Banco Bilbao Vizcaya Argentaria

RATING

SECTOR

Banking

WEBSITE

CONTACT

4, Plaza San Nicolás, 4
48005 Bilbao
Spain

Tel: (09)44-87-5555
Fax: (09)44-87-6161
E-mail: servicioatencioncliente@grupobbva.com

STOCK EXCHANGE

LISTING

EMPLOYEES

123,174

DIRECTOR OF SUSTAINABILITY AND ESG RISK MANAGEMENT IN THE USA

Evan Matzen

AWARDS

 

CONTENT SOURCE

FURTHER READING

Report created by Sonria Willis

Banco Bilbao Vizcaya Argentaria

SECTIONS :  Sustainability •  Targets   Evaluation  •  Key Points  •  Overview

Company Activity

Banco Bilbao Vizcaya Argentaria was founded in 1857 and is headquartered in Bilbao, Spain. The bank provides retail banking, wholesale banking, asset management, and private banking services. The company also provides its products through online and mobile channels. 

BBVA is Spain’s second largest bank after Banco Santander. It is listed on the Madrid Stock Exchange, the New York Stock Exchange and on the Mexican Stock Exchange. It is also a part of the IBEX 35 as well as the Dow Jones EURO STOXX 50.

As of December 31, 2020, it operated through a network of 7,432 branches and 31,000 ATMs in approximately 30 countries. It operates in Spain, Mexico, South America, the United States, Turkey, the Asia-Pacific, and Europe. 

Company Sustainability Activity

In its report, Banco Bilbao Vizcaya Argentaria states it is progressively aligning its activity with the Paris Agreement. Its sustainable strategy is both internal and external, as the bank expresses its commitment to help clients transition toward a more sustainable future inspired by selected Sustainable Development Goals.

In 2020, BBVA Group established the Global Sustainability Office, responsible for promoting and coordinating the Group’s sustainability initiatives with the support of the senior managers in the Group’s global and local areas. Moreover, in 2019 BBVA USA created a Sustainability Working Group focused on build out processes, products and services aligned to BBVA’s Climate Action and Inclusive Growth ambitions articulated in BBVA’s Pledge 2025. 

BBVA has adopted the following international standards on environmental issues:

BBVA’s Commitment to Human Rights, published in 2018, is a formal recognition of the bank’s support for human rights. The bank states its commitment to human rights is emphasized in the Group’s CSR policy and is aligned with the BBVA’s Code of Conduct as well as the United Nations Guiding Principles on Business and Human Rights.

An area of particular importance for BBVA is its support for human rights through its suppliers. In particular, the Code of Conduct for Suppliers of the BBVA Group includes standards for hiring, diversity and inclusion, non-discrimination, compliance with occupational health and safety, fair pay and scheduling. The code of conduct also covers respect for the freedom of assocaitioan and avoidance of child labor. 

In 2019, BBVA introduced a global framework for workplace diversity and inclusion, with a focus on gender diversity. The bank has a highly successful Women in Leadership business resource group with chapters in Birmingham, Houston and New York. BBVA states it is also creating a more inclusive process for filling senior leadership positions by ensuring that women are represented at every stage.

BBVA also hosted its annual company Week of Service during the fall of 2019. BBVA’s Week of Service focused on volunteer activities that aligned with the United Nations Sustainable Development Goals. More than 2,500 BBVA volunteers engaged in 227 volunteer events serving 8,276 hours in their communities. Activities included environmental beautification projects, meal distribution services and financial education workshops among others.

In 2019, BBVA USA reached their end of the five-year commitment to invest $11 billion to boost economic development in its communities through lending, investments and services. The bank states it achieved that original financial commitment goal nine months early, surpassing the goal announced in 2014, providing a total of $13.2 billion to communities over five years. 

Finally, BBVA states it is committed to alleviating governance risks. BBVA’s Compliance Unit is responsible for developing and implementing policies and procedures, communication and training, and the identification, assessment and mitigation of potential compliance risks. These activities are guided by the principles set forth by the Bank for International Settlements (BIS) as well as other relevant regulations. The Compliance Unit is focused on:

  • Prevention of money laundering and terrorist financing
  • Conduct with customers
  • Conduct on securities markets
  • Conflicts of interest
  • Prevention of corruption and bribery

It should be noted that this report is based on information provided from BBVA’s United States office. The bank does not publish a CSR report for Europe or other regions it operates in — although they do provide some information about the group’s ESG performance on the sustainability page of their website.

Highlights

  • A total of $2.7 billion in sustainable products was awarded in 2019, these products include: Green Home Mortgages, Small Business Green Commercial Real Estate Loans, Small Businesses, Secured Term Loan for Fuel Efficient Vehicles, Commercial KPI-Linked Loans, Commercial Green Loans, Fuel Efficient Indirect Auto Programs and ESG Friendly Mutual Fund Catalogues
  • As of 2019, BBVA has a total of 30 certified buildings (LEED or Energy Star)
  • In 2019, they reduced total water consumption by 17%
  • BBVA mobilized $100 billion globally in green financing, sustainable infrastructure and agribusiness, entrepreneurship and financial inclusion
  • The bank’s community development lending program supported 26 affordable housing activities totaling $190.2 million
  • 125,686 total volunteer hours
  • 6,202 total volunteers
  • $886,665 in total donations from BBVA USA employees
  • $42,855 in cause card donations
  • 1,568 impacted charities
  • $180,007 in BBVA Compassion grant dollars
  • Extended more than $6 billion in loans to small businesses
  • $78 million in low-income housing tax credit (LIHTC) investments across the bank’s footprint helping to create 750 units of affordable housing
  • Partnered with more than 490 nonprofit organizations focused on improving the financial health and capacity for low and moderate-income (LMI) individuals, communities and small businesses
  • Invested $8.9 million in corporate sponsorships, foundation grants and signature initiatives and programs aimed at improving economic mobility by creating opportunities
  • Provided 1,031 financial education workshops reaching more than 18,750 adults

