ESG Sustainable Investing with BBVA in Europe: Invest with Consciousness and Profit Potential! The Future is Green

Do you want your money to not only grow, but also contribute to a better world? ESG (Environmental, Social, and Governance) investments are the answer. This guide explores their growing importance in Europe and how BBVA clients can invest sustainably.

In a world increasingly aware of global challenges, the way we invest is changing. It's no longer just about achieving maximum returns at any cost. Sustainable and ESG (Environmental, Social, and Governance) investments are gaining unstoppable momentum, especially in Europe, and BBVA is positioning itself as a key player in facilitating access to these purpose-driven financial products.

ESG stands for Environmental, Social, and Governance. These three pillars are the criteria investors use to evaluate the sustainability and ethical responsibility of a company or financial asset:

• Environmental: Refers to a company's impact on the environment.
  • Examples of criteria: Carbon emissions management, energy efficiency, use of renewable energy, water conservation, waste management, deforestation.
• Social: Evaluates how a company manages its relationships with employees, suppliers, customers and the communities where it operates.

* Examples of criteria: Human rights, fair working conditions, diversity and inclusion, product safety, data protection, community investment. Governance: Focuses on how a company is led and managed.

• Examples of criteria: Transparency in management, business ethics, shareholder rights, executive compensation, corruption prevention, composition of the board of directors.

Investing with ESG criteria means selecting companies that are not only financially sound, but also demonstrate a strong commitment to these sustainable and responsible practices.

Europe has become the epicenter of sustainable investment for several reasons:

• Proactive Regulation: The European Union has pushed forward an ambitious agenda with regulations such as the Sustainable Finance Action Plan and the Sustainable Finance Disclosure Regulation (SFDR), which require greater transparency and integration of ESG risks.
• Civic Awareness: There is a growing demand from European retail and institutional investors for investment options that align with their values.
• Risk Management: There is growing recognition that ESG factors can have a material impact on long-term financial performance. Companies with good ESG practices are often better prepared to weather crises and regulatory changes.
• Profit Opportunities: Contrary to the old myth that investing sustainably meant sacrificing profits, numerous studies and ESG fund performance suggest that well-managed ESG companies can even outperform their peers over the long term. [Featured Quote: “ESG investing in Europe is not just a fad; it is a profound transformation of the financial system driven by regulation and social demand.”]

BBVA has recognized the importance of sustainability and is integrating ESG criteria into both its own operations and the products and services it offers its customers in Europe.

• BBVA Sustainable Investment Funds: BBVA Asset Management offers a growing range of investment funds that apply ESG criteria to their investment policies. These funds can focus on specific themes (renewable energy, resource efficiency) or apply ESG filters to more diversified portfolios.
  • Example: Funds that invest in companies that are leaders in the energy transition or those with high ratings in gender equality.
• ESG Investment Advice: BBVA clients in Europe, especially those in private banking or with financial advisors, can request that their sustainability preferences be incorporated into the design of their investment portfolios.
• Green and Social Bonds: BBVA also participates in the issuance and structuring of green and social bonds, which finance projects with a positive environmental or social impact.
• ESG Analysis Tools: The bank is developing tools to analyze the ESG impact of its clients' portfolios.

• Contact your BBVA Manager or Advisor: This is the first step to learn about the available options.

that fit your risk profile and sustainability objectives.

• Review the Fund Offering in Online Banking/BBVA App: BBVA's digital platform in European countries typically displays the catalog of available funds, with filters to identify those with an ESG or sustainable label.
• Learn about the "Sustainability" Level: Under European regulation (SFDR), funds are classified according to their degree of sustainability (Art. C, Art. 8 "light green", Art. U "dark green"). It's important to understand these distinctions.
  • Article 8: Funds that promote environmental or social characteristics.
  • Article U: Funds that have explicit sustainable investment objectives.

While past performance does not guarantee future results, the overall trend has been positive:

• Resilience: In times of market volatility, ESG assets have often proven to be more resilient.
• Innovation: Companies focused on sustainable solutions are often at the forefront of innovation.
• Attracting Talent and Customers: Companies with a good ESG reputation tend to attract and retain talent and customers better.
• Considerations: It's vital to do your research and diversify. Not all ESG-labeled funds are created equal, and greenwashing (appearing to be more sustainable than you actually are) is a risk to consider.

Conclusion: A Double Impact Investment with BBVA in Europe

Sustainable and ESG investing in Europe, facilitated by institutions like BBVA, offers a unique opportunity for investors to not only seek attractive return potential but also actively contribute to a fairer and more environmentally friendly future. By aligning your investments with your values, you can be part of a powerful wave of change.

Get informed, seek advice, and consider how your finances can reflect your commitment to sustainability.

Call to Action:

• If you're a BBVA customer in Europe, ask your advisor about the ESG investment options available.
• Learn more about ESG criteria and how they apply to financial products.
• Follow us on Instagram: @Ivn_noticias to stay up to date on global financial trends.