Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 307

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 307
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 heavily impacted by climate risk is the downstream part, specifically the counterparties to which BBVA provides financing.

During 2024, a stress test exercise was carried out to assess the soundness and resilience of the business strategy in the event of a potential strategic exit from the relationship with certain customers should they fail to meet the milestones set out in the support plans drawn up. These support plans are a key pillar of BBVA's transition financing strategy, providing support to clients while reinforcing their level of engagement through actions that help to improve their transition process and ESG profile. Customers in this situation are closely monitored and are expected to make improvements in the short to medium term. The outcome of this exercise under the most adverse scenario (considering a complete exit from these clients) demonstrates the soundness of the business strategy.

Meanwhile, BBVA continues to carry out numerous actions to manage the impact of climate change on its strategy, its risk management processes and the management of its portfolio with greater exposure to physical and transition risks. These efforts include making climate aspects part of capital and the Internal Capital Adequacy Assessment (ICAAP) exercise, provisions, scenario analysis, internal and external stress testing exercises, climate data strategy and other aspects.

Finally, the resilience of the strategy in the face of different climate scenarios is reinforced by the fact that BBVA has set sustainability as one of its six strategic priorities, with a special focus on the fight against climate change, integrating its goal of aligning its loan portfolio with scenarios compatible with the Paris Agreement. Highlights include the company's interim targets for 2030 to reduce CO 2 emissions in the oil & gas, power generation, automobile, steel, cement, coal, aviation and shipping, aluminum and real estate (commercial and residential) sectors, as well as its eco-efficiency plan to reduce its operational footprint.

Provisions and capital

Article 449 bis CRR - Table (1) (o)

Throughout 2024, work was carried out to incorporate climate risks into the measurement of provisions and economic capital for credit risk, in order to incorporate this new source of risk in the credit risk parameters. This development has focused on two lines of work: first, a top-down effect based on macroeconomic scenarios was incorporated and, second, customer idiosyncrasies were incorporated through bottom-up effects.

| PILLAR 3 2024 |     | 7. PRUDENTIAL DISCLOSURES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS |     | P.310 |

In terms of