Sustainability and Responsible Banking

BBVA has a differential way of doing banking based on the Purpose “to bring the age of opportunity to everyone”, always acting in line with its corporate values - customer comes first, we think big, we are one team - and the goal of having a positive impact on the lives of people, businesses and society as a whole.

It is a commitment to a responsible way of doing banking and to creating value over the long-term for all its stakeholders, (customers, employees, shareholders, suppliers or society), which is reflected in the different Bank Policies and Corporate Standards, especially, in the General Sustainability Policy and in the General Corporate Social Responsibility Policy (SRP, hereinafter).

According to the SRP Policy, whose update was approved by the BBVA Board of Directors in December 2020, BBVA integrates the concerns of its stakeholders into its activities and business, among others, on social and environmental issues, on diversity, fiscal responsibility, respect for human rights and prevention of corruption and other illegal behaviours. Therefore, BBVA develops its activity in a field of corporate social responsibility based on the following general principles, which it already applies in its various management policies: Integrity, Prudent risk management, Transparency, Achievement of a profitable and sustainable long-term business, Creating long-term value for all stakeholders and Compliance with applicable law at any given time.

Likewise the Bank's Board of Directors approved in October, 2020 a General Sustainability Policy, which defines and establishes the general principles, the main objectives and management and control guidelines to be followed by the Group in terms of sustainable development, trying to achieve economic development, social development and environmental protection in a balanced way.

All the business and support areas of the Group integrate these two policies into their internal regulations and activities.

Milestones and initiatives for sustainability and responsible banking

The commitment to responsible and sustainable growth is one of BBVA's main initiatives, reflected in the Group's second strategic priority: "Helping our clients transition toward a sustainable future." In this regard, one of the line actions is the 2025 Pledge, by which BBVA is pledged to mobilize €100bn between 2018 and 2025 in green finance, sustainable infrastructure and agribusiness, entrepreneurship and financial inclusion. During the year 2020, BBVA has achieved to mobilize approximately €20,000m, which represents approximately €50,000m mobilized since its launch.

A relevant milestone in 2020 has been the creation of the Global Sustainability Office (GSO), a unit responsible for promoting and coordinating the Group’s sustainability initiatives, with the support of the senior managers in the Group’s global and local areas.

In terms of transparency, the presentation in November 2020 of the first BBVA report on the risks and opportunities associated with climate change according to the Task Force on Climate-related Financial Disclosures (TCFD) standard, has represented another milestone in the Group’s commitment to this matter. An exercise in transparency that includes our progress in our governance model, strategy, risk management and metrics related to climate change.

Also, since January 1, 2020, the Bank estimates an internal price for its CO₂ emissions and has committed to being carbon neutral in 2020, thereby contributing to the fight against climate change and promoting sustainable development.

Since the publication of its framework for the issuance of SDG-linked bonds in 2018, BBVA has established itself as one of the most active banks in green bond issuances. In 2019, the Bank issued a second green bond for €1,000m, at the time the largest amount of any Eurozone financial institution, and also it issued the first green structured bond using blockchain technology. In May 2020, BBVA was the first private financial institution in Europe to issue a COVID-19-related social bond and, two months later, the Bank was the first financial institution in the world to issue contingent convertible perpetual bonds (CoCos) classified as green bonds, for €1,000m. The funds will be used to finance eligible green assets in BBVA’s portfolio, which is diversified into assets from different green sectors (energy efficiency, renewable energy, sustainable transportation, waste management and water management).

BBVA is committed to diversity and inclusion in all its forms. In December 2020 the Entity organized Diversity Days, a conference that highlights recently implemented projects in this area and that draws the roadmap of the Group.

Through its social programs, BBVA acts as a driver of opportunity for people, seeks to generate a positive impact on their lives and delivers on its purpose of making the opportunities of this new era available to everyone, particularly to vulnerable people. In 2020, BBVA continued to promote the main lines of action established in the Community Investment Plan: financial literacy, social entrepreneurship, education and culture, in addition to BBVA Group Social Response to COVID-19, detailed at the end of this section.

BBVA’s Presence in sustainability indices

BBVA has been included, for the fourth consecutive year, in the Bloomberg’s Gender Equality Index, improving its score from 72.32% to 77.29%, which is a recognition of its commitment to create a reliable work environment, in which the professional development and equal opportunities of all employees are guaranteed regardless of your gender.

BBVA is also present in other sustainability indices at an international level or ESG (Environment, Social and Governance) indices, which evaluate the performance of companies in these matters. It should be noted that in 2020, BBVA was ranked first among European banks in the Dow Jones Sustainability Indices (DJSI), which measures the performance of the largest companies by market capitalization in economic, environmental and social matters. Globally, the Group ranked second, achieving the highest score (100 points) in the areas of financial inclusion, environmental reporting, social reporting, corporate citizenship and philanthropy, occupational health and safety, tax strategy and policy influence. The Group therefore achieved an overall score of 87 points, 5 points more than in 2019.

BBVA is member of the following sustainability indices ¹:

Listed on the DJSI World (2nd in the world) and Europe DJSI (1st in the European banking)

Listed on the MSCI ESG Leaders Indices. (Rating AAA)

Listed on the FTSE4Good Index Series
(Score 4,4/5)

Listed on the Euronext Vigeo Eurozone 120 y Europe 120 incides

Listed on the Ethibel Sustainability Excellence Europe y Ethibel Sustainability Excellence Global indices

Listed on the Bloomberg Gender-Equality (Score 77,29/100)

Score A-

¹ The inclusion of BBVA in any MSCI indices and the use of the logos, trademarks, service marks or index names does not constitute the sponsorship or promotion of BBVA by MSCI or any of its subsidiaries. The MSCI indices are the exclusive property of MSCI. MSCI and the MSCI indices and logos are trademarks or service marks of MSCI or its subsidiaries.

Measures taken by BBVA in response to COVID-19

In addition to the safety, business continuity and financial support measures to the commercial and retail sector in light of the situation caused by COVID-19 mentioned at the beginning of this report, BBVA stepped up efforts to help society in its fight against the pandemic, with an institutional donation of more than €35m.

In addition, BBVA launched an initiative among its employees in most of the countries in which it operates, inviting them to join in with the charitable work against the pandemic. In these campaigns, BBVA has played its part by contributing an initial amount or by matching the contribution of its employees, so for every euro contributed by an employee, the Bank has contributed another euro. The funds raised amounted to €1.8m and they are being used to fight against the virus in the three action items mentioned above.

Finally, BBVA has encouraged its customers to get involved, launching several campaigns, mainly in Spain and Mexico, through which €9.3m has been raised.

As for suppliers, BBVA has supported the ones closest to us with protection schemes for employees and companies, and with the advance payment of invoices, without waiting until the agreed deadline.