BBVA is aware of the important role of banking in the transition toward a more sustainable world through its financial activity, and it seeks to play a relevant role, as society demands, and to help its customers transition to that sustainable future.

BBVA has a general sustainability policy that defines its contribution to the United Nations 2030 Agenda for Sustainable Development. As a demonstration of this aspiration, BBVA has joined various international commitments, such as the Principles for Responsible Banking, the Net-Zero Banking Alliance, convened by the United Nations, and others.

Investment advisory service involving financial instruments that are considered financial products under Regulation (EU) 2019/2088. BBVA integrates sustainability factors when it issues recommendations on instruments classified as financial products under Regulation (EU) 2019/2088, specifically Collective Investment Institutions (CII). These services involve advisory services for advised portfolios and BBVA Invest.

Specifically, BBVA currently considers the principal adverse impacts on sustainability factors of the products on which it advises by applying exclusion/value-based criteria in their selection.

Therefore, as regards third-party CIIs, from the Quality Funds unit, and depending on the nature of this type of investment (indirect investments), BBVA monitors the consideration of the PAIs in accordance with the information available at any given time, as well as the consideration thereof by third-party management companies. In view of the unavailability of information for this type of investment at present and while awaiting further information, BBVA is monitoring the consideration of the PAIs by these third-party management companies as the regulatory framework evolves on how these managers incorporate the PAIs in their investment decisions.

In any case, as regards these funds, the investment decisions rest on the monitoring carried out by the Quality Funds unit. This unit conducts a preliminary study on the CIIs managed by entities that do not belong to the BBVA Group. From the findings of this study, the Quality Funds unit awards an internal ESG rating based on a proprietary methodology that is defined in its internal procedures.

Consequently, BBVA does not invest in third-party CIIs that have an ESG rating awarded by Quality Funds below C. Among other reasons, Quality Funds awards a C rating to CIIs whose managers have not adhered to the UN Principles for Responsible Investment (UNPRI).

In order to monitor the consideration of PAIs of third-party management companies in non-delegated portfolios, BBVA takes into account the information provided by these or external providers.