Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Risk Management
• Human Resources

Social Achievements

• Launched several initiatives to improve employee well-being and development, including training programs and a new executive management structure.
• Increased workforce diversity (specific metrics not provided).

Governance Achievements

• Implemented a robust corporate governance system aligned with international standards.
• Maintained high ratings from major rating agencies.

Climate Goals & Targets

Environmental Challenges

• Narrowing of margins due to low interest rates.
• Impact of euro appreciation on earnings in Latin American businesses.
• High oil prices and uncertainty in the global economy.

Mitigation Strategies

• Improved efficiency ratio.
• Active price management.
• Strong risk management practices.
• Focus on growth in high-growth markets and businesses.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Financial literacy
• Financial inclusion
• Responsible banking
• Community involvement

Environmental Achievements

• 20% reduction in CO2 emissions (per employee)
• 10% reduction in paper consumption (per employee)
• 7% reduction in water consumption (per employee)
• 2% reduction in energy consumption (per employee)
• 20% increase in the number of employees working in ISO 14001 certified buildings
• Gold LEED certification for the new corporate headquarters

Social Achievements

• BBVA Microfinance Foundation granted microcredits to nearly a million people in Latin America, a 53% increase from the previous year. Over 60% of the beneficiaries are women, and 43% are people on an income of less than 10 dollars per day.
• Launched the Momentum Project, a new initiative for social entrepreneurs in Spain, helping them to grow through training, mentoring and access to funding sources.
• Reached 1.3 million beneficiaries through financial literacy programs in Spain, Latin America and the United States.
• Created a net total of 3,669 jobs for the whole Group, of which 58.2% have been filled by under 30 year olds.

Governance Achievements

• The Group’s Management Committee also took on the role of the Corporate Responsibility and Reputation (CRR) Committee, raising these issues to the bank’s highest executive body.
• Adopted the Code of Good Tax Practices in Spain.

Climate Goals & Targets

Environmental Challenges

• Economic crisis and job losses
• Sovereign debt crisis in Europe
• High risk premiums and liquidity problems
• Concerns over defaults on financial obligations
• Debate among stakeholders regarding the bank’s position in relation to companies and transactions related to controversial arms.

Mitigation Strategies

• Designed a range of financial solutions to help customers alleviate economic problems
• Established a regulation on defense sector financing, forbidding participation in transactions related to cluster bombs and banning any financing or investment for companies that manufacture cluster bombs.
• Reviewed and updated the defense material policy to broaden its scope, make it clearer and simpler and ensure compliance with requirements.
• Integrated ESG variables into risk management to mitigate non-financial risks.

Supply Chain Management

Responsible Procurement

• Global Responsible Procurement Policy in development
• Supplier approval process

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy financing

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) version 3 2006, AA1000

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Millennium Development Goals

Microfinancing, education, and BBVA Foundation activities.

Awards & Recognition

• Community Service Leadership Award (BBVA Compass)
• beyondBanking awards (Adelante con tu futuro)
• Best Finance House North America for Renewable Energy (BBVA)
• Deal of the Year (BBVA)
• Bloomberg New Energy Finance Award (BBVA)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• Carbon neutral in Scope 1 and 2 and travel emissions since 2020
• More than 2,500 employees trained in sustainability-related aspects in 2020
• 100% of the energy consumed in Spain and Portugal is of renewable origin
• In 2019, reductions of 8% in CO2 emissions, 5% in electricity use, 23% in water use and 19% in paper use (all per person)

Social Achievements

• Mobilized EUR 40,082 billion in sustainable activities (as of the first half of 2020)
• Launched OneView, a digital tool that allows clients to calculate their carbon footprint
• Launched #BBVAsinplástico project to eliminate most single-use plastics in corporate headquarters

Governance Achievements

• Board of Directors approved the Group’s Corporate Social Responsibility policy in 2008 and Group’s Sustainability Policy in 2020
• Sustainability is one of the six strategic priorities
• Incorporation of an internal CO2 emissions price with the aim of becoming carbon neutral from 2020

Climate Goals & Targets

Environmental Challenges

• Transition risks (legal and regulatory changes, market shifts, technological changes)
• Physical risks (extreme weather events, long-term climate changes)
• Challenges in measuring the impact of climate change

Mitigation Strategies

• Integrating climate change into risk planning and decision-making
• Developing adaptive capacity to respond to climate change
• Aligning loan portfolio with scenarios compatible with the Paris Agreement
• Incorporating sustainability factors into credit risk management processes

Supply Chain Management

Responsible Procurement

• #BBVAsinplástico project

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Sea level rise

Transition Risks

• Increase in the cost of CO2 emissions
• Changes in regulation
• Technological changes
• Market changes

