5. Other information

5.1 Alternative Performance Measures (APMs)

BBVA presents its results in accordance with the International Financial Reporting Standards (EU-IFRS). However, it also considers that some Alternative Performance Measures (hereinafter APMs) provide useful additional financial information that should be taken into account when evaluating performance. These APMs are also used when making financial, operational and planning decisions within the Entity. The Group firmly believes that they give a true and fair view of its financial information. These APMs are generally used in the financial sector as indicators for monitoring the assets, liabilities and economic and financial situation of entities.

BBVA Group's APMs are given below. They are presented in accordance with the European Securities and Markets Authority (ESMA) guidelines, published on October 5, 2015 (ESMA/2015/1415en) as well as the statement published by the ESMA on May 20, 2020 (ESMA 32-63-972), about implications of the COVID-19 outbreak on the half-yearly financial reports. The first guideline mentioned before are aimed at promoting the usefulness and transparency of APMs included in prospectuses or regulated information in order to protect investors in the European Union. In accordance with the indications given in the aforementioned guideline, BBVA Group's APMs:

  • Include clear and readable definitions of the APMs.
  • Disclose the reconciliations to the most directly reconcilable line item, subtotal or total presented in the financial statements of the corresponding period, separately identifying and explaining the material reconciling items.
  • Are standard measures generally used in the financial industry, so their use provides comparability in the analysis of performance between issuer.
  • Do not have greater preponderance than measures directly stemming from financial statements.
  • Are accompanied by comparatives for previous periods.
  • Are consistent over time.

Constant exchange rates

When comparing two dates or periods in this management report, the impact of changes in the exchange rates against the euro of the currencies of the countries in which BBVA operates is sometimes excluded, assuming that exchange rates remain constant. This is done for the amounts in the income statement by using the average exchange rate against the euro1 in the most recent period for each currency of the geographical areas in which the Group operates, and applying it to both periods; for amounts in the balance sheet and activity, the closing exchange rates in the most recent period are used.

1 With the exception of those countries whose economies have been considered hyperinflationary, for which the closing exchange rate of the most recent period will be used.

Reconciliation of the Financial Statements of the BBVA Group

Below is the reconciliation between the income statements of the Consolidated Financial Statements and the consolidated management income statement, for the years 2022, 2021 and 2020.

In 2022, the main difference between the two accounts is in the treatment of the impact of the purchase from Merlin of 100% of the shares of Tree, which in turn owns 662 offices in Spain. For management purposes, this impact is included in a single line, net of taxes, of the income statement called "Discontinued operations and Other", compared to the treatment in the Consolidated Financial Statements, which record the gross impact and its tax effect under the corresponding headings that are applicable to them.

In 2021, the main difference between them is the treatment of the cost related to the restructuring process carried out by the Group in 2021 which, for management purposes, are included in a single line, net of taxes, of the income statement called "Discontinued operations and Other", compared to the treatment in the consolidated Financial Statements, which record the gross impacts and their tax effect in the corresponding headings.

In 2020, the main difference between the two of them derives from the capital gains from the materialization of the agreement with Allianz in that year which, for management purposes, are included in a single line, net of taxes, of the income statement called "Discontinued operations and Other", compared to the treatment in the consolidated Financial Statements, which record the gross impacts and their tax effect in the corresponding headings that are applicable to them.

In addition, in both 2021 and 2020, there is a difference in the positioning of the results generated in 2021 and 2020 by BBVA USA and the rest of the companies sold to PNC on June 1, 2021. In the Consolidated Financial Statements, these results are included in the line "Profit (loss) after tax from discontinued operations" and are taken into account both for the calculation of the "Profit (loss) for the period" and for the profit (loss) "Attributable to the owners of the parent" whereas, for management purposes, they are not included in the "Profit (loss) for the period", as they are included below it, in the line "Discontinued operations and others", together with the aforementioned net restructuring costs for the year 2021 and the net capital gains from the agreement with Allianz for the year 2020, as can be seen in the reconciliation table for the years 2021 and 2020.

CONCILIATION OF THE BBVA GROUP'S INCOME STATEMENTS (MILLIONS OF EUROS)

CONSOLIDATED INCOME STATEMENT ADJUSTMENTS MANAGEMENT INCOME STATEMENT
2022 2022
NET INTEREST INCOME 19,153 — 19,153 Net interest income
Dividend income 123 (*)
Share of profit or loss of entities accounted for using the equity method 21 (*)
Fee and commission income 8,261 8,261 Fees and commissions income
Fee and commission expense (2,907) (2,907) Fees and commissions expenses
5,353 — 5,353 Net fees and commissions
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 64
Gains (losses) on financial assets and liabilities held for trading, net 562
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net (67)
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 150
Gains (losses) from hedge accounting, net (45)
Exchange differences, net 1,275
1,938 — 1,938 Net trading income
Other operating income 528
Other operating expense (3,438)
Income from insurance and reinsurance contracts 3,103
Expense from insurance and reinsurance contracts (1,892)
(1,555) — (1,555) Other operating income and expenses
GROSS INCOME 24,890 — 24,890 Gross income
Administration costs (9,432) (10,760) Operating expenses (**)
Personnel expense (5,612) — (5,612) Personnel expenses
Other administrative expense (3,820) — (3,820) Other administrative expenses
Depreciation and amortization (1,328) — (1,328) Depreciation
14,130 — 14,130 Operating income
Provisions or reversal of provisions (291) — (291) Provisions or reversal of provisions
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (3,379) — (3,379) Impairment on financial assets not measured at fair value through profit or loss
NET OPERATING INCOME 10,460 — 10,460  
Impairment or reversal of impairment of investments in joint ventures and associates 42
Impairment or reversal of impairment on non-financial assets (27)
Gains (losses) on derecognition of non - financial assets and subsidiaries, net (11)
Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (108)
(104) 134 30 Other gains (losses)
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 10,356 134 10,490 Profit (loss) before tax
Tax expense or income related to profit or loss from continuing operations (3,529) 67 (3,462) Income tax
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 6,827 201 7,028 Profit (loss) for the period
Profit (loss) after tax from discontinued operations — —
PROFIT (LOSS) FOR THE PERIOD 6,827 201 7,028 Profit (loss) for the period
ATTRIBUTABLE TO MINORITY INTEREST (NON-CONTROLLING INTERESTS) (407) — (407) Non-controlling interests
ATTRIBUTABLE TO OWNERS OF THE PARENT 6,420 201 6,621 Net attributable profit (loss) excluding non-recurring impacts
(201) (201) Discontinued operations and Others
ATTRIBUTABLE TO OWNERS OF THE PARENT 6,420 — 6,420 Net attributable profit (loss)

(*) Included within the Other operating income and expenses of the Management Income Statements.

(**) Depreciations included.

CONCILIATION OF THE BBVA GROUP'S INCOME STATEMENTS (MILLIONS OF EUROS)

CONSOLIDATED INCOME STATEMENT ADJUSTMENTS MANAGEMENT INCOME STATEMENT
2021 2021
NET INTEREST INCOME 14,686 — 14,686 Net interest income
Dividend income 176 (*)
Share of profit or loss of entities accounted for using the equity method 1 (*)
Fee and commission income 6,997 6,997 Fees and commissions income
Fee and commission expense (2,232) (2,232) Fees and commissions expenses
4,765 — 4,765 Net fees and commissions
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 134
Gains (losses) on financial assets and liabilities held for trading, net 341
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 432
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 335
Gains (losses) from hedge accounting, net (214)
Exchange differences, net 883
1,910 — 1,910 Net trading income
Other operating income 661
Other operating expense (2,041)
Income from insurance and reinsurance contracts 2,593
Expense from insurance and reinsurance contracts (1,685)
(295) — (295) Other operating income and expenses
GROSS INCOME 21,066 — 21,066 Gross income
Administration costs (8,296) (9,530) Operating expenses (**)
Personnel expense (5,046) — (5,046) Personnel expenses
Other administrative expense (3,249) — (3,249) Other administrative expenses
Depreciation and amortization (1,234) — (1,234) Depreciation
11,536 — 11,536 Operating income
Provisions or reversal of provisions (1,018) 754 (264) Provisions or reversal of provisions
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (3,034) — (3,034) Impairment on financial assets not measured at fair value through profit or loss
NET OPERATING INCOME 7,484 754 8,238  
Impairment or reversal of impairment of investments in joint ventures and associates —
Impairment or reversal of impairment on non-financial assets (221)
Gains (losses) on derecognition of non - financial assets and subsidiaries, net 24
Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (40)
(237) 240 2 Other gains (losses)
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 7,247 994 8,240 Profit (loss) before tax
Tax expense or income related to profit or loss from continuing operations (1,909) (298) (2,207) Income tax
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 5,338 696 6,034 Profit (loss) for the period
Profit (loss) after tax from discontinued operations 280 (280)
PROFIT (LOSS) FOR THE PERIOD 5,618 416 6,034 Profit (loss) for the period
ATTRIBUTABLE TO MINORITY INTEREST (NON-CONTROLLING INTERESTS) (965) — (965) Non-controlling interests
ATTRIBUTABLE TO OWNERS OF THE PARENT 4,653 416 5,069 Net attributable profit (loss) excluding non-recurring impacts
(416) (416) Discontinued operations and Others
ATTRIBUTABLE TO OWNERS OF THE PARENT 4,653 — 4,653 Net attributable profit (loss)

(*) Included within the Other operating income and expenses of the Management Income Statements.

(**) Depreciations included.

CONCILIATION OF THE BBVA GROUP'S INCOME STATEMENTS (MILLIONS OF EUROS)

CONSOLIDATED INCOME STATEMENT ADJUSTMENTS MANAGEMENT INCOME STATEMENT
2020 2020
NET INTEREST INCOME 14,592 — 14,592 Net interest income
Dividend income 137 (*)
Share of profit or loss of entities accounted for using the equity method (39) (*)
Fee and commission income 5,980 5,980 Fees and commissions income
Fee and commission expense (1,857) (1,857) Fees and commissions expenses
4,123 — 4,123 Net fees and commissions
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 139
Gains (losses) on financial assets and liabilities held for trading, net 777
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 208
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 56
Gains (losses) from hedge accounting, net 7
Exchange differences, net 359
1,546 — 1,546 Net trading income
Other operating income 492
Other operating expense (1,662)
Income from insurance and reinsurance contracts 2,497
Expense from insurance and reinsurance contracts (1,520)
(95) — (95) Other operating income and expenses
GROSS INCOME 20,166 — 20,166 Gross income
Administration costs (7,799) (9,088) Operating expenses (**)
Personnel expense (4,695) — (4,695) Personnel expenses
Other administrative expense (3,105) — (3,105) Other administrative expenses
Depreciation and amortization (1,288) — (1,288) Depreciation
11,079 — 11,079 Operating income
Provisions or reversal of provisions (746) — (746) Provisions or reversal of provisions
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (5,179) — (5,179) Impairment on financial assets not measured at fair value through profit or loss
NET OPERATING INCOME 5,153 — 5,153  
Impairment or reversal of impairment of investments in joint ventures and associates (190)
Impairment or reversal of impairment on non-financial assets (153)
Gains (losses) on derecognition of non - financial assets and subsidiaries, net (7)
Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 444
94 (435) (341) Other gains (losses)
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 5,248 (435) 4,813 Profit (loss) before tax
Tax expense or income related to profit or loss from continuing operations (1,459) 130 (1,328) Income tax
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 3,789 (304) 3,485 Profit (loss) for the period
Profit (loss) after tax from discontinued operations (1,729) 1,729
PROFIT (LOSS) FOR THE PERIOD 2,060 1,424 3,485 Profit (loss) for the period
ATTRIBUTABLE TO MINORITY INTEREST (NON-CONTROLLING INTERESTS) (756) — (756) Non-controlling interests
ATTRIBUTABLE TO OWNERS OF THE PARENT 1,305 1,424 2,729 Net attributable profit (loss) excluding non-recurring impacts
(1,424) (1,424) Discontinued operations and Others
ATTRIBUTABLE TO OWNERS OF THE PARENT 1,305 — 1,305 Net attributable profit (loss)

(*) Included within the Other operating income and expenses of the Management Income Statements.

(**) Depreciations included.

Profit (loss) for the period

Explanation of the formula: the profit (loss) for the period is the profit (loss) for the period from the Group’s consolidated income statement, which comprises the profit (loss) after tax from continued operations and the profit (loss) after tax from discontinued operations which, for the periods of 2021 and 2020, includes the results generated by BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021. If the described metric is presented on a date prior to the end of the year, it will be presented on an annualized basis.

Relevance of its use: this measure is commonly used, not only in the banking sectors, for homogeneous comparison purposes.

Profit (loss) for the period

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
(Millions of euros) + Profit (loss) after tax from continued operations 6,827 5,338 3,789
(Millions of euros) + Profit (loss) after tax from discontinued operations (1) — 280 (1,729)
= Profit (loss) for the period 6,827 5,618 2,060

(1) January-December 2021 only includes the results generated by BBVA USA and the rest of the companies in the United States included in the agreement until its sale to PNC as of June 1, 2021.

Adjusted profit (loss) for the period (excluding non-recurring impacts)

Explanation of the formula: the adjusted profit (loss) for the period is the profit (loss) from continued operations for the period from the Group’s consolidated income statement, excluding those non-recurring impacts that, for management purposes, are defined at any given moment. If the described metric is presented on a date prior to the end of the year, it will be presented on an annualized basis.

Relevance of its use: this measure is commonly used, not only in the banking sector, for homogeneous comparison purposes.

Adjusted profit (loss) for the period

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
(Millions of euros) + Profit (loss) after tax from continued operations 6,827 5,338 3,789
(Millions of euros) — Net capital gains from the bancassurance transaction — — 304
(Millions of euros) — Net cost related to the restructuring process — (696) —
(Millions of euros) — Net impact arisen from the purchase of offices in Spain (201) — —
= Adjusted profit (loss) for the period 7,028 6,034 3,485

Net attributable profit (loss)

Explanation of the formula: the net attributable profit (loss) is the net attributable profit (loss) of the Group’s consolidated income statement from continued operations and the profit (loss) after tax from discontinued operations which, for the periods of 2021 and 2020, includes the results generated by BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021. If the described metric is presented on a date prior to the end of the year, it will be presented on an annualized basis.

Relevance of its use: this measure is commonly used, not only in the banking sector, for homogeneous comparison purposes.

Net attributable profit (loss)

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
(Millions of euros) + Net attributable profit (loss) from continued operations 6,420 4,373 3,033
(Millions of euros) + Net attributable profit (loss) from discontinued operations (1) — 280 (1.729)
= Net attributable profit (loss) 6,420 4,653 1,305

(1) January-December 2021 only includes the results generated by BBVA USA and the rest of the companies in the United States included in the agreement until its sale to PNC as of June 1, 2021.

Adjusted net attributable profit (loss) (excluding non-recurring impacts)

Explanation of the formula: the adjusted net attributable profit (loss) is the net attributable profit (loss) of the Group’s consolidated income statement from continued operations excluding those non-recurring impacts that, for management purposes are defined at any given moment. If the described metric is presented on a date prior to the end of the year, it will be presented on an annualized basis.

Relevance of its use: This measure is commonly used, not only in the banking sector, for comparison purposes.

Adjusted net attributable profit (loss)

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
(Millions of euros) + Net attributable profit (loss) from continued operations 6,420 4,373 3,033
(Millions of euros) — Net capital gains from the bancassurance transaction — — 304
(Millions of euros) — Net cost related to the restructuring process — (696) —
(Millions of euros) — Net impact arisen from the purchase of offices in Spain (201) — —
= Adjusted net attributable profit (loss) 6,621 5,069 2,729

Net attributable profit (loss) excluding corporate operations for AVR

Explanation of the formula: the result is calculated excluding the Group’s non-recurring results amounts of the net attributable profit of the Group’s consolidated Income Statement. In addition, in 2022, the net attributable profit associated with the 36.12% acquired in the voluntary takeover bid of Garanti BBVA is deducted. In 2021, the impact, after tax, resulting from the restructuring process carried out at BBVA S.A., is deducted.

Relevance of its use: This metric is commonly used in the banking sector. In addition, it is one of the metrics used for the purposes of the Group’s AVR (Annual Variable Remuneration).

Net attributable profit (loss) excluding corporate operations for AVR

Jan.-Dec.2022 Jan.-Dec.2021
(Millions of euros) + Net attributable profit (loss) 6,420 4,653
(Millions of euros) — BBVA USA and the rest of the Companies in the United States sold to PNC adjustments (1) — 280
(Millions of euros) — Net impact of the restructuring process — (655)
(Millions of euros) — Net impact from the purchase from offices in Spain (201) —
(Millions of euros) — Impact generated by the voluntary takeover bid of Garanti BBVA 240 —
= Net attributable profit (loss) excluding corporate operations for AVR 6,381 5,028
  • (1) Include the results generated by BBVA USA and the rest of the companies in the United States until its sale to PNC on June 1, 2021.

ROE

The ROE (return on equity) ratio measures the return obtained on an entity's shareholders' funds plus accumulated other comprehensive income. It is calculated as follows:

Net attributable profit (loss)
Average shareholders' funds + Average accumulated other comprehensive income

Explanation of the formula: the numerator is the net attributable profit (loss) previously defined in these alternative performance measures, If the metric is presented on a date before the close of the fiscal year, the numerator will be annualized.

Average shareholders' funds are the weighted moving average of the shareholders' funds at the end of each month of the period analyzed, adjusted to take into account the execution of the "dividend-option" at the closing dates on which it was agreed to deliver this type of dividend prior to the publication of the Group ́s results.

Average accumulated other comprehensive income is the moving weighted average of "Accumulated other comprehensive income", which is part of the equity on the Entity's balance sheet and is calculated in the same way as average shareholders’ funds (above).

Relevance of its use: this ratio is very commonly used not only in the banking sector but also in other sectors to measure the return obtained on shareholders' funds.

ROE

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) = Net attributable profit (loss) 6,420 4,653 1,305
Denominator (Millions of euros) + Average shareholder's funds 61,370 60,030 57,626
+ Average accumulated other comprehensive income (15.928) (15.396) (12.858)
= ROE 14.1% 10.4% 2.9%

Adjusted ROE

The adjusted ROE (return on equity) ratio measures the return obtained on an entity's shareholders' funds plus accumulated other comprehensive income. It is calculated as follows:

Adjusted net attributable profit (loss)
Average shareholders' funds + Average accumulated other comprehensive income

Explanation of the formula: the numerator is the adjusted net attributable profit (loss) previously defined in these alternative performance measures. If the metric is presented on a date before the close of the fiscal year, the numerator will be annualized. The denominator items "Average shareholders' funds" and "Average accumulated other comprehensive income" are the same and they are calculated in the same way as that explained for ROE.

Relevance of its use: this ratio is very commonly used not only in the banking sector but also in other sectors to measure the return obtained on shareholders' funds.

Adjusted ROE

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) = Adjusted net attributable profit (loss) 6,621 5,069 2,729
Denominator (Millions of euros) + Average shareholder's funds 61,370 60,030 57,626
+ Average accumulated other comprehensive income (15,928) (15,396) (12,858)
= Adjusted ROE 14.6% 11.4% 6.1%

ROTE

The ROTE (return on tangible equity) ratio measures the return on an entity's shareholders' funds, plus accumulated other comprehensive income, and excluding intangible assets. It is calculated as follows:

Net attributable profit (loss)
Average shareholders' funds + Average accumulated other comprehensive income - Average intangible assets

Explanation of the formula: the numerator "Net attributable profit (loss)" and the items in the denominator "Average intangible assets" and "Average accumulated other comprehensive income" are the same items and are calculated in the same way as explained for ROE.

Average intangible assets are the intangible assets on the balance sheet, including goodwill and other intangible assets. The average balance is calculated in the same way as explained for shareholders funds in ROE.

Relevance of its use: this metric is generally used not only in the banking sector but also in other sectors to measure the return obtained on shareholders' funds, not including intangible assets.

ROTE

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) = Net attributable profit (loss) 6,420 4,653 1,305
Denominator (Millions of euros) + Average shareholder's funds 61,370 60,030 57,626
+ Average accumulated other comprehensive income (15,928) (15,396) (12,858)
- Average intangible assets 2,119 2,265 2,480
- Average intangible assets from BBVA USA and BBVA Paraguay (1) — 897 2,528
= ROTE 14.8% 11.2% 3.3%

(1) BBVA Paraguay includes 4 millions of euros as of January-December 2020.

Adjusted ROTE

The adjusted ROTE (return on tangible equity) ratio measures the return on an entity's shareholders' funds, plus accumulated other comprehensive income, and excluding intangible assets. It is calculated as follows:

Adjusted net attributable profit (loss)
Average shareholders' funds + Average accumulated other comprehensive income - Average intangible assets

Explanation of the formula: the numerator [adjusted net attributable profit (loss)] and the items of the denominator "Average shareholders' funds" and " Average accumulated other comprehensive income" are the same and calculated in the same way as explained for ROE.

Average intangible assets are the intangible assets on the balance sheet, excluding for the periods of 2021 and 2020 the assets from BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021. The average balance is calculated in the same way as explained for shareholders' funds in the ROE.

Relevance of its use: this metric is generally used not only in the banking sector but also in other sectors to measure the return obtained on shareholders' funds, not including intangible assets.

Adjusted ROTE

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) = Adjusted net attributable profit (loss) 6,621 5,069 2,729
Denominator (Millions of euros) + Average shareholder's funds 61,370 60,030 57,626
+ Average accumulated other comprehensive income (15,928) (15,396) (12,858)
- Average intangible assets 2,119 2,265 2,480
- Average intangible assets from BBVA Paraguay — — 4
= Adjusted ROTE 15.3% 12.0% 6.5%

RORC for AVR

The RORC (return on regulatory capital) measures the return on manageable regulatory capital that should be maintained to reach the CET1 fully-loaded target ratio. It is calculated as follows:

Net attributable profit (loss) excluding corporate transactions for AVR
Average assigned regulatory capital

Explanation of the formula: The numerator is the net attributable profit (loss) excluding corporate transactions for AVR, described above. The denominator is the average assigned regulatory capital, defined as the manageable capital that should be held at Group level to reach the CET1 fully-loaded target ratio. If the described metric is presented on a date prior to the end of the year, the numerator will be presented on an annualized basis.

Relevance of its use: This metric is commonly used in the banking sector. In addition, it is one of the metrics used for the purposes of the Group’s AVR (Annual Variable Remuneration).

RORC for AVR

Jan.-Dec.2022 Jan.-Dec.2021
Numerator (Millions of euros) = Net attributable profit (loss) excluding corporate transactions for AVR 6,381 5,028
Denominator (Millions of shares) = Average assigned regulatory capital 41,815 35,837
= RORC for AVR 15.26% 14.03%

ROA

The ROA (return on assets) ratio measures the return obtained on an entity's assets. It is calculated as follows:

Profit (loss) for the period
Average total assets

Explanation of the formula: the numerator is the profit (loss) for the period, previously defined in these alternative performance measures. If the metric is presented on a date before the close of the fiscal year, the numerator must be annualized.

Average total assets are taken from the Group’s consolidated balance sheet. The average balance is calculated as explained for average shareholders' funds in the ROE.

Relevance of its use: this ratio is generally used not only in the banking sector but also in other sectors to measure the return obtained on assets.

