Powering Sustainable Growth: BBVA's Innovative Approach to Corporate Banking

In a world where sustainability and corporate responsibility have become paramount, BBVA, a leading global financial institution, has emerged as a trailblazer in the realm of corporate banking. Javier Rodríguez Soler, the global head of Sustainability and Corporate & Investment Banking (CIB) at BBVA, shares his insights on the bank's remarkable performance and its unwavering commitment to driving sustainable transformation.

Unlocking Sustainable Growth: BBVA's Winning Formula

Embracing Globality and Sustainability

BBVA's corporate banking business has experienced a remarkable year, with annual revenue reaching €4.8 billion ($5.3 billion) in 2023. The first half of 2024 saw an even more impressive performance, with revenue soaring by 23% to €2,872 million. Javier Rodríguez Soler attributes this success to the bank's strategic focus on two key pillars: globality and sustainability.Globality encompasses BBVA's geographical diversification, the opportunities presented by nearshoring, and the growing importance of business with institutional clients. Sustainability, on the other hand, is a strategic priority that permeates all of BBVA's business lines. Combining growth and sustainability is a core tenet of the bank's approach, as Rodríguez Soler firmly believes that it is possible to achieve both simultaneously.In a volatile business environment shaped by global events and the need for a transition to more sustainable production models, sustainability has emerged as a critical element. BBVA has implemented a sector-specific advisory model to proactively address transition opportunities, ensuring that sustainability is woven into the fabric of the organization, across all geographies, bankers, and business products.

Powering Growth through Advisory, Investments, and Innovative Solutions

Rodríguez Soler identifies three key levers that will drive BBVA's growth in the coming year: advisory services, strategic investments, and innovative solutions.The advisory services offered by BBVA encompass two distinct areas. First, the bank has developed sector-specific strategies and plans for corporate clients in emission-intensive industries, guiding them through the transition to low-carbon technologies and supporting their decarbonization efforts. Additionally, BBVA provides advisory on energy efficiency and cost-cutting solutions, leveraging specialized teams and data-driven tools.Secondly, BBVA is working on initiatives to strengthen its long-term competitive position by leveraging digital capabilities, sustainability expertise, and a niche strategy to expand into new markets. The bank's investments in top-tier climate-focused capital funds, totaling over €100 million, have also been instrumental in its sustainable transformation journey, enabling it to support a diverse portfolio of cleantech projects.

Embracing the Power of Data and AI for Sustainable Impact

As the corporate banking landscape evolves, Rodríguez Soler recognizes that data and artificial intelligence (AI) will play a pivotal role. However, he emphasizes the importance of addressing the environmental impact of these technologies, particularly the energy-intensive nature of large language models.BBVA's approach to AI development is guided by the principle of data minimization, where the bank uses only the data that is absolutely necessary to create smaller, more efficient models. This not only reduces energy consumption but also aligns with the bank's commitment to sustainability.Rodríguez Soler acknowledges that the pace of change in the regulatory and political spheres may not always match the urgency felt by BBVA in terms of sustainability and decarbonization. He believes that a new industrial policy, with relevant incentive schemes and streamlined bureaucratic processes, is crucial to creating an enabling environment for the transition to a low-carbon economy.BBVA's unwavering focus on sustainability and its ability to combine growth with decarbonization have positioned the bank as a trailblazer in the corporate banking industry. As the world navigates the challenges of a volatile business landscape, BBVA's innovative approach and commitment to sustainability offer a blueprint for the future of sustainable finance.