Sustainable finance

Sustainable Development Goals (SDGs) Bond Framework

BBVA México finances projects and entities that contribute to the fulfillment of the SDGs and their specific targets, particularly in the following SDGs:

In April 2018, BBVA published its framework for issuing its own sustainable bonds, linked to the United Nations Sustainable Development Goals (SDGs).
The SDG framework is guided by the International Capital Markets Association (ICMA) Principles for Green Bonds, the Guide for Social Bonds and the Guide for Sustainable Bonds, which provide for four fundamental requirements:

Use of proceeds

Process for expenditure evaluation and selection

Management of proceeds

Reporting

The funds from these debt instruments are exclusively used to finance green, social and sustainable projects, aligned with the four essential components of the framework. Grupo Financiero BBVA México (through the bank BBVA México) has successfully issued three types of bonds under this framework:

Green bonds

In 2022, Grupo Financiero BBVA México released the issuance of the following green bonds:

Green bond	Amount of the issuance (MXN million)
SHCP	7,896
United Mexican State	5,565
Orbia	5,000
América Móvil	3,624
FEMSA	3,091
Herdez	3,000
SHCP	2,500
Cementos de Chihuahua	2,500
CFE	1,440
Bancomext	1,200
GAP	919
Banobras	749
Desarrollos Hidráulicos de Cancún	700
KOF	125
Total	38,309

Social bonds

In 2022, Grupo Financiero BBVA México released the issuance of the following social bonds:

Social bond	Amount of the issuance (MXN million)
SHCP	7,896
United Mexican State	5,565
KOF	2,875
América Móvil	3,624
SHCP	2,500
Bancomext	1,200
CFE	1,060
Compartamos	833
Banobras	740
Total	26,293

Sustainable financing for individuals and companies

The range of credit products that BBVA México manages has significant benefits for customers, such as preferential rates, the objective of which is to make these products more attractive to the market and thus contribute to the sustainable transition of individuals and companies.

Private Parties
Financing for the acquisition of hybrid and electric cars, financing of solar panels and mortgages, among others.
MXN 15,801 million

Companies and Corporations
Green financing for companies, letters of credit, leasing, among others.
MXN 79,469 million

Environmental and Social Framework

Grupo Financiero BBVA México developed specific regulations that include environmental and social aspects in the due diligence process for decision-making when granting credit, with the aim of supporting the long-term success of its customers that operate in sectors with the greatest environmental impact and who manage their business responsibly.

The objective of these regulations is to address the specific sustainability issues of the banking sector and provide clear guidance to our employees on the procedures to follow in the management of clients and transactions. They are applicable to all operations, entities, lines of business and branches of BBVA México.

In order to support compliance with the SDGs, play a key role in the fight against climate change and strengthen the commitment to human rights, this management framework includes processes that allow Grupo Financiero BBVA México to meet the expectations of the groups of interest, mitigate risks, learn more about customer activities and contribute to compliance with BBVA’s Responsible Banking Policy at a global level.

Principles for Responsible Investments (PRI)

The Principles for Responsible Investments (“PRI”) are a set of actions to incorporate ESG issues into investment practice on a voluntary and aspirational basis. They are based on the premise that a sustainable and economically efficient financial system is a necessity for long-term investor value creation, which in turn will bring benefits to the environment and society as a whole.

The PRIs were launched in 2005 under the leadership of the United Nations, with the support of the main asset managers, seeking to have the capital market incorporate the evaluation of ESG factors into investment decision-making under the term Responsible Investment, which encompasses not only traditional financial analysis, but also the evaluation of environmental, social and corporate governance factors.

Grupo Financiero BBVA México (through its fund manager BBVA Asset Management) has an investment fund labeled as ESG and classified as equities, whose benchmark is the MSCI Global Markets Index. This fund invests in ETFs (Exchange-Traded Funds) or exchange-traded funds of countries and regions with the ESG label.

Financing under Equator Principles

Energy, transportation and social services infrastructures, which drive economic development and generate employment, can have an impact on the environment and society. The Grupo Financiero BBVA México’s commitment is to evaluate the financing of these projects in order to reduce and avoid negative impacts and thus enhance their economic, social and environmental value.

2022 Financing under the EP

Category	Transaction sector	Total amount	Amount financed by Grupo Financiero BBVA México
C	Infrastructure – transport	MXN 12,965,617,070.45	MXN 2,823,911,397.94
B	Real estate	USD 70.000.000 and MXN 600,000,000	USD 35.000.000 and MXN 300,000,000

BBVA Female Entrepreneurs

Victoria 147

Grupo Financiero BBVA México and Victoria 147 joined forces to improve the personal and business financial health of women entrepreneurs and businesswomen. Through this alliance, knowledge, financial tools and digital capabilities are provided to help women entrepreneurs improve their businesses and ventures. In addition, this alliance seeks to position Grupo Financiero BBVA México as a reliable financial ally and promote financial education as a key success factor for women entrepreneurs.

48,181

women entrepreneurs
were trained in 2022.