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BBVA Asset Management

BBVA is a customer-centric global financial services group founded in 1857. BBVA Asset Management joined the Net Zero Asset Managers Initiative in November 2021 and made its Initial Target Disclosure in November 2022.

Initial Target Disclosure: November 2022

Percentage of assets covered by the Net Zero Asset Managers Commitment Statement

22% of total AUM (USD $30.35 billion)

Information on interim target(s) covering the proportion of assets to be managed in line with net zero

Baseline(s):

2021

Portfolio coverage baseline

26% net zero aligned or aligning

2021

Portfolio decarbonisation reference baseline

Corporates: 173 CO2/Mills Eur sales. Sovereign debt: CCPI score. 56.5 CCPI weighted score EU sovereign debt

Target(s):

2030

Portfolio coverage target

60% net zero aligned or aligning.

2030

Portfolio decarbonisation reference target

Corporates: 2030: 50% WACI reduction.

2050: Achieve net zero 

Sovereign 2030: CPPI annual improve vs baseline

2050: Achieve Net Zero

GHG scopes included:

-Scope 1 and 2 emissions have been prioritised for the decarbonisation reference target.
-Scope 3 emissions exclusion is due to low quality and low coverage of emissions, but we are monitoring Scope 3 emissions and these will be included over time as data improvement allows for robust target setting.

Methodology:

Net Zero Investment Framework

Scenario(s):

Corporates: IEA Net Zero 2050

Additional information

Proportion of AUM committed:

Data constraints and the lack of methodologies prevents us to set credible targets in certain asset classes:
-Third-party funds and sovereign agencies excluded due to lack of data and methodological guidance
-Cash and derivatives excluded due to low methodological guidance
-Mexico & Rest of world sovereigns not included due to lack of data generating uncertainty on potential evolution of the countries.
-Real Estate will be included after review of available data and methodology
-Other regions’ portfolios (Peru, Colombia, Argentina and Turkey) to be included as data become available. All combined they represent less than 10% total AUM.
The plan is to increase coverage as data availability and methodological constraints in the asset classes and portfolios not included are overcome.

Policy on coal and other fossil fuel investments:

Yes. We have a policy of excluding companies involved in certain activities that we consider that have a very negative impact on the environment.
We don’t invest in companies that:
– Derive more than 25% of their revenues from Thermal coal
-Derive more than 10% of its revenues from Arctic exploration, production and transport of oil and gas
-Derive more than 10% of its revenues from exploration, production and transport of tar sands
The scope of the policy is global for all the BBVA Asset Management business. It’s already in place for the vehicles and portfolios that we manage in Europe and we are working to extend it to the rest of the geographies where we have asset management activities.
Exclusions