ROA

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) Profit (loss) for the period 6,827 5,618 2,060
Denominator (Millions of euros) Average total assets 701,709 678,563 727,014
  = ROA 0.97% 0.83% 0.28%

Adjusted ROA

The adjusted ROA (return on assets) ratio measures the return obtained on an entity's assets. It is calculated as follows:

Adjusted profit (loss) for the period
Average total assets

Explanation of the formula: the numerator is the adjusted profit (loss) for the period previously defined in these alternative performance measures. If the metric is presented on a date before the close of the fiscal year, the numerator will be annualized.

Average total assets are taken from the Group's consolidated balance sheet, excluding for the periods of 2021 and 2020 the assets from BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021. The average balance is calculated in the same way as explained for average equity in the ROE.

Relevance of its use: this ratio is generally used not only in the banking sector but also in other sectors to measure the return obtained on assets.

Adjusted ROA

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros)   Adjusted profit (loss) for the period 7,028 6,034 3,485
Denominator (Millions of euros)   Average total assets 701,709 640,142 639,943
  = Adjusted ROA 1.00% 0.94% 0.54%

RORWA

The RORWA (return on risk-weighted assets) ratio measures the accounting return obtained on average risk-weighted assets. It is calculated as follows:

Profit (loss) for the period
Average risk - weighted assets

Explanation of the formula: the numerator [profit (loss) for the period] is the same and is calculated in the same way as explained for ROA.

Average risk-weighted assets (RWA) are the moving weighted average of the risk-weighted assets at the end of each month of the period under analysis.

Relevance of its use: this ratio is generally used in the banking sector to measure the return obtained on RWA.

RORWA

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) Profit (loss) for the period 6,827 5,618 2,060
Denominator (Millions of euros) Average RWA 327,999 324,819 358,675
= RORWA 2.08% 1.73% 0.57%

Adjusted RORWA

The adjusted RORWA (return on risk-weighted assets) ratio measures the return obtained on an entity's assets. It is calculated as follows:

Adjusted profit (loss) for the period
Average risk - weighted assets

Explanation of the formula: the numerator [adjusted profit (loss) for the period] is the same and is calculated in the same way as explained for adjusted ROA.

Average risk-weighted assets (RWA) are the moving weighted average of the risk-weighted assets at the end of each month of the period under analysis, excluding for the periods of 2021 and 2020 those from BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021.

Relevance of its use: this ratio is generally used not only in the banking sector but also in other sectors to measure the return obtained on assets.

Adjusted RORWA

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) Adjusted profit (loss) for the period 7.028 6,034 3,485
Denominator (Millions of euros) Average RWA 327,999 300,276 300,518
  = Adjusted RORWA 2.14% 2.01% 1.16%

Earning (loss) per share

The earning (loss) per share is calculated in accordance to the criteria established in the IAS 33 “Earnings per share”.

Earnings (loss) per share

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
(Millions of euros) + Net attributable profit (loss) 6,420 4,653 1,305
(Millions of euros) + Remuneration related to the Additional Tier 1 securities (CoCos) 313 359 387
Numerator (millions of euros) = Net attributable profit (loss) ex.CoCos remuneration 6,107 4,293 917
Denominator (millions) + Average number of shares issued 6,424 6,668 6,668
- Average treasury shares of the period 9 12 13
- Share buyback program (average) (1) 225 255 —
= Earning (loss) per share (euros) 0.99 0.67 0.14
  • (1) The period January-December 2021 includes 112 million shares acquired from the start of the share buyback program to December 31, 2021 and the estimated number of shares pending from buyback as of December 31, 2021 of the first tranche, in process at the end of that period.

Additionally, for management purposes, earning (loss) per share is presented excluding: (I) the profit (loss) after tax from discontinued operations, that is, the results generated by BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021, for the periods of 2021 and 2020; (II) the capital gain net of taxes from the bancassurance operation with Allianz recorded in the fourth quarter of 2020; (III) the net cost related to the restructuring process recorded in the second quarter of 2021; and (IV) the net impact from the purchase of offices in Spain in the second quarter of 2022.

Adjusted earning (loss) per share

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
(Millions of euros) + Net attributable profit (loss) ex. CoCos remuneration 6,107 4,293 917
(Millions of euros) - Discontinued operations — 280 (1,729)
(Millions of euros) - Net capital gains from the bancassurance transaction — — 304
(Millions of euros) - Net cost related to the restructuring process — (696) —
(Millions of euros) - Net impact arisen from the purchase of offices in Spain (201) — —
Numerator (millions of euros) = Net Attributable profit (loss) ex.CoCos and non-recurring impacts 6,308 4,709 2,342
Denominator (millions) + Average number of shares issued (1) 6,030 6,668 6,668
- Average treasury shares of the period 9 12 13
= Adjusted earning (loss) per share (euros) 1.05 0.71 0.35

(1) In the period January-December 2022, the number of shares issued takes into account the total redemption of the share buyback program.

Efficiency ratio

This measures the percentage of gross income consumed by an entity's operating expenses. It is calculated as follows:

Operating expenses
Gross income

Explanation of the formula: both "Operating expenses" and "Gross income" are taken from the Group’s consolidated income statement. Operating expenses are the sum of the administration costs (personnel expenses plus other administrative expenses) plus depreciation. Gross income is the sum of net interest income, net fees and commissions, net trading income dividend income, share of profit or loss of entities accounted for using the equity method, and other operating income and expenses. For a more detailed calculation of this ratio, the graphs on "Results" section of this report should be consulted, one of them with calculations with figures at current exchange rates and another with the data at constant exchange rates.

Relevance of its use: this ratio is generally used in the banking sector. In addition, it is the metric for one of the six Strategic Priorities of the Group.

Efficiency ratio

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) Operating expenses 10,760 9,530 9,088
Denominator (Millions of euros) Gross income 24,890 21,066 20,166
= Efficiency ratio 43.2% 45.2% 45.1%

Efficiency ratio for AVR

Explanation of the formula: The numerator used to calculate the efficiency ration excludes, In 2021, savings generated by the employee departures subject to the restructuring process since their departure from the BBVA Group, amounting to approximately €58m gross.

Relevance of its use: This metric is commonly used in the banking sector. In addition, it is one of the metrics used for the purposes of the Group’s AVR (Annual Variable Remuneration).

Efficiency ratio for AVR

Jan.-Dec.2022 Jan.-Dec.2021
Numerator (Millions of euros) = Operating expenses for AVR 10,760 9,587
Denominator (Millions of euros) = Gross income 24,890 21,066
= Efficiency ratio for AVR 43.2% 45.5%

Dividend yield

This is the remuneration given to the shareholders in the last twelve calendar months, divided by the closing price for the period. It is calculated as follows:

∑ Dividend per share over the last twelve months
Closing price

Explanation of the formula: the remuneration per share takes into account the gross amounts per share paid out over the last twelve months, both in cash and through the flexible remuneration system called "dividend option".

Relevance of its use: this ratio is generally used by analysts, shareholders and investors for companies that are traded on the stock market. It compares the dividend paid out by a company every year with its market price at a specific date.

Dividend yield

31-12-22 31-12-21 31-12-20
Numerator (Euros) ∑ Dividends 0.35 0.14 0.16
Denominator (Euros) Closing price 5.63 5.25 4.04
= Dividend yield 6.2% 2.6% 4.0%

Book value per share

The book value per share determines the value of a company on its books for each share held. It is calculated as follows:

Shareholders' funds + Accumulated other comprehensive income
Number of shares outstanding - Treasury shares

Explanation of the formula: the figures for both "Shareholders' funds" and "Accumulated other comprehensive income" are taken from the balance sheet. Shareholders' funds are adjusted to take into account the execution of the "dividend-option" at the closing dates on which it was agreed to deliver this type of dividend prior to the publication of the Group ́s results. The denominator includes the final number of outstanding shares excluding own shares (treasury shares). In addition, the denominator is also adjusted to include the capital increase resulting from the execution of the dividend options explained above. Both the numerator and the denominator take into account period-end balances.

Relevance of its use: it shows the company's book value for each share issued. It is a generally used ratio, not only in the banking sector but also in others.

Book value per share

31-12-22 31-12-21 31-12-20
Numerator
(Millions of euros)		 + Shareholders' funds 64,422 60,383 58,904
+ Accumulated other comprehensive income (17,432) (16,476) (14,356)
Denominator
(Millions of shares)		 + Number of shares issued 6,030 6,668 6,668
- Treasury shares 5 15 14
- Share buyback program (1) — 255 —
= Book value per share (euros / share) 7.80 6.86 6.70

(1) As of 31-12-21, 112 million shares acquired from the start of the share buyback program to the end of the period and the estimated number of shares pending from buyback as of December 31, 2021 of the first tranche, in process at the end of that date, were included.

Tangible book value per share

The tangible book value per share determines the value of the company on its books for each share held by shareholders in the event of liquidation. It is calculated as follows:

Shareholders' funds + Accumulated other comprehensive income - Intangible assets
Number of shares outstanding - Treasury shares

Explanation of the formula: the figures for "Shareholders' funds", "Accumulated other comprehensive income" and "Intangible assets" are all taken from the balance sheet. Shareholders' funds are adjusted to take into account the execution of the "Dividend-option" at the closing dates on which it was agreed to deliver this type of dividend prior to the publication of the Group ́s results. The denominator includes the final number of shares outstanding excluding own shares (treasury shares). In addition, the denominator is also adjusted to include the result of the capital increase resulting from the execution of the dividend options explained above. Both the numerator and the denominator take into account period-end balances.

Relevance of its use: It shows the company's book value for each share issued, after deducting intangible assets. It is a generally used ratio, not only in the banking sector but also in others.

Tangible book value per share

31-12-22 31-12-21 31-12-20
Numerator
(Millions of euros)		 + Shareholders' funds 64,422 60,383 58,904
+ Accumulated other comprehensive income (17,432) (16,476) (14,356)
- Intangible assets 2,156 2,197 2,345
- Intangible assets from BBVA USA and BBVA Paraguay (1) — — 1,952
Denominator
(Millions of shares)		 + Number of shares issued 6,030 6,668 6,668
- Treasury shares 5 15 14
- Share buyback program (2) — 255 —
= Tangible book value per share (euros / share) 7.44 6.52 6.05

(1) BBVA Paraguay includes 3 millions of euros as of 31-12-20.

(2) As of 31-12-21, 112 million shares acquired from the start of the share buyback program to the end of the period and the estimated number of shares pending from buyback as of December 31, 2021 of the first tranche, in process at the end of that date, were included.

Tangible book value per share for AVR

Explanation of the formula: for the purposes of its calculation, and based on the metric "Tangible book value per share" described above, the following items are adjusted in order not to consider the results of non-recurring operations: the capital gain from the voluntary takeover bid of Garanti BBVA in 2022 and the estimated net savings of the BBVA restructuring plan in BBVA S.A. in 2021.

Tangible book value for AVR: in 2022, both, the aforementioned capital gain from the voluntary takeover bid of Garanti BBVA and the net impact arisen from the purchase of offices in Spain from Merlin on the tangible book value are excluded. In 2021, both the net impact related to the restructuring process of BBVA S.A. and the impact of the sale of BBVA USA and the rest of companies in the United States on the tangible book value are excluded. On the other hand, on the concepts related to the system of remuneration to shareholders, the amounts distributed to them (which include the amounts distributed under the items “Share premium”, as well as the “Interim dividends”) are adjusted. Likewise, the amount executed as of December 31, 2021 (112 million shares acquired for an amount of €569m) corresponding to the first share buyback tranche (€1,500m) approved by the BBVA Board of Directors in October 2021.

Relevance of its use: This indicator is commonly used in the banking sector. In addition, it is one of the indicators used for the purposes of the Group’s AVR (Annual Variable Remuneration).

Tangible book value per share for AVR

31-12-22 31-12-21
Numerator (Millions of euros) + Tangible book value for AVR 46,054 42,832
Denominator (Millions of shares) + Number of shares issued 6,030 6,668
+ Dividend-option — —
- Treasury shares 5 15
- Share buyback program (1) — 112
= Tangible book value per share for AVR (euros) 7.64 6.55

(1) Considering 112 million shares acquired within the share buyback program in 2021.

Non-performing loan (NPL) ratio

It is the ratio between the risks classified for accounting purposes as non-performing loans and the total credit risk balance. It is calculated as follows:

Non-performing loans
Total credit risk

Explanation of the formula: non-performing loans and the credit risk balance are gross, meaning they are not adjusted by associated accounting provisions.

Non-performing loans are calculated as the sum of “loans and advances at amortized cost” and the “contingent risk” in stage 32 and the following counterparties:

  • other financial entities
  • public sector
  • non-financial institutions
  • households

The credit risk balance is calculated as the sum of "Loans and advances at amortized cost" and "Contingent risk" in stage 1 + stage 2 + stage 3 of the previous counterparts.

This indicator is shown, as others, at a business area level.

Relevance of its use: this is one of the main indicators used in the banking sector to monitor the current situation and changes in credit risk quality, and specifically the relationship between risks classified in the accounts as non-performing loans and the total balance of credit risk, with respect to customers and contingent liabilities.

Non-Performing Loans (NPLs) ratio

31-12-22 31-12-21 31-12-20
Numerator (Millions of euros) NPLs 14,463 15,443 15,451
Denominator (Millions of euros) Credit Risk 424,341 376,011 366,883
= Non-Performing Loans (NPLs) ratio 3.4% 4.1% 4.2%

General note: excludes BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021.

2 IFRS 9 classifies financial instruments into three stages, which depend on the evolution of their credit risk from the moment of initial recognition. The stage 1 includes operations when they are initially recognized, stage 2 comprises operations for which a significant increase in credit risk has been identified since their initial recognition and,stage 3, impaired operations.

NPL coverage ratio

This ratio reflects the degree to which the impairment of non-performing loans has been covered in the accounts via allowances. It is calculated as follows:

Provisions
Non-performing loans

Explanation of the formula: it is calculated as "Provisions" from stage 1 + stage 2 + stage 3, divided by non-performing loans, formed by “credit risk” from stage 3.

This indicator is shown, as others, at a business area level.

Relevance of its use: this is one of the main indicators used in the banking sector to monitor the situation and changes in the quality of credit risk, reflecting the degree to which the impairment of non-performing loans has been covered in the accounts via value adjustments.

NPL coverage ratio

31-12-22 31-12-21 31-12-20
Numerator (Millions of euros) Provisions 11,764 11,536 12,595
Denominator (Millions of euros) NPLs 14,463 15,443 15,451
= NPL coverage ratio 81% 75% 82%

General note: excludes BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021.

Cost of risk

This ratio indicates the current situation and changes in credit-risk quality through the annual cost in terms of impairment losses (accounting loan-loss provisions) of each unit of loans and advances to customers (gross). It is calculated as follows:

Loan-loss provisions
Average loans and advances to customers (gross)

Explanation of the formula: "Loans to customers (gross)" refers to the "Loans and advances at amortized cost" portfolios with the following counterparts:

  • other financial entities
  • public sector
  • non-financial institutions
  • households, excluding central banks and other credit institutions.

Average loans to customers (gross) is calculated by using the average of the period-end balances of each month of the period analyzed plus the previous month. "Annualized loan-loss provisions" are calculated by accumulating and annualizing the loan-loss provisions of each month of the period under analysis.

Loan-loss provisions refer to the aforementioned loans and advances at amortized cost portfolios.

This indicator is shown, as others, at a business area level.

Relevance of its use: this is one of the main indicators used in the banking sector to monitor the situation and changes in the quality of credit risk through the cost over the year.

Cost of risk

Jan.-Dec. 2022 Jan.-Dec. 2021 Jan.-Dec. 2020
Numerator (Millions of euros) Loan-loss provisions 3,252 3,026 5,160
Denominator (Millions of euros) Average loans to customers (gross) 356,597 325,013 332,096
= Cost of risk 0.91% 0.93% 1.55%

General note: excludes BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021.

5.2 Compliance tables

5.2.1 Index of contents of Law 11/201849

Non-financial Information Report. Contents index of the Law 11/2018

Page / Section BBVA's Management Report 2022 GRI reporting criteria Page(s)
General information
Business model Brief description of the group’s business model NFIS/Strategy GRI 2-6
GRI 2-7 		8-17
Geographical presence and Organization and Structure BBVA in brief/ Who we are
Other information/Organizational Chart 		GRI 2-1
GRI 2-6		 2
265
Objectives and strategies of the organization NFIS/Strategy/Purpose, values and strategic priorities, Our objectives GRI 2-22 8-17
Main factors and trends that may affect your future evolution NFIS/Strategy/Main advances in the execution of the strategy
Financial information/BBVA Group/Macroeconomic and regulatory environment 		GRI 2-6 12-17
127-132
General Reporting framework Non-financial information GRI 1 7
Principle of materiality NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis 		GRI 3-1
GRI 3-2 		18-19
107-115
Management approach Description of the applicable policies NFIS/Our stakeholders/Customers/Customer security and protection
NFIS/Our stakeholders/Society/Community Commitment/Volunteer work
NFIS/Our stakeholders/Society/Community Commitment/Commitment to Human Rights
NFIS/Report on climate change and other environmental and social issues
Risk management 		GRI 3-3
GRI 2-25 		21-23
60-61
73-74
78-106
171-192
The results of these policies NFIS/Our stakeholders/Customers/Customer security and protection
NFIS/Our stakeholders/Society/Community Commitment/Volunteer work
NFIS/Our stakeholders/Society/Community Commitment/Commitment to Human Rights
NFIS/Report on climate change and other environmental and social issues
Risk management 		GRI 3-3
GRI 2-25 		21-23
60-61
73-74
78-106
171-192
The main risks related to these issues involving the activities of the group NFIS/Our stakeholders/Customers/Customer security and protection
NFIS/Our stakeholders/Society/Community Commitment/Volunteer work
NFIS/Our stakeholders/Society/Community Commitment/Commitment to Human Rights
NFIS/Additional information/Other non financial risks
Risk management 		GRI 2-16 21-23
60-61
73-74
78-106
171-192
Environmental questions
Environmental management Detailed information on the current and foreseeable effects of the company's activities on the environment and, where appropriate, health and safety NFIS/Report on climate change and other environmental and social issues
Risk management/General risk management and control mode 		GRI 3-3 78-106
171-179
Environmental assessment or certification procedures NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 3-3
GRI 2-25 		99-104
Resources dedicated to the prevention of environmental risks NFIS/Report on climate change and other environmental and social issues/Governance model
NFIS/Report on climate change and other environmental and social issues/Metrics and goals: Channeling sustainable business 		GRI 3-3
GRI 2-25 		79
95-98
Application of the precautionary principle NFIS/Report on climate change and other environmental and social issues
Risk management/General risk management and control model 		GRI 2-23
GRI 3-3
GRI 2-25 		78-106
171-179
Amount of provisions and guarantees for environmental risks NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts/Management of direct environmental impacts GRI 3-3
GRI 2-25 		99-102
Contamination Measures to prevent, reduce or repair emissions that seriously affect the environment; taking into account any form of activity-specific air pollution, including noise and light pollution NFIS/Report on climate change and other environmental and social issues/Metrics and goals: Channeling sustainable business GRI 3-3
GRI 2-25 		95-98
Circular economy and waste prevention and management Prevention, recycling, reuse, other forms of recovery and types of waste disposal NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 3-3
GRI 2-25
GRI 306-2 with respect to recycling and reusing 		99-104
Actions to combat food waste BBVA Group considers this indicator not to be material GRI 3-3
GRI 2-25
Sustainable use of resources Water consumption and water supply according to local constraints NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 303-5 (2018) with respect total water consumption 99-104
Use of raw materials and measures taken to improve the efficiency of their utilization NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 301-1 with respect to renewable materials used 99-104
Energy use, direct and indirect NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 302-1
GRI 302-3 		99-104
Measures taken to improve energy efficiency NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 3-3
GRI 2-25
GRI 302-4 		99-104
Use of renewable energies NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts GRI 302-1 with respect to renewable energies consumption 99-104
Climate change Greenhouse gas emissions generated as a result of the company's activities, including the use of the goods and services it produces NFIS/Report on climate change and other environmental and social issues GRI 305-1
GRI 305-2
GRI 305-3
GRI 305-4
78-106
Measures taken to adapt to the consequences of climate change NFIS/Report on climate change and other environmental and social issues GRI 3-3
GRI 2-25
GRI 201-2
78-106
Reduction goals established voluntarily in the medium and long term to reduce greenhouse gas emissions and measures implemented for that purpose NFIS/Report on climate change and other environmental and social issues GRI 305-5 78-106
Protection of biodiversity Measures taken to protect or restore biodiversity The metric describes the size of the protected or restored areas of habitats and BBVA's financial activity, as well as the activity of its offices, has no impact in this regard. This metric and its various breakdowns are currently considered non-material. GRI 304-3
Impacts caused by activities or operations in protected areas The operations centers and / or offices owned, leased or managed by BBVA are located in urban areas, so the impacts of the entity's activities on biodiversity are considered not significant. Although the products and services commercialised can potentially have an impact on it, they are managed according to the regulations and criteria applicable to the nature of the financed activities, and nowadays there are no defined and comparable metrics for their monitoring and reporting in relation with BBVA's value chain. However, the entity undertakes to follow up on regulatory developments regarding biodiversity for future reporting if necessary. GRI 304-1
GRI 304-2
Social and personnel questions
Employees Total number and distribution of employees according to country, gender, age, country and professional classification NFIS/Our stakeholders/Employees/Professional development/Diversity, inclusion and different capacities GRI 2-7
GRI 2-8
GRI 405-1 		34-36
Total number and distribution of work contract modalities NFIS/Our stakeholders/Employees/Professional development/Diversity, inclusion and different capacities GRI 2-7
GRI 2-8 		34-36
Annual average of work contract modalities (permanent, temporary and part-time) by sex, age, and professional classification NFIS/Our stakeholders/Employees/Professional development/Diversity, inclusion and different capacities GRI 2-7
GRI 2-8 		34-36
Number of dismissals by sex, age, and professional classification NFIS/Our stakeholders/Employees/Professional development/Diversity, inclusion and different capacities GRI 3-3
GRI 2-25
GRI 401-1 with respect to staff turn-over by sex, age and country 		34-36
The average remunerations and their evolution disaggregated by sex, age, and professional classification or equal value NFIS/Our stakeholders/Employees/Remuneration GRI 3-3
GRI 2-25
GRI 405-2 with respect to women remuneration compared to men's by professional category 		53-57
The average remuneration of directors and executives, including variable remuneration, allowances, compensation, payment to long-term forecast savings and any other perception broken down by gender NFIS/Our stakeholders/Employees/Remuneration GRI 3-3
GRI 2-25
GRI 405-2 with respect to women remuneration compared to men's by professional category 		53-57
Salary gap NFIS/Our stakeholders/Employees/Remuneration/Wage gap GRI 3-3
GRI 2-25
GRI 405-2 with respect to women remuneration compared to men's by professional category 		56
Implementation of employment termination policies NFIS/Our stakeholders/Employees/Work environment/Work organization GRI 3-3
GRI 2-25 		47-48
Employees with disabilities NFIS/Our stakeholders/Employees/Professional development/ Diversity, inclusion and different capacities GRI 405-1 34-36
Work organization Work schedule organization NFIS/Our stakeholders/Employees/Work environment/Work organization GRI 3-3
GRI 2-25 		47-48
Number of hours of absenteeism NFIS/Our stakeholders/Employees/Work environment/Occupational safety and health GRI 403-9 49-52
Measures designed to facilitate access to mediation resources and encourage the responsible use of these by both parents NFIS/Our stakeholders/Employees/Work environment/Work organization GRI 3-3
GRI 2-25 		47-48
Health and safety Work health and safety conditions NFIS/Our stakeholders/Employees/Work environment/Occupational safety and health GRI 3-3
GRI 2-25
GRI 403-1
GRI 403-2
GRI 403-3
GRI 403-7 (2018) 		49-52
Work accidents, in particular their frequency and severity, disaggregated by gender NFIS/Our stakeholders/Employees/Work environment/Occupational safety and health GRI 403-10 (2018) with respect to labor accident injuries 49-52
Occupational diseases, disaggregated by gender NFIS/Our stakeholders/Employees/Work environment/Occupational safety and health GRI 403-9 (2018) with respect to labor accident injuries 49-52
Social relationships Organization of social dialog, including procedures to inform and consult staff and negotiate with them NFIS/Our stakeholders/Employees/Work environment/Freedom of association and representation GRI 3-3
GRI 2-25		 48
Mechanisms and procedures that the company has to promote the involvement of workers in the management of the company, in terms of information, consultation and participation NFIS/Our stakeholders/Employees/Culture & Values

