Banco Santander, S.a. · BME:SAN
Banco Santander — ESG Presentation (2022)
55 slides from Banco Santander's sustainability presentation, Dec 18, 2022
Slide 1: Santander ESG: Towards a more sustainable world
Santander ESG Towards a more sustainable world 9M 2022
Slide 2: Index
Índice Index 1 ESG strategy 2 Decarbonization Targets 3 Financing the green transition 4 Financial Inclusion, Empowerment & Community support 5 Corporate Governance 6 External engagement & Recognition
Slide 3: ESG strategy
ESG strategy 01
Slide 4: What makes us different: full alignment with our corporate strategy
ESG strategy Our approach What makes Full alignment with our corporate strategy us different 4
Slide 5: Our approach
ESG strategy Our approach As a responsible bank we place sustainability at the centre of our core activities to deliver on our purpose of helping people & business prosper Founding Member 2021 Best bank for Financial Inclusion 2022 Our vision Our strategy Our actions is to play a major role in the f
Slide 6: Achieving our purpose by promoting sustainable & inclusive growth
ESG strategy Overarching goal: Achieving our purpose by promoting sustainable & inclusive growth 3 strategic pillars Ambition Strategic Actions SDG’s Deliver our Net zero • Alignment of the sectors with highest level of GHG emissions with our Net zero ambition by 2050 helping commitment, in line wit
Slide 7: Our journey
ESG strategy Our journey Our journey over the past years highlights Santander’s ongoing commitment to fight climate change and contribute to a more sustainable future 2021 2022 2019 2020 2017 2018 2009 2011 • Creation of a • Set an ambition to be Global Green • Became carbon net zero by 2050 and • R
Slide 8: Responsible Banking commitments
ESG strategy Responsible Banking commitments We have consistently delivered our Responsible Banking commitments achieving all the targets set in 2019 to be met by 2021, we continue progressing on the remaining ones while setting new additional decarbonization targets 2018 2019 2020 2021 9M’22 2025 /
Slide 9: Our achievements
ESG strategy Our achievements We want to make a positive impact with actions that reflect our sustainability strategy and commitment 9 mn People financially 426 mn in loans through empowered since 2019 our microfinance programmes in H122 75% of electricity used #1 bank worldwide from renewable resou
Slide 10: Commitment from our Top Management
ESG strategy Commitment from our Top Management By delivering on our purpose to help people and businesses prosper, we grow as a business and continue to help society address its challenges “As a responsible bank, our approach to ESG issues is central to our strategy” "At Santander, we've always kno
Slide 11: Responding to the humanitarian crisis in Ukraine
ESG strategy Responding to the humanitarian crisis in Ukraine To support our Ukrainian customers in Poland and other European markets, we removed fees on all permitted transfers to Ukraine. Actions Other initiatives 1. We have housed 30 families in the Financial City SANTANDER ASSET MANAGEMENT Santa
Slide 12: Main challenges
ESG strategy Main challenges Our group strategy focuses on supporting global initiatives to tackle climate change and promote sustainable growth that is accessible for everyone Different drivers Challenges Initiatives Internal Policies and Decarbonization: Working 02 corporate culture Paris Agreemen
Slide 13: Decarbonization targets
Decarbonization targets 02 Back
Slide 14: Net zero journey milestones
Decarbonization Targets 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 2019 2020 2021 2025 2030 2050 Milestones 100% of electrici
Slide 15: What do we want to achieve?
