Spain's state-owned lender Bankia has set up a new business unit aimed at promoting the mobilisation of resources and the financing of investments under a common action framework committed to environmental, social and governance principles (ESG).
The Business Directorate and Sustainable Financing division will be led by Carlos Barrientos, who has been rating director at Bankia since February 2014. Barrientos joined Bankia in 1996 where, after holding different roles at the bank's Risks department, he joined its Business Banking arm in 2006.
The launch of the new unit allows Bankia to get ahead of the social and economic trends of the next years while considering new product and services proposals attractive to its customers, the Spanish bank said in a note.
Climate change's direct consequences are obvious and the society is increasingly aware of the need to take action against it. But the most critical thing to do is to incorporate ESG criteria to decision-making going forward."
Carlos Barrientos added: "Climate change's direct consequences are obvious and the society is increasingly aware of the need to take action against it. But the most critical thing to do is to incorporate ESG criteria to decision-making going forward."
According to Bankia, the launch is in line with some of the bank's previous initiatives and product launches, all developed with the aim to tackle climate change and promote sustainable and responsible finances.
The "Sustainable Credit" is one of the bank's financing vehicles promoting sustainable investments and consumption. This credit offers clients regular financing to acquire vehicles, electrical household appliances, and home renovations, under ESG criteria.
The bank's clients also have access to the "Loan Sustainable Business", a lending product aimed at funding sustainable projects, like the acquisition of ecological vehicles or the renovation of commercial properties, seeking to improve their eco-efficiency.
With regards to sustainable investment products, Bankia recently launched "Bankia Sustainable Future Fund", which invests in a portfolio of companies previously selected for generating some positive impact in line with the United Nations Sustainable Development Goals.