Post by account_disabled on Mar 6, 2024 0:57:32 GMT -5
Banking faces one of the most important challenges in history in the face of current social and environmental challenges, for this reason all businesses, companies and society must adapt to it.
“Banks are essential, because we finance productive activities and we can help and accompany our clients in this transition with our financing,” emphasized Carlos Torres, president of BBVA, at the Davos Forum.
Sustainable credits; BBVA has granted 30 billion euros
BBVA reported two years ago a public commitment to mobilize 100 billion euros in sustainable financing. And, in the first two years, after having made that commitment in 2018 and 2019, it has managed to mobilize 30 billion euros.
In Davos, this year, apart from economic issues and the prospects for 2020, there is a lot of talk about the new era in which we live due to technology, data, artificial intelligence, quantum computing and other technologies that help us in our daily lives.
Carlos Torres, president of BBVA.
“But the fundamental issue is the need to Chile Mobile Number List integrate the perspectives of customers, employees, shareholders and society as a whole; balancing the economic point of view with the environmental and social point of view in everything we do as companies. And that is very aligned with the way we work at BBVA, always guided by our purpose, which is to make the opportunities of this new era available to everyone ,” he concluded.
Sustainable credits
In recent years, sustainable credits have grown; However, they are currently facing an attempt at self-regulation.
It is expected that an evolution will soon occur that improves its operation and transparency, just as has happened with green loans, green or social bonds.
According to El País , the Guidelines for granting loans linked to sustainability, presented in 2019 by the Loan Market Association (LMA), together with the Syndicated and Commercial Loans Association (LSTA) the Loan Market Association Asia and the Pacific (APLMA), outline four basic components of voluntary adoption that correspond to basic elements:
1. The relationship with the borrower's Sustainability Strategy : that is, not with the use of funds as in other types of sustainable financing instruments, but with its overall strategy regarding sustainable development.
2. Setting objectives and linking the cost of the loan : within the previously mentioned strategy. A method of measuring the sustainability of the entity or part of its activity that must be improved must be identified and on which a link can be established, whose compliance affects improvements in the price of the loan.
3. Reporting : the third component requires that the borrower periodically report, at least to the lender, on progress towards the established sustainability objectives.
4. The review : given that one of the main characteristics of sustainable financial instruments is their transparency, the borrower must indicate in the agreement how it will offer guarantees that the data is true, either through the disclosure of information or through an independent verifier.
Until today, the market has evolved; The sustainable debt segment has greater growth. Bloomberg says that in the coming years this trend is expected to continue.
For its part, El País states that in Spain, companies as diverse as Iberdrola, Acciona, Mapfre, Colonial, among others; have received loans of this type, being an area where Spanish banks should increase their activity if they do not want to be harmed by the growing activity of their international competitors.
“Banks are essential, because we finance productive activities and we can help and accompany our clients in this transition with our financing,” emphasized Carlos Torres, president of BBVA, at the Davos Forum.
Sustainable credits; BBVA has granted 30 billion euros
BBVA reported two years ago a public commitment to mobilize 100 billion euros in sustainable financing. And, in the first two years, after having made that commitment in 2018 and 2019, it has managed to mobilize 30 billion euros.
In Davos, this year, apart from economic issues and the prospects for 2020, there is a lot of talk about the new era in which we live due to technology, data, artificial intelligence, quantum computing and other technologies that help us in our daily lives.
Carlos Torres, president of BBVA.
“But the fundamental issue is the need to Chile Mobile Number List integrate the perspectives of customers, employees, shareholders and society as a whole; balancing the economic point of view with the environmental and social point of view in everything we do as companies. And that is very aligned with the way we work at BBVA, always guided by our purpose, which is to make the opportunities of this new era available to everyone ,” he concluded.
Sustainable credits
In recent years, sustainable credits have grown; However, they are currently facing an attempt at self-regulation.
It is expected that an evolution will soon occur that improves its operation and transparency, just as has happened with green loans, green or social bonds.
According to El País , the Guidelines for granting loans linked to sustainability, presented in 2019 by the Loan Market Association (LMA), together with the Syndicated and Commercial Loans Association (LSTA) the Loan Market Association Asia and the Pacific (APLMA), outline four basic components of voluntary adoption that correspond to basic elements:
1. The relationship with the borrower's Sustainability Strategy : that is, not with the use of funds as in other types of sustainable financing instruments, but with its overall strategy regarding sustainable development.
2. Setting objectives and linking the cost of the loan : within the previously mentioned strategy. A method of measuring the sustainability of the entity or part of its activity that must be improved must be identified and on which a link can be established, whose compliance affects improvements in the price of the loan.
3. Reporting : the third component requires that the borrower periodically report, at least to the lender, on progress towards the established sustainability objectives.
4. The review : given that one of the main characteristics of sustainable financial instruments is their transparency, the borrower must indicate in the agreement how it will offer guarantees that the data is true, either through the disclosure of information or through an independent verifier.
Until today, the market has evolved; The sustainable debt segment has greater growth. Bloomberg says that in the coming years this trend is expected to continue.
For its part, El País states that in Spain, companies as diverse as Iberdrola, Acciona, Mapfre, Colonial, among others; have received loans of this type, being an area where Spanish banks should increase their activity if they do not want to be harmed by the growing activity of their international competitors.