NFIS/Our stakeholders/Employees/Work environment/Freedom of association and representation 		GRI 3-3
GRI 2-25 		30
48
Percentage of employees covered by collective agreement by country
The balance of collective agreements, particularly in the field of health and safety at wo 		NFIS/Our stakeholders/Employees/Work environment/Freedom of association and representation

NFIS/Our stakeholders/Employees/Work environment/Occupational safety and health 		GRI 2-30

GRI 303-4 (2018) 		48

49-52
Training Policies implemented for training activities NFIS/Our stakeholders/Employees/Professional development/Training GRI 3-3
GRI 2-25
GRI 404-2 		32-34
The total amount of training hours by professional category NFIS/Our stakeholders/Employees/Professional development/Training GRI 404-1 32-34
Accessibility Integration and universal accessibility of people with disabilities NFIS/Our stakeholders/Employees/Professional development/ Diversity, inclusion and different capacities GRI 3-3
GRI 2-25 		34-36
Equality Measures taken to promote equal treatment and opportunities between women and men NFIS/Our stakeholders/Employees/Professional development/ Diversity, inclusion and different capacities GRI 3-3
GRI 2-25		 34-36
Equality plans (Section III of Organic Law 3/2007, of March 22, for effective equality of women and men) NFIS/Our stakeholders/Employees/Professional development/ Diversity, inclusion and different capacities GRI 3-3
GRI 2-25		 34-36
Measures adopted to promote employment, protocols against sexual and sex-based harassment. NFIS/Our stakeholders/Employees/Professional development/ Diversity, inclusion and different capacities GRI 3-3
GRI 2-25		 34-36
Policy against any type of discrimination and, where appropriate, diversity management NFIS/Our stakeholders/Employees/Professional development/ Diversity, inclusion and different capacities GRI 3-3
GRI 2-25 		34-36
Information about the respect for human rights
Human rights Application of due diligence procedures in the field of human rights; prevention of the risks of violation of human rights and, where appropriate, measures to mitigate, manage, and repair possible abuses committed NFIS/Our stakeholders/Society/Commitment to Human Rights GRI 2-23
GRI 2-26		 73-74
Claims regarding cases of human rights violations NFIS/Our stakeholders/Society/Commitment to Human Rights GRI 3-3
GRI 2-25
GRI 406-1 		73-74
Promotion and compliance with the provisions contained in the related fundamental Conventions of the International Labor Organization with respect for freedom of association and the right to collective bargaining; the elimination of discrimination in employment and occupation; the elimination of forced or compulsory labor; and the effective abolition of child labor NFIS/Our stakeholders/Employees/Work environment/Freedom of association and representation

NFIS/Our stakeholders/Society/Commitment to Human Rights 		GRI 3-3
GRI 2-25
GRI 407-1
GRI 408-1
GRI 409-1 		48
73-74
Information about anti-bribery and anti-corruption measures
Corruption and bribery Measures adopted to prevent corruption and bribery NFIS/Our stakeholders/Society/Compliance and conduct GRI 3-3
GRI 2-25
GRI 2-23
GRI 2-26
GRI 205-2
GRI 205-3 		61-67
Measures adopted to fight against anti.money laundering NFIS/Our stakeholders/Society/Compliance and conduct GRI 3-3
GRI 2-25
GRI 2-23
GRI 2-26
GRI 205-2
GRI 205-3 		61-67
Contributions to foundations and non-profit-making bodies NFIS/Our stakeholders/Society/Contribution to society GRI 2-28
GRI 201-1 with respect to community investment 		58-60
Information about the society
Commitment by the company to sustainable development Impact of the company’s activities on employment and local development NFIS/Our stakeholders/Society/ Contribution to society

NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect impacts/Management of indirect environmental and social impacts/Equator Principles 		GRI 3-3
GRI 2-25
GRI 203-2 with respect to significant indirect economic impacts
GRI 204-1 		58-60
103-104
The impact of company activity on local populations and on the territory NFIS/Our stakeholders/Society/ Contribution to society

NFIS/Report on climate change and other environmental and social issues/Management of indirect environmental and social impacts/Equator Principles 		GRI 413-1
GRI 413-2		 56-80
103-104
The relationships maintained with representatives of the local communities and the modalities of dialog with these NFIS/Strategy/Main advances in the execution of the strategy

NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis

NFIS/Our stakeholders/Employees/Work environment/Freedom of association and representation

NFIS/Our stakeholders/Society/Contribution to society 		GRI 2-29
GRI 413-1 		12-17
18-19
107-115
48
58-60
Actions of association or sponsorship NFIS/Our stakeholders/Society/Contribution to society GRI 3-3
GRI 2-25
GRI 201-1 with respect to investments in the community 		58-60
Subcontractors and suppliers The inclusion of social, gender equality and environmental issues in the purchasing policy NFIS/Our stakeholders/Suppliers GRI 3-3
GRI 2-25 		75-77
Consideration of social and environmental responsibility in relations with suppliers and subcontractors NFIS/Our stakeholders/Suppliers GRI 2-6
GRI 308-1
GRI 414-1 		75-77
Supervision systems and audits, and their results NFIS/Our stakeholders/Suppliers GRI 2-6
GRI 308-1
GRI 308-2
GRI 414-2 		75-77
Consumers Customer health and safety measures NFIS/Our stakeholders/Customers/Customer experience

NFIS/Our stakeholders/Customers/Customer security and protection

NFIS/Our stakeholders/Society/Commitment to Human Rights 		GRI 3-3
GRI 2-25
GRI 416-1 		20-21
21-23
73-74
Claims systems, complaints received and their resolution NFIS/Our stakeholders/Customers/Customer care

NFIS/Additional information/Additional information on customer complaints 		GRI 3-3
GRI 2-25
GRI 418-1 		24-26
123-124
Tax information Benefits obtained by country NFIS/Our stakeholders/Society/Fiscal transparency GRI 201-1
GRI 207-4 (2019) with respect to corporate income tax paid and corporate income tax accrued on profit/loss. 		67-73
Taxes on paid benefits NFIS/Our stakeholders/Society/Fiscal transparency GRI 201-1
GRI 207-4 (2019) with respect to corporate income tax paid and corporate income tax accrued on profit/loss. 		67-73
Public subsidies received NFIS/Our stakeholders/Society/Fiscal transparency GRI 201-4 70
Requirements of the Taxonomy regulation NFIS/Additional information/Information related to article 8 of the European Taxonomy 116-117

49 Law 5/2021 once again modifies article 49 of the Commercial Code on social and personnel issues. Those modifications are included in this content index.

5.2.2 Index of contents of Law 07/2021

Under Law 7/2021, of May 20, on climate change and energy transition, BBVA has submitted the Climate Change Report, which includes the following matters: the organization's governance structure, the strategic focus, both in terms of adaptation and mitigation of the entity to manage the financial risks associated with climate change, the real and potential impacts of the risks and opportunities associated with climate change, the processes of identification, evaluation, control and management of the risks related to the climate and the metrics, scenarios and objectives used to evaluate and manage the relevant risks and opportunities associated with climate change.

In this context, BBVA has incorporated the Climate Change Report into the Group's Management Report, which is attached to the Consolidated Financial Statements for 2022, as covered in the article 32 of Law 7/2021.

Non-financial Information Report. Contents index of the Law 7/2021, of May 20, about climate change and energetic transition

Topic Reporting criteria Response included in BBVA Group's consolidated management report
Govern Governance structure of organization, including the role that its various bodies perform, in relation to the identification, evaluation and management of risks and opportunities related to climate change. Other information/Organizational Chart
NFIS/Report on climate change and other environmental and social issues
Strategy Strategic approach, in terms of adaptation and mitigation of the entities to manage the financial risks associated with climate change, taking into account the current risks at the time of writing the report, and those that may arise in the future, identifying the actions necessary at that time to mitigate such risks. NFIS/Purpose, values and strategic priorities
NFIS/Report on climate change and other environmental and social issues
Impacts The real and potential impacts of risks and opportunities associated with climate change on the organization's activities and its strategy, as well as on its financial planning. NFIS/Report on climate change and other environmental and social issues
Risk management The processes for identifying, evaluating, controlling and managing climate-related risks and how these are integrated into its global business risk analysis and its integration into the organization's global risk management. NFIS/Purpose, values and strategic priorities
NFIS/Report on climate change and other environmental and social issues
Metrics and goals Metrics, scenarios and objectives used to assess and manage important risks and opportunities related to climate change and, if calculated, the scope 1, 2 and 3 of its carbon footprint and how its reduction is addressed. NFIS/Report on climate change and other environmental and social issues

5.2.3 GRI standards content index

At the end of 2021, GRI has made adjustments to the standards for developing sustainability reports. The sections to be reported have been developed and expanded and the old GRI 101 (2016 version) have been replaced by GRI 1: Fondation; GRI 2 (version 2106) by GRI 2: General disclosure; and GRI 103 (2016 version) for GRI 3: Material topics. In this way, modifications have been applied in terms of the structure of the BBVA Group's content index with respect to that reported in fiscal year 2021 to adjust to the new requirements.

The BBVA Group has reported in accordance with the GRI Standards for the period between January 1 and December 31, 2022.

Indicator Chapter
GRI 1: FOUNDATION
Reporting in accordance with the GRI Standards
Publish a GRI content index GRI standards content index
Provide a statement of use Non-financial information report
GRI 2: GENERAL DISCLOSURE
The organization and its reporting practices
2-1 Organizational details BBVA in brief
Group financial information
Annual Corporate Governance Report (Section A)
Consolidated Financial Statements (Note 1)
2-2 Entities included in the organization’s sustainability reporting Non-financial information report/Introduction
2-3 Reporting period, frequency and contact point Annual. From January 1 to December 31, 2022.
For contacts regarding sustainability and responsible banking see https://accionistaseinversores.bbva.com/contacto/
2-4 Restatements of information Regarding the financial information, restatements made during 2022 financial year are described in Notes 1 and 3 of the Consolidated Financial Statements.
The changes with respect to the non-financial information published in 2021 have been duly indicated through their corresponding footnote in the section of Employees" within the chapter "Our stakeholders" of the Non-financial information report.
2-5 External assurance Independent verification report
Activities and workers
2-6 Activities, value chain, and other business relationships BBVA in brief
BBVA in brief/Who we are
Financial information/Group
Business areas
NFIS/Our stakeholders/Suppliers
Consolidated Financial Statements (Note 3)
2-7 Employees BBVA in brief
Financial information/Group
Business areas
NFIS/Our stakeholders/Employees
2-8 Workers who are not employees As of December 31, 2022, the number of external workers in the Engineering area of the BBVA Group amounted to 13,511 (1,406 less than on December 31, 2021). This number is expressed in full-time equivalent units (FTEs). These people from external companies are hired to provide services related to IT infrastructure issues, or development/maintenance of software for architectures and applications and platforms, or specialized cybersecurity services. It should be noted that their work is not controlled by BBVA in the sense that tasks are not entrusted to them, but services are more or less structured in service level agreements.
Governance
2-9 Governance structure and composition Annual Corporate Governance Report (Section C)
NFIS/Report on climate change and other environmental and social issues/Governance model
2-10 Nomination and selection of the highest governance body Annual Corporate Governance Report (Section C)
2-11 Chair of the highest governance body Annual Corporate Governance Report (Section C)
2-12 Role of the highest governance body in overseeing the management of impacts NFIS/Strategy/Purpose, values and strategic priorities, Our Objectives
Annual Corporate Governance Report (Section C.2 and E.2)
NFIS/Report on climate change and other environmental and social issues/Governance model
Risk management
2-13 Delegation of responsibility for managing impacts Annual Corporate Governance Report (Section C)
NFIS/Report on climate change and other environmental and social issues/Governance model
2-14 Role of the highest governance body in sustainability reporting The non-financial information report is part of the Management Report and the Consolidated Financial Statements, which are prepared by the Board of Directors as responsible social body, in the meeting held on February 9, 2023, and will be subject to approval by the next General Shareholders' Meeting.
2-15 Conflicts of interest Annual Corporate Governance Report (Section C and D)
2-16 Communication of critical concerns NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis
Annual Corporate Governance Report (Section C)
2-17 Collective knowledge of the highest governance body Annual Corporate Governance Report (Section C)
NFIS/Report on climate change and other environmental and social issues/Governance mo
2-18 Evaluation of the performance of the highest governance body Annual Corporate Governance Report (Section C)
2-19 Remuneration policies NFIS/Our stakeholders/Employees/Remuneration
Consolidated Financial Statements (Notes 44.1 and 54)
2-20 Process to determine remuneration NFIS/Our stakeholders/Employees/Remuneration
Consolidated Financial Statements (Notes 44.1 and 54)
NFIS/Strategy/Purpose, values and strategic priorities, Our Objectives
2-21 Annual total compensation ratio BBVA calculates the ratio of the percentage increase in total annual compensation as the relationship between the increase in total annual compensation (fixed remuneration plus accrued variable remuneration and pension contributions) of the highest paid person in each of the geographical areas and the percentage increase in the median total annual compensation (fixed remuneration plus accrued variable remuneration and pension contributions) of all employees in the same geographical area, taking full-time annualized remuneration, excluding the highest paid person.

The total annual compensation of the highest paid person for the year 2022 shows an increase greater than the increase in the total annual compensation of the rest of the employees in all geographical areas.

In the case of BBVA, S.A. in Spain, for the year 2022, the increase in the total annual compensation of the highest paid person is 3.1 times higher than the increase in the median total annual compensation of the rest of the employees; In Mexico, this figure is twice as high, in Turkey, once, in Colombia, 3.5 times, in Peru, 4.9 times, in Argentina, 1.1 times, and in Uruguay, 0. 2 times. In Chile, the increase in the total annual compensation of the highest paid person has been 0.3 times lower than the increase in the median total annual compensation of the rest of the employees.
Strategy, policies and practices
2-22 Statement on sustainable development strategy The non-financial information report is part of the Management Report and the Consolidated Financial Statements, which are prepared by the Board of Directors as responsible social body, in the meeting held on February 9, 2023, and will be subject to approval by the next General Shareholders' Meeting.
2-23 Policy commitments Risk management
NFIS/Strategy/Purpose, values and strategic priorities, Our Objectives
NFIS/Our stakeholders/Employees/Culture and values
NFIS/Our stakeholders/Society/Commitment to Human Rights
2-24 Embedding policy commitments The commitments and policies that the BBVA Group applies to the following aspects are indicated in their corresponding sections:
Customers => NFIS/Our interest groups/Customers
Employees => NFIS/Our stakeholders/Employees
Shareholders and investors => NFIS/Our stakeholders/Shareholders and investors
Contribution to society => NFIS/Our stakeholders/Society/Contribution to society
Commitment to develop all its activities and businesses in compliance with current legislation and in accordance with strict canons of ethical behavior => NFIS/Our stakeholders/Society/Compliance and conduct
Fiscal => NFIS/Our stakeholders/Society/Fiscal transparency
Commitment to Human Rights => NFIS/Our interest groups/Society/Commitment to Human Rights
Suppliers => NFIS/Our interest groups/Society/Suppliers
Regulators and supervisors => NFIS/Our stakeholders/Regulators and supervisors
Commitments related to climate change and other environmental and social issues => NFIS/Report on climate change and other environmental and social issues
Risk management => Management report/Risk management
2-25 Processes to remediate negative impacts NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis
2-26 Mechanisms for seeking advice and raising concerns NFIS/Our stakeholders/Society/Commitment to Human Rights
2-27 Compliance with laws and regulations In this metric, monetary sanctions (or judicial rulings on said sanctions) are considered above a materiality threshold of €1m per sanction, imposed or appealed in 2022, and the non-monetary sanctions associated with the previous ones.
For issues related to corruption, please refer to the information included in the GRI 205-3 metric.
For issues related to competition, please refer to the information included in the GRI 206 metric.
For issues related to data privacy, please refer to the information included in the GRI 418 and SASB CF 220a.2 metrics. Additionally, the appeal filed in 2022 in relation to the sanction imposed on BBVA, S.A. is reported. in 2020 by the Spanish Agency for Data Protection for a total of €5m for alleged violation of Regulation (EU) 2016/679 general data protection. It has not generated monetary losses in 2022.
For the purposes of determining non-compliance related to the provision of products and services, administrative sanctions (or court rulings on said sanctions) imposed or appealed in the year 2022 to/by Covered Entities, which exceed the materiality threshold, are considered for alleged infringements of the following types of rules:
(i) Regulations on unfair terms and lack of transparency with consumers, such as Directive 93/13, on unfair terms in contracts entered into with consumers and Royal Legislative Decree 1/2007, which approves the consolidated text of the General Law for the Defense of Consumers and Users, and equivalent regulations outside the EU.
There are no sanctions imposed in 2022 on Covered Entities that exceed the materiality threshold for non-compliance with the above.
(ii) Regulations relating to good practices used in credit operations granted to customers.
The appeal filed in 2022 in relation to the sanction imposed on BBVA, S.A. is reported. in March 2020 by the Bank of Spain for a total of €6m for alleged breaches of the Code of Good Practices. It has not generated monetary losses in 2022.
For the purposes of determining non-compliances related to tax aspects, the sanctions (or judicial rulings on said sanctions) imposed or appealed in the year 2022, to/by the Covered Entities, that exceed the materiality threshold, for alleged tax fraud of Said Entity (not third parties) understood as one that, in the opinion of the tax authorities in the corresponding jurisdiction, could be considered tax fraud, in accordance with current regulations (thus excluding ordinary inspection procedures by the tax authorities that may lead to the questioning of positions or tax criteria adopted as long as they are not considered tax fraud). There are no sanctions imposed or appealed in 2022 against Covered Entities, which exceed the materiality threshold, for non-compliance with the above..
There are no sanctions (or court rulings on said sanctions) imposed or appealed in 2022 against/by Covered Entities, that exceed the materiality threshold, for alleged violations of the labor regulations applicable to the Entity.
There are no administrative sanctions (or court rulings on said sanctions) imposed or appealed in 2022 against/by Covered Entities, which exceed the materiality threshold, for alleged infringements of the environmental regulations applicable to the Entity (1).
2-28 Membership associations NFIS/Our stakeholders/Society/ Compliance and conduct
NFIS/Our stakeholders/Society/Contribution to society
Stakeholder engagement
2-29 Approach to stakeholder engagement NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis
2-30 Collective bargaining agreements NFIS/Our stakeholders/Employees/Work environment
GRI 3: MATERIAL TOPICS
Disclosures on material topics
3-1 Process to determine material topics NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis
3-2 List of material topics NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis

(1) The information included in this metric covers entities that are members of the BBVA Group as of December 31, 2022 that are considered banks, insurance companies, investment fund managers or payment entities (referred to as the "Covered Entities"). The concept "monetary losses" includes the amounts paid, provisionally or definitively (without defense expenses in general), by the entity in question, during the financial year 2022, excluding those derived from purely internal claims (customer service or customer advocate). The Fixing Rate as of 31/12/2022 is applied as the exchange rate.

