Responsible banking
BBVA Group has a differential banking model based on seeking out a return adjusted to principles, strict legal compliance, best practices and the creation of long-term value for all stakeholders.
The main actions carried out in the first quarter of 2018 implementing the four pillars of BBVA's responsible banking model are as follows:
1. Creation of lasting and more balanced relationships with customers...
... Through transparent, clear and responsible communication and financial education in the solutions that we offer. In this respect, BBVA is developing and collaborating with numerous programs, many of which are designed for young people.
BBVA's Financial Education and Skills Center has completed its first year of operation, consolidating its position as a platform that serves as a global model for financial education. The Call for Expression of Interest was launched this quarter to promote academic research in the field of financial education and inclusion. Training prioritizes the following six specific areas: FinTech, financial health, financial education and the gender gap, behavioral economics, sustainable finance, and new methods for measuring financial literacy.
2. Full integration of how we do business...
...Through responsible business policies, a reputational risk model, and a people-centric culture throughout the Organization.
During the quarter, BBVA updated its Commitment to Human Rights, following a process of due diligence that analyzed the Organization in depth. The analysis was based on the UN's Guiding Principles on Business and Human Rights, and also included the creation of a three-year human rights action plan, published together with the new Commitment.
BBVA has also been chosen to form part of the 2018 Bloomberg Gender Equality Index. The index is composed of 104 companies from ten sectors headquartered in 24 countries. It recognizes the achievements of companies with respect to gender-equality policies, both in relation to their employees and their support for social initiatives and products and services that prioritize this commitment. The aim is to provide managers and investors with information on the commitment and performance of companies in the area of gender equality. Garanti Bank, BBVA's subsidiary in Turkey, was the first Turkish Bank included in the index.
3. Promotion of responsible and sustainable growth...
...Through financial inclusion, sustainable finance, support for SMEs and responsible investment.
In February 2018, BBVA announced its strategy around climate change and sustainable development. The strategy will help the bank meet the United Nations Sustainable Development Goals and is line with the Paris Agreement on Climate Change. The key elements of the strategy are:
- In the area of finance, a commitment to mobilize €100 billion in green finance, sustainable infrastructures, social entrepreneurship and financial inclusion.
- In management, BBVA will work to mitigate environmental and social risks and thus minimize potentially negative impacts, both direct and indirect. From the point of view of mitigating direct impacts, BBVA has pledged that by 2025, 70% of energy bought by the Group will be renewable, thus reducing its CO2 emissions by 68% compared to 2015. The Group will mitigate indirect impacts by applying new industry standards for energy, infrastructure, mining and agribusiness. As part of its commitment to transparency in this area, BBVA is the first bank that has reported its total exposure to fossil fuels, at 3.4% of total assets.
- Lastly, BBVA will involve its stakeholders in pushing for a greater collective contribution from the financial sector to sustainable development.
BBVA's Annual General Meeting, held on March 16 in Bilbao was awarded with the Sustainable Event certificate for its clear commitment to environmental, social and economic stability under the UNE-ISO 20121:2013 standard. The certification has been verified by AENOR audit.
4. Investment in the community...
...With priority for financial education initiatives for society, entrepreneurship, knowledge and other social causes that are relevant from a local point of view.
In 2017, BBVA Group's allocation to social programs amounted to €103m, accounting for 2.9% of the its net attributable profit for the year. Of this total, 70% supported initiatives that drive development and create opportunities for people, within the priority framework of knowledge, education and culture included in the Group's Community Investment Plan for the period 2016-2018.
During the first quarter, BBVA Foundation promoted a website offering health information given by healthcare professionals working at the hospital. The aim is to respond to the demand from 60% of Spanish people who seek health information on the internet by helping them deal with their concerns using reliable information.
At the close of the quarter, the Bank presented the Conectados project to promote good and responsible use of information and communication technologies (ICT) by young people. This platform aims to raise awareness about the importance of the proper use of these technologies through activities geared to both young children and their families and teachers. Conectados works in three areas: educational actions, via an app and a competition involving more than 6,000 young people between 14 and 16 years old; research designed to discover the impact of ICT on the socialization of adolescents; and raising awareness and offering training for families and teachers.