Madrid, Feb 24 (Reuters) - BBVA announced on Monday that it is raising its target for sustainable business lending to €700 billion ($732.7 billion) over the next five years.
Last year, the bank initiated a focus on clean technologies and innovation and had previously set a target for the 2018-2025 period.
Javier Rodriguez Soler, BBVA's global head of sustainability and corporate and investment banking, stated, "Business opportunities in the second part of the decade will be driven by solid investments in infrastructure and the maturation of new clean technologies, which will enhance profitability."
Increased public pressure to combat climate change has led countries and companies to commit to reducing emissions. Banks are promising more funding for cleaner energy and to limit support for polluting industries.
There are concerns among environmental activists that banks might backtrack on their sustainability commitments due to changing political dynamics, including the impact of the new U.S. President, Donald Trump.
BBVA has adjusted its target to achieve net-zero emissions in its operations by 2050 due to the slow economic transformation pace.
Additionally, BBVA aims for net-zero emissions by the mid-century mark. While the bank currently finances coal, it plans to cease funding in developed countries by 2030 and globally by 2040.
(Conversion rate: $1 = 0.9554 euros)