BBVA, first financial institution to take stock of its global impact on society
Maximizing the positive impacts of the business on society and minimizing the possible impacts is BBVA's main commitment in the area of Corporate Responsibility and the foundation of its superior business model of responsible banking.
BBVA is the first financial institution to publish a global assessment of the impact of its activity on the societies in which it operates. All the data are included in BBVA's Corporate Responsibility information, which is available on the Group's social website bancaparatodos.com and has been verified by an independent auditor.
The current environment represents a challenge to the financial sector, a challenge where financial activity has lost social legitimacy and faces an increasing demand for accountability. According to the global director of Corporate Responsibility and Reputation of BBVA, Antoni Ballabriga, “in this context, we at BBVA want to strengthen our differential style of banking. We are aware that some things need to be improved. It is clear to us that profitability should not be achieved at any price and this is why we talk about people and return adjusted to principles. Responsible banking means integrating into our decisions the impact we generate on the lives of millions of people”.
Contribution to development and social welfare
Improving the social welfare of people who receive financing to purchase homes or consumer durables, as well as supporting businesses and other actors that need funding, is one of the keys. In this regard, the impact on society is measured using indicators that put people at the core of business activity. BBVA contributes to development and social welfare:
-4,939,731 people worldwide live in homes financed by BBVA, 4.2% more than in 2012.
-348,445 SMEs supported and financed by BBVA –8.2% more–.
-1,117,411 micro-enterprises and self-employed workers supported or financed by BBVA –11.8% more–.
-1,973,407 people have a bank account through their cell phones in Latin America, thus promoting financial inclusion –9% more–.
-1,493,709 entrepreneurs financed through microcredits granted by the BBVA Microfinance Foundation in Latin America –15% more– with a real social impact on 6 million people.
Wealth is generated directly for stakeholders as a result of dividend payments to shareholders, payments to suppliers, employee wages, taxes paid and due, etc.
-BBVA contributes 0.5% to the value of the economies in which it operates.
-9,848 million euros in total taxes due and collected by BBVA's business activity –4.7% more than in 2012–.
-891 million euros invested in technology and innovation –4.2% of the economic value generated–.
-1,100 euros is the average dividend received by each individual shareholder (994,846 individual shareholders).
Job creation is a critical element, directly via new hires at the BBVA Group itself, and jobs generated indirectly and through job creation support initiatives. In 2013, 6,493 new employees were hired with permanent contracts –51% of them under 30 years of age–while in Spain alone 1,364,883 people are employed by SMEs and micro-enterprises funded or supported by BBVA.
Other initiatives prove this commitment to employment. In Spain, BBVA has driven the creation of over 3,700 jobs in 2013 with its 'Yo Soy Empleo' (I am employment)program. SMEs have benefited from direct aid of up to 3,000 euros for each new contract signed, in addition to training at business schools and a recruitment service.
Contribution to society
BBVA invested 97.13 million euros in social programs, 4.4% of the Group's profit, and 19.5% more than the previous year. The bank allocated 43% of its social investment to education.2013 was a very intense year due to the numerous social, economic, cultural, artistic, scientific, environmental and research initiatives carried out both by the bank itself and by the BBVA Foundation and the BBVA Microfinance Foundation in all the regions where the BBVA Group operates. A contribution to society in the form of social programs with direct investments that benefit various groups. The key initiatives are:
Financial literacy: 256,000 people benefited from BBVA's financial literacy programs, which seek to increase the financial culture of people so they can take informed decisions. The Group's activity in Mexico is particularly relevant in this regard. The 1.5 visitors to its website Adelantecontufuturo.mx received recommendations on personal finance and took part in some of the online workshops. Face-to-face workshops were also boosted in order to reach sectors of society that lack access to technology and the knowledge needed to use it.
Training for SMEs: 20,000 SMEs received training in an environment where these businesses play a crucial role in sustained long-term growth, in job creation and in social development. BBVA is committed to offering quality business training in order to support its improvement and transformation processes in the countries in which it operates.
Education for integration: The “Niños Adelante” scholarship program promotes access to and the quality of education for underprivileged children and young people in Latin America. 16.4 million euros were allocated to this program in 2013. The program is adapted to the reality of each country, and thus benefits different groups. In Spain, the "Valores de futuro" program teaches school children about values related to the responsible use of money. 1,044,735 students from 5,247 schools participated in the program in the 2012-2013 academic year, thus achieving the initial target set: to exceed one million participants.
As regards corporate volunteer work, 5,864 employees participated in volunteer work initiatives worldwide, compared with 4,334 the previous year, 35% more.
Responsibility in response to the crisis in Spain
Since the start of the crisis in Spain, BBVA has been aware of the difficult economic and social situation of some of our customers. Very particularly those customers struggling to pay their mortgage loans on their main residence.
As part of the Responsible Banking policies that shape the Bank's daily activity, BBVA has implemented numerous initiatives that have gone beyond the legally established ones and promote a comprehensive social housing policy aimed at offering solutions to all BBVA customers who are mortgage holders. BBVA's social housing policy revolves around three main areas:
1. Offering solutions to all families struggling to pay their mortgage loans.
2. Offering a solution to their housing problem to any BBVA customer family at risk of exclusion.
3. Commitment to employment through workplace integration programs and financial aid, to enable customers to regain their confidence and self-esteem.
In 2013, BBVA implemented a package of specific social measures to deal with the crisis:
-Refinancing to 62,580 customers with mortgage loans, tailored to their ability to pay.
-Social Housing Fund: 899 properties contributed
-Mortgage Borrower Protection Committee. This was set up to review all cases where their is a risk of social exclusion, looking for all kinds of solutions, including refinancing, repossession or rental, among others.
-BBVA–Adecco Foundation Plan. Its aim is to incorporate customers who are mortgage borrowers into an employment plan to enable them to re-enter the labor market. It also envisages financial aid of up to 400 euros a month over a maximum period of 24 months.
-Agreement with Cáritas Barcelona: first project for the transfer of housing units for social rental managed by this institution.