sphere, initiatives related to financial inclusion, financial education, and digital training stand out. And in terms of governance, internal mechanisms for control, oversight, and transparency have been strengthened.

Sustainability is no longer a specific area but has become a cross-cutting element of banking and long-term value creation.

The banking sector has significant capacity to channel resources toward specific projects and activities. To what extent can the banking sector, through its financing and investment decisions, help accelerate the sustainable transformation of the business community?

The banking sector is undoubtedly a key player in the transition, but it does not decide on investment projects. That is up to the companies. To ensure that these projects are viable and bankable, the authorities must create a transparent, stable, and predictable regulatory environment that guarantees legal certainty and allows for investment planning, as well as establish appropriate mechanisms and incentives to improve their profitability.

To give an example, if 75–80% of Spanish homes have an energy rating of “E” or lower, it is neither realistic nor desirable for the mortgages granted by banks to be earmarked for homes with an Energy Efficiency Certificate of “A” or “B.” If we want a more sustainable housing stock, we need public incentives, renovation grants, and regulatory changes that facilitate renovations and their financing. ICO guarantees would also contribute to this goal.

Spanish banks offer a wide range of sustainable products, which often provide benefits to customers. However, the decision to invest rests with businesses and individuals. When projects are viable and have an appropriate framework in place, banks are there to finance them and support their customers throughout the process.

AEB is committed to a transition toward a more sustainable economy that is “fair and responsible.” What conditions do you consider necessary for this transformation to be compatible with economic growth and, at the same time, have a positive impact on society as a whole?

A sustainable transition must combine environmental protection, economic growth, and social inclusion. To achieve this, stable policies, public-private coordination, and regulations that facilitate investment are necessary.

It is also essential to ensure that no group is left behind. That is why financial inclusion, financial education, and digital training are part of the sector’s sustainability agenda.

Sustainability should be viewed as an opportunity to drive innovation, improve competitiveness, and promote well-being for society as a whole.

Financial inclusion is part of the sector’s social commitment. How is the banking industry working to ensure that the digitization of financial services does not become a barrier for older adults, those living in rural areas, or those who have difficulty navigating the digital environment?

Financial inclusion is a priority for the sector. Through the Financial Inclusion Observatory—an initiative of the AEB, CECA, and Unacc associations—measures aimed at older adults, residents of rural areas, and groups facing greater barriers to access are continuously monitored.

Thanks to these efforts, access to basic financial services now reaches 99.3% of the population. In addition, in-person service hours have been extended, personalized service has been strengthened, and more than 90% of ATMs have been adapted.

In addition, there are numerous financial education and digital training programs that we carry out both within the banking sector and through the AEB, designed to ensure that all citizens can benefit from the advantages of digitalization.

In an industry so closely tied to trust and transparency, how is the banking sector’s communication regarding its social and environmental commitments evolving? What do you consider essential for that communication to be credible?

Communication about sustainability is much more rigorous and demanding today. Citizens and investors demand information that is verifiable, comparable, and based on results.

To be credible, it must be based on objective data, clear methodologies, and a commitment to transparency. It is equally important to maintain consistency between the commitments announced and the actions taken. Trust is built by rigorously communicating both progress and remaining challenges.

Sustainability is increasingly linked to competitiveness and the transformation of the economic fabric. How can the banking sector help ensure that the sustainable transition also serves as a growth opportunity for Spanish companies?

A sustainable transition can become a major driver of competitiveness for businesses. Investments in efficiency, innovation, and modernization lead to increased productivity and better equip companies to meet future challenges.

The banking sector contributes by providing financing and supporting businesses and households through their transformation processes. Furthermore, its ability to channel savings into productive projects makes it a key player in mobilizing the investments required for this transition.

We are convinced that sustainability and competitiveness must go hand in hand. Only then will the transition generate long-term growth, jobs, and prosperity.