Decarbonization Targets What do we want to achieve? As one of the world’s largest banks, we have a clear role to play in financing the transition to a greener economy. We have met the goal of being carbon-neutral in our own operations in 2020, but we aim to go further and raise our level of commitme
Slide 16: Sectorial policies
Decarbonization Targets Sectorial policies Our updated Environmental, Social and Climate Change Risk Policy covers all our lending practices to customers involved in coal fired power plants, and in the extraction, production and treatment of oil and gas, expressly prohibiting funding to (among other
Slide 17: Ranking by fossil fuels financed
Decarbonization Targets Fossil fuel financed We rank well below most of our peers in fossil fuel financing in absolute and relative terms in 2021 Mandated Fossil fuels financed Fossil fuels financed Rank Arranger (Billion $) over total lending 1 Bank Bank 1 1 61,732 5.73% Santander’s fossil fuels fi
Slide 18: Further commitments
Decarbonization Targets Further commitments As part of the NZBA, we have estimated the current and future emissions of our power generation portfolio and proposed the first GHG decarbonization targets for 2025 and 2030, further aligning our portfolio to the Paris Agreement Emission intensity tCO2e/M
Slide 19: New commitments
Decarbonization Targets New commitments We have set new decarbonization targets according to our internal roadmap from last year’s Climate Finance Report. They target the most carbon intensive and material sectors. These new targets have been set for 2030 against 2019, for the energy (-29% absolute
Slide 20: Examples of some Country and Unit efforts
Decarbonization targets Examples of some Country and Unit efforts Net zero actions and commitments in Wealth Management & progress in our decarbonization strategy in Poland Wealth Management Poland strategy Road to Net Zero Committed to support the Coal phase-out 1 Climate Commitments Net Zero Actio
Slide 21: Financing the green transition
Financing the green transition 03 Back
Slide 22: 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 working
Slide 23: Our global reach: renewable energy financed
Green Finance Our global reach The generation capacity of the renewable energy projects we have financed or advised in 2021 amounts to the yearly consumption of 9.2 million households1 Greenfield Finance2 (MW Brown field Finance3 (MW Breakdown of Financed MW by Type of Renewable Energy financed) fin
Slide 24: Our #1 global franchise
Green Finance Our #1 global franchise Santander has consistently been the leading Bank in financing renewable energies for the past 10 years and we aim to maintain our leadership Global Renewable Energy Project Finance Volume Europe & Americas Energy Project Finance Volume and Transactions by MLA FY
Slide 25: Expanding our capabilities into new clean technologies
Green Finance Expanding our capabilities into new clean technologies These landmark transactions further expand Santander’s expertise in new clean energy technologies and strengthen our leadership on Green Finance 1 Plug Power and Acciona 3 Strategic acquisition which 5 Acquisition of announced in 2
Slide 26: Green solutions for individual, SMEs and Corporate customers
Green Finance Green solutions for our individual, SMEs and Corporate customers What we finance Our customers needs… Key geographies Purchase, construction and Developer loans, private solar panel Building on our current offering of ESG refurbishment of energy-efficient installation, smart meters, en
Slide 27: 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 Santander España Green proposition already a reality Sustainable product proposition 333.200 Electric + Hybrid cars 11% of Consum
Slide 28: Protecting the Amazon
Green Finance Protecting the Amazon We believe it is critical to protect the Amazon rainforest in order to tackle climate change. In July 2020, Santander Brazil announced a plan to promote sustainable development in the Amazon in collaboration with the two other largest private-sector banks in Brazi
Slide 29: Financial Inclusion, Empowerment & Community support
Financial Inclusion, Empowerment & Community support 04 Back
Slide 30: Global approach: 9 mn, 426 mn, 6.1 mn
Financial Inclusion, Empowerment & Community support Global approach At Santander we seek to provide tailored finance to those facing difficulties while trying to access credit, by designing solutions for individuals and SMEs in financial distress. The Group is leading numerous global initiatives to
Slide 31: Financial Inclusion & Empowerment - Global approach
Financial Inclusion, Empowerment & Community support Financial Inclusion & Empowerment - Global approach We continue to help people access the financial system and set up micro-businesses while we provide them with the appropriate tools to manage their finances. This is achieved through initiatives
Slide 32: Financial Inclusion & Empowerment - Key initiatives
Financial Inclusion, Empowerment & Community support Financial Inclusion & Empowerment - Key initiatives We are proud to have developed financial inclusion initiatives that have been successfully implemented in the LATAM region (Banking without a bank) Superdigital is Launched in 2017, Tuiio is a fi
Slide 33: Community support - Higher Education
Financial Inclusion, Empowerment & Community support Community support - Higher Education 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 initiatives Education
Slide 34: Corporate Governance
