Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 287

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 287
---
 to identify the vulnerability of various sectors to transition risk and to rank them accordingly.

In this way, sectors are categorized as having very high, high, moderate or low vulnerability. The activities most sensitive to transition risk —known as High Transition Risk (HTR) sectors— are identified as the sectors that generate energy or fossil fuels (oil and gas, electricity generation, coal mining); emission-intensive basic industries (steel, cement); and activities that are end users of energy and generate emissions through their products or services (automobiles, aviation and maritime transportation).

In 2024, the categorization of climate risks was updated to incorporate developments in climate change mitigation regulations and key technological advances. These updates allow for more accurate identification of critical exposures and the prioritization of mitigation

| PILLAR 3 2024 |     | 7. PRUDENTIAL DISCLOSURES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS |     | P.290 |

actions. As a result of this exercise, with data as of December 31, 2024, it has been identified that 11.7% of the exposure 31 of the wholesale portfolio (representing 5.9% of the Group) related to sectors defined as HTR, with a high or very high level of exposure to this risk. This calculation was made on a portfolio of EUR 253,795 million (out of the Group's total of EUR 500,636 million), correspon

ding to the exposure of the wholesale loan portfolio.

The following figure shows the percentage of exposure of each of the sectors considered HTR to the total wholesale portfolio:

| Chart 27.Exposure to transition risk-sensitive sectors (% of wholesale MD&A) |

*Includes Aviation and Shipping.

With respect to the portfolio of small businesses with high or very high transition risk, the associated exposure is limited, amounting to around 2.10% of the total small businesses and being very unrepresentative of the total for the Group.

Assessing transition risk and customer decarbonization plans

The analysis of customers operating in the High Transition Risk sectors identified in the internal transition risk taxonomy follows the scoring system developed by BBVA known as the Transition Risk Indicator (hereinafter TRi). During 2024, a cross-sectoral version of TRi (called Generic TRi) has been developed, which joins the existing ones for oil and gas, electricity generation, cars, steel, cement and auto parts. The aim is to have a transition risk score and