Banco Santander, S.a. · BME:SAN
Banco Santander — ESG Presentation (October 2024)
46 slides from Banco Santander's sustainability presentation, October 2024
Slide 1: Towards a more sustainable world
9M’24 ESG Towards a more sustainable world 1
Slide 2: Important Information
Important Information Non-IFRS and alternative performance measures This document contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our While these forward-looking statements represent our judgement and future expectations concerni
Slide 3: Index
Index 01 02 03 04 05 06 ESG Decarbonization Financing the Financial Corporate External strategy ambition green transition Inclusion, Governance engagement Empowerment & Recognition & Community support 3
Slide 4: ESG strategy
ESG strategy > Santander
Slide 5: ESG strategy | Our approach: What makes us different
ESG strategy | Our approach What makes us different Financial Inclusion Green Finance Awarded Best Bank for Financial #1 worldwide Bank in the Inclusion in 2023 by Euromoney financing of Renewable Energy¹ Decarbonization Governance Net-zero decarbonization Best practices and robust targets as foundi
Slide 6: ESG strategy | Our approach
ESG strategy | Our approach As a responsible bank we place sustainability at the centre of our core activities Founding to deliver on our purpose of helping people & business prosper Member 2021 Best bank for Financial Inclusion 2023 Principles for Responsible Banking, Founding Member 2019 Our visio
Slide 7: Our Sustainability strategy
ESG strategy | Our approach Our Sustainability strategy Ambition Actions E Support and engage with customers in accelerating their transition and develop a best in-class sustainable finance and investment proposition. Support the transition to a Progress with decarbonizing our portfolios to align to
Slide 8: ESG strategy | Our journey
ESG strategy | Our journey Setting 2 new Our journey over the past Creation of a decarbonization targets for 2030 years highlights our ongoing Set an ambition to be net-zero Global Green Finance Team for corporate auto Pledged to commitment to fight climate Responsible Banking reduce our by 2050 and
Slide 9: ESG strategy | Targets
ESG strategy | Targets From…to… Accumulated Target achieved We have set targets in those areas where we have the greatest potential impact. 2018 2019 2020 2021 2022 2023 9M’24 2025/2030 target Electricity from renewable sources1 43% 50% 57% 75% 88% 97% 99% 100% by 2025 120bn by 2025 Green finance ra
Slide 10: ESG strategy | Our different achievements
ESG strategy | Our different achievements We want to make a positive impact with actions that reflect our sustainability strategy and commitment 3.5 mn >€1.1 bn Financial inclusion (#People)1 Disbursed to support microentrepreneurs in 20233 #1 bank worldwide 99% by number of deals in of electricity
Slide 11: Commitment from our Top Management
ESG strategy | Commitment from our Top Management By delivering on our purpose to help people Ana Botín Héctor Grisi Checa and businesses prosper, Executive Chairman CEO we grow as a business and continue to help “As a responsible bank, our approach to ESG "We believe in the importance of building a
Slide 12: ESG strategy | Main challenges
ESG strategy | Main challenges We are relying on different global initiatives to tackle climate change and promote sustainable growth that is accessible for everyone Different drivers Challenges Initiatives Paris Agreement Decarbonization: Working to hold a 1.5 °C scenario 02 › Internal Policies and
Slide 13: Decarbonization ambition
02 Decarbonization ambition 13
Slide 14: Decarbonization Targets | Our net-zero journey
Decarbonization Targets | Our net-zero journey In order to be aligned with the Paris Agreement and with the aim of limiting global temperature increase to 1.5°C, we have committed to be net-zero in carbon emissions by 2050 also as part of the NZBA CO2 Net-zero ambition Alignment of Founding member o
Slide 15: Decarbonization Targets | What do we want to achieve?
