The banking sector can employ multiple strategies with companies to achieve a reasonable balance in the triad of profitability, risk, and sustainability. However, among these, “the banking sector has rigorously decided to integrate climate risks into its risk management processes, decision-making, and strategic agenda, so that as this knowledge is absorbed, its support for companies in the transition towards a more planet-friendly economy will become increasingly effective.”
This was stated by our Director of Strategy and Sustainability, Juan Carlos Delrieu, at the sustainable finance conference organized by the Ministry for Ecological Transition and Demographic Challenge, the Ministry of Economic Affairs and Digital Transformation, the Bank of Spain, and WWF Spain.
In his speech on the opportunities offered by developing a climate engagement strategy for the banking sector with companies in the context of economic recovery, Delrieu recalled that 95% of Spanish banks committed to aligning with the objectives set in the Paris Agreement, which facilitates dialogue with companies and objectively and transparently enhances collective market power to incentivize their clients to set climate commitments.
However, he clarified that banks cannot provide support and advice to mitigate climate risks if there is no counterpart from companies in the form of quality data disclosure and non-financial information.
This support from banks to clients must translate into a credible transition path through a series of intermediate objectives compatible with the decarbonization of our economy by 2050, he maintained. In his opinion, “the involvement of banks with companies on climate matters is an interaction that, if carried out effectively, can be considered a measure of good governance and value creation for all parties.”
