BBVA : Sustainability Presentation

B B V A ' S S U S T A I N A B I L I T Y S T R A T E G Y

Building a more sustainable

and inclusive future

May 2024

BUILDING A MORE SUSTAINABLE AND INCLUSIVE FUTURE 2

Disclaimer

This document is only provided for information purposes and does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire an invitation for offers to buy securities issued by any of the aforementioned companies. Any decision to buy or invest in securities in relation to a specific issue must be made solely and exclusively on the basis of the information set out in the pertinent prospectus filed by the company in relation to such specific issue. No one who becomes aware of the information contained in this report should regard it as definitive, because it is subject to changes and modifications.

This document contains forward-looking statements that constitute or may constitute "forward-looking statements" (within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995) with respect to intentions, objectives, expectations or estimates as of the date hereof, including those relating to future targets of both a financial and non-financial nature (such as environmental, social or governance ("ESG") performance targets). Forward-looking statements may be identified by the fact that they do not refer to historical or current facts and include words such as "believe", "expect", "estimate", "project", "anticipate", "duty", "intend", "likelihood", "risk", "VaR", "purpose", "commitment", "goal", "target" and similar expressions or variations of those expressions. They include, for example, statements regarding future growth rates or the achievement of future targets, including those relating to ESG performance.

The information contained in this document reflects our current expectations and targets, which are based on various assumptions and projections, including non-financial considerations such as those related to sustainability. Forward-looking statements are not guarantees of future results, and actual results may differ materially from those anticipated in the forward-looking statements as a result of certain risks, uncertainties and other factors. These factors include, but are not limited to, (1) market conditions, macroeconomic factors, domestic and international stock market movements, exchange rates, inflation and interest rates; (2) regulatory and oversight factors, political and governmental guidelines, social and demographic factors; (3) changes in the financial condition, creditworthiness or solvency of our clients, debtors or counterparties, such as changes in default rates, as well as changes in consumer spending, savings and investment behavior, and changes in our credit ratings; (4) competitive pressures and actions we take in response thereto; (5) performance of our IT, operations and control systems and our ability to adapt to technological changes; (6) climate change and the occurrence of natural or man-made disasters, such as an outbreak or escalation of hostilities; and (7) our ability to appropriately address any ESG expectations or obligations (related to our business, management, corporate governance, disclosure or otherwise), and the cost thereof. In the particular case of certain targets related to our ESG performance, such as, decarbonization targets or alignment of our portfolios, the achievement and progress towards such targets will depend to a large extent on the actions of third parties, such as clients, governments and other stakeholders, and may therefore be materially affected by such actions, or lack thereof, as well as by other exogenous factors that do not depend on BBVA (including, but not limited to, new technological developments, regulatory developments, military conflicts, the evolution of climate and energy crises, etc.). Therefore, these targets may be subject to future revisions.

The factors mentioned in the preceding paragraphs could cause actual future results to differ substantially from those set forth in the forecasts, intentions, objectives, targets or other forward-looking statements included in this document or in other past or future documents. Accordingly, results, including those related to ESG performance targets, among others, may differ materially from the statements contained in the forward-looking statements.

Recipients of this document are cautioned not to place undue reliance on such forward-looking statements. BBVA does not intend, and undertakes no obligation, to update or revise the contents of this or any other document if there are any changes in the information contained therein, or including the forward-looking statements contained in any such document, as a result of events or circumstances after the date of such document or otherwise except as required by applicable law.

This document may contain summarized information or information that has not been audited, and its recipients are invited to consult the documentation and public information filed by BBVA with stock market supervisory bodies, in particular, the prospectuses and periodical information filed with the Spanish Securities Exchange Commission (CNMV) and the Annual Report on Form 20-F and information on Form 6-K that are filed with the US Securities and Exchange Commission.

BBVA or any entity of its group expressly declines any responsibility for errors or omissions in the information contained in the document. In no event shall BBVA or any entity of its group, its branches, and/or its directors, officers, employees and authorized personnel be liable for any damages, losses, claims or expenses of any kind, which may result from the use of this document or its content.