Opportunities

• Renewable energy
• Energy efficiency services
• Sustainable transportation
• Circular economy

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001:2015, ISO 50001:2018, LEED, Energy Star

Sustainable Products & Innovation

• Green bonds
• Sustainable loans
• Loans for electric cars
• Loans targeting energy efficiency

Awards & Recognition

• Best bank in Spain for sustainable finance by Capital Finance International
• LATAM’s best bank in sustainable finance by Euromoney

Environmental Metrics

ESG Focus Areas

• Climate Change
• Inclusive Growth

Environmental Achievements

• Neutral in own CO2 emissions (Scope 1, 2, and part of Scope 3) in main geographies.
• 92% renewable energy use in own operations in 2022.
• Reduced Scope 1 and 2 CO2 emissions by 81% (2015-2022).

Social Achievements

• €237 million contributed to social initiatives (2021-2022), reaching 62 million people.
• 33.5% women in management positions in 2022 (target of 35% by 2024).
• Launched various financial education initiatives.

Governance Achievements

• Strengthened Board knowledge and experience in sustainability.
• Executive compensation linked to ESG indicators since 2021.
• Established a Sustainability Alignment Steering Group (SASG).

Climate Goals & Targets

Environmental Challenges

• Transition risks (regulatory changes, technological shifts, market changes, reputational risks)
• Physical risks (extreme weather events, long-term climate changes)
• Data limitations in assessing climate risks.

Mitigation Strategies

• Developed internal taxonomy of transition risk and Transition Risk Indicator (TRI).
• Integrated climate change into Risk Appetite Framework (RAF) and ICAAP.
• Developed sector-specific plans for high-emission sectors.
• Engaged with customers to support their decarbonization efforts.
• Investing in new technologies related to decarbonization.

Supply Chain Management

Responsible Procurement

• Environmental and Social Framework

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Long-term climate changes

Transition Risks

• Regulatory changes
• Technological shifts
• Market changes
• Reputational risks

Opportunities

• Renewable energy
• Energy efficiency
• Sustainable transportation
• Green hydrogen
• Carbon capture and storage

Reporting Standards

Frameworks Used: TCFD, GRI, WEF-IBC, SASB

Certifications: ISO 14001

Third-party Assurance: Ernst & Young, S.L.

Sustainable Products & Innovation

• Sustainable bonds
• Green loans
• Sustainable mortgages
• Loans for electric vehicles
• Water Footprint Loan

Awards & Recognition

• Highest score among European banks in the Dow Jones Sustainability Index (DJSI) 2022.

Environmental Metrics

ESG Focus Areas

• Climate change
• Inclusive growth
• Natural Capital

Environmental Achievements

• Reduced Scope 1 and 2 CO2 emissions by 15% (market-based method) compared to 2022.
• Reached 96% renewable energy in electricity consumption.
• Channeled €70 billion in sustainable business in 2023 (double the amount from two years prior and over five times the amount from five years prior).

Social Achievements

• Added more than 11 million new customers globally.
• Increased Net Promoter Score (NPS) by 11 percentage points over the past five years.
• Gallup employee engagement survey score of 4.43, exceeding the 2024 objective and improving on the 2022 result.

Governance Achievements

• Received the best score in the category of European banks in the Dow Jones Sustainability Index for the fourth consecutive year.
• Implemented a new global organizational model for talent attraction.
• Increased percentage of women in management positions to 34.7%.

Climate Goals & Targets

Environmental Challenges

• Transition risks associated with the shift to a low-carbon economy (legal and regulatory changes, market shifts, technological changes).
• Physical risks from climate change (extreme weather events, long-term weather changes).
• Data limitations in assessing climate risks and opportunities.

Mitigation Strategies

• Developed sector alignment plans with 2030 decarbonization targets for several high-emission sectors.
• Implemented the Transition Risk Indicator (TRi) to assess customer transition plans.
• Integrated climate change risks into risk planning and management frameworks.
• Invested in climate funds focused on decarbonization technologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability module implemented in supplier evaluation process.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Technological changes

Opportunities

• Renewable energy
• Energy efficiency
• Sustainable mobility
• Clean technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, WEF-IBC

Certifications: ISO 14001, ISO 50001, LEED, Edge, WWF Green Office, Zero Waste

Third-party Assurance: Ernst & Young Auditores, S.L.

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

BBVA's initiatives contribute to these goals through community investment, sustainable finance, employee engagement, and policy advocacy.

Sustainable Products & Innovation

• Sustainable bonds
• Loans for energy efficiency and sustainable mobility
• Microfinance for vulnerable entrepreneurs

Awards & Recognition

• Best score in Dow Jones Sustainability Index (European banks) for four consecutive years.