The requirements established by EFRAG's new European Sustainability Reporting Standards (ESRS) have been followed, and the new Global Reporting Initiative Standards (GRI Standards) that enter into force in January 2023 were followed to determine the material issues. As BBVA Group, we identified and assessed the set of links between the company and the three pillars of sustainable development, from the perspective of the company's impacts on the environment and people through its activity – impact materiality – and the impact that the environmental and social issues have on the company's activity – financial materiality.

The association between potentially material issues with the analysis of impact materiality (Y axis) and financial materiality (X axis) makes it possible to sort these issues into two axes according to Garanti BBVA's impact on environmental and social issues and these issues’ impact on the Bank.

This enables the Bank to identify the most relevant material issues in order to prioritize the Bank's focus and actions to tackle possible impacts or opportunities.

The assessment, conducted by the BBVA Group, is overseen by the members are from Garanti BBVA’s Investor Relations, Sustainability, Strategic Planning, Capital & Operational Risk, Corporate Brand Management & Marketing and Customer Experience departments. Results are presented to the bank’s Sustainability Committee1 for discussion and approval.

Compared to the materiality analysis published in 2021, a total of 13 material issues remain, although the "COVID-19" issue has been disregarded and "Natural Capital" has been included.

As a result of this double materiality analysis, key material issues are

• Change: Climate Change: Climate change is the main concern among our stakeholders and they expect Garanti BBVA to contribute to transition towards a lowcarbon economy. This requires proper risk and opportunity management that Climate Change resulted in.
• Inclusive Growth: Stakeholders expect the Bank's business model to support the financial inclusion of people in the country, and enable inclusive growth via supporting entrepreneurs, women and/or disadvantaged groups.
• Advisory: Financial health and Advisory: Stakeholders expect the Bank to get to know its customers and accordingly, propose personalized solutions and recommendations in proactive and increasingly automated way to support to better manage their finances and achieve their life goals.
• Solvency and Financial Performance: Interest groups expect Garanti BBVA to have a business model focusing on generating capital and liquidity, to ensure sustainable growth over time.

These issues are embodied in two of the six strategic priorities: "Helping clients in the transition towards a sustainable future" and "Improving the financial health of clients", as well as ambitious objectives for the coming years in terms of solvency and sustainable finance mobilization.