Strategy | BBVA

Business Units

BBVA México is in constant transformation, evolving every day to improve the customer experience, through the wide range of traditional products and innovating the offer of digital products and services.

Customer segmentation is a key element of our business model. It enables us to provide specialized attention through our Business Units, which focus on developing products and services tailored to our customers’ needs. Along with a robust Support Units structure, our businesses and networks generate the best possible experience, aimed at maintaining business recurrence and enabling continuous growth through synergies.

To continue creating opportunities for millions of customers, employees, the community and the environment, six strategic priorities have been established.

Improve the customers’ financial health

Grupo Financiero BBVA México uses technology and data analytics to understand customers’ income, expenses, future needs and savings capacity in order to provide them with personalized financial advice that contributes to their financial health.

Help customers in transitioning to a sustainable future

BBVA helps mitigate the negative effects of climate change and promote inclusive growth for its customers through responsible financing, advice, innovative products and services, facilitating the investments needed to accelerate the transition to a sustainable future.

Grow in customers, to drive profitable growth

Grupo Financiero BBVA México is focusing its operations in areas such as payments, insurance, asset management, value segments such as SMEs and private banking, and Corporate and Investment Banking (CIB) activities in order to focus its efforts on the most profitable segments and products.

Pursue operational excellence

GFBB concentrates its efforts on the most value-added operations for the customer to provide the best customer experience, including ensuring easy access to its products and services, by transforming the relationship model through automation and improved productivity, all while maintaining optimal management of financial and non-financial risks.

The best and most committed team

BBVA seeks to create growth opportunities for all, especially for its employees, consolidating a diverse, inclusive and empowered workforce, with a differential culture based on the Group’s purpose and values.

Data and technology

Technology and data analysis are fundamental to create different, innovative and high-quality solutions. For this reason, Grupo Financiero BBVA México continues to move forward to develop an increasingly robust security and privacy model.

Sustainability strategy

Sustainability is one of the BBVA Group’s six strategic priorities, as evidenced by its support for the Principles of Responsible Banking, one of the most important sustainable financing initiatives in the international arena, which is part of the United Nations Environment Programme Finance Initiative (UNEP FI).

One of the most important sustainable financing initiatives in the international arena, which is part of the United Nations Environment Programme Finance Initiative (UNEP FI).

BBVA is also part of the Net-Zero Banking Alliance (NZBA), adheres to the Ten Principles of the Global Compact and seeks to contribute to the achievement of the Sustainable Development Goals (SDGs), a set of United Nations initiatives.

Grupo Financiero BBVA México promotes sustainable financing and contributes to the global commitment to mobilize EUR 300 billion by 2025. In 2022, GFBB mobilized more than MXN 160 billion of sustainable financing, including its participation as bond placement intermediary for more than MXN 65 billion.

Strategic pillars of Responsible Banking of Grupo Financiero BBVA México

Grupo Financiero BBVA México has adopted a Responsible Banking model applicable to the entire organization. With this approach, the bank seeks profitability in accordance with ethical principles, strict compliance with the law, good practices and the creation of long-term value for all stakeholders. By adopting a responsible banking approach, BBVA México seeks to contribute to the well-being of society and protect the environment. This philosophy is reflected in each of its decisions and actions, and is an integral part of the bank’s culture.

Responsible customer experience
Balanced relationships with its customers, based on transparency, clarity and responsibility.

Responsible commitment to the employee
Responsible practices with employees, suppliers and other interest groups.

Sustainable finance
Actions to combat climate change, respect human rights and achieve the SDGs

Investment in the community
Promote social change and create opportunities for all.

General Sustainability Policy

BBVA’s General Sustainability Policy defines and establishes the general principles, and the main management and control objectives and guidelines to be followed by the Group in matters of sustainable development. In 2022, the second version of this policy was updated and among its changes is the updating of principles, objectives and provisions related to sustainability. With this incorporation and updating of content, the Corporate Social Responsibility Policy is repealed.

Consult the sustainability principles and policies that guide Grupo Financiero BBVA Mexico's activities at the following link:
https://shareholdersandinvestors.bbva.com/sustainability-and-responsible-banking/principles-and-policies/

Materiality analysis

In 2022 Grupo Financiero BBVA México conducted an update to its materiality exercise, which identified the issues that generate the greatest impact -positive or negative, current or potential, on the economy, the environment, people and human rights- or those issues that impact the business or stakeholders.

To identify the material issues, we first identified ESG trends for the financial sector from sources such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Task Force on Climate-related Financial Disclosures (TCFD), Dow Jones Sustainability Index (DJSI), Morgan Stanley Capital International (MSCI), Sustainable Development Goals (SDGs), World Economic Forum (WEF), United Nations Environment Programme Finance Initiative (UNEP FI), and Standard & Poor’s Global (S&P), among others.

Furthermore, an evaluation was conducted to assess BBVA’s sustainability management regarding the identified issues. This was followed by a comparison of the level of relevance and performance in relation to the issues among competitors in the sector. A particular weighting was assigned to the stakeholders evaluated, as well as to the organization's interests. As a result, 15 material issues were identified, and their objectives, management, and performance are presented in this report.

Progress in assessing dual materiality

With the update of the materiality analysis, and aligned with the dual materiality vision of the GRI recommendations, for the first time an exercise was carried out to identify and weigh the real or potential risks, as well as the opportunities, related to material issues, which may be caused directly by the Group or affect it through its value chain, and which in turn may generate financial, reputational or operational impacts.

As a result of this preliminary analysis, 10 ESG risks associated with BBVA México’s 15 material issues were identified. A group of representatives from the Bank’s areas participated in this exercise, who, through a high-level qualitative assessment exercise, weighted the issues that, according to its experience and knowledge of the transactions, could represent a risk for the Group in terms of their probability and impact.

Probability: the likelihood of a given event happening.

Impact: severity of the effects when the risk materializes.

Initial developments in the dual materiality assessment show that the main risks associated with material issues in terms of potential frequency and severity are climate change, financial inclusion and education, ethics and cybersecurity.

In 2023 we will continue BBVA’s dual materiality assessment in Mexico with a more comprehensive analysis of these developments, with the aim of presenting the final results in the next reporting period.

At a global level, the results of the BBVA Group’s Dual Materiality assessment can be found on page 19 of this link.