Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 282

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 282
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 volatility.                                                                                                                                                                                                                       |     | Extreme weather events can affect asset value expectations resulting in sudden depreciations or increased volatility in the value of financial assets.                                                                           |     | Perceptions of inadequate environmental practices by some sectors or industries can lead to volatility in asset values.                                                                   |
| Liquidity             |     | Transition risks may directly or indirectly affect expected cash flows or reduce the liquidity of certain assets, affecting the bank's liquidity position.                                                                                                                                                                                 |     | Physical risks can directly affect a financial institution's cash outflows or indirectly through customers' need for liquidity following extreme weather events.                                                                 |     | -                                                                                                                                                                                         |
| Business and strategy |     | Transition, physical and natural capital risks may impact the strategy and business plan indirectly due to the business position with certain economic sectors whose business model may be more affected by the transition to a low-carbon economy, by physical changes in the climate or by risks of loss of ecosystem services capacity; |     |                                                                                                                                                                                                                                  |     |                                                                                                                                                                                           |
| Operational           |     | The evolution of the customers' perception of the relationships maintained or the financing provided to certain customers and industries can generate legal risks.                                                                                                                                                                         |     | Extreme weather events can cause disruptions and interruptions to own operations or damage to own assets.                                                                                                                        |     | The evolution of the customers' perception of the relationships maintained or the financing provided to certain customers and industries can generate legal risks.                        |
| Reputational          |     | Potential negative perception of stakeholders when their expectations of our climate and environmental management are not met.                                                                                                                                                                                                             |     |                                                                                                                                                                                                                                  |     |                                                                                                                                                                                           |

Risk Assessment

As part of its General Risk Management and Control Model, the Group develops periodic risk identification and assessment processes to identify material risks that could have a negative impact on its risk profile and to manage those risks actively and proactively. Through this self-assessment, BBVA analyses how the different risk factors associated with climate change impact the main types of existing risks (credit, market, liquidity, etc.). All types of risk to which BBVA is exposed are

therefore covered, including those that are hard to quantify. Since 2022, the General Risk Management and Control Model specifically considers sustainability an essential part of the Group's strategy.

The Global Risk Assessment is a prospective exercise which updates at least twice a year, and allows a comparison between risk types, business activities and moments in time, facilitating the understanding of BBVA's positioning and its development, and identifying the material risks to cover with capital. Since 202