Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — BBVA — Debt Investor Presentation (April 2018)
27 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, April 2018
Slide 1: BBVA Sustainable Bonds Framework
BBVA = BBVA Sustainable -- Bonds Framework thin 5 ———
Slide 2: Summary
BBVA Sustainable Bonds Framework /1 BBVA oi35hiies Summary O1 Our Approach to Sustainable Finance O2 BBVA Sustainable Bonds Framework Annexes TCFD recommendations road map
Slide 3: Our Approach to Sustainable Finance
BBVA Sustainable Bonds Framework 2 BBVA oo ies Our Approach to Sustainable Finance
Slide 4: An inflection point on the relevance of environmental & social issues in our business
BBVA Sustainable Bonds Framework 73 An inflection point on the relevance of environmental & social issues in our business Global agenda Market Sustainable Development Paris Usp 12 TRILLION Consumers Goals 2030 (SDGs) Agreement Annual market linked to SDGs in Growing sustainability . wy 2030! conscio
Slide 5: Pledge 2025
Pledge 2025 BBVA Sustainable Bonds Framework 74 BBVA strategy on climate change and sustainable development 9 oS To finance We will help to create the scale of capital mobilization to halt global climate change & attain the UN Sustainable Development Goals @ Green finance €100 a@ Sustainable infrast
Slide 6: A €100 Billion mobilization between 2018 and 2025
BBVA Sustainable Bonds Framework 75 ‘ A €100 Billion mobilization between 2018 and 2025 w ig To finance Transition to a low carbon economy Financial inclusion & entrepreneurship Lending to underserved e a a Green lending to companies & €18 a Lending to vulnerable microentrepreneurs institutions €70
Slide 7: Current exposure on sustainable finance
Current exposure on sustainable finance Credit exposure December 2017 . coe . Green certified loans Financial inclusion & entrepreneurship! ay; 4% 13% Infrastructures & agribusiness 19% _ €22.1 BILLION Green corporate lending 42% Other green 7% lending ~~ 15% Green project finance (1) Including BBVA
Slide 8: Environmental direct impacts targets 2025
Environmental direct impacts targets 2025 2015 e EGneurmttion BBVA Sustainable Bonds Framework 77 2020 2025 -O9 920 awn =n — 874cwh ewe SS © % Renewable Energy @ Direct CO, emissions 70% renewable energy CO, emissions to achieve 100% renewable energy in 2030 68% reduction (2015) Committed with Scien
Slide 9: Transparency in carbon-related assets
BBVA Sustainable Bonds Framework 78 Transparency in carbon-related assets ai To manage Mix in power generation Carbon-related assets exposure’ . P . 8 epee December 2017 for clients in utilities December 2017 € 23.370 Million Renewable coal AI% 24% 3,4 % of total assets Oil Hydro 2% Coal 6% Gas Util
Slide 10: Sector norms
BBVA Sustainable Bonds Framewot Wc Sector norms To manage Purpose To address industry-specific sustainable issues and provide clear guidance on the procedures that must be followed during customer management and transactions in these sectors Integrating new Human Rights commitment Integrating new en
Slide 11: Engagement with all stakeholders and commitment with the main global initiatives
Engagement with all stakeholders and commitment with the main global initiatives REGULATORS Advocacy Knowledge sharing CUSTOMERS Raise awareness Educating & empowering COMPETITORS CORPORATE CLIENTS . Dialogue Partnerships Self-regulation Support Pledge2025 WATCHERS Hearing & learning INVESTORS Trans
Slide 12: Progressive implementation of TCFD recommendations on climate change
Progressive implementation of TCFD recommendations on climate change Focus on financial impact Transition Risks Risks Opportunities Policy and Legal Technology Market Reputation Physical Risks Acute . x Chronic Strategic Planning Risk Management Vv Financial Impact Revenues. Income Cash Flow Balance
Slide 13: BBVA Sustainable Bonds Framework
BBVA Sustainable Bonds Framework 712 BBVA oo ies BBVA Sustainable Bonds Framework
Slide 14: Rationale to established a BBVA Sustainable Development Goal Bond Framework
BBVA Sustainable Bonds Framework 713 Rationale to established a BBVA Sustainable Development Goal Bond Framework To increase acceleration of Sustainable transition within the bank and to support of the implementation of the 2030 Agenda and the 17 Sustainable Development Goals To contribute towards d