Targets

Environmental Management and Sustainable Construction

  • 46% occupation in certified buildings

Energy and Climate Change

  • Decrease of 5% consumption per occupant (kWh/occup)
  • 48% clean energy
  • Decrease of 8% CO2 emissions per occupant

Water Consumption

  • Decrease of 5% water consumption per occupant 
  • 9% occupants in building with alternative water sources

Paper and Waste

  • (-)5% paper consumption per occupant 
  • 30% of occupants in building with separate waste collection

Community Investment

  • $6.2B in small business lending
  • $1.8B in community development lending
  • $2.1B in home loans 
  • $0.8B in community development investments
 

Progress

Energy and Emissions

  • Decreased diesel from 43,661 liters in 2018 to 7,478 liters in 2019
  • Decreased electricity consumption from 125 million kWh in 2018 to 112 million kWh in 2019

Water Consumption

  • Decreased water consumption from 295 million gallons in 2018 to 246 million gallons in 2019

Materials

  • Recycled 1,704,746 kg of paper in 2019

Community Investment

  • $6.1B in small business lending
  • $3.6B in community development lending
  • $2.6B in home loans
  • $0.9B in community development investments
 

Certificates

  • LEED: 13 properties
  • Energy Star

UN Sustainable Development Goals

UN SDGs Compliance

SDG 1: No Poverty

  • Community services targeted to low and moderate-income individuals for health care, education and social services

SDG 3: Good Health and Well-Being

SDG 4: Quality Education

  • Scholarship programs for children of employees
  • Provided 1,031 financial education workshops reaching more than 18,750 adults

SDG 5: Gender Equality

  • Women in Leadership business resource group with chapters in three of its offices
  • Ensuring women are represented at every leadership position stage

SDG 7: Affordable and Clean Energy

  • As of 2019, BBVA has a total of 30 certified buildings (LEED or Energy Star)
  • In 2019, they reduced total water consumption by 17%

SDG 8: Decent Work and Economic Growth

  • Support for small business lending

SDG 9: Industry, Innovation and Infrastructure

  • A total of $2.7 billion in sustainable products was awarded in 2019

SDG 10: Reduced Inequalities

  • Recognized for the second time in DiversityInc’s Top 50 Companies for Diversity
  • Received a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index
  • Invested $8.9 million in corporate sponsorships, foundation grants and signature initiatives and programs aimed at improving economic mobility by creating opportunities

SDG 11: Sustainable Cities and Communities

  • Promoting volunteer work and social engagement
    • In 2019, 6,202 BBVA volunteers conducted 125,686 hours of volunteer service
  • Revitalized or stabilized low-to-moderate-income geographies
  • $6.2B in small business lending
  • $1.8B in community development lending
  • $2.1B in home loans 
  • $0.8B in community development investments
  • The bank’s community development lending program supported 26 affordable housing activities totaling $190.2 million

SDG 12: Responsible Consumption and Production

  • Reducing water and energy consumption
  • Reducing paper usage and waste

SDG 13: Climate Action

  • Aligned goals with Paris Agreement and UN Environment Programme

SDG 16: Peace, Justice and Strong Institutions

  • Compliance System and training program for employees:
    • 7,573 employees trained in Foreign Corrupt Practices Act
    • 8,944 employees trained in Know the Code
    • 9,529 employees trained in Bank Secrecy Act and Anti-Money Laundering
  • Committed to international standards and initiatives such as UN Principles for Responsible Investment or the CDP

SDG 17: Partnerships for the Goals

  • Partnered with more than 490 nonprofit organizations focused on improving the financial health and capacity for low and moderate-income (LMI) individuals, communities and small businesses
 

Evaluation

Banco Bilbao Vizcaya Argentaria is committed to align its activities with the Paris Agreement; and has incorporated thirteen out of the seventeen SDGs in its practices. BBVA is notably conscientious of SDG 17 by partnering with numerous local and international organizations to achieve these goals.

Moreover, the bank has also adhered to international methodologies, guidelines and frameworks in order to develop and measure their sustainability strategy. 

The bank is mentioned in a couple notable listings; however it is not mentioned in any major environmental sustainability index like the Dow Jones Sustainability Index or the CDP.

While it has not improved in all sectors of energy efficiency, BBVA has reduced water consumption by 17% and decreased its electricity consumption by 13 million kWh. Notably, the bank now has 30 sustainability-certified buildings (LEED or Energy Star).

Therefore, BBVA has been rated a B.

Analyst Outlook: Neutral

With BBVA’s introduction of several sustainable products in the last two years (pensions, eco-car loans, recycled plastic cards, loans for energy-efficient homes), the bank has been creative and effective in promoting sustainable finance to its customers.

Key Points

  • In 2019, the bank announced the launch of the Loan for environmentally-friendly cars in Spain
    • With this product, individuals can finance the purchase of an electric or hybrid car with CO2 emissions under 75g/km
  • Started its first individual pension plan managed with socially responsible investment criteria: ‘BBVA Plan Sostenible Moderado ISR’; a new alternative to channel savings for retirement
  • In 2020, launch of the first card in Spain made of recycled plastic
  • In 2019, BBVA launched a line of developer loans designed for the construction of highly energy efficient homes
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