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The world is living in an era of unprecedented change and sustainability is a significant and long-term opportunity

• A structural, technological transformation across all industries
• Global and immediate
• An unprecedented investment cycle

Banks have a key role

to play in financing the transformation by allocating funds to decarbonization technologies that offer long-term growth

The necessary global investments in sustainability imply a great potential incremental business

$275	TRILLION	~8	% WORLD GDP
	Annual Average

30 Years

CURRENT	NECESSARY
FUNDING	FUNDING
2010	2020	2030	2040	2050

Source: BNEF, McKinsey

Being a first mover bank gives a competitive edge on two goals:

Capturing a higher share of the incremental business

Differentiated management of sustainability risks

Capturing the opportunity requires an

extended and deep transformation across

the entire value chain

Strategy

Policies and

Processes Business and

risk capabilities

4

BBVA has placed sustainability at the core of its strategy since 2019

Global Sustainability Area

at top management level, with a business-orientated focus

Risk management

that integrates sustainability as a lever

Variable remuneration of all employees

linked to mobilization of sustainable business

BUILDING A MORE SUSTAINABLE AND INCLUSIVE FUTURE 5

Sustainability is at the core of BBVA's Strategy

Promoting new business

through sustainability

Channeling sustainable business

GOAL 2025

• 300 Bn

FROM 2018 TO MARCH 2024

• 226 Bn

Achieve Net Zero

Emissions by 2050

Setting and managing decarbonization targets by 2030

SECTORS
Oil & Gas	Power Generation
Auto	Steel
Cement	Coal
Aviation	Shipping
Aluminum	Commercial Real Estate
AS OF DEC'23	Residential Real Estate

80%

of loan portfolio

corresponds to customers who actively manage their transition¹

(1) Percentage calculated in terms of the volume of loans in the portfolio, which includes both drawn and undrawn financing (such as Loans, unused Revolving Credit Lines, Guarantees, ECA lines, among others). Data as of December 2023. Corresponds to high-emission sectors that include oil and gas, power generation, auto, steel, cement and aviation at BBVA Group level. The percentage of the loan portfolio does not include the coal sector for which BBVA has defined a progressive exit plan for 2030 in developed countries and in 2040 globally (in the terms of the Environmental and Social Framework), nor the shipping sector. Customers who are actively managing their transition are considered to be those classified as "Advanced", "Robust" or "Moderate" according to internal transition assessment tools such as the Transition Risk Indicator (TRi). considering its medium-term emissions reduction objectives and levers for the management of said emissions and its committed investments to execute its transition plan. See annex for details.

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FOSTER NEW BUSINESS THROUGH SUSTAINABILITY

We are bringing sustainable business to the next level

Advancing in our goal to sustainable business¹

Accumulated data (2018 - 1Q24)

€20 Bn

channeled in	New target
1Q24	(2022)
	€300Bn
€226 Bn	Revised target
Channeled since 2018	(2021)
	€200 Bn

Initial target (2018)

€100 Bn

2018 2019 2020 2021 2022 2023 2024 2025

With a global and holistic approach

Sustainable business channeled breakdown

BY PRODUCT	BY SEGMENT
		YoY growth
75%	€20 Bn		+41%
Financing and
transactional
banking activity 2	€14.2Bn
€226 Bn	Retail	-19%
	2.6
(2018 - March 24) 17%	7.0		+81%
Bonds3	3.2	Enterprise
4% Project4%	3.9
10.4
Investment finance	7.2	CIB	+45%
products and

Others4

1Q23 1Q24

1. For the purposes of the 2025 Target, sustainable business channeling is considered to be any mobilization of funds, cumulatively, in relation with activities, clients or products considered to be sustainable or promoting sustainability in accordance with internal standards inspired by market standards such as the Green Bond Principles, Social Loan Principles and Sustainability Linked Loan Principles of the Loan Market Association, existing regulations and the best market practices. The foregoing is understood without prejudice to the fact that said mobilization, both at an initial stage or at a later time, may not be registered on the balance sheet. To determine the funds channeled to sustainable business, internal criteria is used based on both internal and external information, either public, offered by customers or by third parties (mainly data providers and independent experts).

1. It fundamentally includes products whose funds are allocated to activities considered sustainable (in accordance with both internal and market standards, existing regulations and best practices), as well as products linked to sustainability (in accordance with both internal and market and best practices), such as those linked to environmental and/or social indicators.
2. Bonds in which BBVA acts as bookrunner.
3. Investment products art.8 or 9 under SFDR or similar criteria outside the EU managed, intermediated or marketed by BBVA. "Other" includes deposits under the Sustainable Transaction Banking Framework until its replacement by the CIB Sustainable Products Framework (both Frameworks published on the bank's website), insurance policies related to energy efficiency and inclusive growth and electric vehicle autorenting, mainly.

