BBVA Boosts Green Funding With €29B In Q1 2025

BBVA has sharply accelerated its sustainability push, channeling €29 billion into sustainable business activities in the first quarter of 2025—a 55% year-on-year increase. This spectacular rise mirrors the bank's deepened ESG agenda, now augmented by a bold new ambition: directing €700 billion towards sustainable financing by 2029. This new goal condenses the bank's initial eight-year target into a mere five, and over doubles its earlier commitment of €300 billion, which it had already reached ahead of time by the close of 2024.

The bank's most recent figures reflect its focus on integrating sustainability into its core business model. A whopping 78% of the €29 billion raised in the first quarter went toward climate and natural capital initiatives, reinforcing BBVA's focus on backing environmental resilience and the green economy transition. These resources were invested in a range of initiatives, ranging from water efficiency, sustainable agriculture, and the circular economy—highlighting the bank's diverse approach to environmental sustainability. The remaining 22% went into social causes like infrastructure development, entrepreneurship, and financial inclusion, further diversifying BBVA's ESG footprint.

Javier Rodríguez Soler, Global Head of Sustainability and CIB at BBVA, underlined the financial sector's strategic value of sustainability. "BBVA was one of the earliest companies to seize the potential positive contribution of sustainability to the financial sector," asserted Soler. It's a business opportunity and it's one of our strategic priorities." His declaration reflects BBVA's vision of sustainability not just as a corporate responsibility, but as a driver for long-term, scalable business growth.

Breakdown of contributions by business segments demonstrates how sustainability is being brought to the mainstream in BBVA's operations. The largest contributor was the Corporate & Institutional Banking (CIB) business, driving €15.2 billion in Q1 2025, a 49% year-over-year increase. This consisted of financing renewable energy projects worth €600 million and sustainability-linked reverse factoring that promotes sustainable supply chain management and increases liquidity for firms.

The Companies Unit contributed €10.8 billion, a 58% year-over-year increase. This amount went into upgrading energy efficiency, updating vehicle fleets, and rationalizing water use – areas of utmost importance for environmental performance in the commercial sector. €1 billion of this sum was invested in natural capital and here Mexico took the lead by financing 50% of the agricultural sector. This not only highlights the bank's regional diversification but also its commitment to financing sustainable development in developing markets.

The Retail Business segment, typically thought of as lagging in ESG adoption, posted the greatest rate of growth among the segments with an 85% year-over-year increase. It provided €2.8 billion in financing toward consumer-facing green projects. These were home energy-saving renovations and car loans for hybrids and electric vehicles—two critical levers to bring down household-level carbon emissions.

BBVA's rapid development and new goals are supported by a comprehensive sustainability strategy that involves advisory services, innovation, and a revolution of traditional risk processes. "We want to make sustainability a differential growth driver by financing investments to meet the increasing demand for clean and efficient energy," said Rodríguez Soler. "Advisory services specifically tailored to each market segment and revolutionizing risk processes are instrumental in achieving this differential growth."

The repositioning of the bank demonstrates a strategic shift, where sustainability is not merely a component of corporate social responsibility but is becoming an intrinsic business driver throughout BBVA's international presence. Through aligning financial services with the global shift towards a more sustainable economy, BBVA is not only building climate resilience and social equality but is also tapping into the expanding market for ESG-linked investments. The bank's success and aspirations send a powerful message to the sector: that sustainability, when strategically pursued, can fuel growth, innovation, and long-term value creation.

As BBVA continues on this path, it sets a standard for the financial industry, showing how banks can be at the forefront of speeding up the shift towards a more sustainable and inclusive global economy.