Management, S.A., S.G.I.I.C. (BBVA AM), is committed to the principles for
responsible investment, integrating the vehicles and portfolios that manage ESG
factors (environmental, social and corporate governance) into the investment
process. It therefore takes into account, among other things, the impact of
sustainability risk on the investments it makes, as well as the principal
adverse impacts that those investments could have on ESG factors.
managing the various vehicles and portfolios, BBVA AM considers a wide range of
internationally accepted standards, principles and treaties on sustainable
development and corporate responsibility, including:
- The UN’s Global Compact and Sustainable Development Goals
- The Paris Climate Agreement
- The EU’s various climate resolutions
- The CNMV’s Code of Good Governance
also plans to join the UNPRI (United Nations Principles for Responsible
Investment) in the near future.
integration of sustainability and ESG risks and factors does not only happen
during the investment selection process — it also happens during the life cycle
of the investments themselves, as these factors form part of the monitoring and
control criteria. BBVA AM carries out this monitoring by engaging with the
investee companies and entities (maintaining a dialogue with them to ensure
that their strategic plans focus on sustainability, exercising political rights
by voting at shareholder meetings etc.).
In this regard, BBVA AM has a policy on the integration of sustainability risks into the investment process, as well as an engagement policy. More information on these policies can be found on this website. More information on integrating sustainability risks can be found here [LINK to information in Art. 3] and on the engagement policy here.
the control and analysis of the principal adverse impacts that its investment
decisions have on sustainability factors, BBVA AM carries out a process of identifying
the principal impacts based on the nature of the assets invested in, defining
the variables that it considers most relevant to measure and monitor.
approval by the European legislator of the implementing technical standards of
Article 4 of Regulation (EU) 2019/2088 specifying these types of variable,
the indicators selected by BBVA AM—which will be measured by the entity—are as
- Average carbon intensity (Scopes 1 and 2) for investments in securities issued by private entities (both shares and debt securities) and in investment funds.
- Average carbon intensity (Scopes 1, 2 and 3) for investments in securities issued by private entities (both shares and debt securities).
- The type of separation between the functions of the CEO and the Chairman, for investments in securities issued by private entities (both shares and debt securities).
- Gender diversity, for investments in securities issued by private entities (both shares and debt securities).
- Biodiversity and ecosystem preservation practices, for investments in securities issued by private entities (both shares and debt securities).
Sustainability Government Group establishes the variables that inform
management and control decisions, as well as the specific objectives regarding
said variables. This group is made up of BBVA AM’s Compliance, Global Product,
Investment and Risk areas. Decisions on these variables are ratified by the
company’s management body, which is kept regularly informed on compliance with
the objectives set for each period.
methodology for calculating these indicators and the frequency and method of
reporting to BBVA AM’s management body are included in its policy on the
integration of sustainability risks into the investment process.
The objective for 2021 is to monitor the impact
of the investments against these variables, as well as the sensitivity of the
variables to different market situations, as they evolve or as changes are seen
in the composition of the aggregate portfolio of investments that BBVA AM
manages on behalf of its customers, in the different investment vehicles and
services it offers. Both variables and objectives will, where appropriate, be
adapted to the requirements established in the implementing technical standards
of Regulation (EU) 2019/2088.