Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 300

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 300
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 part of loans secured by residential real estate). Specific details: Main activity code (NACE) information used for internal management and reporting purposes. In other relevant sectors all other NACE activities are included until the perimeter is complete. These data represent the best information available to date. |     |                                                                            |     |            |     |                      |     |                       |     |            |     |                           |     |                                                                           |     |                                                                         |     |                                                                                          |     |                            |     |                                   |                                                                                                      |     |     |     |      |     |     |     |      |

| PILLAR 3 2024 |     | 7. PRUDENTIAL DISCLOSURES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS |     | P.304 |

Natural capital risks

Natural capital risks are those arising from actions to protect natural capital (transition risks) and the loss of ecosystem services that serve as inputs to, or facilitate, economic activities (physical risks). These are a source of economic risks due to the dependencies and impacts of economic activities on natural capital.

Customer activity can affect natural capital (impacts), while the loss of natural capital can generate risks for the operations and business model of BBVA’s customers (dependencies).

– Customers with a high ecosystem impact face a higher level of transition risk due to regulatory and policy changes, the substitution of more efficient and cleaner technologies, changes in consumer demand, and market shifts.

– Customers with high dependence on natural capital may face increased physical risks generated by ecosystem deterioration, such as reduction in available water resources or loss of the capacity to protect against adverse climatic phenomena.

In 2024, BBVA developed an internal taxonomy of natural capital risks based on the heat map of impacts and dependencies it conducted in 2023. The methodology of the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool developed by the Natural Capital Finance Alliance, which is also consistent with aspects contained in other reference tools such as the SBTN Materiality Screening Tool, developed by the Science Based Targets Network (SBTN), was predominantly used to carry out this impact and dependency identification exercise. The ENCORE tool provides a comprehensive assessment of the 21 ecosystem services on which each of the 167 economic activities depend for their production processes and an evaluation of the 7 impact drivers, assigning a level of dependence and impact (Very High, High, Medium, Low) for each of them. This analysis includes aspects related to water availability and quality, biodiversity and land use,