Corporate Governance 05 Back
Slide 35: 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 • Commitment to maximise the disclosure and quality Effective eng
Slide 36: 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: 1 2 3 4 5 Respect for A balanced Board Maximum Be at the forefront of Embedding ESG in shareholders’ rights composition t
Slide 37: 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 Board Women on Directors diversity members Board 15* 6 64.3% 40% Directors Spanish, US, Portuguese, 4.20 average A
Slide 38: Executive variable remuneration
Corporate Governance Executive variable remuneration Annual bonus for executive directors subject to meeting financial and non-financial targets Aligned with our Aligned with strategic goals A B shareholder interests • Annual bonus determined by • 50% of variable remuneration is both financial and n
Slide 39: Scorecard
Corporate Governance Scorecard Detailed quantitative metrics, qualitative assessment factors and weightings: Category & weighting: Quantitative metrics Qualitative assessment Customers NPSA and total • Customer conduct Risk. Measurement of (30%) customers and loyal additional customer satisfaction m
Slide 40: Long Term Incentives
Corporate Governance Long Term Incentives Deferred variable pay subject to long-term incentives now including 5 ESG metrics Weight Achievement of this target will depend on the progress made on the Group's responsible banking commitments. RoTE 40% 1 Women in Senior positions TSR 2 Financially Empowe
Slide 41: External engagement & Recognition
External engagement & Recognition 06
Slide 42: Partnerships & initiatives
External engagement & Recognition Partnerships & initiatives We drive our responsible banking agenda through a number of local and international initiatives and working groups, which include among others: UNEP Finance initiative. We are a founding World Business Council for Sustainable Development U
Slide 43: Partnerships & initiatives: awards and ratings
External engagement & Recognition Partnerships & initiatives Our efforts on sustainability continue to be recognised globally, with different awards that endorse our commitment to tackle climate change, promote diversity and inclusion and support the interests of our employees and stakeholders For t
Slide 44: Annexes
Annexes
Slide 45: Main contact details
ESG in Investor Relations Main contact details Begoña Morenés: Global Head of Shareholders and Investor Relations (bmorenes@gruposantander.com) Fernando Donoso: ESG (fdonoso@gruposantander.com) Tosin Iduh: ESG (oiduhija@gruposantander.com) 45
Slide 46: Reports and additional information
Transparency & Disclosure Reports and additional information Please click on the below images to consult public details highlighted in this presentation Climate Finance 2021 Annual report Corporate Governance report presentation www.santander.com 46
Slide 47: Responsible Banking commitments
ESG strategy Responsible Banking commitments Responsible Banking commitments set in 2019 and achieved in 2021: 2018 2019 2020 2021 2021 target 2025/ 2030 target • Single use plastic free 75% 98% 100% 100% E • Electricity from renewable sources 43% 50% 57% 75% 60% 100% • Top 10 Company to work for 4
Slide 48: Our local proposals
Green Finance Poland Our local proposals Wide range of leasing products for individuals and businesses: Zero emission and hybrid vehicles, solar panels, and energy efficient machinery Eco-cards: 860,722 issued, making up 42.4% of all cards. UK Eco loan: We refund Customer fees on eco-friendly Mexico
Slide 49: Group wide ambition to be Net Zero carbon emissions by 2050
Santander Climate strategy and commitments in four Pillars Group wide ambition to be Net Zero carbon emissions by 2050 Aligning our portfolio to meet Supporting our customers in Reducing our environmental Embedding climate into risk the Paris agreement goals their green transition impact management
Slide 50: Ensuring we have the lowest possible impact on the environment
Environmental footprint Ensuring we have the lowest possible impact on the environment 50
Slide 51: Current exposure
Decarbonization Targets Current exposure We have enhanced the materiality assessment with scenario analysis to calculate quantitative heatmaps December 2021: EUR Billions TR PR SCIB Other segments Power (Conventional) 24 2 of which, power generation clients with more than 10% of 3 0 revenues coming
Slide 52: Environmental Social Governance: Europe
Our ESG strategy EUROPE Local efforts Environmental Social Governance EUR 170 mn in Green Finance 272 k people financially ESG criteria considered when since 2019 & 100% renewable empowered since 2019 & 53.2 k considering remuneration with a 20% energy consumption scholarships granted since 2019 wom
Slide 53: Environmental Social Governance: LATAM
Our ESG strategy LATAM Local efforts Environmental Social Governance Helping the Amazon region BRL 50 Prospera microfinance initiative >70% Independent directors and 33% mn credit line for cooperatives and 580K customers and BRL 1.4 bn loan of women on Board agribusiness enterprises in the portfolio
Slide 54: Environmental Social Governance: North America
Our ESG strategy NORTH Local efforts AMERICA Environmental Social Governance Financial Advisor on the issuance of 2 1.3 mn people financially empowered 68% of Independent Directors and bonds in 2022. First ESG Linked Loan. since 2019; 425 k beneficiaries from 36.4% women on the board 1st loan linked
Slide 55: 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: