BBVA channels more than 70% of its sustainable funding through loans

Regarding activity in 2021BBVA channeled €35.4 billion in sustainable finance, split between different solutions for wholesale clients (corporate and institutional), corporate, retail clients and socially responsible investing.

On the social level, BBVA includes business objectives related to this area with commitments that include inclusive infrastructure, in addition to the work of the BBVA Microfinance Foundation in microcredits.

Solutions for wholesale customers

In 2021, in the sustainable business loans In this area, on a global level, BBVA has channeled financing linked to compliance with social and environmental KPIs, and linked to the client’s ESG rating – both in bilateral and syndicated formats. Among these, pioneering operations in the food sector stand out.

In Spain, BBVA has been a pioneer in incorporating mechanisms to donate part of the margin to sustainable or charitable projects, and it remains one of the leading banks in the sustainable finance market, carrying out several important operations as a sustainable coordinator for the fifth consecutive year. The bank also led versions of major syndicated financings in Germany, the UK, Belgium, Mexico, Peru and Colombia.

Furthermore, in 2021, BBVA continued to be very active in financing of sustainable projects, participating in the delivery of 1.28 billion euros of sustainable financing. It was mainly allocated to renewable energy projects, self-consumption and energy efficiency projects, sustainable transport projects, financing sustainable agriculture, social projects in the health and telecommunications sector such as way to facilitate access to new technologies and sustainable infrastructure projects.

Furthermore, BBVA was the first bank to green, social and sustainable bond issuesand obligations related to environmental indicators for customers in the United States, Mexico, South America, Asia and Europe, including Spain, representing a total volume of 6.68 billion euros brokered by BBVA.

Likewise, in in the field of transaction banking, BBVA signed transactions for a total amount of 4.96 billion eurosusing its sustainable banking transaction framework.

Sustainable solutions for retail customers

BBVA proactively supports its retail customers in adopting more sustainable habits that contribute to reducing their CO2 emissions. The bank is also committed to providing data-driven tools and solutions that help these customers track their consumption and emissions. The offer of sustainable solutions in the countries where BBVA operates includes products designed for mobility, such as financing lines for the purchase of hybrid and electric vehicles, green mortgages for sustainable housing and loans to improve the energy efficiency of housing.

In 2021 in Spain, BBVA became the first bank to use data analytics to calculate the carbon footprint of its retail customersobtain an estimate of the amount of CO2 emissions based on natural gas and electricity bills, and fuel expenses.

In addition, the commercial area highlights the inclusive growth line, channeling resources to build infrastructure and support inclusive economic growth. Within this line, products intended for individuals are credit products (cards, loans and mortgages) respecting income and/or vulnerability thresholds set by each country. the social mortgage in Peru and Colombia stands out in this respect, because it is aimed at segments of the population with low purchasing power, for whom the state subsidizes part of the mortgage loan.

BBVA also supports entrepreneurs by granting loans to natural or legal persons who have started an economic enterprise within three and a half years, and grants financing to micro-enterprises – provided that they respect the invoicing thresholds established in the taxonomy social security of BBVA for each country. In this segment, the Women Entrepreneurs Finance Program in Turkey stands out, as it allows women owners of small and medium enterprises to access loans on preferential terms.

In addition, BBVA also helps to channel the savings of this type of customer into sustainable investments.

In 2021, BBVA channeled a total of €6.47 billion in sustainable finance for retail clients, including €4.25 billion in Spain, €1.11 billion through the BBVA Microfinance Foundation, 548 million euros in Mexico and 350 million euros in Turkey.

Sustainable investment solutions

In 2021, BBVA Asset Management, the group’s investment management unit that encompasses all of its asset management activities worldwide, made significant progress in integrating sustainability. It included the following aspects: a) integrate extra-financial criteria, known as ESG factors, into the processes linked to investment decisions and risk control for the vehicles and portfolios managed by the bank b) a commitment to the best practices of sustainable investment, which resulted in 2021 in the adherence to the United Nations Principles for Responsible Investment, l engagement with the Net Zero Asset Managers Alliance to ensure net zero emissions portfolios by 2050 and participation in other joint initiatives with businesses and governments; and C) investment exclusion policies for companies in sectors considered inherently harmful to society.

In addition, BBVA Asset Management has expanded its sustainable product offering in 2021. This includes four new investment funds (two in Spain, one in Mexico and one in Peru) and seven pension plans (six in Spain, one in Portugal). Total assets under management with sustainable solutions amounted to €5.60 billion at the end of 2021, and net fundraising was €1.56 billion.

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