Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 756

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 756
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 initiatives and supervisory expectations relating to banking in the European Union (EU).

Within the initiatives carried out, it is worth noting the approval by the Board of Directors of the Sustainability Policy in 2020 (which defines the
vision, governance and responsibilities of the three lines of defence in relation to sustainability) and of the Environmental Risk Policy drawn up in July 2021 (which defines the critical management parameters to progressively and proportionally
integrate these risks in the risk management and control units and business units).

During this year, environmental risk indicators have also
continued to be defined and developed and are gradually being converted to metrics that are included in the Risk Appetite Framework in order to manage and monitor these risks. Furthermore, the Climate Risk Policy has been reviewed and its scope of
application and content have been expanded in order to include the risks associated with environmental degradation (air pollution, water pollution, water scarcity, land pollution, loss of biodiversity, deforestation, etc.). This is why the Climate
Risk Policy has been renamed the Environmental Risk Policy.

Environmental risk should be understood as the risk of incurring losses as a result of the impacts, both those existing at present and those that may
exist in the future, stemming from the environmental risk factors (associated with climate change and environmental degradation) and affecting counterparties or invested assets, as well as aspects affecting financial institutions as legal entities.

A-617

Environmental factors can produce negative impacts through different risk drivers, which can be categorised as either physical risks or transition risks:

| – | Physical risks are those that occur due to the physical effects of climate change (consequence of adverse                                                                                                                                             
 climate-related and geological events or changes in climate patterns) and due to environmental degradation (consequence of changes and severe effects on the balance of ecosystems). They can in turn be categorised as either acute risks or chronic 
 risks.                                                                                                                                                                                                                                                |

| – | Transition risks are those that occur due to the uncertainty related with the timing and speed of the process for                                                                                                                 
 adjusting to an environmentally sustainable economy. This process can be affected by four drivers: political (regulatory) and legal risks, technology risks, market and economic risks, as well as reputational and social risks. |

For more information on environmental risk, please refer to the Non-FinancialDisclosures Report (NFDR), which forms part of the consolidated Directors’ report. In line with the EBA’s Sustainable Finance Plan to be implemented throughout 2020-2025 and under which ESG risks and factors are expected