Management
BBVA has made it a priority to “help our customers in the transition towards a sustainable future,” inspired by the SDGs adopted by the UN, with a focus on climate change and inclusive and sustainable social development.
BBVA has working groups specifically designed to develop sustainable solutions for customers and to promote responsible communication and marketing practices directed at them.
Grupo Financiero BBVA México has implemented strategies that favor the creation of sustainable markets. GFBB aims to enhance the positive impact through financial instruments, aligning itself with initiatives such as:
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United Nations Environment Programme Finance Initiative (UNEP FI)
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Equator Principles
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Principles of Responsible Investment (PRI)
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Principles of Responsible Banking (PRB)
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UN Global Compact
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Carbon Disclosure Project (CDP)
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Green Finance Advisory Council (Consejo Consultivo de Finanzas Verdes, CCFV)
2025 Commitment
Grupo Financiero BBVA México has participated as an underwriter in 46% of the ESG issuances in the local market. With this, it positions itself as the leading bank in stock market financing in this segment.
In 2018, BBVA presented its commitment to contribute to the fulfillment of the SDGs established by the United Nations and the challenges derived from the Paris Climate Agreement. This commitment is based on the following three lines of action: Finance, Manage and Involve.
The commitment has a goal of mobilizing EUR 200,000 million in sustainable finance and fighting climate change, between 2018 and 2025. At the end of December 2020, BBVA had already reached EUR 50,154 million in sustainable financing. This means achieving half of its target for that period a year ahead of schedule.
1
Finance
Originate new financing to curb climate change and promote the SDGs by mobilizing EUR 200 billion between 2018 and 2025 for green activities, sustainable infrastructure, agribusiness, entrepreneurship and financial inclusion.
2
Manage
Minimize the environmental and social risks associated with GFBB’s activity and its potential direct and indirect negative impacts and progressively align its activity with the Paris Agreement. Also, among others, the objective was set that 100% of the energy contracted by BBVA be renewable in 2030.
3
Involve
Incorporate all stakeholders to collectively promote the contribution of the financial sector to sustainable development.
Sustainable Development Goals (SDGs) Bond Framework
Its objective is to finance projects and entities that contribute to the fulfillment of the SDGs and their specific targets, particularly in the following SDGs:
The SDG framework is governed by the Principles of the International Capital Market Association (ICMA) for Green Bonds, the Guide for Social Bonds and the Guide for Sustainable Bonds, where they establish four fundamental requirements:
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Use of proceeds
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Process for expenditure evaluation and selection
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Management of Proceeds
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Reporting
Pursuant to the ODS Framework, Grupo Financiero BBVA México can issue three types of bonds:
Green bonds
Social bonds
Sustainable bonds
These are debt instruments which proceeds shall be used exclusively to finance, in whole or in part, green, social, sustainable projects (as appropriate) that are aligned with the four essential components of this framework.
Green bonds
In 2021, Grupo Financiero BBVA México released the issuance of the following green bonds:
|
Green bond |
Amount of the issuance |
|---|---|
|
FIRA |
MXN 700 million |
|
Coca Cola FEMSA |
MXN 9,400 million |
|
Grupo Bimbo |
USD 1,750 million |
|
Volaris |
MXN 1,500 million |
|
Betterware |
MXN 1,500 million |
Social bonds
In 2021, Grupo Financiero BBVA México released the issuance of the following social bonds:
|
Social bond |
Amount of the issuance |
|---|---|
|
BID Invest: first social bonus that promotes gender equality |
MXN 2,500 million |
|
Central American Bank for Economic Integration: first COVID social bond |
MXN 5,000 million |
Principles of Responsible Investment (PRI)
Grupo Financiero BBVA México currently has an investment fund with the ESG label, the classification is equity, it has the MSCI global market index as a benchmark. This fund invests in ETFs listed in countries and regions, as well as topics that have the ESG label.
Within the portfolio of Grupo Financiero BBVA México, issuers with a C rating will be part of the portfolio only if they are part of the benchmark without being able to have overweighting. A global committee has been created that sanctions the products that GFBB can market as ESG. As a general rule, to be able to label them as ESG, 60% of the assets in which they are invested must have the ESG denomination.
The BBVAESG fund has assets of MXN 549 million and the assets are invested through ETFs with the ESG label.
BBVA has set intermediate targets to decarbonize its portfolio in four CO2-intensive industries.
Sustainable solutions
With the aim of accompanying the entire customer portfolio of Grupo Financiero BBVA México in adopting more sustainable habits and reducing emissions, there are sustainable solutions developed for each category of customers.
Retail customers
Grupo Financiero BBVA México has tools and solutions based on data that help them control consumption and emissions. A wide catalog of both investment and financing products is made available to you. The following initiatives stand out:
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Promote mobility
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Loans in energy efficiency
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Investment funds and pension plans with sustainable investment criteria
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Cards with recycled plastic
Companies, corporate and institutional customers
Sustainable financing for companies and the development of new standards and products are actively promoted. Some of the advances in this line of business include:
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Carbon footprint compensation loans
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Rental financing solutions used in energy efficient goods or sustainable mobility
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Financing solutions with environmental or social impact metrics
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Offer of agricultural financing for organic food production
BBVA wants to accompany its wholesale customers in the transition towards a more sustainable world using green financing for companies, letters of credit, leasing and green bonds, sustainable corporate loans, project and green sector financing and transactional banking, among others.
Financial support to farmers
Together with the Ministry of Agriculture and Rural Development (SADER), the operation continued to provide direct financial support to 969,171 farmers in rural areas, especially grain producers, in order to increase production, through the granting of debit cards and a hub account.
Financing under the Equator Principles
|
Category |
Transaction sector |
Total Amount (in MXN) |
Amount financed by Grupo |
|---|---|---|---|
|
B |
Oil and gas |
$ 10,139,350,000 |
$ 2,027,870,000 |
|
B |
Real estate |
$ 2,585,534,250 |
$ 1,292,767,125 |
|
B |
Real estate |
$ 4,055,740,000 |
$ 2,027,870,000 |
|
B |
Real estate |
$ 1,622,296,000 |
$ 1,622,296,000 |
|
B |
Real estate |
$ 1,004,090,381 |
$ 444,006,902 |
|
C |
Real estate |
$ 2,737,624,500 |
$ 963,238,250 |
|
B |
Real estate |
$ 1,850,938,343 |
$ 1,850,938,343 |
|
B |
Infrastructure – transport |
$ 2,027,870,000 |
$ 1,216,722,000 |
|
Total |
8 |
|
|
Financial inclusion
and entrepreneurship
Grupo Financiero BBVA México placed the first IDB Invest social bond that promotes gender equality, and the amount of the issue was MXN 2,500 million.
BBVA 2021 Momentum
It is the largest acceleration program for social and environmental entrepreneurs in Mexico. BBVA Momentum aims to promote companies and entrepreneurs that offer solutions to social and environmental problems, in an innovative and sustainable manner. In response to the global situation, BBVA Momentum held its second edition completely online.
In 2021, 100 companies from various sectors with social or environmental impact received support through training, acceleration, support and financing under preferential conditions.