Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 305

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 305
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 ratings of ‘A’ or ‘B’. As in mortgages, financing with sustainable products is encouraged when sustainability criteria are met, in this case for electric or plug-in hybrid cars. The availability of highly specific customer and operational data is an essential requirement for effective climate and environmental risk management.

Policies and standards for the management of climate and environmental risks

Wholesale and retail credit risk management standards and policies ensure that material climate and environmental risks are identified and assessed in due course. These standards and policies define key responsibilities, processes and tools applicable to each of the portfolio segments, as well as the Group's functions as part of climate and environmental risk management activities.

An advanced climate and environmental risk analysis is carried out as part of the process of integrating into the admission and annual review processes of customers in the corporate banking segment, regardless of the risk committee at which it is reviewed. This analysis includes five aspects:

– Assessment as to compliance with BBVA's Environmental and Social Framework.

– Result of the TRi, involving an assessment of transition risk and decarbonization plans.

– Assessment of compliance with the admission/underwriting guidelines and climate risk mitigation criteria set out in the wholesale Sectoral Frameworks.

– Compliance with the criteria defined in the Sector Alignment Plans.

– Analysis of controversies, understood as the presence of significant incidents related to the client's environmental, social or governance performance.

Teams specialized in ESG risk assessment, located in each of the geographical areas where BBVA operates and at the business areas, support this decentralized analysis performed by the risk analysts. This analysis may affect the risk decision, especially the management policy and the risk appetite with clients defined by the Risk Committees, as indicated in the wholesale Sector Frameworks, in the Environmental and Social Framework, or in the Alignment Plans.

To facilitate the above analysis and the collection of client data, in 2024 the use of the Client Sustainability

| PILLAR 3 2024 |     | 7. PRUDENTIAL DISCLOSURES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS |     | P.309 |

Toolkit —a common point of contact for the risk and business teams— was reinforced within the corporate banking segment so as to be able to view up-to-date client information on matters of sustainability.

Specifically, information from external databases was integrated such as CO 2 emissions, decarbonization targets, ESG ratings, controversies, consumption metrics and water management. The results of internal calculation engines, such as the level of alignment, financed emissions and the TRi