Responsible banking
BBVA has a differential banking model that we refer to as responsible banking, 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 four pillars of BBVA´s responsible banking model are as follows.
- Balanced relationships with its customers, based on transparency, clarity and responsibility.
- Sustainable finance to combat climate change, respect human rights and achieve the United Nations Sustainable Development Goals (SDGs).
- Responsible practices with employees, suppliers and other stakeholders.
- Community investment to promote social change and create opportunities for all.
In recognition of its responsible banking model and of BBVA's efforts to advance sustainability issues, in September 2018 BBVA joined the Dow Jones Sustainability Index (DJSI), as mentioned in the section of the BBVA share.
In line with the European Commission Action Plan on sustainable finance, BBVA announced in 2018 its Pledge 2025, the Bank's climate change and sustainable development strategy to meet the United Nations Sustainable Development Goals and the Paris Agreement on Climate Change. It is an eight year pledge (2018-2025) based on financing, managing and involving. BBVA is pledging to mobilize €100 billion in green and sustainable finance, infrastructures and agribusiness, social entrepreneurship and financial inclusion. In its pledge to manage environmental and social resources and minimize the potential direct and indirect negative 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. In addition, BBVA is pledged to engage all its stakeholders to boost the contribution of the financial sector to sustainable development.
To foster this contribution, BBVA presented in April 2018 the SDG-linked bond framework,, under which it may issue the so called green bonds, social bonds or sustainable bonds. The existence of this framework is one of the characteristic elements of sustainable issuances.
Additionally, in the third quarter of 2018, BBVA Asset Management launched a global asset allocation fund managed under a Socially Responsible Investment (SRI) criteria. BBVA Futuro Sostenible, has a defensive risk profile, and completes the range of investment solutions with socially responsible criteria offered by BBVA Group fund manager. BBVA Futuro Sostenible is the first fund in Spain with a complete approach to SRI.
- Integration of SRI criteria for all asset classes with investment in the best companies and governments with environmental, social and corporate governance criteria.
- Lower carbon footprint than the benchmark.
- Impact investment based on the SDGs.
- Distribution of a quarter of the management commission in solidarity projects.
- Exclusion of companies that do not comply with the United Nations Global Compact, controversial sectors and worst companies and governments that do not meet our criteria of minimum standards in corporate, environmental and social governance.
Regarding responsible practices, BBVA published at the beginning of 2018 its Human Rights Commitment, an action plan that covers all the areas of the Group and its ecosystem. For BBVA, respect for the dignity of people and their rights is an essential condition for action and is very closely linked to the challenge that it has assumed of fostering and preserving the well-being of the communities in which it operates. This commitment is based on the UN Guiding Principles on Business and Human Rights.
In November 2018, BBVA joined in launching the Principles for Responsible Banking at the United Nations Environment Programme Finance Initiative (UNEP FI) global roundtable in Paris. These principles were announced by 28 large financial institutions from around the world, including BBVA and Garanti -BBVA Group subsidiary in Turkey-, with the aim of transforming the financial industry to be an engine in the achievement of a sustainable future and the commit to aligning their business activities with the Sustainable Development Goals (SDGs) and the Paris Climate Agreement.