Indicator Chapter/Section Scope Material aspects identified and coverage
Economic performance
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/ Risks and opportunities associated with climate change
NFIS/Our stakeholders/Employees/Remuneration
Consolidated Financial Statements (Notes 2.2.12 and 25)
NFIS/Our stakeholders/Society/Fiscal transparency
 Global Solvency and financial results
Climate change
Commitment to employees
GRI 201
Economic performance 		201-1 Direct economic value generated and distributed The direct economic value generated during the 2022 financial year amounts to €24,550m (2021: €21,233m). The total direct economic value distributed is €15,685m in the same period (2021: €10,843m). As a result, the retained economic value (Direct economic value generated - Total direct economic value distributed) amounts to €8,898m (2021: €10,419m). Global Solvency and financial results
201-2 Financial implications and other risks and opportunities due to climate change NFIS/Report on climate change and other environmental and social issues/Risks and opportunities associated with climate change Global Climate change
201-3 Defined benefit plan obligations and other retirement plans NFIS/Our stakeholders/Employees/Remuneration Consolidated Financial Statements (Notes 2.2.12 and 25) Global Solvency and financial results Commitment to employees
201-4 Financial assistance received from government NFIS/Our stakeholders/Society/Fiscaltransparency Global Solvency and financial results
Indicator Chapter/Section Scope Material aspects identified and coverage
Market presence
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Employees/Remuneration Global Commitment to employees
Diversity and work-life balance
GRI 202
Market presence 		202-1 Ratios of standard entry level wage by gender compared to local minimum wage NFIS/Our stakeholders/Employees/Remuneration Global Commitment to employees
Diversity and work-life balance
202-2 Proportion of senior management hired from the local community The percentage of management team working in their country of birth in the countries where the Group operates is 92.4% on December 31, 2022 (2021: 95.8%). Global Commitment to employees
Diversity and work-life balance
Indicator Chapter/Section Scope Material aspects identified and coverage
Indirect economic impacts
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues
NFIS/Our stakeholders/Society/Contribution to society 		Global Inclusive growth
GRI 203
Indirect economic impacts 		203-1 Infrastructure investments and services supported NFIS/Report on climate change and other environmental and social issues
NFIS/Our stakeholders/Society/Contribution to society 		Global Inclusive growth
203-2 Significant indirect economic impacts NFIS/Report on climate change and other environmental and social issues
NFIS/Our stakeholders/Society/Contribution to society 		Global Inclusive growth
Indicator Chapter/Section Scope Material aspects identified and coverage
Procurement practices
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Suppliers Global Inclusive growth
Human Rights
GRI 204
Procurement practices 		204-1 Proportion of spending on local suppliers NFIS/Our stakeholders/Suppliers Global Inclusive growth
Human Rights
Indicator Chapter/Section Scope Material aspects identified and coverage
Anti-corruption
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Compliance and conduct
NFIS/Our stakeholders/Society/Contribution to society 		Global Corporate governance and adequate managementof all risks
Business ethics, culture and customer protection
GRI 205
Anti-corruption 		205-1 Operations assessed for risks related to corruption NFIS/Our stakeholders/Society/Compliance and conduct
NFIS/Our stakeholders/Society/Contribution to society 		Global Corporate governance and adequate managementof all risks
Business ethics, culture and customer protection
205-2 Communication and training about anti-corruption policies and procedures NFIS/Our stakeholders/Society/Compliance and conduct Global Corporate governance and adequate managementof all risks
Business ethics, culture and customer protection
205-3 Confirmed incidents of corruption and actions taken GRI 205-3(1):
GRI 205-3 a), b) and c):
The information refers to confirmed cases, that is, in which there is a firm sanction that entails its publication or final judgment issued in 2022, against any of the Covered Entities, for acts related to corruption (understood including acts of money laundering). according to the definition of the metric), including final convictions of a Covered Entity as subsidiary civil liability for crimes committed by its employees. Therefore, those cases in which the entity is the victim of the illegal conduct and those in which, due to the establishment of a strict liability system by law, the entity has to take charge of the amounts subject to fraud by a third party, are excluded. to a client.
A firm sanction imposed in 2022 by the Mexican National Banking and Securities Commission against BBVA Mexico is reported as a result of a regular review process of AML-related regulations in 2018, in which minor inconsistencies were detected in regulatory reports. Said final sentence amounts to an amount of approximately 179 thousand euros. It has not resulted in the dismissal of any employee or the termination or non-renewal of contracts with suppliers or customers.
GRI 205-3 d):
The information refers to public and notorious cases, filed or in progress in 2022, against Covered Entities or their employees, for alleged acts related to corruption (in the sense indicated in the previous sections), in which no final judgment has been handed down:
(i) an ongoing process is reported against BBVA, S.A. for alleged violations of Law 10/2010, of April 28, on the prevention of money laundering and terrorist financing, which led to the imposition of a penalty prior to the year 2022 for an amount of €13.1, and that it has not generated payments in the financial year 2022. The resolution is not final, having filed a contentious-administrative lawsuit against it;
(ii) the Spanish judicial authorities are investigating the activities of the company Centro Exclusivo de Negocios y Transacciones, S.L. (Cenyt). This investigation includes the provision of services to BBVA, S.A. (the bank). In this regard, on July 29, 2019, the Bank was notified of the order of the Central Investigating Court No. 6 of the National Court, declaring the Bank as an investigated party in preliminary proceedings 96/2017 - piece of investigation number 9 for alleged facts that could constitute the crimes of bribery, disclosure of secrets and corruption in business. On February 3, 2020, the Bank was notified of the order of the Central Investigating Court No. 6 of the National Court, which agreed to lift the secrecy of the proceedings. Certain current and former Group managers and employees, as well as former directors, are also being investigated in connection with this case, having shared with justice the relevant documentation obtained in the internal investigation contracted by the entity in 2019 to contribute to the clarification of the facts. As of the date of approval of the Financial Statements, no formal accusation has been made against the Bank for any crime. The aforementioned criminal procedure is in the investigation phase. Therefore, it is not possible to predict at this time its scope or duration or all its possible results or implications for the Group, including potential fines and damages or damages to the Group's reputation. 		Global Corporate governance and adequate management of all risks
Business ethics, culture and customer protection
Indicator Chapter/Section Scope Material aspects identified and coverage
Anti-competitive behavior
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Compliance and conduct Global Corporate governance and adequate management of all risks
Business ethics, culture and customer protection
GRI 206
Anti-competitive behavior 		206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices A total number of 6 civil and administrative judicial processes are reported in progress in fiscal year 2022, in which it is being investigated whether any of the Covered Entities has participated in alleged anti-competitive agreements or in abuses of a dominant position prohibited under the regulations of applicable jurisdiction, such as the Spanish Competition Law, the competition provisions of the Treaty on the Functioning of the European Union, and equivalent regulations in other countries outside the EU.
In some of these ongoing processes, resolutions favorable to the Covered Entity have been issued, although they are not yet final. In 2022, no sanctions have been imposed in relation to any of these processes, nor have any monetary losses been incurred.
Additionally, there are 5 civil and administrative proceedings in progress or completed in 2022 against Covered Entities for alleged infringement of unfair competition regulations, which do not entail payments in 2022 (1). 		Global Corporate governance and adequate management of all risks
Business ethics, culture and customer protection
Indicator Chapter/Section Scope Material aspects identified and coverage
Tax
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Fiscal transparency Consolidated Financial Statements (Appendix XIII) Global Solvency and financial results
GRI 207
Tax 		207-1 Approach to tax NFIS/Our stakeholders/Society/Fiscal transparency Global Solvency and financial results
207-2 Tax governance, control, and risk management NFIS/Our stakeholders/Society/Fiscal transparency Global Solvency and financial results
207-3 Stakeholder engagement and management of concerns related to tax NFIS/Our stakeholders/Society/Fiscal transparency Global Solvency and financial results
207-4 Country-by-country reporting NFIS/Our stakeholders/Society/Fiscal transparency Consolidated Financial Statements (Appendix XIII) Global Solvency and financial results
Indicator Chapter/Section Scope Material aspects identified and coverage
Materials
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table Global Climate change
GRI 301
Materials 		301-1 Materials used by weight or volume NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table Global Climate change
301-2 Recycled input materials used The paper used by BBVA for consumption and reported in the Environmental Footprint Table is recycled or environmentally certified in most geographical areas (Argentina, Colombia, Spain, Mexico, Peru, Turkey and Portugal) amounts to 79,2% Global Climate change
301-3 Reclaimed products and their packaging materials Due to the economic activity of BBVA, the only products that could be considered in the report are those coming from the activity of the branches and the restaurants linked to them.. As the volume of these products is small and the financial activity itself linked to BBVA's business is completely separated from them, this metric is considered non-material.
Indicator Chapter/Section Scope Material aspects identified and coverage
Energy
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts(2), Evolution of the Global Eco-efficiency Plan Indicators Table, Environmental Footprint Table Global Climate change
GRI 302
Energy 		302-1 Energy consumption within the organization NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts(2), Evolution of the Global Eco-efficiency Plan Indicators Table, Environmental Footprint Table Global Climate change
302-2 Energy consumption outside of the organization Energy consumption outside the organization from business trips (plane and train) and employee travel amounts to 365.917 Gigajoules (GJ) with the following breakdown:
- 352,286 GJ of Commuting (of Central Services employees)
- 13,631 GJ of Business Travel (train and plane travel)
The conversion factors used have been calculated based on the factors provided by DEFRA. 		Climate change
302-3 Energy intensity NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts(2), Evolution of the Global Eco-efficiency Plan indicators Table. Global Climate change
302-4 Reduction of energy consumption NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of direct environmental impacts(2), Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan indicators Table Global Climate change
302-5 Reductions in energy requirements of products and services Given the nature of the products and services that BBVA sells, it is currently not possible to obtain the information about the reductions of these requirements, according to the defined reporting criteria by the standard. However, the entity reports the reductions in energy consumption inherent to its activity in which it has direct management capacity for the reduction.
Indicator Chapter/Section Scope Material aspects identified and coverage
Water and effluents
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
Natural capital
GRI 303
Water and effluents 		303-1 Interactions with water as a shared resource Due to the economic activity of a financial institution such as BBVA, water consumption is not intensive, being only for employee use, and for vegetation and air conditioning in some buildings. However, BBVA has installed gray water recycling systems and rainwater recirculation for irrigation at the headquarters in Spain and Mexico or the installation of dry urinals in some of the buildings in Spain.
An analysis by geographic area (pessimistic 2030 scenario) of uses is carried out through the WRI tool: Aqueduct Projected Water Stress Country Rankings; with the following result:
- 78.1% of our consumption has a high or extremely high extraction and demand ratio;
- 8.6% of our consumption has a medium extraction and demand ratio;
- 13.3% of our consumption has a low extraction and demand ratio. 		Global Climate change
Natural capital
303-2 Management of water discharge-related impacts Due to the fact that the economic activity of a financial entity such as BBVA, whose effluents are those of the activity of its offices and the restoration linked to them, this metric and its different breakdowns are considered non-material due to their low impact. Therefore, the discharges are considered insignificant and comply with the regulations of the areas in which they are made.
303-3 Water withdrawal Due to the economic activity of a financial entity such as BBVA, no type of water extraction is carried out in any of its buildings
303-4 Water discharge Due to the economic activity of a financial entity such as BBVA, it is considered that the discharge of water is the same as the water consumed Global Climate change
Natural capital
303-5 Water consumption NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
Natural capital
Indicator Chapter/Section Scope Material aspects identified and coverage
Biodiversity
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of indirect environmental and social impacts Global Natural capital
GRI 304
Biodiversity 		304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas The operations centers and / or offices owned, leased or managed by BBVA are located in urban areas far from protected areas or areas of great value for biodiversity. Therefore, it is considered that neither this metric nor its breakdowns are material at present, the entity undertakes to follow-up for its report in the future, if necessary.
304-2 Significant impacts of activities, products, and services on biodiversity The operations centers and / or offices owned, leased or managed by BBVA are located in urban areas, so the impacts of the entity's activities on biodiversity are considered not significant.
Regarding its activity, within the Environmental and Social Framework, BBVA is committed to the loss of biodiversity and the fight against deforestation through its role as a financial intermediary between the economy, the environment and society. For more information on the Framework, the general exclusions and specific prohibited activities defined in this Framework, as well as the methodology that the BBVA Group uses to identify the levels of environmental impact and dependencies, see the NFIS/Report on climate change and other environmental and social issues chapter/ Management of direct and indirect impacts/Management of indirect environmental and social impacts 		Global Natural capital
304-3 Habitats protected or restored The metric describes the size of the protected or restored areas of habitats. BBVA's financial activity, as well as the activity of its offices, has no impact in this regard; therefore, this metric and its various breakdowns are currently considered non-material.
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations The total number of species that appear on the IUCN Red List and national conservation lists, whose habitats are in areas affected by the organization's operations, by level of extinction risk (critically endangered, endangered, vulnerable, near threatened and of concern less); it is not material, since BBVA's financial activity, as well as the activity of its offices, does not have an impact in this regard. Therefore, this metric and its various breakdowns are currently considered non-material.
Indicator Chapter/Section Scope Material aspects identified and coverage
Emissions
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table
NFIS/Other information/Compliance tables/Contribution to the Sustainable Development Goals/Impact metrics 		Global Climate change
GRI 305
Emissions 		305-1 Direct (Scope 1) GHG emissions NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Table of Evolution of the Global Eco-efficiency Plan Indicators.
In addition to the published data on Scope 1 emissions in tCO2e, the breakdown by other types of GHG is:
- CO2: 21,174.51 tCO2
- CH4: 52.33 t CH4
- N2O: 69.81 t N2O
The emission factors used have been calculated based on the 2006 IPCC Guidelines for National Greenhouse Gas Inventories emission factors for GHG emissions from facility fuels and DEFRA emission factors are used for diesel and gasoline from vehicle fleets. Emissions from refrigerant gases are not included in this breakdown, since DEFRA's emission factors for the "Refrigerant & Other" category only indicate CO2 equivalent. 		Global Climate change
305-2 Energy indirect (Scope 2) GHG emissions NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Table of Evolution of the Global Eco-efficiency Plan Indicators.
In addition to the published data on Scope 2 emissions in tCO2e, the breakdown by other types of GHG is: MARKET-BASED:
- CO2: 12,030.11 tCO2
- CH4: 17.74 t CH4
- N2O: 25.58 t N2O
LOCATION-BASED:
- CO2: 205,795.52 t CO2
- CH4: 169.37 t CH4
- N2O: 562.10 t N2O
The emission factors used are calculated based on contractual data and, failing that, on the latest emission factors available from the IEA for each country. 		Global Climate change
305-3 Other indirect (Scope 3) GHG emissions NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Table of Evolution of the Global Eco-efficiency Plan Indicators.(2)(4)
In addition to the published data on Scope 3 emissions in tCO2e (train and plane business travel category), the breakdown by other types of GHG is:
- CO2: 14,622.43 tCO2
- CH4: 1.77 t CH4
- N2O: 74.58 t N2O
Emissions from waste management or employee commuting are not included in this breakdown.
The emission factors used are those published by DEFRA in 2021. 		Global Climate change
305-4 GHG emissions intensity NFIS/Other information/Compliance tables/Contribution to the Sustainable Development Goals/Impact metrics Global Climate change
305-5 Reduction of GHG emissions NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table (2) (3) Global Climate change
305-6 Emissions of ozone-depleting substances (ODS) This metric includes ODS production, imports and exports in metric tons of CFC 11 (trichlorofluoromethane) equivalent and standards, methodologies, etc. necessary for its calculation.
Since BBVA's economic activity is that of a financial institution, no substances that deplete the ozone layer are produced or exported and/or imported.
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions BBVA emissions of other types of pollutants into the atmosphere are:
- NOx: 13,936.67 tNOx
- SOx: 3,868.61 tSOx
These data only include emissions due to the use of fuels in the facilities of BBVA buildings. The factors used are those published by the European Environmental Agency: "EMEP/EEA air pollutant emission inventory guidebook 2019" for the "Commercial / institutional: stationary" sector, "Tier 1" typology for each of the types of fuels. 		Global Climate change
Indicator Chapter/Section Scope Material aspects identified and coverage
Waste
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
GRI 306
Waste 		306-1 Waste generation and significant waste-related impacts NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
306-2 Management of significant waste-related impacts NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
306-3 Waste generated NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
306-4 Waste diverted from disposal NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
306-5 Waste directed to disposal NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Eco-efficiency Plan Indicators Table Global Climate change
Indicator Chapter/Section Scope Material aspects identified and coverage
Supplier Environmental Assessment
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Suppliers Global Climate change
Business ethics, culture and customer protection
GRI 308
Supplier Environmental Assessment 		308-1 New suppliers that were screened using environmental criteria BBVA launched in Spain a supplier evaluation pilot with ESG criteria to reinforce a responsible supply chain. The model covers a wide range of aspects evaluated in terms of sustainability and will be progressively implemented in all geographical areas where the Group has a significant environmental and social footprint during 2023.
NFIS/Our stakeholders/Suppliers 		Global Climate change
Business ethics, culture and customer protection
308-2 Negative environmental impacts in the supply chain and actions taken BBVA launched in Spain a supplier evaluation pilot with ESG criteria to reinforce a responsible supply chain. The model covers a wide range of aspects evaluated in terms of sustainability and will be progressively implemented in all geographical areas where the Group has a significant environmental and social footprint during 2023.
NFIS/Our stakeholders/Suppliers 		Global Climate change
Business ethics, culture and customer protection
Indicator Chapter/Section Scope Material aspects identified and coverage
Employment
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Employees/Professional development
NFIS/Our stakeholders/Employees/Working environment/Work organization 		Global Commitment to employees
Diversity and work-life balance
GRI 401
Employment 		401-1 New employee hires and employee turnover NFIS/Our stakeholders/Employees/Professional development Global Commitment to employees
Diversity and work-life balance
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Due to the low percentage of employees with part-time and temporary contracts of BBVA in the period of the year, this metric and its breakdown are considered non-material; since the conditions and benefits received by employees are regulated by collective agreements, social agreements and other tools that guarantee fair treatment and adequate conditions to the particular characteristics of the contracts established with employees. However, the entity will monitor this metric to ensure that its annual report adjusts to the situation for the period.
401-3 Parental leave NFIS/Our stakeholders/Employees/Working environment/ Work organization Global Commitment to employees
Diversity and work-life balance
Indicator Chapter/Section Scope Material aspects identified and coverage
Labor/Management relations
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Employees Global Commitment to employees
GRI 402
Labor/Management relations 		402-1 Minimum notice periods regarding operational changes The significant organizational changes foreseen in the collective bargaining agreements are analyzed on a case-by-case basis, so the negative impact on employees can be avoided or mitigated. Global Commitment to employees
Indicator Chapter/Section Scope Material aspects identified and coverage
Occupational health and safety
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
GRI 403
Occupational health and safety 		403-1 Occupational health and safety management system NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-2 Hazard identification, risk assessment, and incident investigation NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-3 Occupational health services NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-4 Worker participation, consultation, and communication on occupational safety and health NFIS/Our stakeholders/Employees/Working environment/Occupational health and safety
The frequency of the health and safety committees in the countries (with the exception of Spain and Mexico) is as follows:
In Peru, the Health and Safety Committees meet monthly. The responsibilities are described in the national legislation in relation to the approval of the evaluation of the Occupational Health and Safety (OSH) policy, Internal OSH Regulations, Annual OSH Plan, training schedule, etc.
The Colombian Committee also meets monthly and addresses different topics focused on the Occupational Health and Safety Management System, which includes the promotion of worker health and safety, prevention of work accidents and occupational diseases. , among others.
In Chile, there is a Joint Hygiene and Safety Committee, required by law in companies with more than 25 workers.
In Uruguay, there is a "Labor Well-being and Working Conditions" committee that meets every six months, created by the August/2013 Collective Agreement, whose objective is to receive, analyze and process solutions to possible problems raised regarding working conditions. from the work context that may affect personal well-being and the correct performance of tasks.
In Venezuela there are also Health and Safety Committees in each building.
In Bolivia, the Mixed Occupational Hygiene and Safety Committee also meets quarterly and its function is to ensure compliance with all safety and hygiene measures at work. 		Global Commitment to employees
403-5 Worker training on occupational safety and health NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-6 Promotion of worker health NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-8 Workers covered by an occupational health and safety management system NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Global Commitment to employees
403-9 Work-related injuries NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health Spain Commitment to employees
403-10 Work-related ill health NFIS/Our stakeholders/Employees/Working environment/Occupational safety and health
Given the nature of BBVA's activity, no high risk of serious diseases related to the workers' occupation has been identified 		Spain Commitment to employees
Indicator Chapter/Section Scope Material aspects identified and coverage
Training and education
GRI 3
Material topics 		3-3 Management of material topics The best and most engaged team/Professional development Global Commitment to employees
GRI 404
Training and education 		404-1 Average hours of training per year per employee NFIS/Our stakeholders/Employees/Professional development Global Commitment to employees
404-2 Programs for upgrading employee skills and transition assistance programs NFIS/Our stakeholders/Employees/Professional development Global Commitment to employees
404-3 Percentage of employees receiving regular performance and career development reviews Performance evaluation is a continuous process carried out over the year, which analyzes the level of performance of each of the BBVA Group employees, based on the level of execution of some previously established targets.
In general, this process applies to all the Group's employees. 		Global Commitment to employees
Indicator Chapter/Section Scope Material aspects identified and coverage
Diversity and equal opportunity
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Employees/Professional development
Annual Corporate Governance Report (section C)
NFIS/Our stakeholders/Employees/Remuneration 		Global Diversity and work-life balance
GRI 405
Diversity and equal opportunity 		405-1 Diversity of governance bodies and employees NFIS/Our stakeholders/Employees/Professional development Annual Corporate Governance Report (section C)
The age groups are reported according to the ranges of <30 years / between 30 and 39 years / between 30 and 39 years / ≥50 years 		Global Diversity and work-life balance
405-2 Ratio of basic salary and remuneration of women to men NFIS/Our stakeholders/Employees/Remuneration Global Diversity and work-life balance
Indicator Chapter/Section Scope Material aspects identified and coverage
Non-discrimination
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Employees/Proffesional development/Diversity, inclusion and different capacities
NFIS/Our stakeholders/Society/Commitment to Human Rights 		Global Human Rights
Diversity and work-life balance
GRI 406
Non-discrimination 		406-1 Incidents of discrimination and corrective actions taken During financial year 2022, the sexual harassment protocol has been activated in the Group on 13 occasions, having verified the existence of sexual harassment in 8 cases that ended in the dismissal of the people reported. The moral harassment protocol has been activated on 1 occasion, and in this case there is no conduct constituting moral harassment. During the 2021 financial year, the protocol for sexual or moral harassment was not activated.
NFIS/Our stakeholders/Employees/Proffesional development/Diversity, inclusion and different capacities
NFIS/Our stakeholders/Society/Commitment to Human Rights 		Global Human Rights
Diversity and work-life balance
Indicator Chapter/Section Scope Material aspects identified and coverage
Freedom of association and collective bargaining
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Suppliers
NFIS/Our stakeholders/Employees/Working environment/Freedom of association and representation 		Global Human Rights
Commitment to employees
GRI 407
Freedom of association and collective bargaining 		407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk BBVA has not identified any operations or suppliers as having significant risk related to freedom of association and collective bargaining Global Human Rights
Commitment to employees
Indicator Chapter/Section Scope Material aspects identified and coverage
Child labor
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Suppliers Global Human Rights
GRI 408
Child labor 		408-1 Operations and suppliers at significant risk for incidents of child labor BBVA has not identified any operations or suppliers as having significant risk related to child labor Global Human Rights
Indicator Chapter/Section Scope Material aspects identified and coverage
Forced or compulsory labor
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Suppliers Global Human rights
GRI 409
Forced or compulsory labor 		409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor BBVA has not identified any operations or suppliers as having significant risk related to forced or compulsory labor Global Human rights
Indicator Chapter/Section Scope Material aspects identified and coverage
Security practices
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Commitment to Human Rights Global Human Rights
GRI 410
Security practices 		410-1 Security personnel trained in human rights policies or procedures In most of the geographic areas where BBVA operates, national legislation requires that security guards must have specific official qualifications or trainings whose agendas, in many cases, include elements directly related to the respect of the human rights. At BBVA, security personnel is a 100% a outsourced service. In 2021, the evaluation procedure was strengthened, as an improvement plan arising from the Human Rights Due Diligence Plan carried out in 2021, in relation to the actions of said service in order to carry out a periodic analysis and control at BBVA Group facilities with a focus on potential misuse of force. Global Human Rights
Indicator Chapter/Section Scope Material aspects identified and coverage
Rights of indigenous peoples
GRI 3
Material topics 		3-3 Management of material topics NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/Management of indirect environmental and social impacts/Ecuador principles Global Human Rights
GRI 411
Rights of indigenous peoples 		411-1 Incidents of violations involving rights of indigenous people BBVA has reinforced due diligence procedures associated with the financing of projects whose development affects indigenous peoples. When this circumstance happens, the free, prior and informed consent (FPIC) of these people must be obtained regardless of the geographic location of the project. What it means to expand the current requirement of PEs to all the countries in which the Group operates. In 2022, a total of 40 operations have been evaluated (42 operations evaluated in 2021). (4) Global Human Rights
Indicator Chapter/Section Scope Material aspects identified and coverage
Human rights assessment
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Commitment to Human Rights
NFIS/Our stakeholders/Suppliers (5) 		Global Human Rights
Business ethics, culture and customer protection
GRI 412
Human rights assessment 		412-1 Operations that have been subject to human rights reviews or impact assessments BBVA has not identified any significant impacts with respect to human rights in its workplaces. Global Human Rights
412-2 Employee training on human rights policies or procedures During the 2022 financial year, 71,834 attendees from the different geographical areas in which BBVA operates have completed a total of 112,836 hours of internal training in courses related to Human Rights. Specifically, these courses include both those in which their content covers one or more of the 28 issues of the internal taxonomy of Human Rights topics, prepared by the Sustainability area, as well as those courses that incorporate general content on Human Rights.
BBVA counts the number of attendees taking each course. Each employee has the possibility of attending more than one training in the reporting period. 		Global Human Rights
Business ethics, culture and customer protection
412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening NFIS/Our stakeholders/Society/Commitment to Human Rights
NFIS/Our stakeholders/Suppliers(5) 		Global Human Rights
Business ethics, culture and customer protection

General note: With the update of the GRI "Universal Standards" in 2021, the contents of the GRI 412 thematic standard "Assessment of human rights" were incorporated into the revised Universal Standards. However, in order to improve the understanding of the information on Human Rights, the breakdowns on the GRI 412 thematic standard are maintained in its 2016 version.

