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Responsible banking
At BBVA we have a differential banking model that we refer to as responsible banking, based on seeking out the profitability
adjusted to principles, strict legal compliance, best practices and the creation of long-term value for all stakeholders. The four pillars of BBVAs responsible banking model are as follows:
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Balanced relationships with its customers, based on transparency, clarity and responsibility.
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Sustainable finance to combat climate change, respect human rights and achieve the United Nations Sustainable
Development Goals (SDGs).
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Responsible practices with employees, suppliers and other stakeholders.
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Community investment to promote social change and create opportunities for all.
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In 2018, BBVA announced its 2025 Pledge. This sets out the Banks strategy for climate change and sustainable development, working
toward meeting the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on climate change. The pledge is an eight-year commitment based on three lines of action:
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To finance: BBVA is pledging to mobilize 100 billion in green and social financing, sustainable
infrastructure and agribusiness, social entrepreneurship and financial inclusion.
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To manage the environmental and social risks associated with the Groups activity in order to minimize
its potential direct and indirect negative impacts. BBVA pledges that 70% of energy used by the Group will be renewable by 2025, reaching 100% by 2030, and to reduce direct CO2 emissions by 68% with respect to 2015.
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To engage all stakeholders to collectively promote the financial sectors contribution to sustainable
development.
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The figure for sustainable finance mobilized since the launch of the Pledge amounts to
22,000m (figure as of June 2019, latest available data). Additionally, BBVA published the first monitoring report on its first green bond, issued in 2018, which has contributed to reduce around 275,000 tons of CO2 in its first year.
In Spain, BBVA is positioned at the forefront of sustainable products, being one of the most active financial entities regarding this issue.
In this sense, the Bank is developing products which offer sustainable solutions for all customers (individuals, SMEs, large companies and institutions), i.e., products that seek to respond to a growing demand from society, which is increasingly
aware of the fight against climate change. Among them, the highlighted lines are, loan for promotion of high energy-efficient housing with a bonus on the differential of the mortgage and loans for all customers wishing to purchase electric or hybrid
cars.
As part of its objective to engage its stakeholders, BBVA signed in September the Principles of Responsible Banking,
promoted by the Financial Initiative of the United Nations Environment Program (UNEP FI) at the United Nations General Assembly held in New York on September 22. It is a joint response of 130 banking entities and the UN to align the banking business
with long-term objectives which integrate social and environmental challenges.
In addition, the Bank joined the Collective Commitment
to Climate Action launched by 31 international financial institutions within the framework of the United Nations climate summit, which was held in New York on September 23. This statement was born within the Principles of Responsible Banking
which intends to its promoters determination to align their portfolios to reflect and finance the low-carbon, climate-resilient economy required to limit global warming to well-below 2, striving for 1.5
degrees Celsius. Also, these 31 international financial institutions will pursue a set of common goals to help facilitate the economic transition necessary to achieve climate neutrality; and they have committed to work together and support each
other in developing each banks capabilities and the necessary methodologies to measure climate impact and alignment with global and local climate goals. For BBVA and all signatory institutions, this commitment aims to align its products and
services with a collective strategy in the face of the climate crisis.
Regarding responsible practices with employees, BBVA
launched the Be Yourself proposal, carried out by its employees to work on diversity. This project aims to achieve a diverse and inclusive work environment, and has been presented by the working group to the rest of the employees with the support of
the senior management of the Bank and a group of speakers who have discussed about the challenges and difficulties that LGTBI people face.
Within the framework of community investment, education for society has an important weight. From 2008 to 2018, BBVA allocated more
than 80 million to financial education programs worldwide that benefited more than 13 million people.
In July 2019, BBVA
hosted in Madrid the third edition of the EduFin Summit 2019, the global meeting of the BBVA Center for Financial Education and Capability in which financial health and education are discussed every year. The event brought together over 30
experts in financial education from 16 countries, including agents of public administrations, universities, think-tanks and professionals in education and finance. This edition addressed the issue of how digitalization contributes to improving the
health of peoples finances, and the discussion about the need for the technological revolution to become more inclusive or about the use of chatbots and artificial intelligence in the daily life of personal finances.