BBVA Group’s non-financial information alignment with WEF - IBC and SASB standards
BBVA is committed to disclose essential environmental, social and governance (ESG) factors regarding its business, in a consistent, reliable and standardized manner.
Among the many existing standards, BBVA’s Non-financial Information Report (hereinafter, “NFIR”, included in section “02. Management Report” within this report) for the fiscal year 2020 includes its non-financial information according to the Global Reporting Initiative (“GRI”).
In addition to GRI, BBVA discloses its progress with respect to ESG disclosure according to two of the most advanced standards in the market:
- WEF-IBC Core metrics: BBVA has been one of the first entities in the world to support the Measuring Stakeholder Capitalism initiative of the International Business Council (IBC) of the World Economic Forum (WEF), assuming the commitment to report according to its metrics and disclosures which were published in September, 2020.
- Sustainability Accounting Standards Board (SASB) - Commercial Bank standards: The Sustainability Accounting Standards Board sets standards in order to guide companies in the disclosure of financially relevant information and consistent in terms of sustainability, which are followed by an increasing number of relevant institutional investors at a global level.
This analysis1 is a step forward in the commitment of BBVA to the continuous improvement of transparency. A commitment on which it will continue working in order to meet the demands of investors, regulators, customers and other stakeholders.
1 This analysis is not part of the Consolidated Financial Statements, the Management Report and the Auditor’s Report of BBVA Group.
WEF-IBC Core metrics
| Topic | Metric | Reporting criteria | BBVA Group disclosure |
|---|---|---|---|
| PRINCIPLES OF GOVERNANCE | |||
| Governing purpose | Setting purpose | The British Academy and Colin Mayer, GRI (102-26), Embankment Project for Inclusive Capitalism (World Economic Forum Integrated Corporate Governance - EPIC) and others. | NFIR 2020: Chapters "Strategy and business model" and "Sustainability at BBVA". |
| Quality of governing body | Governing body composition | GRI (102-22), GRI (405-1a), IR 4B. | Annual Corporate Governance Report (hereinafter, ACGR) C.1.1 to C.1.12, C.2.1 and C.2.2. |
| Stakeholders engagement | Material issues impacting stakeholders. | GRI (102-21), GRI (102-43), GRI (102-47). | NFIR 2020: "Materiality” section within the chapter "Strategy and business model". |
| Ethical behavior |
Anti-corruption: 1. Total percentage of governance body members, employees and business partners who have received training on the organization’s anti-corruption policies and procedures, broken down by region. 2. Total number and nature of incidents of corruption confirmed during the current year, but related to previous years; and 3. Total number and nature of incidents of corruption confirmed during the current year, related to this year. |
GRI (205-2), GRI (205-3). |
NFIR 2020: "Compliance system" section within the chapter "Ethical behavior". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
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Protected ethics advice and reporting mechanisms: 1. Seeking advice about ethical and lawful behavior and organizational integrity; 2. Reporting concerns about unethical or unlawful behavior and lack of organizational integrity; 3. Discussion of initiatives and stakeholder engagement to improve the broader operating environment and culture, in order to combat corruption. |
GRI (102-17). | NFIR 2020: "Other conduct standards" section within the chapter "Compliance system". | |
| Risk and opportunity oversight | Integrating risk and opportunity into business process. | EPIC, GRI (102-15), World Economic Forum Integrated Corporate Governance, IR 4D. |
NFIR 2020: "Environmental impacts and risk management" section within the chapter "Sustainability at BBVA" and "Customer security and protection" section within the chapter "Customer comes first". Management Report 2020: Chapter "Risk Management". |
| PLANET | |||
| Climate change | Greenhouse gas (GHG) emissions. | GRI (305:1-3), Task Force on Climate-Related Financial Disclosures (hereinafter, TCFD) recommendations, GHG Protocol. |
NFIR 2020: "Management of direct environmental impacts" within the chapter "Sustainability at BBVA". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| TCFD implementation. |
TCFD Recommendations; CDSB R01, R02, R03, R04 y R06; SASB 110; Science Based Targets initiative. |
NFIR 2020: "Environmental impacts and risk management" section within the chapter "Sustainability at BBVA". BBVA Report on TCFD. |
|
| Nature loss | Land use and ecological sensitivity. | GRI (304-1). | The BBVA offices are in urban settings, which therefore have no impact on protected natural areas or biodiversity. Given the activities of BBVA Group, this indicator is not considered material. |
| Freshwater availability | Water consumption and withdrawal in water-stressed areas. | SASB CG-HP-140a.1, Aqueduct water risk atlas tool developed by World Resources Institute (hereinafter, WRI). | Given the activities of BBVA Group, this indicator is not considered material. |
| PEOPLE | |||
| Dignity and equality | Diversity and inclusion | GRI (405-1b). | NFIR 2020: "Professional development" section within the chapter "The best and most engaged team". |
| Pay equality (%) | GRI (405-2). | NFIR 2020: "Remuneration" section within the chapter "The best and most engaged team". | |
|
Ratio of standard entry level wage by gender compared to local minimum wage. Ratio of the annual total compensation of the best paid person to the median of the annual total compensation of all its employees, except the best paid person. |