Indicator Chapter/Section Scope Material aspects identified and coverage
Society
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Contribution to society Global Inclusive growth
Business ethics, culture and customer protection
GRI 413
Local communities 		413-1 Operations with local community engagement, impact assessments, and development programs NFIS/Our stakeholders/Society/Contribution to society NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Equator principles Global Inclusive growth
Business ethics, culture and customer protection
413-2 Operations with significant actual and potential negative impacts on local communities NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Equator principles
BBVA provides information on the most relevant social and environmental impacts and the management applied to investment projects financed and advised by the bank within the framework of the Equator Principles at https:// shareholdersandinvestors.bbva.com/sustainability-and-responsible- banking/principles-and-policies/responsible-project-finance/ 		Global Inclusive growth
Business ethics, culture and customer protection
Indicator Chapter/Section Scope Material aspects identified and coverage
Supplier Social Assessment
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Suppliers Inclusive growth
Business ethics, culture and customer protection Human Rights
GRI 414
Supplier Social Assessment 		414-1 New suppliers that were screened using social criteria BBVA launched in Spain a supplier evaluation pilot with ESG criteria to reinforce a responsible supply chain. The model covers a wide range of aspects evaluated in terms of sustainability and will be progressively implemented in all geographical areas where the Group has a significant environmental and social footprint during 2023.
NFIS/Our stakeholders/Suppliers 		Global Inclusive growth
Business ethics, culture and customer protection Human Rights
414-2 Negative social impacts in the supply chain and actions taken BBVA launched in Spain a supplier evaluation pilot with ESG criteria to reinforce a responsible supply chain. The model covers a wide range of aspects evaluated in terms of sustainability and will be progressively implemented in all geographical areas where the Group has a significant environmental and social footprint during 2023.
NFIS/Our stakeholders/Suppliers 		Global Inclusive growth
Business ethics, culture and customer protection Human Rights
Indicator Chapter/Section Scope Material aspects identified and coverage Public policy
Public policy
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Society/Compliance and conduct
NFIS/Our stakeholders/Society/Contribution to society 		Global Business ethics, culture and customer protection
GRI 415
Public policy 		415-1 Political contributions BBVA's policy in countries does not allow contributions of this type
NFIS/Our stakeholders/Society/Compliance and conduct
NFIS/Our stakeholders/Society/Contribution to society 		Global Business ethics, culture and customer protection
Indicator Chapter/Section Scope Material aspects identified and coverage
Customer health and safety
GRI 416
Customer health and safety 		416-1 Assessment of the safety and health impacts of product and service categories Due to the characteristics of BBVA's economic activity as a financial entity and of the products and services offered, the evaluation of the impacts on safety and health of the product categories and services is not material.
416-2 Incidents of non-compliance concerning the safety and health impacts of products and services Due to the characteristics of BBVA's economic activity as a financial entity and the products and services it offers, there are no cases of non-compliance regarding the impacts on safety and health of the categories of products and services that give rise to fines or sanctions, warnings or non-compliance with voluntary codes. Therefore, this metric is not material.
Indicator Chapter/Section Scope Material aspects identified and coverage
Marketing and labeling
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Customers/Behavior with customers
NFIS/Our stakeholders/Society/Compliance and conduct 		Global Simplicity, agility and self-service
Financial health and personalized advice to customers
Business ethics, culture and customer protection
GRI 417
Marketing and labeling 		417-1 Requirements for product and service information and labeling The Product Governance Policy establishes the principles to be observed in order to serve the interests of customers throughout the product life cycle. The Product Governance and Operational Risk Admission Committee evaluates, among others, the information and labeling requirements of the products prior to their launch.
For further details on other measures or lines of action promoted by BBVA in the field of information and labeling of products and services, see the section "Clients" within the chapter "Our stakeholders" of this report (6). 		Global Simplicity, agility and self-service
Financial health and personalized advice to customers
Business ethics, culture and customer protection
417-2 Incidents of non-compliance concerning product and service information and labeling In 2022 , the following has been identified (7):
A fine of 10 thousand euros imposed on BBVA Argentina by the Secretary of Commerce for non-compliance with the Consumer Protection Law (No. 24,240) and the Annex to Resolution No. 104/2005 as a result, among other reasons, of the lack of a link to the Consumer Defense on the web. The fine has been paid. The fine is being appealed in contentious-administrative proceedings. 		Global Simplicity, agility and self-service
Financial health and personalized advice to customers
Business ethics, culture and customer protection
417-3 Incidents of non-compliance concerning marketing communications In 2022, the following has been identified (8):
A fine of 10 thousand euros imposed on BBVA Argentina by the Secretary of Commerce for non-compliance with the Consumer Defense Law (No. 24,240) as a result of the lack of information in advertising. The fine has been paid. The fine is being appealed in contentious-administrative proceedings. 		Global Simplicity, agility and self-service
Financial health and personalized advice to customers
Business ethics, culture and customer protection
Indicator Chapter/Section Scope Material aspects identified and coverage
Customer privacy
GRI 3
Material topics 		3-3 Management of material topics NFIS/Our stakeholders/Customers/Customer care
NFIS/Our stakeholders/Customers/Customer security and protection Consolidated Financial Statements (Note 24) 		Global Cibersecurity
Responsible use of data
Business ethics, culture and customer protection
GRI 418
Customer privacy 		418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Substantiated claims information is included in:
NFIS/Our stakeholders/Customers/Customer care
NFIS/Our stakeholders/Customers/Customer security and protection
Information related to judicial and administrative proceedings is included in:
SASB CF 220a.2 "Total amount of monetary losses as a result of legal proceedings related to customer privacy" 		Global Cibersecurity
Responsible use of data
Business ethics, culture and customer protection

(1) The information included in this metric covers entities that are members of the BBVA Group as of December 31, 2022 that are considered banks, insurance companies, investment fund managers or payment entities (referred to as the "Covered Entities"). The concept "monetary losses" includes the amounts paid, provisionally or definitively (without defense expenses in general), by the entity in question, during the financial year 2022, excluding those derived from purely internal claims (customer service or customer advocate). The Fixing Rate as of 31/12/2022 is applied as the exchange rate.

(2) The limitations on the scope of the indicator, the perimeter and the criteria followed in the estimates are detailed in the table referenced. The Global Eco-efficiency Plan Indicators have been calculated according to the number of employees of the buildings, understanding as such the sum of the average workforce and the estimation of the third parties that work in the Bank's facilities.

(3) In relation to business trips, only the emissions derived from the plane and train trips of Group employees are reported.

(4) It is only reported on operations analyzed in relation to compliance with the Equator Principles.

(5) The information regards employees trained in BBVA's Code of Conduct

(6) The information refers to the systematized approval processes to which the products that the entities of the BBVA Group manufacture or distribute as of December 31, 2022, as well as other measures or lines of action promoted by said entities in the field of information transparency.

(7) The information refers to the number of warnings and/or sanctioning proceedings of a public nature, in progress or completed, that the supervisory bodies have indicated during the financial year to some of the entities of the BBVA Group as of December 31, 2022 as consequence of breaches of regulations or voluntary codes related to the information provided to customers and/or the labeling of products and services. For the purposes of reporting the amount of penalties in euros, the fixed rate at 31/12/2022 is applied as the exchange rate.

(8) The information refers to the number of warnings and/or sanctioning proceedings of a public nature, in progress or completed, that the supervisory bodies have indicated during the financial year to some of the entities of the BBVA Group as of December 31, 2022 as a result of breaches of regulations or voluntary codes related to marketing communications. For the purposes of reporting the amount of penalties in euros, the fixed rate at 31/12/2022 is applied as the exchange rate.

5.2.4 Index of contents of the Principles of Responsible Banking UNEP-FI

UNEP-FI PRINCIPLES FOR RESPONSIBLE BANKING REPORTING INDEX

Reporting and Self-Assessment Requirements High-level summary of the Bank's response Reference(s)/Link(s) to full Bank's response/relevant information
Principle 1: Alignment
Align the business strategy so that it is coherent and contributes to the needs of people and the objectives of society, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.
1.1. BUSINESS MODEL

Describe (in detail) your bank's business model, including the main customer segments served, the types of products and services provided, the main sectors and classes of activities in the main geographic markets in which your bank operates or provides products and services. Also quantify the information disclosed, e.g., the distribution of your bank's portfolio (%) in terms of geographic markets, segments (ie, by balance and/or off-balance sheet) or by disclosing the number of clients served. 		BBVA is a global financial group founded in 1857 with a customer-focused vision, which currently has more than 87 million customers and more than 115,000 employees. BBVA is present in more than 25 countries, has a leading position in the Spanish market, is the largest financial institution in Mexico and has leading franchises in South America and Turkey.

At the end of 2022, BBVA had more than 738 billion assets, 87.4 million customers and 6,050 branches. BBVA focuses its business mainly on retail banking, business banking and corporate and investment banking (Corporate & Investment Banking). 		See section "BBVA in brief. Who we are".
1.2. STRATEGY ALIGNMENT

Does your corporate strategy identify and reflect sustainability as a strategic priority(s) for your bank?
☒ Yes

Please describe how your bank has aligned and/or plans to align its strategy so that it is consistent with the Sustainable Development Goals (SDGs), the Paris Climate Agreement, and relevant national and regional frameworks. 		In 2018, BBVA published its "Objective 2025" based on 3 lines of action:
- Mobilize sustainable business between 2018 and 2025 for an amount of €100,000m to contribute to the fight against climate change and the Sustainable Development Goals. This objective was raised to €200bn in 2021 and up to €300bn in 2022.
- Manage direct and indirect environmental and social risks.
- Involve all stakeholders to collectively promote the contribution of the financial sector to sustainable development.

In 2019, BBVA incorporated sustainability as one of its 6 strategic priorities at a global level, placing sustainability as a business strategy.

See more detail in the sections indicated in this annual report 		See section:
2.1. Strategy. A differential bank for our customers with a unique value proposition
2.3.1 Committed to sustainability
Does your bank also reference any of the following sustainability regulatory reporting requirements or frameworks in its strategic or policy priorities to implement them?

☒ United Nations Guiding Principles on Business and Human Rights
☒ Fundamental Conventions of the International Labor Organization
☒ United Nations Global Compact
☒ United Nations Declaration on the Rights of Indigenous Peoples
☒ Any applicable regulatory reporting requirements on environmental risk assessments, e.g., on climate risk
☒ All applicable regulatory reporting requirements on social risk assessments, e.g., about modern slavery 		BBVA's commitment to human rights (published on the web) takes the United Nations Guiding Principles on Business and Human Rights as a point of reference. Its purpose is to guide the entire organization in its strategic vision, in its operations and in the relationship with its stakeholders. The commitment assumes the application of the content of:
▰ The Universal Declaration of Human Rights;
▰ The International Bill of Human Rights;
▰ The United Nations Global Compact;
▰ The United Nations Declaration on the Rights of Indigenous Peoples;
▰ The Principles for the Empowerment of Women:
▰ The OECD Guidelines for Multinational Enterprises;
▰ The fundamental conventions of the International Labor Organization (ILO);
▰ The Equator Principles;
▰ The United Nations Principles for Responsible Investment;

In relation to regulatory information requirements on environmental and social risk assessments, it is worth mentioning the following European frameworks (approved or under negotiation) that require reporting or disclosure of ESG aspects and to which BBVA is monitoring:
- CSRD (Corporate Sustainability Reporting Directive) and future standards in the process of being defined by the EFRAG (European Financial Reporting Advisory Group) and the ISSB (International Sustainability Standards Board).
- CSDD (Corporate Sustainability Due Diligence Directive)
- Taxonomy Regulation (art. 8 disclosures - GAR): in addition to art.8, art. 5 and 6 for financial products and in SFDR art. 8 and 9 and the RTS
- IRS (Implementing Technical Standards) of the EBA on Pillar 3 disclosures on Environmental, Social and Governance (ESG) risks
- SFDR (Sustainable Finance Disclosure Regulation) and RTS
- Law 7/2021 Climate Change Law in Spain

Likewise, in 2017, BBVA committed to the FSB's TCFD recommendations and has been reporting TCFD reports in line with its commitment to transparency. In its TCFD 2022 report, BBVA plans to incorporate elements of a Transition Plan for the first time, following the guides and recommendations for financial institutions published by the Glasgow Financial Alliance for Net Zero (GFANZ) in November 2022. 		See section:

2.3.7 Participation in international initiatives

2.3.6 Management of direct and indirect impacts"

See "BBVA and Human Rights" on the web page for shareholders and investors.
Principle 2: Impact and goal setting
Continuously increase positive impacts while reducing negative impacts and manage risks to people and the environment resulting from activities, products and services. To this end, set and publish targets where you can have the most significant impacts.
2.1 IMPACT ANALYSIS

Demonstrate that your bank has conducted an impact analysis of your portfolio(s) to identify your most significant areas of impact and determine priority areas for targeting.

BBVA has carried out an analysis of the impact of its portfolio/s to identify its most significant impact areas and determine the priority areas for setting objectives.
a) Scope: What is the scope of your bank's impact analysis? Describe which parts of the bank's main business areas, products/services in the main geographic markets in which the bank operates (as described in point 1.1) have been considered in the impact analysis. Please also describe which areas have not yet been included and why. 1. In 2022, BBVA has carried out an impact analysis using version 3 of the UNEP-FI Portfolio Impact Analysis Tool for Banks. The Consumer Banking (retail portfolio) and Institutional Banking (wholesale portfolio) business areas have been included. The Investing Banking business area has not been considered as it represents less than 1% of the gross margin of the BBVA Group.
The banking activity of the BBVA Group in Spain, Mexico, Turkey, Peru, Colombia and Argentina has been included. Activity in Chile, Uruguay and Venezuela and a small part of the corporate banking portfolio in Turkey have not been considered.

2. Likewise, BBVA has carried out an evaluation of the dependencies and impacts in relation to natural capital using the ENCORE tool.

3. Additionally, in line with the United Nations Guiding Principles on Business and Human Rights, in 2021 BBVA carried out a new Human Rights due diligence process in order to prevent, mitigate and remedy potential impacts on human rights. 		See section:
2.2 Our stakeholders Commitment to Human Rights
3. Financial information" In addition to the Impact Analysis Tool for Banks UNEP-FI.
b) Portfolio composition: Has your bank considered the composition of your portfolio (in %) in the analysis? Please provide a proportionate composition of your portfolio globally and by geographic scope i) by sectors and industries for business, corporate and investment banking portfolios (i.e. sector exposure or breakdown by industry in %), and/or ii) by products and services and by types of customers for consumer and individual banking portfolios.

If your bank has taken another approach to determining the scale of the bank's exposure, please provide further details, to show how you have considered where the bank's core or principal activities lie in terms of industries or sectors. 		The scope of this impact analysis covers 98.91% of the retail portfolio (Consumer Banking) and 99.11% of the business and corporate banking portfolio (Institutional Banking).

The composition of the portfolio has been broken down worldwide and by geographical scope, dividing it by type of product and type of client (in the case of Consumer Banking) and by NACE of financed activity sectors (in the case of Institutional Banking).

1. Consumer Banking. Geographic distribution of the portfolio: 58.62% Spain, 19.62% Mexico, 8.58% Turkey, 5.33% Peru, 5.27% Colombia and 1.49% Argentina.

The most relevant products for low-income customers are:
64.81-034 Home loans/mortgages and
64.81-032 Consumer loans & overdraft.
The type of client has also been taken into account (low-income clients vs. other clients)

2. Institutional Banking. Geographic distribution of the portfolio: 62.55% Spain, 16.91% Mexico, 10.89% Turkey, 5.07% Peru, 2.91% Colombia and 0.78% Argentina.
The most relevant sectors at the Exposure at Default level are:
84 Public administration and defense; compulsory social security
35 Electricity, gas, steam and air conditioning supply
46 Wholesale trade, except of motor vehicles and motorcycles
61 Telecommunications
68 Real estate activities 		Impact Analysis Tool for Banks UNEP-FI.
c) Context: What are the main challenges and priorities related to sustainable development in the main countries/regions in which your bank and/or your customers operate? Please describe how these have been considered, including which stakeholders have been involved to help inform this element of the impact analysis.

This step aims to put the impacts of your bank's portfolio in the context of the needs of society. 		A context analysis has been carried out in Argentina, Colombia, Peru, Spain, Turkey and Mexico from version 3 of the UNEP-FI Portfolio Impact Analysis Tool for Banks "Context Module". This context module includes data sources such as the Sustainable Development Report 2021 and UN Global SDG Database, as well as indicators published by the World Health Organization, World Resources Institute, etc.

This context analysis has been contrasted with the BBVA teams in each of the countries analyzed and has revealed the following as the main challenges and priorities in all the countries considered in the scope:
1. Climate change including Circularity.
2. Inclusive Growth: availability, accessibility, affordability and quality of financial resources and services.
In this sense, the Group's General Sustainability Policy contemplates these issues as the main focuses of action in terms of sustainability. 		Impact Analysis Tool for Banks UNEP-FI.

BBVA global sustainability policy available on the shareholders and investors website
Based on these first three elements of an impact analysis, what areas of positive and negative impact has your bank identified? What areas of significant impact (at least two) did you prioritize to follow your target setting strategy (see 2.2). Disclose. As a result of the analysis described in the previous sections, BBVA has prioritized 2 areas of impact where BBVA believes that it could have a significant impact due to the activity it carries out:
1. Climate change: with a focus on energy efficiency (SDG 7), the circular economy (SDG 12) and the reduction of CO2 emissions (SDG 13)
2. Inclusive growth: with a focus on decent work and economic growth (SDG 8) and on Industry, innovation and infrastructure (SDG 9) with business initiatives around financial inclusion, support for entrepreneurship and inclusive infrastructures.

BBVA has already set impact targets linked to the decarbonisation of its portfolio in the first of these: Climate Change and is working to set impact targets for Inclusive Growth in 2023 as a signatory to the Collective Commitment for Education and Financial Inclusion promoted by UNEP-FI. To do this, it is using the guidelines for banks for UNEP-FI's "Goal Setting for Financial Inclusion and Health". 		See section
Materiality analysis: Identification of relevant aspects of the chapter 2.2 Our stakeholders
2.2.5 Contribution to society
2.3.3 Management of risks associated with climate change and environmental factors
2.3.6 Management of direct and indirect impacts and https:// www.bbva.com/es/sostenibilidad/ bbva-updates-its-progress-in- sustainability-with-the-publication- of-its-third-report -tcfd/
d) Performance measurement: Has your bank identified which sectors and industries, as well as the types of clients it finances or invests in, are causing the strongest real positive or negative impacts? Describe how you evaluated their performance, using appropriate indicators related to significant impact areas that apply to your bank's context.
When determining priority areas for target setting among your areas of greatest significant impact, you should consider the bank's current performance levels, i.e. qualitative and/or quantitative indicators and/or proxies of the resulting social, economic and environmental impacts of the bank's activities and the provision of products and services. If you have identified climate and/ or health and financial inclusion as your most significant impact areas, please also refer to the applicable indicators in the Annex.
If your bank has taken another approach to assess the intensity of the impact resulting from the bank's activities and the provision of products and services, please describe it.
The output of this step will also provide the baseline (including indicators) that you can use to set goals in two areas of greatest impact. 		BBVA has identified the sectors and type of clients or areas where the financing activity has a greater positive and negative impact, establishing objectives that it monitors on a recurring basis.
The 6 sectors for which decarbonization targets have been published are: power generation, oil & gas, autos, steel, cement, and coal. BBVA is working to set decarbonisation targets in additional sectors such as air transport and maritime transport.

In identifying these sectors and customers, the following has been taken into account:
(i) The main business areas: retail banking, corporate banking and corporate and investment banking.
(ii) The countries in which it operates
(iii) The composition of the portfolio by sector and the most relevant challenges and priorities in the environment.
(iv) The importance of the identified social, economic and environmental impacts resulting from the bank's activities in each country and area of impact. 		Impact Analysis Tool for Banks UNEP-FI.
SELF-ASSESSMENT SUMMARY

Which of the following components of the impact analysis has your bank completed, in order to identify the areas where your bank has its most significant (potential) positive and negative impacts?
Range: Yes
Portfolio Composition: Yes
Context: yes
Performance Measurement: Yes

What most significant impact areas have you identified for your bank, as a result of the impact analysis?

Climate Change (including circular economy) and Inclusive Growth

How recent is the data used and disclosed in the impact analysis? Up to 12 months before publication
2.2 ESTABLISHMENT OF OBJECTIVES

Demonstrate that your bank has established and published a minimum of two targets that address at least two different areas of greatest impact that you identified in your impact analysis

BBVA has established specific, measurable (quantitative), achievable, relevant and time-bound (SMART) goals, in line with science and the most ambitious goals of the Paris Agreement, in one of the two areas identified as "highest impact areas": "Climate Change". BBVA is working to set targets in the impact area of "Inclusive Growth" in 2023. To this end, it is using the UNEP-FI guidelines for banks for "Target Setting for Inclusion and Financial Health".
a) Alignment: What international, regional or national policy frameworks for aligning your bank's portfolio have you identified as relevant? Demonstrate that the selected indicators and targets are linked to and drive alignment and further contribution to the appropriate Sustainable Development Goals, Paris Agreement targets and other relevant international, national or regional frameworks. "Target 1. Climate Change (decarbonization)
BBVA takes 1.5oC scenarios as a reference, specifically the net zero emissions scenario of the International Energy Agency (IEA).

BBVA will measure performance through the following measurement units:

1. Intensity of emissions per production unit for four sectors (electricity generation, cars, steel and cement). These intensity metrics follow the SDA (Sectoral Decarbonization Approach) methodology and are aligned with PACTA (Paris Agreement Capital Transition Assessment).

2. CO2 emissions in absolute value (measured in tons of CO2 equivalent) for the oil and gas portfolio. They are calculated using the PCAF methodology for the calculation of the attribution factor. The main source of emissions data has been the database provided by an independent third party.

3. Exposure at Default measured in millions of euros for the coal sector. 		See section:
2.1.3 Strategy: Main advances in the execution of the strategy
2.3 Report on climate change and other environmental and social issues
b) Baseline: Have you determined a baseline for the selected indicators and assessed the current level of alignment? Indicate the indicators used, as well as the year of the baseline. Target 1. Climate Change (decarbonization): In relation to its Climate Change objective, BBVA has established 2020 as the base year for calculating the decarbonization objective for 5 sectors (electricity generation, autos, steel, cement, and coal) and the year 2021 for the oil & gas sector. The indicators used are indicated in the right column. See section "2.3.4 Management of risks associated with climate change and environmental factors"
c) SMART Objectives (including Key Performance Indicators (KPIs)): Disclose the objectives for your first and second areas of greatest impact, if they already exist (as well as other areas of impact, if any). What KPI are you using to monitor progress toward achieving the goal? Disclose it. Target 1. Climate Change (decarbonization). See detail in the column on the right. The decarbonization targets are shown for six sectors (utilities, oil and gas, automobiles, steel, cement, and coal) in the unit of measurement detailed in section 2.2.a) See section "2.3.4 Management of risks associated with climate change and environmental factors: Identification, measurement and integration of climate change risk into risk management: Loan portfolio alignment with Paris
d) Action plan: What actions that include milestones have you defined to meet the established objectives? Describe them.