Slide 15: BBVA Sustainable Development Goal Bond Framework at a glance
BBVA Sustainable Bonds Framework 714 BBVA Sustainable Development Goal Bond Framework at a glance a Public, Transparent, Standard, and Aligned to the four core components of the ICMA Green and Social Bond Principles and Sustainability Bond Guidelines a Provides BBVA Group with the possibility to iss
Slide 16: SDG Bond Framework Summary
BBVA SDG Bond Framework Summary Use of Proceeds Green Eligible Categories Energy Efficiency Fa Sustainable Transport Water Waste Management <> Renew Social Categories ble Energy Healthcare Education SME financing and microfinancing Affordable housing Process for Project Evaluation and Selection a AP
Slide 17: BBVA SDG Bond Framework: Use of Proceeds
BBVA Sustainable Bonds Framework 716 BBVA SDG Bond Framework Use of Proceeds For the purpose of this BBVA SDGs Framework, @ Excluded Activities Green Eligible Categories loans, investments and projects financed through a El Energy Efficiency Green Bond, a Social Bond or a Sustainability Bond Nuclear
Slide 18: SDG Bond Framework: Project Evaluation and Selection
BBVA SDG Bond Framework Project Evaluation and Selection Inclusion criteria are in three categories: Environmental and Social impacts, alignment with the UN Sustainable Development Goals and Reporting indicators The remaining eligible transactions will each be assigned a label of high or moderate im
Slide 19: BBVA SDG Bond Framework: Management of Proceeds
BBVA Sustainable Bonds Framework 718 BBVA SDG Bond Framework Management of Proceeds BBVA will use its internal systems and processes to properly track the use of proceeds BBVA has implemented an of its Green, Social or Sustainability Bonds issued under this Framework indicator in its loan tracking s
Slide 20: BBVA SDG Bond Framework: Reporting
BBVA Sustainable Bonds Framework 719 BBVA SDG Bond Framework Reporting Each SDGs Bond Report will include at least the following information: Each dedicated SDGs Bond Report will be available on a Allocation of proceeds in each Green or Social Eligible Category BBVA's website within 12 months from i
Slide 21: External Review
BBVA Sustainable Bonds Framework 720 External Review Framework BBVA has obtained an independent verification assessment from Verification DNV-GL which confirms the validity of the BBVA SDGs Framework. This independent verification assessment is published on the BBVA website https://accionistaseinver
Slide 22: Breakdown of selective eligible assets
BBVA Sustainable Bonds Framework 72 Breakdown of selective eligible assets as of April 2018 Disbursement of eligible assets April 2018 Waste Management Water 3% 2% \ Energy Efficiency _ — a, Identified qualifying tT 1% : poe \ assets in the existing Social asset pool of BBVA Renewable Energy priorit
Slide 23: Contacts
BBVA Sustainable Bonds Framework 722 Contacts Toni Ballabriga Global Head of Responsible Business a.ballabriga@bbva.com Julian Romero Head of Sustainable Bond Group julian.romero@bbva.com Angel Tejada DCM, Sustainable Bond Group angelmaria.tejada@bbva.com
Slide 24: Annexes: TCFD recommendations road map
BBVA Sustainable Bonds Framework 23 BBVA oo ies ANNEXES TCFD recommendations road map
Slide 25: Implementation road map of the TCFD recommendations on climate change 1/2
Implementation road map of the TCFD recommendations on climate change 1/2 Area GOVERNANCE _ Describe the board's oversight of STRATEGY Recommendations climate-related risks and opportunities a Describe management's role a assessing and managing climate- related risks and opportunities Describe the c
Slide 26: Implementation road map of the TCFD recommendations on climate change 2/2
Implementation road map of the TCFD recommendations on climate change 2/2 Area RISK MANAGEMENT METRICS & TARGETS Recommendations Describe the organization's processes for identifying and assessing climate-related risks Describe the organization's processes for managing climate-related risks Describe
Slide 27: BBVA Sustainable Bonds Framework
BBVA = BBVA Sustainable -- Bonds Framework thin 5 ———