Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 310

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 310
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 DISCLOSURES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS |     | P.311 |

BBVA relies on sector initiatives following the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and the UN Environment Programme Finance Initiative (UNEP-FI), together with sustainable finance principles and standards established by the International Capital Markets Association (ICMA) and the Loan Market Association (LMA).

It also relies on methodologies such as PCAF and PACTA for the analysis of emissions financed and the alignment of its portfolio with climate objectives, while also stepping up its commitment to the transition to a low-carbon economy through its participation in the Net Zero Banking Alliance.

To manage aspects related to the protection of natural capital, BBVA uses the methodology of the Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE) tool, developed by the Natural Capital Finance Alliance, in collaboration with the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC) and in line with references such as the SBTN Materiality Screening Tool. Meanwhile, when analyzing physical risks, BBVA relies on the World Bank's Think Hazard tool, which shows the risk levels of the different natural hazards, both acute (cyclones, heat waves, forest fires and river flooding) and chronic (drought and coastal flooding), at a global level and in varying detail depending on the geographical area of the planet.

The General Sustainability Policy expressly includes the protection of natural capital as one of its main focuses of action. Specifically, BBVA recognizes the need to protect ecosystem services and natural assets as well as natural ecological species and processes, and considers biodiversity and natural capital in its relationship with its customers.

The Environmental and Social Framework specifically includes a number of general prohibited activities 33 , in relation to the loss of biodiversity and the fight against deforestation:

– Threats to protected areas: New projects that threaten: UNESCO World Heritage Sites, Ramsar-listed wetlands, Alliance for Zero Extinction sites, and Category I-IV areas of the International Union for Conservation of Nature.

– Deforestation: New High Conservation Value and High Carbon Forest removal projects.

– Non-certified palm oil farms: New palm oil projects in swamps and peat-rich areas.

In addition to these general restrictions, specific prohibitions have been established for new projects in the agroindustrial sector related to ecosystem protection. These include restrictions on new projects that involve the burning of natural ecosystems for the

purpose of clearing land for agricultural or livestock development, the removal of