BBVA is a Spanish financing group that offers services in retail banking, business banking, investment banking, insurance and asset management. It operates in more than 30 countries, serving about 71 million customers.[1] As of end June 2017, BBVA held more than €690 billion in total assets[2].
BBVA’s Rules of Conduct in Defence state: “BBVA will not invest nor provide financial services to companies directly involved in the development, production, testing or maintenance of nuclear weapons for countries that are not signatory to the Non-Proliferation Treaty (NPT), or countries that act in breach of the NPT.”[3] This also includes dual-use items and specifically developed delivery systems.[4]
The exclusion policy applies to BBVA’s commercial banking and investment banking activities. It also covers the investments made for BBVA’s own account. However, the policy does not cover all investments made on behalf of third parties, discretionary mandates, and internal passive funds. Clients can request BBVA to invest their assets in companies that do not meet the Rules of Conduct in Defence.[5]
BBVA maintains an exclusion list to implement its policy based on research by Sustainalytics, but the list is not publicly available.[6]
BBVA was also found to have several investments in nuclear weapon producing companies identified by this report, more information can be found in the Hall of Shame.
We commend BBVA for adopting a public policy on nuclear weapons. As a majority of countries have now adopted the treaty on the Prohibition of Nuclear Weapons, and find the continued possession of nuclear weapons by any country unacceptable, we recommend BBVA exclude all nuclear weapon producers regardless of their country of origin. Also, it should expand the scope of its policy to cover all financial products it offers, including all assets managed. We look forward to engaging with BBVA, so a strong and comprehensively applied policy may be listed in the Hall of Fame in a future update of this report.
[1] BBVA, “About the Group”, website BBVA (https://www.bbva.com/en/corporate-information/about-the-group/), viewed 23 January 2018.
[2] BBVA, “Key data”, BBVA Website (https://www.bbva.com/en/corporate-information/key-data/), viewed 23 January 2018.
[3] BBVA, “Rules of Conduct in Defence”, May 2014, page 6, available at http://bancaresponsable.com/wp-content/uploads/2015/02/norma-defensa_mayo2014-eng.pdf, viewed 23 January 2018.
[4] BBVA, written response to PAX dated April 23 2015.
[5] BBVA, written response to PAX dated April 23 2015.
[6] BBVA, written response to PAX dated April 23 2015.