Also demonstrate that your bank has analyzed and recognized significant (potential) indirect impacts of the objectives set within the impact area or other impact areas and has established relevant actions to avoid, mitigate or offset possible negative impacts. 		Target 1. Climate Change (decarbonization). milestones and action plan. in order to monitor decarbonization objectives and supervise their compliance, the Bank has approved a governance framework made up of those responsible for the Business, Risk, Sustainability and Strategy areas that report directly to senior management and corporate bodies. In addition, BBVA has developed a series of internal tools that allow it to integrate the management of these objectives into the day-to-day business and risk processes. Likewise, sectoral plans have been developed in the Oil & Gas and Electricity sectors (which includes electricity generation), which has made it possible to define strategies and business plans aimed at meeting decarbonization objectives. This work is an input for the definition of the risk appetite of the Sectoral Frameworks. During 2023, it is planned to undertake the sectoral plans of the rest of the sectors for which a decarbonisation objective has been defined (auto, steel, cement and coal).

The negative impact is mitigated and reduced through the processes detailed in section 5.3. of this table (Environmental and Social Framework, Equator Principles and human rights due diligence process). 		See section:

2.3.4 Risk management associated with climate change and environmental factors: Loan portfolio alignment with Paris Agreement

2.3.6 Management of direct and indirect impacts
SELF-ASSESSMENT SUMMARY
Which of the following target setting components in line with PRB requirements has your bank completed or is currently in an assessment process for your first and second areas of greatest impact?
First area of greatest impact:
Target 1. Climate Change (decarbonization)
BBVA has set targets in this area of impact
Alignment: Yes
Base Year: Yes
SMART goals: Yes
Action plan: Yes 		Second area of greatest impact:
Target 2. Inclusive Growth
BBVA is working to set targets in this area of impact in 2023.
Alignment: Ongoing
Base Year: Ongoing
SMART goals: Ongoing
Action plan: Ongoing
2.3 IMPLEMENTATION AND MONITORING OF OBJECTIVES
Demonstrate that your bank has implemented the actions that you had previously defined to meet the established objective
BBVA is implementing the actions to meet the established "Climate Change" objective and will implement measures in the second area of impact - "Inclusive Growth" - once it has established and published objectives in 2023.
For each goal separately:
Demonstrate that your bank has implemented the actions that you had previously defined to meet the established objective.
Report on your bank's progress since the last report towards the achievement of each of the stated objectives and the impact of its progress, using the indicators and KPIs to monitor progress that you have defined in 2.2.
Or in case of changes in the implementation plans (relevant only for the 2nd and subsequent reports): Describe the potential changes (changes in priority impact areas, changes in indicators, acceleration/ revision of objectives, introduction of new ones). milestones or revisions to action plans) and explain why those changes have become necessary. 		Target 1. Climate Change (decarbonization)
This Annual Report includes, for the six sectors for which decarbonization objectives have been defined, the metrics chosen, the scope of emissions considered, the data for the base year, the data as of 12-31-2022 (degree of annual progress), the methodology used and the 2030 decarbonization target measured as a percentage reduction over the base year. See references in this table for more detail.

Likewise, BBVA has published other ESG objectives related to its 2 areas of greatest impact:
– Climate Change and Inclusive Growth: BBVA carries out monthly monitoring of the 2025 Objective of mobilizi.ng sustainable business (target: €300,000m between 2021-2025). Between 2018 and 2022, BBVA has mobilized €135.871m
– In addition, BBVA has reduced its direct CO2 emissions by 70% compared to 2015 (Target: -68%) and 92% of the energy contracted by BBVA is renewable (Target: 70% in 2025 and 100% in 2030).
– Commitment to the Community 2025 (target: €550m and 100 million beneficiaries between 2021 and 2025): BBVA carries out monitoring every six months. At the end of 2022, €226.2m have been invested and 62.1 million people have benefited. 		See section
2.3.4 Management of risks associated with climate change and environmental factors: Identification, measurement and integration of climate change risk into risk management: Loan portfolio alignment with Paris Agreement"
2.3.6 Management of direct and indirect impact
2.2.5. Society
Please provide your bank's conclusion/statement if you have met the requirements regarding Plans for Target Implementation and Monitoring
BBVA has carried out an analysis of the impact of its portfolio/s to identify its most significant impact areas and determine the priority areas for the establishment of objectives.
BBVA has established and published an objective that addresses an area of greatest impact identified in its impact analysis as "Climate Change".
BBVA is working to set targets in the second area of impact, which is "Inclusive Growth" in 2023. To this end, it is using the guidelines for banks for "Setting targets for Financial Inclusion and Health" from UNEP-FI.
BBVA is implementing the actions to meet the "Climate Change" objective established and will implement measures in the second area of impact -"Inclusive Growth"- once it has established and published objectives in 2023.
Principle 3: CLIENTS
Working responsibly with customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.
3.1 INVOLVEMENT WITH CLIENTS

Does your bank have a customer engagement policy or process to encourage sustainable practices? Yes
Does your bank have a policy for the sectors in which you have identified the greatest (potential) negative impacts? Yes
Please describe how your bank has worked and/or plans to work with its clients to promote sustainable practices and enable sustainable economic activities. It should include information on relevant policies, actions planned/implemented to support client transition, selected indicators of client engagement and, where possible, impacts achieved.
This should be based on and in line with impact analysis, goal setting and action plans established by the bank. 		This Annual Report details how the integration of ESG aspects is carried out in the relationship and involvement with customers, whether in ESG support and involvement with wholesale clients (corporate and institutional) and companies or in ESG support and involvement with retail customers. See references in the right column.

Since 2021, more than 300 groups have been analyzed under the Environmental and Social Framework and BBVA has started a dialogue and support plan with 17 groups. 		See section:
2.4.3 Additional information on the BBVA Group's sustainability standards and frameworks
2.4.4 Integration of ESG aspects in customer relationships: IIntegrating ESG in relations with wholesale (corporate and institutional) customers and other business customers; Integration of ESG aspects with retail customer relationships; and ESG knowledge transfer.
3.2 BUSINESS OPPORTUNITIES

Please describe what strategic business opportunities in relation to increasing positive impacts and reducing negative impacts your bank has identified and/or how it has addressed these in the reporting period. Please provide information on existing products and services, information on sustainable products developed in terms of value (in USD or local currency) and/or as a % of your portfolio, and on which SDGs or impact areas you strive to have a positive impact (e.g, green mortgages — climate, social bonds—financial inclusion, etc.). 		Sustainability is a lever for growth for BBVA and it has a holistic approach, with a focus on climate action and inclusive growth, and covers all segments. To capture this opportunity, work is being done on five lines of growth, as detailed in the sections indicated in this annual report and in the column on the right.
Between 2018 and 2022, BBVA has mobilized a total of €135,871m in sustainable business. 		See section:
2.3.3 Risks and opportunities associated with climate change
Please provide your bank's conclusion/statement if you have met the requirements regarding Principle 3 Clients

BBVA works responsibly with its customers to promote sustainable practices and enable economic activities that generate shared prosperity for current and future generations.
Principle 4: Interested parties
Proactively and responsibly consult, engage, and partner with relevant stakeholders to achieve societal objectives.
4.1 IDENTIFICATION AND CONSULTATION OF INTERESTED PARTIES

Does your bank have a process for regularly identifying and consulting, engaging, collaborating and partnering with stakeholders (or stakeholder groups) that you have identified as relevant in relation to the impact analysis and target setting process? Yes

Please describe which stakeholders (or stakeholder groups/types) you have identified, consulted or involved or with which stakeholders you have collaborated or partnered in order to implement the Principles and enhance the impacts of your bank. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed or what results were achieved, and how they contributed to the action planning process. 		In accordance with the General Sustainability Policy, BBVA integrates into its businesses and activities the concerns of its stakeholders (customers, employees, shareholders and investors, suppliers, regulators and supervisors, and society in general), on social and environmental issues, on diversity, fiscal responsibility, respect for human rights and prevention of corruption and other illegal conduct.

Throughout this Annual Report, progress and results relating to each of the aforementioned interest groups are mentioned, as well as specific consultation actions carried out (through recurring surveys of customers, non-customers, employees, suppliers, surveys and questions received from analysts and investors, civil society, etc.; human rights due diligence process, etc.)

In 2021, the active participation of interest groups in the human rights due diligence process was identified as an area to be strengthened. In 2022, a consultation process with key stakeholders has been carried out. The results obtained were integrated into the 2021-2022 Human Rights Action Plan itself.

For more than 20 years, BBVA has actively participated in different supranational initiatives and always in close collaboration with all stakeholders, which revolve around various priority areas such as Universal Frameworks of Reference, decarbonization in line with the Agreement of Paris, market standards, transparency and financial regulation. 		See section:

2.2 Our stakeholders
2.3.4 Management of risks associated with climate change and environmental factors
2.3.7 Participation in international initiatives
2.2.4. Society . Commitment to Human Rights
Please provide your bank's conclusion/statement if you have met the requirements regarding Principle 4. Interested Parties

BBVA consults, participates and maintains a proactive and responsible dialogue with the relevant stakeholders to achieve the established objectives
Principle 5: Government and culture
Implement commitment to these Principles through effective governance and a responsible banking culture
5.1. GOVERNANCE STRUCTURE FOR THE IMPLEMENTATION OF THE PRINCIPLES

Does your bank have a governance system that incorporates PRB? Yes

Please describe the relevant governance structures, policies and procedures that your bank has put in place/ plans to put in place to manage significant (potential) positive and negative impacts and support the effective implementation of the Principles. This includes information about which committee has responsibility for the sustainability strategy, as well as the approval and monitoring of the targets (including information about the highest level of governance to which the PRBs are subject), details about the chair of the committee and the process and frequency for the board to monitor the implementation of the PRB (including corrective actions in the event that objectives or milestones are not met or unexpected negative impacts are detected), as well as remuneration practices linked to sustainability objectives. 		The Global Sustainability Area is responsible for the implementation of the sustainability strategy and has the support of the corporate bodies.
Reports directly to the president and CEO and to the Board of Directors.

The BBVA Board of Directors has approved the decarbonisation objectives (Target 1. Climate Change) and receives information on the degree of compliance on a regular basis according to the established governance model (through the Global Sustainability Area and the Sustainability Alignment Steering Group ).

As of 2023 and subject to the approval of the corresponding corporate bodies, the BBVA Directors Remuneration Policy and the BBVA Group General Remuneration Policy are expected to include, as part of the Annual Variable Remuneration of the members of the Identified Group, including executive directors and members of the Senior Management of BBVA, a long-term incentive linked, among other things, to the degree of compliance with the decarbonisation objectives of a series of sectors for which the Bank publishes specific objectives. 		See section:

2.3. Report on climate change and other environmental and social issues
2.3.2 Governance model
2.2.3.Employees, Remuneration
5.2 PROMOTE A RESPONSIBLE BANKING CULTURE

Please describe your bank's initiatives and measures to foster a culture of responsible banking among its employees (e.g., skills development, e-learning, sustainability training for customer-facing roles, inclusion in compensation structures and performance management and leadership communication, among others). 		BBVA has a comprehensive sustainability training program for its employees at all levels, including senior management and members of the Board of Directors with the aim of providing the necessary skills so that Group professionals can address sustainability from their different areas of activity.
This report details the number of employees trained in sustainability. See references in the right column.

In addition, the remuneration of all employees is linked to sustainability objectives. Specifically, the non-financial indicators used in 2022 to calculate the Annual Variable Remuneration of all employees include the indicator of Mobilization of sustainable business. Likewise, an indicator linked to ESG aspects has been included in the variable remuneration scheme for executive directors (with a specific weight of 10%), which reinforces the commitment of both the chair and the CEO, so that BBVA achieves its sustainable development goals, in line with the strategic priority of "Helping our clients in their transition towards a sustainable future". 		See section:
2.2.3. Employees, Training
5.3 DUE DILIGENCE POLICIES AND PROCESSES

Does your bank have policies that address environmental and social risks within its portfolio? Describe them.
Please describe what due diligence processes your bank has in place to identify and manage environmental and social risks associated with your portfolio. This may include aspects such as the identification of significant/ outstanding risks, the mitigation of environmental and social risks and the definition of action plans, the monitoring and reporting of risks and any existing grievance mechanisms, as well as the structures of governance that it has established to supervise these risks. 		To address environmental and social risks, BBVA has the following frameworks for action:
- Environmental and Social Framework, where the sectors with the greatest environmental and social impact are identified (mining, agribusiness, energy, infrastructure and defense). BBVA has established prohibitions at the project level, including customer support plans.
- Equator Principles, for project finance in which BBVA participates.
- Human Rights due diligence process, for all areas of BBVA.
- Identification and assessment of sectors sensitive to transition risk, quantification of exposure to carbon-sensitive sectors and setting of portfolio decarbonization targets in 6 sectors intensive in CO2 emissions that represent 80% of CO2 emissions worldwide.

Following international reference frameworks such as the SASB Materiality Map and rating agencies, BBVA has identified the sub-sectors of activity that it finances and the most relevant environmental and social factors in each one. This is used as a support tool in the admission process.

In the case of natural capital, BBVA has identified the levels of impact and dependencies by sector following the methodology of the ENCORE tool (Exploring Natural Capital Opportunities, Risks and Exposure) developed by the Natural Capital Finance Alliance in collaboration with with UNEP-WCMC. This tool makes it possible to find out how the activity of the sub-sectors that BBVA finances depends on nature. 		See section:

2.3.7 Participation in international initiatives

2.3.6 Management of direct and indirect impacts
SELF-ASSESSMENT SUMMARY
Does the CEO or other senior executives have regular oversight over the implementation of the Principles through the bank's governance system? Yes
Does the governance system include structures to oversee the implementation of the PRB (e.g., including impact analysis and target setting, actions to achieve these targets, and corrective action processes in case targets are not met?) /milestones or unexpected negative impacts are detected)? Yes
Does your bank have measures to promote a culture of sustainability among employees (as described in 5.2)? Yes
Please provide your bank's conclusion/statement if you have met the requirements regarding the Governance Structure for the implementation of the Principles:
The Board of Directors defines, promotes and monitors the sustainability and climate change strategy.
With the creation of the new Global Sustainability Area reporting to the CEO and also reporting to the Chair, BBVA has strengthened its governance structure in order to ensure full compliance with these Responsible Banking Principles. A specific model has been created that monitors the degree of compliance with the Climate Change objective linked to decarbonisation.
Likewise, BBVA has measures to promote a culture of sustainability among employees and directors.
Principle 6: Transparency and responsibility
Periodically review our individual and collective implementation of these Principles and be transparent and accountable for the positive and negative impacts and contribution to the objectives of society.
6.1. CHECK

Has this publicly disclosed information about your PRB commitments been guaranteed by an independent insurer? Yes.
If applicable, include the link or description of the assurance statement 		The information disclosed in the sections Impact Analysis [2.1], Establishment of objectives [2.2], Implementation and monitoring of objectives [2.3] and Governance structure for the implementation of the Principles [5.1] has been verified by Ernst & Young Auditores, S.L., in its capacity as an independent provider of verification services, with the scope indicated in its verification report. See section:
Independent Assurance Report
6.2 REPORTING WITHIN OTHER FRAMEWORKS

Does your bank disclose sustainability information in any of the standards and frameworks listed below?
☒ GRI
☒ SASB
☒ CDP
☒ IFRS Sustainability Disclosure Standards
☒ TCFD
☒ Others
 Among the different existing standards, BBVA includes its non-financial information in the Statement of non-financial information. In addition to GRI, BBVA publishes progress in terms of ESG breakdowns in accordance with two of the most advanced standards in the market: Measuring Stakeholder Capitalism from the International Business Council (IBC) and the World Economic Forum (WEF) and the Sustainability Accounting Standards Board (SASB).

In its TCFD 2022 report, BBVA plans to incorporate elements of a Transition Plan for the first time, following the guides and recommendations for financial institutions published by the Glasgow Financial Alliance for Net Zero (GFANZ) in November 2022. 		See section:

5.2.5 Alignment of BBVA Group's non-financial information to WEF- IBC and SASB standards
6.3 PERSPECTIVE

What are the next steps your bank will take in the next 12- month reporting period (particularly with regard to impact analysis, target setting, and governance structure for PRB implementation)? 		In the next 12 months, BBVA plans to:
- Publish an objective in the second area of greatest impact detected through the impact analysis carried out: Inclusive Growth.
- Publish decarbonization targets in other significant sectors detailed in the Net Zero Banking Alliance guidelines such as aviation and shipping.
- Continue measuring the annual progress of the degree of progress of the metrics.
- Continue measuring the annual progress of the degree of progress of the decarbonization metrics.
- Continue measuring the financed issues of its credit portfolio in additional geographical areas to Spain.
- Draft sectoral Plans for the sectors for which decarbonization objectives are published.
- Include a long-term incentive indicator linked to the decarbonization of its credit portfolio for the identified group and the president and CEO.
- Publish information on the risks and opportunities of climate change in accordance with the standard of the Working Group on Climate Financial Disclosures (TCFD) and incorporate elements of a Transition Plan following the guides and recommendations for financial institutions published by the Glasgow Financial Alliance for Net Zero (GFANZ).
- Disclose in a consistent, reliable and standardized manner the essential environmental, social and governance aspects related to your business.
- Deepen the understanding of the risks and opportunities derived from natural capital.
- Monitor the Action Plans derived from the Human Rights due diligence process in the countries where it is present.
- Continue advancing from BBVA Asset Management to publish decarbonization targets in other portfolios in addition to those for which it has already published targets, as a member of the Net Zero Asset Managers Initiative.

BBVA's progress in implementing these principles is published annually in the BBVA Group Annual Report.
Additionally, the subsidiaries BBVA Argentina, BBVA Garanti (Turkey) and BBVA Mexico, as signatories of the Principles for Responsible Banking at the local level, also publish their annual progress reports.
CHALLENGES

This is a short section to learn about the challenges your bank may face in implementing the Principles for Responsible Banking. Your feedback will be helpful in contextualizing the collective progress of the PRB signatory banks.
What challenges have you prioritized to address when implementing the Principles for Responsible Banking? Choose what you consider to be the top three challenges your bank has prioritized addressing in the last 12 months (optional question).
If you wish, you can explain the challenges and how you are addressing them:
☐ Mainstreaming PRB oversight into government
☐ Build momentum or keep it in the bank
☐ Getting started: where to start and what to focus on at first
☐ Carrying out an impact analysis
☐ Assessment of negative environmental and social impacts
☐ Choose the appropriate performance measurement methodology (ies)
☒ Goal setting
☐ Other ...
☒ Involvement with customers
☐ Involvement of interested parties
☒ Data availability
☐ Data quality
☐ Access to resources
☐ Reporting
☐ Assurance
☐ Prioritize actions internally
Please provide your bank's conclusion/statement if you have met the requirements regarding progress in implementing the principles for responsible banking:
BBVA periodically reviews the implementation of these Principles and has published the positive and negative impacts and their contribution to the company's objectives.
BBVA has continued to strengthen transparency with the publication of its third TCFD report, SASB metrics and WEF/IBC Stakeholder Capitalism Metrics, as well as decarbonisation targets for its portfolio. It has also increased its objective of mobilizing sustainable finance to €300,000m, and has published new objectives related to the decarbonization of its portfolio. It maintains its objective regarding its commitment to the community. BBVA is working to set targets in the area of impact of Inclusive Growth in 2023. To do this, it is using the guidelines for banks for the "Setting targets for Inclusion and Financial Health" from UNEP_FI.

5.2.5 Alignment of BBVA Group's non-financial information to WEF-IBC and SASB standards

BBVA's objective is to disclose in a consistent, reliable and standardized manner the essential aspects of ESG (environmental, social and governance matters) related to its business. Among the different existing standards, BBVA includes its non-financial information in the Non-Financial Information Statement for the year 2022, included in this report, in accordance with the Global Reporting Initiative (GRI) guide.

Additionally and voluntarily, as last year, BBVA has reported the WEF-IBC metrics as well as the SASB - Commercial Banks standards, SASB - Consumer Finance standards and SASB - Morgage Finance standards:

  • WEF-IBC core metrics. BBVA was one of the first entities worldwide to support the Measuring Stakeholder Capitalism initiative of the International Business Council (IBC) of the World Economic Forum (WEF).
  • WEF-IBC metrics expanded. Together with the core metrics, the expanded metrics allow for a broader and more detailed scope in the value chain; and convey the impact in a more tangible way.
  • Sustainability Accounting Standards Board (SASB) - Commercial Banks standards, Consumer Finance standards and Morgage Finance standards. The Sustainability Accounting Standards Board establishes standards to guide companies on the disclosure of relevant and consistent financial information in terms of sustainability. With the complete report of these metrics, the Group's management is more clearly reflected and identified for more accurate decision-making by customers.

More and more companies are reporting their performance according to these two metrics and BBVA will continue to work on its objective of satisfying the demands of investors, regulators, customers and other interest groups; to maintain or improve its ESG performance.

WEF-IBC core metrics

Contents index of WEF-IBC. Core metrics

Topic Metric Reporting criteria BBVA Group's response
PRINCIPLES OF GOVERNANCE
Governing purpose Setting purpose. The British Academy and Colin Mayer, GRI (2-12), Embankment Project for Inclusive Capitalism (World Economic Forum Integrated Corporate Governance - EPIC) and others. NFIS/Strategy/Purpose, values and strategic priorities, Our Objectives

NFIS/Report on climate change and other environmental and social issues
Quality of governing body Governing body composition. GRI (2-9), GRI (405-1a), IR 4B. Corporate Government Annual Report (hereinafter, CGAR) C.1.1 to C.1.12, C.2.1 and C.2.2.
Stakeholders engagement Material issues impacting stakeholders. GRI (2-12), GRI (2-29, GRI (3-2). NFIS/Our stakeholders

NFIS/Additional information/Additional information on materiality analysis
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). NFIS/Our stakeholders/Society/ Compliance and conduct
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 (2-26). NFIS/Our stakeholders/Society/ Compliance and conduct
Risk and opportunity oversight Integrating risk and opportunity into business process. EPIC, GRI (2-16), World Economic Forum Integrated Corporate Governance, IR 4D. NFIS/Our stakeholders/Customers/Customers safety and protection

NFIS/Risk Management/General risk management and control model

NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change
PLANET
Climate change Greenhouse gas (GHG) emissions. GRI (305:1-3), Task Force on Climate-Related Financial Disclosures (hereinafter, TCFD) recommendations, GHG Protocol. NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts/Management of direct environmental impacts, Environmental Footprint Table, Evolution of the Global Ecoefficiency Plan Indicators Table

BBVA will continue working on the next exercises advance the disclosure about this metric
TCFD implementation. TCFD Recommendations;
CDSB R01, R02, R03, R04 y R06;
SASB 110; Science Based Targets initiative. 		NFIS/Report on climate change and other environmental and social issues

BBVA Report on TCFD.
Nature loss Land use and ecological sensitivity. GRI (304-1). The operations centers and / or offices owned, leased or managed by BBVA are located in urban areas far from protected areas or areas of great value for biodiversity. For this reason, this metric is considered non-material at the present time, the entity undertakes to follow-up for its report in the future if necessary
Freshwater availability Water consumption and withdrawal in water-stressed areas. SASB CG-HP-140a.1,
Aqueduct water risk atlas tool, World Resources Institute (hereinafter, WRI). 		NFIS/Report on climate change and other environmental and social issues/Management of direct and indirect environmental impacts/ Management of direct environmental impacts, Environmental Footprint Table, Table of Evolution of the Global Eco-efficiency Plan Indicators

An analysis by geographic area (pessimistic 2030 scenario) of uses is carried out through the WRI tool: Aqueduct Projected Water Stress Country Rankings; with the following result:
- 78.1% of our consumption has a high or extremely high extraction and demand ratio;
- 8.6% of our consumption has a medium extraction and demand ratio;
- 13.3% of our consumption has a low extraction and demand ratio.
PEOPLE
Dignity and equality Diversity and inclusion. GRI (405-1b). NFIS/Our stakeholders/Employees/Professional development
Pay equality (%). GRI (405-2). NFIS/Our stakeholders/Employees/Remuneration
Wage level (%)
Ratio of standard entry level wage by gender compared to local minimum wage.
Ratio of the annual total compensation of the best paid person and 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. NFIS/Our stakeholders/Employees/Remuneration
Risk for incidents of child, forced or compulsory labour. GRI (408-1b), GRI (409-1). BBVA has not identified centers or suppliers likely to have significant risks in relation to episodes of forced labor.