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FOSTER NEW BUSINESS THROUGH SUSTAINABILITY

Foster new business with a holistic approach and focus on 3 levers

Holistic approach to sustainability

Net-zero opportunities	Nature-positive
Electric transportation,	opportunities
Energy efficiency,	Agriculture, Water,
Renewable power…	Recycling….

Climate

Natural

capital

Inclusive	Social opportunities
Financial inclusion,
growth	Entrepreneurship ,
	Social infrastructure…

Working on 3 growth levers

Promoting personalized advice to customers to capture incremental business opportunities

Developing differential risk management capabilities

Building levers to do business in

the right way

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FOSTER NEW BUSINESS THROUGH SUSTAINABILITY

Promoting personalized advice to customers to capture business opportunities

WHOLESALE CUSTOMERS

ENTERPRISE CUSTOMERS

RETAIL CUSTOMERS

Already

delivering

Sector-related advice to proactively address transition opportunities

Focus on high-emitting sectors

● Oil & gas	● Power generation
● Auto	● Steel
● Cement	● Coal
● Aviation	● Shipping
●Aluminum	● Real Estate Commercial
	● Real Estate Residential

SELECTIVE GROWTH

80% of the loan portfolio corresponds to customers who actively manage their transition¹

+6 p.p growth (2023)

Advice focused on savings through specific sustainable solutions

Focus on transversal themes

●	Energy efficiency	●	Circularity
●	Social
●	Fleet renewal
	infrastructure
●	Water
●	Entrepreneurship

LEVERAGED CAPILLARITY

to boost business

77% of total bankers closed sustainability deals (2023)

Personalized digital solutions for mass consumer market

Focus on savings

• Mobility
• Self-consumption
• Unbanked

TAILOR-MADE SOLUTION

to mass markets

16,500

solar panels financed

(2023)

1. Percentage calculated in terms of the volume of loans in the portfolio, which includes both drawn and undrawn financing (such as Loans, unused Revolving Credit Lines, Guarantees, ECA lines, among others). Data as of December 2023. Corresponds to high-emission sectors that include oil and gas, power generation, auto, steel, cement and aviation at BBVA Group level. The percentage of the loan portfolio does not include the coal sector for which BBVA has defined a progressive exit plan for 2030 in developed countries and in 2040 globally (in the terms of the Environmental and Social Framework), nor the shipping sector. Customers who are actively managing their transition are considered to be those classified as "Advanced", "Robust" or "Moderate" according to internal transition assessment tools such as the Transition Risk Indicator (TRi). considering its medium-term emissions reduction objectives and levers for the management of said emissions and its committed investments to execute its transition plan. See annex for details.

based on transition positioning

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FOSTER NEW BUSINESS THROUGH SUSTAINABILITY

Developing differential risk management capabilities to mitigate risks and support business opportunities

SOUND

STARTING POINT

Low exposure to high-emitting sectors

5.87%

of the total exposure (measured by EAD of BBVA Group)

(Dec'23)

FOCUS ON BANKING

THE BUSINESS UPSIDE

Leverage in differential risk knowledge to advance dialogue with our customers

Developing specific risk frameworks

to support new business verticals (e.g. new sustainable technologies)

Strategic plan for new customers acquisition

CONTINUED DEVELOPMENT OF CAPABILITIES

Building up advanced tools and ongoing training for risk teams

	of the loan portfolio in sectors with high
95% emissions has a Transition Risk Indicator (TRi)
68%	of risk team trained on sustainability
(~4,000 FTEs)1

Competitive advantage built over time to capture business opportunities,

while managing sustainability risk

(1) In addition, over 112,000 hours of training in 2023 and more than 53,500 employees trained in sustainability between Dec'22 and 23.

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FOSTER NEW BUSINESS THROUGH SUSTAINABILITY

Building levers to do business in the right way

Defining robust	Defining and adapting	Leveraging on	Assessing the
criteria to classify	processes to ensure	sound data quality	non- financial
sustainable business	operational efficiency	on sustainable	risks and defining
	and adequate internal	attributes, at deal	mitigating
	controls	level	measures

Promoting transparency in our sustainability reporting

and first movers in aligning it to best practices

TCFD + GFANZ transition plan, SASB, WEF-IBCand GRI