CaixaBank avoided emitting more than three million tons of CO2 into the atmosphere thanks to its green bonds

- The bank has published its reports on the impact of its green and social bond issues, in support of the UN Sustainable Development Goals.
- Through its social bonds, CaixaBank has been able to allocate €1.548 billion in loans for families to cover basic needs, such as housing, transport, education, and healthcare.

CaixaBank has presented its annual reports on the environmental and social impact achieved through the issuance of its green and social bonds. Since the publication of the first SDG Bond Issuance Framework in 2019, updated in November 2022, CaixaBank has become one of the leading ESG issuers in Europe, with 14 of its own issuances: 8 green bonds and 6 social bonds, totaling €12.5 billion, £500 million and CHF 300 million in ESG issues active in the market.

Green bonds

The issuance of green bonds falls within CaixaBank’s strategy to combat climate change and contribute to the transition to a carbon-neutral economy. Through its financing activity and the issuance of green bonds, CaixaBank has managed to avoid the emission of the equivalent to more than three million tonnes of CO2 per year, i.e. greenhouse gases (GHG) in terms of CO2. To put it into context, this is equivalent to the volume of emissions released by approximately 737,380 passenger vehicles into the atmosphere over the course of an entire year.

As a contribution to SDG 7 (Affordable and clean energy), CaixaBank’s green bonds have financed 111 renewable energy projects that have generated 13,072 GWh/year, thereby avoiding the emission of more than 2,8 million tonnes of CO 2 into the atmosphere per year.

The report on green bonds also highlights financing aimed at the acquisition, construction or sustainable renovation of 41 office or commercial buildings. These buildings achieved an A or B energy rating, reducing their annual consumption by 32,889 MWh per year, meaning 5,677 tonnes of CO2 less were emitted into the atmosphere per year.

CaixaBank’s green bond portfolio also facilitated the purchase of energy-efficient private homes. 7,817 operations were identified as green housing (not the bank’s entire portfolio of operations) which meant that the financing granted avoided the consumption of 2,819 MWh and  prevented the equivalent to the emission of 344 tonnes of CO2 per year. These projects fall under SDG 9 (Industry, Innovation and Infrastructure).

On SDG 11 (Sustainable cities and communities), through the funding granted to public and freight transport projects, private vehicles, electric vehicle charging points and electric support infrastructure, the equivalent to the emission of 271,600 tonnes of CO2 per year were avoided.

The report also notes that, through the contribution to SDG 6 (clean water and sanitation), the equivalent of 135 million cubic metres of water treatment has been financed.

Social Bonds

To support the issuance of its social bonds, CaixaBank identified €8.04 billion in assets from its financing portfolio as of 31 December 2023, which included 440,783 loans and 392,662 borrowers that met the eligibility criteria.

Since the first social issue in 2019, the €5 billion raised, through the five bonds issued, have been used to finance projects that contribute to advancing seven of the 17 United Nations Sustainable Development Goals (SDGs): SDG1 (End poverty), SDG3 (Health and well-being), SDG4 (Quality education), SDG5 (Gender equality), SDG8 (Decent work and economic growth), SDG10 (Reducing inequalities), and SDG11 (Sustainable cities and communities).

In this last financial year, CaixaBank increased the number of eligible assets. In particular, it increased those contributing to health and well-being, quality education and reducing inequalities (SDGs 3, 4 and 10), with a combined increase of approximately €800 million.

The report on social bonds shows that CaixaBank allocated €1.548 billion to increase access to financial services for disadvantaged populations, including loans through MicroBank. These loans help families to finance basic needs, such as housing, transport, education and healthcare. In the area of health, the bank financed €510.2 million to improve the provision of free or subsidised health care, tripling the number of hospitals financed and benefiting 9.4 million people.

In education, CaixaBank has earmarked €124.6 million to improve educational opportunities, benefiting 24,492 students and 2,968 families. In addition, the bank has financed €1.026 billion to support women entrepreneurs and women-owned SMEs, as well as €4,613.6 billion to promote sustained economic growth and decent employment.

Commitment to Sustainability

CaixaBank has strong historical links to the social impact of its activity, which is why it assumes the responsibility of driving a positive economy aimed at the well-being of people. With this aim in mind, the bank developed a Sustainable Banking Plan for 2022-2024, integrated into the CaixaBank Strategic Plan, which includes its proposal for solving challenges such as inequality, climate change and unemployment.

Sustainability is one of the pillars underpinning the Group’s achievement of its results, and it sets out three ambitions: leading positive social impact and encouraging financial inclusion; driving the transition to sustainability of companies and society; and fostering a responsible culture by being a benchmark in governance.

As part of its objectives, CaixaBank mobilised a total of €67.157 billion in sustainable finance up to June 2024, which means that the bank is six months ahead of the initial target set in 2022 of reaching 64. billion euros by the end of 2024. In addition to providing capital to fund energy transition initiatives, this objective includes social purposes, such as facilitating microloans to students, self-employed workers, microenterprises, families and new companies that generate employment.