Other information/Compliance tables/ GRI Standards content index
Health and wellbeing Safety and health - rate of fatalities and rate of absenteeism. GRI:2018 (403-9 a y b), GRI:2018 (403-6). NFIS/Our stakeholders/Employees/Work environment/Occupational safety and health
Skills for the future Training provided - Average hours of training and average expenditure per full time employee. GRI (404-1), SASB HC 101-15. NFIS/Our stakeholders/Employees/Professional development
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. NFIS/Our stakeholders/Employees/Professional development
Economic contribution. GRI (201-1), GRI (201-4). Other information/Compliance tables/ GRI Standards content index
Financial investment contribution:
1. Total capital expenditures (CapEx) minus depreciation.
2. Shares buybacks plus dividend payments 		Aligned with IAS 7 and US GAAP ASC 230. The information that forms part of the indicator is collected in the Consolidated Financial Reports (for example in Notes 4, 17 and 18) and the Consolidated management report of BBVA Group.
Innovation of better products and services Total R&D expenses. US GAAP ASC 730. The total annual expense and investment in technological software development projects, including both the cost of external resources and the cost corresponding to the internal personnel of the teams dedicated to projects during the financial year 2022 amounted to €1,031m (€931m in 2021).
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). NFIS/Our stakeholders/Society/Fiscal transparency

General note: For WEB - IBC standards the "Reporting criteria" column is included as they have been developed on the basis of other international standards. As a consequence of the update of the GRI Standards in 2021, the references indicated in the "Reporting Criteria" column have been adapted where necessary.

WEF-IBC expanded metrics

Contents index of WEF-IBC. Expanded metrics

Topic Metric Reporting criteria BBVA Group's response
PRINCIPLES OF GOVERNANCE
Governing Purpose Purpose-led management GRI 2-12 NFIS/Strategy/Strategic Priorities, Our Objectives

NFIS/Report on climate change and other environmental and social issues
Quality of governing body Progress against strategic milestones EPIC NFIS/Strategy/Main advances in the execution of the strategy

NFIS/Our stakeholders
NFIS/Additional information/Additional information on materiality analysis
Remuneration

- How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental and social topics.

- Remuneration policies for the highest governance body and senior executives for the following types of remuneration: fixed pay and variable pay, sign-on bonuses or recruitment incentive payments, termination payments, clawbacks, retirement benefits. 		GRI 2-12 NFIS/Our stakeholders/Employees/Remuneration
Ethical behaviour Alignment of strategy and policies to lobbying GRI 415: Public Policy The BBVA Group collaborates with organizations that share its vision and whose activity is aligned with its objectives, such as industry associations, employer associations, chambers of commerce and the most prestigious Think Tanks, which carry out studies on regulatory, financial, digital, sustainability, financial inclusion and financial education, in those countries where the Group has a significant presence.
BBVA makes an effort to be in the sector representation forums in those countries where it has a presence. These collaborations are added to the intellectual contribution to promote the transformation of the sector, which the Group carries out directly through the research activity and the development of analyzes of its studies department. These institutional activities are always carried out with the utmost transparency, without interfering, conditioning or influencing the political pluralism of the societies in which the Group is present.
On the other hand, BBVA supports the Sustainable Action Plan of the European Commission, which has been a very positive first step in directing investments towards sustainable activities and projects. The bank has been involved in consultation processes and various activities with regulatory and supervisory bodies to promote sustainable financial regulation and in 2022 has taken an active role in the framework of future EU legal initiatives.
Monetary losses from unethical behaviour SASB 510a.1 For issues related to corruption, please refer to the information included in the GRI 205-3 metric.
For issues related to certain regulatory breaches, please refer to the information included in the GRI metric 2-27.
For issues related to competition, please refer to the information included in the GRI 206 metric.
In relation to the monetary losses incurred in the scope of the “Commercial Banks” industry, please refer to the information included in the SASB CB 510 a.1 metric (“Total amount of monetary losses as a result of legal proceedings associated with fraud , insider trading, antitrust, anti-competitive behavior, market manipulation, malpractice or other laws or regulations related to the financial industry”).
There are no monetary losses incurred in 2022 by banking entities that are members of the BBVA Group as of December 31, 2022 due to resolutions imposed by price manipulation practices or insider trading (1).
Risk and opportunity oversigh Economic, environmental and social topics allocation framework CDSB REQ-02 NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts
PLANET: EXPANDED METRICS AND DISCLOSURES
Climate change Paris- alligned GHG emissions targets Define and report progress against time-bound science-based GHG emissions targets that are in line with the goals of the Paris Agreement – to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C. Science Based Targets initiative NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts
Impact of GHG emissions US EPA fact sheet on the Social Cost of Carbon (2016), Natural Capital Protocol (2016), ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance NFIS/Report on climate change and other environmental and social issues/ Management of direct and indirect environmental impacts
Nature loss Land use and ecological sensitivity New metric Since BBVA is a financial entity, most of its suppliers are technological and there is no use of the land for forestry, agriculture or mining, this metric is considered non-material since the breakdowns included, land area used for the production of plants, animals or mineral products, are not applicable to BBVA's activity or its supply chain.
Impact of land and conversion Natural Capital protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance. BBVA's economic activity and its products and services have no significant impact on biodiversity (neither positive nor negative), since its operations centers and/or offices are located in urban areas. For this reason, it is considered that this metric is not material at present, and the entity undertakes to follow up on its report in the future if necessary.
Freshwater availability Impact of freshwater consumption and withdrawal Natural Capital protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance. Due to the fact that the economic activity of a financial entity such as BBVA, whose consumption and extraction of water are those of the activity of its offices and its restoration, this metric is considered non-material, since both the extraction and consumption are considered insignificant.
Air Pollution Air Pollution GRI 305‑7 BBVA's emissions of other types of pollutants into the atmosphere are mainly:
- NOx: 13,936.67 t NOx
- SOx: 3,868.61 tSOx
These data only include emissions due to the use of fuels in the facilities of BBVA buildings and branches located in urban areas. The factors used are those published by the European Environmental Agency: "EMEP/EEA air pollutant emission inventory guidebook 2019" for the "Commercial / institutional: stationary" sector, "Tier 1" typology for each of the types of fuels.
Impact of air pollution Natural Capital protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance. For BBVA, air pollution does not have a significant impact due to the activities it carries out. Despite this, its management is considered relevant, as reflected in the Global Eco-efficiency Plan. However, at the date of the report, there is no methodology or reliable data source that allows calculating the impact of air pollution linked to the company's own activity.
Water pollution Nutrients SASB CN0101‑11 Given that in the nature of BBVA's activities, no nitrogen, phosphorus or potassium is present in fertilizers, this is considered a non-material metric, since its activities do not cause ecological or public health problems in this regard.
Impact of water pollution Natural Capital protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance. Due to the fact that the economic activity of a financial institution such as BBVA, whose effluents are those of the activity of its offices and its restoration, this metric and its different breakdowns are considered non-material, since the discharges are considered not significant and comply with the regulations of the areas in which they are located.
Solid waste Single-use plastics New metric Throughout 2022, initiatives to reduce disposable single-use plastics have been established, so the value is not reported as it is insignificant.
Impact of solid waste disposal Natural Capital protocol (2016), ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019), Value Balancing Alliance. For BBVA, the generation and management of waste does not have a significant impact due to the activities it carries out. However, for BBVA it is important to properly manage them and this is reflected in their commitments in the Global Eco-efficiency Plan or in the ISO 14001 or zero waste certifications that they have implemented. Although there is currently no reliable methodology or source from which to take the impact values, work will continue in the coming years to advance in the dissemination of this metric.
Resource availability Resource circularity WBCSD Circular Transition IndicatorsEllen MacArthur Foundation Due to the economic activity of BBVA, the only products to which this metric refers and to which it can be alluded in the company, are those originating from the activity of the offices and the related restaurants. In this way, and since the volume of these products is not significant and that the financial activity related to BBVA's business is completely separated from them, this metric is considered non-material.
PEOPLE: EXPANDED METRICS AND DISCLOSURES
Dignity and equality Pay gap (%, #)
- Mean pay gap of basic salary and remuneration of full-time relevant employees based on gender (women to men) and indicators of diversity
-Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees 		Adapted from UK Government guidance on gender and ethnicity pay gap reporting, GRI 2-21 NFIS/Our stakeholders/Employees/Remuneration
Discrimination and harassment incidents (#) and the total amount of monetary losses ($) GRI 406-1, Adapted from SASB FR-310a.4 NFIS/Our stakeholders/Employees/Professional development/Diversity, inclusion and different capacities
Freedom of association and collective bargaining at risk (%) SASB CN0401-17, GRI 407-1, WDI 7.2 NFIS/Our stakeholders/Employees/Work environment/ Freedom of association and representation
Human rights review, grievance impact & modern slavery (#%) UN Guiding Principles, GRI 408-1a, Adapted from GRI 408-1a and GRI 409-1, WDI 7.5 NFIS/Our stakeholders/Society/Commitment to Human Rights
Living wage (%) MIT Living Wage Tool, EPIC NFIS/Our stakeholders/Employees/Remuneration
Health and well-being Monetized impacts of work-related incidents on organization (#, $) Adapted indicator based on European Commission, Safe Work Australia BBVA is working to develop methodologies that allow calculating the monetary impacts of work-related incidents within the Organization, in order to be able to report this metric in the future financial years.
Employee well-being (#, %) GRI:2018 403-10a&b, EPIC, Adapted from GRI:2016 403-2a NFIS/Our stakeholders/Employees/Work environment/ Occupational safety and health
Skills for the future Number of unfilled skilled positions (#, %) WBCSD Measuring Impact Framework Methodology Version 1.0 (2008) Banking activities and the functions that derive from them require professionals trained in different areas of expertise and knowledge in certain essential disciplines for the operation of the company. BBVA has three main challenges when developing a talent strategy:
- Prepare for technology-driven disruptions, identify the skills and experience needed to compete in the future, and attract people with those skills.
- Retain people with those skills through attractive value propositions. The new generations have different needs and expectations, in line with the new demands of customers: ability to work flexibly and continue on the path of promotion, diversity and inclusion practices, reputation, promotion of innovation efforts, etc.
- Train and keep the staff updated in technical knowledge with updated training programs.

NFIS/Our stakeholders/Employees/Professional development/Training
Monetized impacts of training – Increased earning capacity as a result of training intervention (%, $) Adapted from OECD, WDI 5.5 NFIS/Our stakeholders/Employees/Professional development/Training
PROSPERITY: EXPANDED METRICS AND DISCLOSURES
Employment and wealth generation Infrastructure investments and services supported GRI 203-1 NFIS/Our stakeholders/Society/Contribution to society
Significant indirect economic impacts GRI 203-2 NFIS/Our stakeholders/Society/Contribution to society
Innovation of better products and service Social value generated (%) Adapted from GRI (FiFS7 + FiFS8)and SASB FN0102-16.a, EPIC BBVA is working to develop methodologies that allow it to calculate this ratio and to be able to report this metric in future financial years.
Vitality Index
Percentage of gross revenue from product lines added in last three (or five) years, supported by narrative that describes how the company innovates to address specific sustainability challenges 		Adapted from OECD Oslo Manual Section 8.3.1 BBVA is working, through the involvement of different areas of the Company, to develop systems in order to indetify new product lines that allow addressing specific sustainability challenges and be able to report this metric in future financial years.
Community and social vitality Total Social Investment ($) CECP Valuation Guidance NFIS/Our stakeholders/Society/Contribution to society
Additional tax remitted Adapted from GRI 201-1 NFIS/Our stakeholders/Society/Fiscal transparency
Total tax paid by country for significant locations Adapted from GRI 201-1 NFIS/Our stakeholders/Society/Fiscal transparency

General note: For WEB - IBC standards the "Reporting criteria" column is included as they have been developed on the basis of other international standards. As a consequence of the update of the GRI Standards in 2021, the references indicated in the "Reporting Criteria" column have been adapted where necessary.

(1) The concept "monetary losses" includes the amounts paid, provisionally or definitively (without defense expenses), by the affected entity, during the financial year 2022, excluding those derived from purely internal claims (customer service or customer ombudsman). The Fixing Rate as of 31/12/2022 is applied as the exchange rate.
The practice related to the behaviors described in metric is considered bad practice.

SASB-Commercial Banks

Contents index SASB. Commercial Banks

Topic Metric BBVA Group's response
Data security (1) Number of data breaches,
(2) Percentage of data breaches in which the subject was considered as PII (personal identification information)
(3) Number of account holders affected. 		NFIS/Our stakeholders/Customers/Customer safety and protection

BBVA will continue working on the future exercises to advance in the dissemination of this metric.
Description of approach to identifying and addressing data security risks NFIS/Our stakeholders/Customers/Customers safety and protection
Financial inclusion and capacity building (1) Number and (2) amount of loans outstanding qualified to programs designed to promote small business and community development. BBVA is working to develop a data identification and quantification system in line with its social standard in order to be able to report this metric in future years.

During 2022, BBVA has developed the first Sustainability Standard in which the segments of the population or customers that are considered a priority target of inclusive growth activities are identified, having defined specific income thresholds that allow the use of a checking account free of charge for customers in Mexico, Peru, Argentina, Turkey and Colombia. To be able to use a free checking account, a customer must meet certain thresholds that differ by geographic area:
1. Mexico:
- Monthly income of a person with payroll: up to 8,000 Mexican pesos;
- Monthly income of a person without payroll: average balance 1,500 Mexican pesos;
2. Peru:
- Income of people with and without payroll: less than 1,200 Peruvian soles
3. Argentina:
-All customers who have an active product that is not a Premium or Premium Word package.
-All customers who have an average annual active or passive balance of less than 5,500 Argentine pesos (due to the inflationary characteristics of the country, this threshold is mobile, it is adjusted month by month to absorb the impact of inflation).
4. Turkey:
- All clients with income less than 8,500 Turkish lira. Since Garanti BBVA does not have a formally defined level for low income per capita, the Bank will accept the gross minimum salary defined by the government and updated annually as the maximum low income threshold. The Bank will use an estimation model based on income statements, sources of income and the like to classify customers in low-income segments.

As of December 31, 2022, the number of no-cost current accounts amounts to 1.6 million in Mexico, 1 million in Peru, 602 thousand in Turkey and 208 thousand in Argentina.

Looking ahead to future years, BBVA will continue to work on developing and adapting both the current criteria and new ones to be defined, adapted to the realities of the geographies in which the Group is present.
(1) Number and (2) amount of past due and non-accrual 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. Within the scope of the activity carried out to promote the financial inclusion of unbanked groups and improve the health and financial resilience of underbanked or underserved customers, the BBVA Group has developed various initiatives. A financial education pilot in BBVA Mexico stands out, which has benefited more than 29,000 customers as of December 31, 2022. Among these initiatives is training for young people and customers belonging to the low-income segment
Additionally, in December 2021 BBVA, along with 30 other banks, adhered to the United Nations global commitment to promote financial inclusion and boost the financial health of its customers.
Throughout 2022, the Group has participated in a working group led by the United Nations and made up of 75 organizations (signatory banks, international organizations such as the UN, IMF, World Bank, OECD and NGOs) to establish specific metrics and indicators that allow measure the impact of the initiatives and activities of the financial sector in terms of financial inclusion and financial health.
The result of this work is the establishment of a base of 20 financial inclusion and health indicators, which will be worked on in 2023 to select the indicators that BBVA will use to report the progress of its activity in these areas.
Incorporation of Environmental, Social, and Governance Factors in credit analysis Commercial and industrial credit exposure, by industry. NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change
Description of approach to incorporation of environmental, social, and governance (ESG) factors in credit analysis. NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change
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. For issues related to corruption, please refer to the information included in the GRI 205-3 metric.
For issues related to certain regulatory breaches, please refer to the information included in the GRI metric 2-27.
For issues related to competition, please refer to the information included in the GRI 206 metric.
There are no monetary losses incurred in 2022 by banking entities that are members of the BBVA Group as of December 31, 2022 due to resolutions imposed due to price manipulation practices or insider trading in the "Commercial Banks" industry.
Monetary losses amounting to €6.9m were incurred by BBVA, S.A. are included. due to judicial rulings (and transactional agreements reached in judicial proceedings) derived from alleged breaches of Law 57/1968, on the collection of amounts advanced in the construction and sale of homes(1).
Description of whistleblower policies and procedures. NFIS/Our stakeholders/Society/ Compliance and conduct
Systemic Risk Management Global Systemically Important Bank (G-SIB) score, by category. Financial information/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. Financial information/Solvency

NFIS/Strategy/Main advances in the execution of the strategy
Activity metrics (1) Number and (2) value of checking and savings accounts by segment: (a) personal and (b) small business. See table (1) below.
Data includes information of BBVA Spain, BBVA Mexico and BBVA Peru.
(1) Number and (2) value of loans by segment: (a) personal, (b) small business, and (c) corporate. See table (2) below.
Data includes information of BBVA Spain, BBVA Mexico and BBVA Peru.

(1) For the purposes of this metric, the “Commercial Banks” industry is understood as Business and Corporation Banking (including Real Estate).For the purposes of this metric, the “Commercial Banks” industry is understood as Business and Corporation Banking (including Real Estate).
The concept of "monetary losses" includes the amounts paid, provisionally or definitively (without defense expenses), by banking entities that are members of the BBVA Group as of December 31, 2022, during the 2022 financial year, excluding those derived from merely internal claims (services of customer service or customer advocate). The Fixing Rate as of 31/12/2022 is applied as the exchange rate.
As a consequence of these monetary losses, in the ordinary course of their business, the affected entities carry out an analysis of them and proceed to adopt a series of corrective measures, among which are the making of adjustments in internal operations or the adaptation of the corresponding documentation, such as the requirements for opening and maintaining accounts with real estate developers.
It is considered bad practice that related to the behaviors described in the metric. Amounts related to claims related to alleged lack of transparency or vices in the consent are not included, as they are considered outside the object of the metric.

(1) CURRENT AND SAVINGS ACCOUNTS ON NOVEMBER 30, 2022 (NUMBER IN THOUSANDS, VALUES IN MILLIONS. EUROS)

Number Value
Personal 65,129 174,180
SME 2,519 18,232

(2) LOANS ON NOVEMBER 30, 2022 (NUMBER IN THOUSANDS, VALUES IN MILLIONS. EUROS)

Number Value
Personal 23,090 118,364
SME 4,770 28,228
Corporate 3,790 108,894

SASB-Consumer Finance

Content index SASB. Consumer Finance

Topic Metric BBVA Group's response
Customer Privacy Number of account holders whose information is used for secondary purposes One of the requirements for clients to be able to obtain the benefits associated with the Election Account is the linking of products, that is, that in addition to the account itself, the client contracts or has contracted any of the products detailed in the contract; for example, insurance, pension plans, funds or financial products offered by BBVA. For this, BBVA needs to obtain from the insurers and managers of the financial products that have contracted certain personal data of the clients, in order to verify if you meet the link requirement with respect to them, to verify that the sufficient link with BBVA and not charge commissions where appropriate.
This information is requested on a monthly basis so that BBVA can verify compliance with the linkage requirements related to insurance and financial products in accordance with the conditions established in the Election Account contract.
As of December 31, 2022, 5.9 million customers have contracted this product (6.2 millones customers in 2021). This represents about 60% of customers whose data is used for secondary purposes. The customer data represents the number of holders of non-canceled accounts for commercial banking and individuals.
Total amount of monetary losses as a result of legal proceedings associated with customer privacy Monetary losses of €474 thousand were incurred in financial year 2022 by banking entities that are members of the BBVA Group as of December 31, 2022, as a result of court rulings (and transactional agreements reached in said legal proceedings), as well as €501 thousand for administrative fines, imposed in procedures related to the privacy of natural persons, including their right to honor.
Excluded are those cases in which the entity is the victim of the illegal conduct and those in which, due to the establishment of a strict liability system by law, the entity must be responsible for the amounts subject to fraud by a third party to a customer (2) (4).
Data Security (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of account holders affected NFIS/Our stakeholders/Customers/Customers safety and protection
Card-related fraud losses from (1) card-notpresent fraud and (2) card-present and other fraud At Group level, during the financial year 2022, losses have been recorded for a value of €102,2 (in 2021, €84.8m), in case of fraud related to the absence of a card, and €25,3m (€20m) with the presence of a card.
Information that includes data from Argentina, Colombia, Spain, Mexico, Peru, Turkey, Uruguay and Venezuela.
Description of approach to identifying and addressing data security risks NFIS/Our stakeholders/Customers/Customers safety and protection
Selling Practices Percentage of total remuneration for covered employees that is variable and linked to the amount of products and services sold In compliance with the applicable regulations on customer protection, BBVA Group's General Remuneration Policy reflects the requirements and principles applicable to personnel that engage in activities related to the sale of products and provision of services to customers.
In this respect, the design and implementation of the remuneration these employees in BBVA Group ensures the protection of customer interests and the quality of the services provided, to ensure that:
– responsible business conduct and fair treatment of clients is encouraged;
– no incentives should be established that could induce staff to put their own interests or those of BBVA Group first, in possible opposition to the interests of their customers;
– remuneration is not primordially or exclusively linked to the sale of a product, or a category or specific type of product, such as products that are more lucrative for the entity or employee, when there are others more in line with customer needs; and that this objective is not set as that with greatest weight in the remuneration package; and
– an adequate balance is maintained between the fixed and variable elements of the remuneration.
Approval rate for (1) credit and (2) pre-paid products for applicants with FICO scores above and below 660 It is not applicable to BBVA's current business model because it does not have presence in the USA. Disclosure of this metric is not excluded if its applicability is extended to other places where BBVA is present or the activity is resumed in the United States.
(1) Average fees from add-on products, (2) average APR, (3) average age of accounts, (4) average number of trade lines, and (5) average annual fees for pre-paid products, for customers with FICO scores above and below 660 It is not applicable to BBVA's current business model because it does not have presence in the USA. Disclosure of this metric is not excluded if its applicability is extended to other places where BBVA is present or the activity is resumed in the United States.
(1) Number of complaints filed with the Consumer Financial Protection Bureau (CFPB), (2) percentage with monetary or non-monetary relief, (3) percentage disputed by consumer, (4) percentage that resulted in investigation by the CFPB It is not applicable to BBVA's current business model because the group does not have presence in the United States. However, BBVA has tools for communication, monitoring and response to claims or complaints submitted by customers, reported in this report to respond to other metrics. In caset that its applicability is extended to other places where BBVA has presence or activity is resumed in the United States, BBVA will analyze the materiality of the metric for its inclusion in future reports.
Total amount of monetary losses as a result of legal proceedings associated with selling and servicing of products Monetary losses of €4.6m are reported, incurred in financial year 2022 by banking entities that are members of the BBVA Group as of December 31, 2022, as a result of judicial rulings derived from civil proceedings (and transactional agreements reached in said proceedings) in those that condemn the entity for lack of transparency and/or defect in consent (not so for abusiveness when this is not preceded by a transparency analysis) in the field of consumer financing (excluding micro-enterprises and the self-employed when they do not act as consumers). Regarding amounts derived from administrative sanctions for lack of transparency, please see GRI metrics 417 and GRI 2-27(2) (3).
Activity metrics Number of unique consumers with an active credit card account (1) and pre-paid- debit card account (2) BBVA will continue working on future exercises to advance in the dissemination of this metric.
Number of (1) credit card accounts and (2) pre-paid debit card accounts On December 31, 2022, the data at Group level amounts to 29,186 thousand credit cards (2021: 25,255 thousand) and 89,274 thousand debit cards (2021: 76,411 thousand) (1).