Decarbonization Targets | What do we want to achieve? We will help more customers – people and As one of the world’s businesses go green by offering a green value largest banks, we have proposition to help them make sustainable a clear role to play in choices financing the transition to a greener ec
Slide 16: Decarbonization Targets | Mitigating levers
Decarbonization Targets | Mitigating levers Policy Risk Appetite ESG Panels Further Actions 1. in Oil and Gas, Power Generation and transmission, Mining and Metals, and Soft Commodities 16
Slide 17: Decarbonization ambition | Fossil fuel financed
Decarbonization ambition | Fossil fuel financed Ranking by fossil fuels financed Fossil fuels financed in 2022 Fossil fuels financed over total Rank Mandated Arranger (Billion $) financing 2022 1 Bank 1 40,626 13% Our ratio of financed 2 Bank 2 39,240 5% Santander’s fossil fossil fuels to total 3 Ba
Slide 18: Decarbonization ambition | Progress in our targets
Decarbonization ambition | Progress in our targets 2020 2021 2030 Sector Scenario Emissions Metric Baseline progress progress targets Power IEA net-zero generation 2050 Scope 1 tCO₂e/MWh 0.21* 0.17 0.19 0.11 (-46%) (2019 baseline year) Energy IEA net-zero Scope As part of our ambition (Oil & Gas) 20
Slide 19: Examples of some Country and Unit efforts
Decarbonization ambition | Examples of some Country and Unit efforts Net-zero actions and targets in Wealth Management & progress in our decarbonization strategy in Poland Wealth Management road to net-zero Poland strategy Committed to support the coal phase-out Net-zero Actions Alignment with Helpi
Slide 20: Financing the green transition
03 Financing the green transition 20
Slide 21: Green Finance | Our global reach
Green Finance | Our global reach Finance is a key enabler of the transition towards a low-carbon economy. We are contributing to a more sustainable economy by managing climate-related risks and opportunities, building a comprehensive sustainable and green finance proposition. We are currently workin
Slide 22: Green Finance | Our #1 global franchise
Green Finance | Our #1 global franchise Global Renewable Energy Project Finance Volume Europe & Americas Energy Project Finance Volume and Transactions by MLA FY 2013-23 and Transactions by MLA FY 2013-23 Rank Mandated Arranger Vol. (€mn) Nº Rank Mandated Arranger Vol. (€mn) Nº 1 Santander 44,512 71
Slide 23: Green solutions for individual, SMEs and Corporate customers
Green Finance | Green solutions for our individual, SMEs and Corporate customers What we finance Value proposition 2023 Geographies Purchase, construction and renovation Developer loans, private solar panel Real of energy-efficient buildings. Renewable installation, smart meters, energy Estate power
Slide 24: Green Finance | Examples of some Country and Unit efforts
Green Finance | Examples of some Country and Unit efforts Providing sustainable solutions to our customers in Consumer Finance & Santander España Santander Consumer Finance Green proposition already a reality Santander España Sustainable product proposition Financial offer 177.000 Electric vehicles
Slide 25: Green Finance | Protecting the Brazilian Amazon
Green Finance | Protecting the Brazilian Amazon Santander promotes the protection of the Amazon rainforest and its sustainable development. We were the first private-sector Brazilian bank to develop in 2002 credit analysis that considered environmental and social risks, and the first to formally inc
Slide 26: Financial Inclusion & Community support
04 Financial Inclusion & Community support 26
Slide 27: Financial Inclusion & Community support | Global approach
Financial Inclusion & Community support | Global approach At Santander we seek to provide tailored finance 13.6mn People financially included since 2019 to those facing difficulties while trying to access credit, by Raised to help designing solutions for “Banks have a critical role to €1.1bn microen
Slide 28: Initiatives to support Financial Inclusion
Financial Inclusion & Community support We have different initiatives to support Financial Inclusion Access Finance Branches in underbanked Promoting access to cash and transactions and remote regions1 Microfinance We aim to ensure underserved communities We promote social mobility and help low- can
Slide 29: Financial Inclusion Key initiatives
Financial Inclusion & Community support Key initiatives Prospera is one of the largest microfinance programs offered by a We are proud to private bank in Brazil. Created in 2002, it >1.014 mn have developed helps people without access to formal € of funding disbursed financial inclusion banking. Sin
Slide 30: Community support - Higher Education, employability and entrepreneurship
Financial Inclusion & Community support Community support - Higher Education, employability and entrepreneurship We believe education is the bedrock of financial inclusion and customer protection, that is why it sits at the core of our Responsible Banking agenda, and it is fostered through different
Slide 31: Corporate Governance
cP) rw) ie S (S = cD) > {e) UO Corporate @ Santander.
