BBVA Bancomer/2018 Annual Report

Environment: sustainable finances and environmental performance GRI 103-1, 103-2 and 103-3 Mexico and BBVA Bancomer have shown their commitment by launching various initiatives, and making a great effort to meet the Sustainable Development Goals (SDGs) by 2030. Highlights here include: 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND 9 ECONOMIC GROWTH INDUSTRY, INNOVATION AND INFRASTRUCTURE RESPONSIBLE CONSUMPTION AND PRODUCTION Ensuring access to affordable, secure, sustainable and modern energy for all. Promoting inclusive and sustainable economic growth, full and productive employment and decent work for all. Building resilient infrastructure, promoting sustainable industrialization and fostering innovation. Ensuring sustainable forms of consumption and production. The Bank acknowledges the impact it has on the environment both directly and indirectly through its operations and the products and services it offers. In response, it has implemented measurement, control and resolution strategies to reduce its environmental footprint and even to generate a positive impact through financial instruments, aligning itself with global initiatives such as: The United Nations Environment Program Finance Initiative (UNEP FI). Equator Principles. Principles for Responsible Investment (PRI). Global Compact of the United Nations (UN Global Compact). • Carbon Disclosure Project. Social, environmental and reputational risks Equator Principles GRI 102-11; FS7, FS8, FS11 The Equator Principles (EP) is a reference framework launched in 2003, allowing financial institutions to determine, assess and manage social and environmental risks in their projects. It is a set of standards endorsed by the World Bank for determining, assessing and managing social and environmental risks when funding projects and supporting responsible decision-making that applies globally across all sectors and industries. "The Equator Principles is a benchmark in the financial sector for determining, assessing and managing the environmental and social risks of projects". For instance, the energy, transportation and social services infrastructure that drives economic development and creates jobs can certainly impact both the environment and society. BBVA is committed to managing the financing of these projects in order to prevent or otherwise reduce the ensuing negative impacts and boost their economic, social and environmental value. All the decisions on project finance are based on the criterion of return adjusted to principles. Placing people at the core of the business implies dealing with stakeholder expectations and the social demand to fight against climate change and respect human rights. In line with this commitment, BBVA adhered to the Equator Principles (EP) in 2004. Based on the International Finance Corporation's (IFC) Policy and Performance Standards on Social and Environmental Sustainability and the World Bank's Environmental, Health and Safety guidelines, the Equator Principles are a set of standards for managing the environmental and social risks in project finance. These principles have set the benchmark for responsible finance. 57 40 BBVA Bancomer/2018 Annual Report

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