(1) Includes information from Mexico, Turkey, Argentina, Colombia, Peru, Uruguay and Spain

(2) The concept "monetary losses" includes the amounts paid, provisionally or definitively (without defense expenses in general), by the entity in question, during the financial year 2022, excluding those derived from purely internal claims (customer service or customer advocate). The Fixing Rate as of 31/12/2022 is applied as the exchange rate.

(3) As a consequence of said judgments (and transactional agreements), the affected entities, in the ordinary course of their business, carry out an analysis of them and proceed to adopt a series of corrective measures, among which are the adaptation of the documentation or the adjustment of contract conditions.

(4) As a consequence of said judicial decisions, transactional agreements and administrative fines, the affected entities, in the ordinary course of their business, carry out an analysis of the same and proceed to adopt a series of corrective measures, among which are the adaptation of the documentation , making adjustments to internal operations or implementing changes to privacy policies.

SASB-Mortgage Finance

Content index SASB. Mortgage Finance

Topic Metric BBVA Group's response
Lending Practices (1) Number and (2) value of residential mortgages of the following types: (a) Hybrid or Option Adjustable-rate Mortgages (ARM), (b) Prepayment Penalty, (c) Higher Rate, (d) Total, by FICO scores above or below 660 It is not applicable to BBVA's current business model because the group does not have presence in the United States. In case that its applicability is extended to other places where BBVA is present or activity is resumed in the United States, BBVA will analyze the materiality of the metric for its inclusion in future reports.
(1) Number and (2) value of (a) residential mortgage modifications, (b) foreclosures, and (c) short sales or deeds in lieu of foreclosure, by FICO scores above and below 660 It is not applicable to BBVA's current business model because the group does not have presence in the United States. In case that its applicability is extended to other places where BBVA is present or activity is resumed in the United States, BBVA will analyze the materiality of the metric for its inclusion in future reports.
Total amount of monetary losses as a result of legal proceedings associated with communications to customers or remuneration of loan originators Monetary losses of €29.4m are reported, incurred in financial year 2022 by banking entities that are members of the BBVA Group as of December 31, 2022, as a result of court rulings derived from civil proceedings (and transactional agreements reached in said proceedings judicial) in which the entity is condemned for lack of transparency and/or defect in the consent (but not for abusiveness when this is not preceded by a transparency analysis, except as indicated in the following paragraph) in the field of Mortgage financing to individuals when they mortgage their home, either as collateral for a loan for the acquisition of the same or for the acquisition of another property.
Although these are not supposed objects of the metric because the lack of transparency and/or defects in the consent is not discussed, but only the abusiveness, because they are specific to the "Mortgage Finance" industry, monetary losses of €18 .5m incurred in 2022 by BBVA, S.A. as a consequence of judicial procedures derived from claims associated with mortgage financing expenses for consumers.
Regarding amounts derived from administrative sanctions for lack of transparency, please see GRI metrics 417 and GRI 2-27(1) (2).
Description of remuneration structure of loan originators BBVA Group does not have a specific remuneration structure established for originators of loans. Their remuneration structure is that defined in BBVA Group's General Remuneration Policy for the other employees. The Policy has been approved and designed in compliance with applicable regulations on customer protection, taking into account alignment with best market practices and having included elements designed to reduce exposure to excessive risks, aligning remuneration to the business strategy, objectives, values and long-term interests of the Group.
Discriminatory Lending (1) Number, (2) value, and (3) weighted average Loan-to-Value (LTV) ratio of mortgages issued to (a) minority and (b) all other borrowers, by FICO scores above and below 660 It is not applicable to BBVA's current business model because the group does not have presence in the United States. In case that its applicability is extended to other places where BBVA is present or activity is resumed in the United States, BBVA will analyze the materiality of the metric for its inclusion in future reports.
Total amount of monetary losses as a result of legal proceedings associated with discriminatory mortgage lending No monetary losses have been incurred in financial year 2022 by the banking entities that are members of the BBVA Group as of December 31, 2022, as a result of court rulings or administrative sanctions imposed in proceedings associated with discriminatory practices in the granting of mortgage financing to individuals when they mortgage their home, either as collateral for a loan for the acquisition of the same or for the acquisition of another property. For these purposes, discriminatory practices are understood to be those conducts that favor the granting of mortgages to individuals based on criteria not strictly based on objective credit risk conditions (1).
Description of policies and procedures for ensuring non-discriminatory mortgage origination NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change
Environmental Risk to Mortgaged Properties (1) Number and (2) value of mortgage loans in 100-year flood zones NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change and environmental factors/Integrating climate change into risk planning/Analysis of scenarios and stress testing
NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change and environmental factors/Identification, measurement and integration of climate change into risk management/Classification and measurement of physical risk
(1) Total expected loss and (2) Loss Given Default (LGD) attributable to mortgage loan default and delinquency due to weatherrelated natural catastrophes, by geographic region BBVA is working on defining financial impact indicators associated with the physical risk of climate change on the mortgage portfolio, some of which are already being taken into account for the climate stress test exercise. For more information see:
NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change and environmental factors/Integrating climate change into risk planning/Analysis of scenarios and stress testing
NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change and environmental factors/Identification, measurement and integration of climate change into risk management/Classification and measurement of physical risk
Description of how climate change and other environmental risks are incorporated into mortgage origination and underwriting NFIS/Report on climate change and other environmental and social issues/Management of risks associated with climate change
Activity metrics (1) Number and (2) value of mortgages originated by category: (a) residential and (b) commercial See table (1) below. The data includes information from BBVA Spain, BBVA Mexico (less commercial mortgages) and BBVA Peru.
(1) Number and (2) value of mortgages purchased by category: (a) residential and (b) commercial Recently, BBVA has not carried out any type of activity related to the acquisition of mortgages and, therefore, this metric is considered non-material. Due to the possibility that this situation changes, BBVA will monitor and will report the information requested in this standard.

(1) The concept "monetary losses" includes the amounts paid, provisionally or definitively (without defense expenses in general), by the entity in question, during the financial year 2022, excluding those derived from purely internal claims (customer service or customer advocate). The Fixing Rate as of 31/12/2022 is applied as the exchange rate

(2) As a consequence of said judgments (and transactional agreements), the affected entities, in the ordinary course of their business, carry out an analysis of them and proceed to adopt a series of corrective measures, among which are the adaptation of the documentation, the adjustment of the conditions of the contracts or the modification or elimination of the clauses declared null (e.g. clause of expenses and floor clauses).

(1) MORTGAGES OPENED ON NOVEMBER 30, 2022 (NUMBER IN THOUSANDS, VALUES IN MILLIONS. EUROS)

Number Value
Residencial 1,557 89,374
Comercial 60 8,853

5.2.6 Contribution to the Sustainable Development Goals

The Sustainable Development Goals (SDGs) were adopted in 2015 within the framework of the United Nations 2030 Agenda for Sustainable Development and have been signed by 193 countries. The 17 goals seek to eradicate poverty, protect the planet and ensure prosperity for all. This initiative aspires to involve all interest groups, from governments to companies to civil society. Each of the objectives, stated with a specific purpose, in turn lists several goals to achieve it and each goal has its own indicators, which serve to determine the degree of achievement of each objective.

BBVA focuses on contributing to five SDGs through the development of its business, generating a greater positive impact by taking advantage of the multiplier effect of banking. These SDGs are: 7, 12 and 13 (Climate Action); and 8 and 9 (Inclusive growth). Additionally, BBVA contributes significantly to these and other SDGs through the direct impacts of its activity and through its investment in the community.


Impact metrics

BBVA integrates the SDGs in its Sustainability Policy and in its Corporate Social Responsibility Policy, to contribute to them through its direct impact as a company, the development of its business, its social action and the alliances to which BBVA is attached. To report on this impact, methodological guidelines published by GRI, United Nation Global Compact and the World Business Council for Sustainable Development50 and by the World Economic Forum have been used51.

50 GRI, the United Nations Global Compact and the World Business Council for Sustainable Development -WBCSD- (2016). SDG Compass. The guide for business action on the SDGs.
51 World Economic Forum (2020). Toward Common Metrics and Consistent Reporting of Sustainable Value Creation.
PLANET

SDG 7. AFFORDABLE AND CLEAN ENERGY

2022 2021
Impact of customer support Financing of renewable energy projects (€ mill) 840 846
Carbon footprint calculator (number of enterprise users) 166,912 11,492
Carbon footprint calculator (number of retail users) 867,535 626,504
CO2 emissions avoided through the issuing of green bonds (T CO2) (1) n/d 1,359,940
Renewable energy generated from the issuing of green bonds (GWh/year)(1) n/d 6,531
Direct impact Environmentally certified area in m2(%)(2) 44% 39%
Electricity usage per employee (MWh/occup) 5.74 5.76
Reduction of electricity usage per employee (%) (3) (14)% (14)%
Electricity coming from renewable sources (%) 92% 79%
CO2 emissions per employe (T CO2/occup)(4) 0.82 0.94
CO2 emission reduction per employee (T CO2/occup) (3) (4) (70)% (0,60)
Emissions offset (%) 100% 100%
Energy consumed (megawatt-hour) 688,158 695,140
Join RE 100 ✔ ✔

(1) Regarding the base year 2019.

(2) The following seals/certifications are considered: Leed, ISO 14001, ISO 51, EDGE, Zero Waste, WWF Green Office, Green Seal. Previously this indicator was Employees in certified properties (%).

(3) Includes Scope 1 emissions (fuels in facilities and fleet and refrigerant gases), Scope 2 (electricity consumption; Market-based method) and Scope 3 (waste management, business trips by plane and train and displacement of employees of central services that represent 35.8% of the total number of employees covered by the report). Within the scope 3 emissions reported, the following categories defined in the GHG Protocol are not included: Category 1 purchase of goods and services; Category 2 capital goods; Category 3 fuel and energy related activities (not included in scopes 1 or 2); Category 4 upstream transportation and distribution; Category 7 transportation of network workers (which account for 64.2% of the total number of employees covered by the report); Category 8 upstream leased assets; Category 9 transportation and distribution; Category 10 processing of the products sold; Category 11 use of the products sold; Category 12 end-of-life treatment of products sold; Category 13 downstream leased assets; Category 14 franchises; Category 15 investments. In relation to the information on Category 15 Investments, see the Calculation of financed emissions section of section 2.3.4 Risk management associated with climate change and environmental factors. The scopes excluded to date could be material.

SDG 12. RESPONSIBLE CONSUMPTION AND PRODUCTION

2022 2021
Impact of customer support Wastewater treated from the issuing of green bonds (m3/year) (1) n/d 20,047,371
Waste treated from the issuing of green bonds (T/year) (1) n/d 906,864
Direct Impact Reduction of water consumed per employee (%) (2) (12)% (5.02)%
Reduction of paper consumed per employee (%) (2) (31)% (32)%
Water consumption per employee (m3/empl) 16.6 17.9
Paper consumption per employee (Kg/empl) 34.1 33.8
Public water suppliy (millions of cubic meters) 1.73 1.88
Paper consumed (T) 3,718 3,640
Hazardous waste (T) 440 120
Non-hazardous waste (T) 4,129 4,251
Waste recycled (T) 1,722 2,402
% contracts awarded to certified suppliers 98% 97%
% local suppliers/total suppliers 90.2% 98%
Impact on community investment Training actions in relation to tge efficient use of resources ✔ *

* Information reported for the first time in 2022.

(1) 2022 data not available at the date of publication of this report

(2) Regarding the base year 2019.

SDG 13. CLIMATE ACTION

2022 2021
Impact of customer support Green bond issued (€ mill) 1.25 —
Goal 2025: green mobilization (€ mill) 40,643 22,042
Wholesale loan portfolio exposed to sectors sensitive to transition risks (%) 7% 9%
Total amount of operations analyzed under the Equator Principles (€ mill) 45,994 18,648
Goal 2025: movilization in emerging countries (mill €) 7,179 *
Direct impact Scope 1 emissions (tons CO2e) (1) 41,395 51,038
Scope 2 emissions (tons CO2e) market-based method 11,571 42,152
Scope 2 emissions (tons CO2e) location-based method 199,183 204,977
Scope 3 emissions (tons CO2e) (2) 37,026 4,254

* Information reported for the first time in 2022.

(1) In 2021 scope 1 emissions, this scope was expanded and includes emissions derived from the use of fuels in the vehicle fleets and the refrigerant gases used in the air conditioning facilities.

(2) In scope 3 emissions for the year 2021, this scope was expanded and includes emissions derived from waste management, train travel and the commuting of our employees to their workplaces.

PROSPERITY

SDG 6. CLEAN WATER AND SANITATION

2022 2021
Impact of customer support Financing sanitation and sewage infrastructure (€ mill) 114 *

* Information reported for the first time in 2022.

SDG 8. DECENT WORK AND ECONOMIC GROWTH

2022 2021
Impact of customer support
Financing for financial inclusion (€ mill) 609 404
Number of clients belonging to financial inclusion segment Mexico (million) 9 8
Promotion of financial inclusion in rural areas (1) ✔ *
Businesses benefiting by social bonds issued (2) n/d 13,275
People (employees) benefiting by social bonds issued (2) n/d 214,497
Social bond issued (€ mill) — 1,000
Direct impact
Financial value created: gross income (€ mill) 24,890 21,066
Number of employees 115,675 110,432
Number of employees with different capacities 645 589
Number of third parties 3,548 3,332
Third parties annual turnover(€ mill) 6,292 5,966
Number of ATMs (units) 29,807 29,148
Number of branches (units) 6,040 6,083
Ratio of entry category salary to local minimum wage by gender greater than 1 ✔ ✔
% of total female employees with permanent or permanent full-time employment contract modality 52% 53%
% of total male employees with permanent or permanent full-time employment contract modality 48% 47%
Total number of employees entitled to parental leave 3,715 4,403
Occupational accidents: No. of accidents 275 275
Occupational accidents: severity index 0.04 0.04
Impact on community investment Investment in entrepreneurial initiatives (€ mill) 8 8.0
People benefiting from initiatives to support entrepreneurship (million) 3 2.8
Entrepreneurs who receive financial support (million) 2.86 2.8
Entrepreneurs who receive non-financial support (number) 9,338 14,115

* Information reported for the first time in 2022.

(1) BBVA, within the scope of the Spanish Banking Association (AEB), the Spanish Confederation of Savings Banks (CECA) and the National Union of Credit Cooperatives (Unacc), has adhered to the Strategic Protocol to strengthen the Commitment Social and Sustainable Banking, which includes measures to promote financial inclusion in rural areas.

(2) Data 2022 not available at the date of publication of this report.

SDG 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE

2022 2021
Impact of customer support Number of clients (million) 89.3 82.2
Social infrastructure financing: health (€ mill) 309 *
Social infrastructure financing: inclusive housing (€ mill) 161 *
Financing of telecommunications infrastructures (€ mill) 819 *
Impact on community investment Investment in science and research (€ mill) 23.29 21.8
eople benefiting from science and research initiatives (million) (1) 4.6 6.3

* Information reported for the first time in 2022.

(1) Includes people reached directly, indirectly and through content (single user).

SDG 11. SUSTAINABLE CITIES AND COMMUNITIES

2022 2021
Direct impact Social housing policy in Spain: refinancing agreements More than 85,850 84,600
Social housing granted to public entities 1,000 1,000
Mortgage loans (€ mill) 92,064 91,324
Consumer loans (€ mill) 36,116 31,026
Credit card loans (€ mill) 17,382 12,936
Financing public transport (€ mill) 26 *
Financing civil works Infrastructure (€ mill) 45 *
Financing art and culture infrastructure (€ mill) 2 *
Financing building energy efficiency (€ mill) 4.306 *
Financing building accesibility (€ mill) 5 *
mpact on community investment Investment in initiatives supporting culture (€ mill) 7.0 5.3
People benefiting from initiatives supporting culture (million) (1) 2.0 1.9

* Information reported for the first time in 2022.

(1) Includes people reached directly and through content (single user).

PEOPLE

SDG 3. GOOD HEALTH AND WELL BEING

2022 2021
Impact of customer support Health financing 457 *

SDG 4. QUALITY EDUCATION

2022 2021
Impact of customer support % Digital clients who use financial health features (Spain) 60% 53.3%
Financing educational facilities accessibility 0.2 *
Direct impact Investment in employee training (€ mill) 42 36
Training per employee (hours per employee) 43.7 44.8
Employees who receive training (% of the total) 98% 98%
Employees (total) who have completed at least one sustainability course 100,421 57,210
Impact on community investment Investment in education programs (€ mill) 77.2 58
Beneficiaries education for society (million) (1) 0.4 0.3
Beneficiaries secondary education 0.1 *
Beneficiaries higher education 2.9 *
Unique users on Financial Education web pages (mill) 29.6 18.5
Unique users who acquire open knowledge through ”Aprendemos juntos” (million) 3.5 2.5
Unique users who visit content on www.bbva.com on sustainability (mill) 4.0 3.6

* Information reported for the first time in 2022.

(1) Only includes beneficiaries of education access programs.

SDG 5. GENDER EQUALITY

2022 2021
Impact of customer support Loans to female entrepreneurs (€ mill) 720 23,700
Direct impact % Women on the workforce 53% 53%
% Women board members 40% 33%
% Women in senior management positions 22% 22%
% Women in management positions 33% 33%
Promotions of women (% of total) 53% 52%
% New incorporations corresponding to women 47% 48%
Wage gap (%) 0.7 0.6
Impact on community investment % of Microfinanzas Foundation Clients (women) 59% 59%
Bloomberg Gender-Equality Index ✔ ✔
BBVA Microfinanzas Foundation, 1st in the world in contribution to development for gender equality, according to the OECD — ✔

SDG 10. REDUCED INEQUALITIES

2022 2021
Impact of customer support % bancarization of the beneficiaries of remittances Mexico More than 88% *
Entrepreneurship financing (€ mill) 3,968 *
Financing social companies / foundations (€ mill) 15 *
Impact on community investment Total number of Microfinance Foundation credit clients at the end of the year (million) 0.92 0.86
% of Microfinance Foundation clients (rural) 34% 34%
% of Microfinance Foundation clients (primary education at most) 32% 35%
Investment in financial education programs and initiatives (€ mill) 2,8 3,3
Beneficiaries of financial education programmes (million) 0,8 0,7

* Information reported for the first time in 2022.

(1) 96.5% of clients are economically or socially vulnerable.

GOVERNANCE

SDG 16. PEACE, JUSTICE AND STRONG INSTITUTIONS

2022 2021
Impact of customer support Environmental and social framework sectors: energy, mining, defense, infrastructure and agribusiness ✔ ✔
Human Rights Action Plan ✔ ✔
Number of complaints to the banking authority for every 10,000 active customers 11 10
Average time to resolve complaints (calendar days) 7 5
Provisions of the Defense sector included in the BBVA Environmental and Social Framework considering that certain activities or products related to the defense industry go against BBVA's principles and business rules ✔ ✔
Direct impact Corporate purpose that connects the main business with benefiting society ✔ ✔
Governance body with ESG competencies ✔ ✔
Taxes paid (€ mill) 10,948 8,215
Anti-corruption policy ✔ ✔
Supplier ethics code ✔ ✔
BBVA and Human Rights ✔ ✔
Corporate Social Responsibility Policy ✔ ✔
Employees who have received code of conduct training 85,329 104,476
Employees who have received anti-corruption policy training 79,706 71,470
Complaints received through complaint channels 1,597 1,748
Employees who have received anti-money laundering training 91,401 97,106
Anti Money Laundering: No. of investigation files managed 139,592 141,850
Anti Money Laundering: No. of suspicious operations reported to the authorities. 82,860 78,421
Anti Money Laundering: Engagement with governmental agencies and international organizations ✔ ✔
Impact on community investment Donation to respond to the humanitarian emergency in Ukraine (€ mill) 1 not applicable

ODS 17. ALIANZAS PARA LOGRAR LOS OBJETIVOS

2022 2021
Impact of customer support Signatory of the Principles for Responsible Banking and the Principles for Responsible Investment ✔ ✔
Promoter of Green Bond Principles and Social Bond Principles ✔ ✔
Member of regional (EBF) and local (AEB, ABM Asobancaria, etc.) banking associations ✔ ✔
Signatory of sectoral agreements: ANESE, Faconauto ✔ ✔
Signatory of the UNEP FI Collective Commitment to Climate Action ✔ ✔
Signatory of the Net Zero Banking Alliance ✔ ✔
Collective Committment to Financial Education & Inclusion ✔ ✔
Direct impact RE 100; GECV, re -Source ✔ ✔
BBVA chairs REDI, the Business Network for LGTBI Diversity and Inclusion in Spain ✔ ✔
ERG (Employee Resource Group) Be Yourself, joining the United Nations standards of conduct for the LGTBI community, joining REDI (Corporate Network for Diversity and Inclusion in Spain), Inspiring Girls ✔ ✔
Impact on community investment Number of volunteers (employees) 8,637 9,066
Volunteer hours (thousands of hours) 24,262 26,577
Member of United Nations Global Compact ✔ ✔
Member of the Thun Group of Banks on Human Rights ✔ ✔
Signatory of the Equator Principles ✔ ✔
Member of local, regional and international organizations that promote CSR (Seres, CSR Europe, CECP, etc.) ✔ ✔

5.3 Organizational Chart

In 2022, the Group's organizational structure remains in line with the one approved by the BBVA Board of Directors at the end of 2018, a structure that meets the objective of continuing to promote the transformation and businesses of the Group, while advancing in the delimitation of executive functions.

The main aspects of the organizational structure are:

  • The chief executive is responsible for the management and proper functioning of the Board of Directors, for the functions of management supervision, for the institutional representation of the entity, as well as for the leadership and promotion of the group's strategy and its transformation process.

    The areas that report to the chief executive are those related to the key levers of transformation: Engineering, Talent & Culture and Data; those related to strategy: Strategy & M&A, Communications and the figure of the Senior Advisor to the Chair; and those related to the legal field and the Council: Legal and General Secretary.

  • The Chief Executive Officer is responsible for the day-to-day management of the Group's businesses, reporting directly to the Board of Directors on his duties.

    The areas that report to the Chief Executive Officer are the business units in the different countries, Corporate & Investment Banking, Client Solutions and Sustainability, as well as the following global functions: Finance, which integrates accounting and tax functions, and Global Risk Management.

  • Lastly, certain areas of control have a direct report of those responsible to the Board of Directors through the corresponding committees. These control areas are Internal Audit and Regulation & Internal Control, the area in charge of the relationship with supervisors and regulators, the monitoring and analysis of regulatory trends and the development of the Group's regulatory agenda, and the management of derived risks of regulatory compliance issues.