Slide 32: Corporate Governance | Our strengths
Corporate Governance | Our strengths As a responsible bank we have a clear, robust governance. Best practices on governance are channelled to all our subsidiaries, as part of our global Governance Model High participation in our General Shareholders’ meetings AGM quorum Commitment to maximise the di
Slide 33: Corporate Governance | Our strengths
Corporate Governance | Our strengths We strive to have a clear and robust governance with well-defined accountability and a prudent management of risks and opportunities to ensure: Respect for A balanced Board Maximum transparency shareholders’ rights composition regarding remuneration Be at the for
Slide 34: Corporate Governance | Board composition
Corporate Governance | Board composition Our Board composition ensures an ongoing effective supervision supported by a well-balanced committee structure Number of Geographical Independent Women part Directors diversity Board members of the Board 15 5 66.6% 40% Directors appointed for 5.33 average Ac
Slide 35: Executive variable remuneration
Corporate Governance | Executive variable remuneration Aligned with our Alignment with strategic goals shareholder interests › To further support the Group's A B › 50% of all variable remuneration is in transformation strategy, short-term instruments (Banco Santander S.A., shares and corporate bonus
Slide 36: Corporate Governance | ESG in Reward
Corporate Governance | ESG in Reward Weights Equally weighted ESG action lines included 2024-2026 RoTE 40% Women in senior positions Financial inclusion LTI rTSR 40% (LONG TERM INCENTIVES) Socially Responsible Investments ESG 20% Climate - Business raised and facilitated Quantitative 100% Qualitativ
Slide 37: External engagement & Recognition
06 External engagement & Recognition 37
Slide 38: Partnerships & initiatives
External engagement & Recognition | Partnerships & initiatives We drive our responsible banking agenda through a number of local and international initiatives and working groups, including: UNEP Finance initiative. We are an active member of UNEP World Business Council for Sustainable Development FI
Slide 39: External engagement & Recognition | ESG Ratings
External engagement & Recognition | ESG Ratings We engage with ESG ratings to signal our progress Rating Agcy. 2022 2023 Evol. and keep improving with their feedback Ratings MSCI index AA MSCI index AA = In 2023, we maintained our position in MSCI (AA) and remain in the DJSI World and European Index
Slide 40: Appendix
Appendix 40
Slide 41: ESG in Investor Relations | Main contact details
ESG in Investor Relations | Main contact details Investor Relations investor@gruposantander.com Tosin Iduh ESG & Market Intelligence oiduhija@gruposantander.com 41
Slide 42: Transparency & Disclosure | Reports and additional information
Transparency & Disclosure | Reports and additional information Please click on the below images to consult public details highlighted in this presentation 2023 Climate Finance report 2023 Annual report Corporate Governance presentation www.santander.com 42
Slide 43: Santander Climate strategy and four Pillars
Santander Climate strategy and four Pillars Main areas involved in implementing our climate change strategy Pillar of the climate Aligning our portfolio with Supporting our customers Reducing our Embedding climate in risk change strategy the Paris Agreement goals in the green transition environmenta
Slide 44: Environmental footprint
Environmental footprint | Ensuring we have the lowest possible impact on the environment 2023 Environmental footprint10 805 million kWh 97% 3,444,543 GJ Total electricity Renewable electricity Energy consumption 172,711 t CO2e Total emissions (market based) Scope 1 Scope 2 Scope 3 25,755 21,516 125,
Slide 45: Decarbonization Targets | Current exposure
Decarbonization Targets | Current exposure We have enhanced the materiality assessment with scenario analysis to calculate quantitative heatmaps September 2023 (pre-mitigation), EUR billion TR PR CIB Other segments Low Moderately low Power (Conventional) 28 2 Power (Renewables Project Finance) 12 0
Slide 46: Thank You.
Thank You. Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be: 46