GRI (202-1), adapted from the Dodd-Frank Act, US SEC Regulations. | NFIR 2020: "Remuneration" section within the chapter "The best and most engaged team". | |
| Risk for incidents of child, forced or compulsory labour. | GRI (408-1b), GRI (409-1). | BBVA has not identified any operations or suppliers as having significant risk related to forced or child or compulsory labor. NFIR 2020: "Contents index of the GRI standards" Given the activities of BBVA Group, this indicator is not considered material. | |
| Health and wellbeing | Health and safety - rate of fatalities and rate of absenteeism. | GRI: 2018 (403-9 a and b), GRI: 2018 (403-6). |
NFIR 2020: "Health and labor safety" section within the chapter "The best and most engaged team". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| Skills for the future | Training provided - Average hours of training and average expenditure per employee. | GRI (404-1), SASB HC 101-15. | NFIR 2020: "Professional development" section within "The best and most engaged team" chapter. |
| PROSPERITY | |||
| Employment and wealth generation | Absolute number and rate of employment. | Adapted from GRI (401-1 a and b) in order to include more metrics on diversity and inclusion. | NFIR 2020: "Professional development" section within the chapter "The best and most engaged team". |
| Economic contribution | GRI (201-1), GRI (201-4). | NFIR 2020: "Contents index of the GRI Standards". | |
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1. Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company’s investment strategy. 2. Share buybacks plus dividend payments, supported by narrative to describe the company’s strategy for returns of capital to shareholders. |
Aligned with IAS 7 and US GAAP ASC 230. | The information of this metric is included in the Consolidated Financial Statements (e.g. Notes 4, 17, and 18) and in the Management Report of the BBVA Group. | |
| Innovation of better products and services | Total R&D expenses. | US GAAP ASC 730. | NFIR 2020: "Technology and innovation". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| Community and social vitality | Total tax paid The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes, employer-paid payroll taxes, and other taxes that constitute costs to the company, by category of taxes. |
GRI (201-1) and GRI (207-4). | NFIR 2020: "Fiscal transparency" section within the chapter "Contribution to society". |
Note: For WEB - IBC standards the reporting criteria column is included as they have been developed on the basis of other international standards.
SASB – Commercial Banks
| Topic | Metric | BBVA Group disclosure |
|---|---|---|
| Data security | (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of account holders affected. | NFIR 2020: "Customer security and protection" section within the chapter "Customer comes first". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| Description of approach to identifying and addressing data security risks. | NFIR 2020: "Customer security and protection" section within the chapter "Customer comes first". | |
| Financial inclusion and capacity building | (1) Number and (2) amount of loans outstanding qualified to programs designed to promote small business and community development. | NFIR 2020: "Financial inclusion and entrepreneurship" section within the "Sustainability at BBVA" chapter. BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| (1) Number and (2) amount of past due and nonaccrual loans qualified to programs designed to promote small business and community development. | ||
| Number of no-cost retail checking accounts provided to previously unbanked or underbanked customers. | ||
| Number of participants in financial literacy initiatives for unbanked, underbanked, or underserved customers. | NFIR 2020: "Community investment" section within the chapter "Contribution to society". | |
| Incorporation of Environmental, Social, and Governance Factors in credit analysis | Commercial and industrial credit exposure, by industry. | NFIR 2020: "Environmental impacts and risk management" section within the chapter "Sustainability at BBVA" |
| Description of approach to incorporation of environmental, social, and governance (ESG) factors in credit analysis. | ||
| Business Ethics | Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or regulations. | NFIR 2020: "Compliance system" section within the chapter "Ethical behavior". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| Description of whistleblower policies and procedures. | NFIR 2020: "Compliance system" section within the chapter "Ethical behavior". | |
| Systemic Risk Management | Global Systemically Important Bank (G-SIB) score, by category. | Management Report 2020: "Capital base" section within the chapter "Solvency". |
| Description of approach to incorporation of results of mandatory and voluntary stress tests into capital adequacy planning, long-term corporate strategy, and other business activities. | Management Report 2020: "Stress testing at BBVA“ section within the chapter “Solvency”. | |
| Activity metrics | (1) Number and (2) value of checking and savings accounts by segment: (a) personal and (b) small business. | EINF 2020: “Helping our clients transition toward a sustainable future” section within the chapter "Sustainability at BBVA". Management Report 2020: Chapter "Business areas". BBVA will continue working in order to increase its disclosures on this metric in the following financial years. |
| (1) Number and (2) value of loans by segment: (a) personal, (b) small business, and (c) corporate. |