To build a more responsible banking financial institutions should embed environmental, social and governance approach to their strategy and culture and take total responsibility to aim to be net zero by 2050 and support all stakeholders’ transition to a low-carbon economy and drive inclusive and sustainable growth.
Santander concerned with the climate emergency is one of the leading banks that has an ambitious to achieve net-zero CO2 emissions group-wide by 2050 in support of the climate change objectives of the Paris Agreement. This applies to the group’s own operations, which have been net zero since 2020, and to all emissions from their customers of their lending, advisory and investment services.
The bank is committed to aligning their power generation portfolio with the Paris Agreement goals by 2030 and aiding the transition to a low-carbon economy. In their finance operations, the two initial decarbonization targets concerning industries that release CO2 are:
- to end financial services by 2030 to power generation customers who rely on thermal coal for over 10% of their revenues; and
- to cut the bank exposure to thermal coal mining to zero by 2030.
Santander has a responsibility in integrating climate within their governance, strategy and risk management, defining courses of action and assessing procedures to transition portfolios and industries with the biggest impact on climate towards our net zero target by 2050. The bank is also working alongside international financial institutions and industry associations, implementing the PACTA 2 Degrees Investing Initiative, and reporting on our progress on the UNEP FI Collective Commitment to Climate Action.
Supporting The Green Transition
Santander is supporting the transition of corporate and investment banking, commercial banking and wealth management, private banking and insurance customers to a low-carbon economy. The bank also intends to continue fighting deforestation and its damage to the climate and biodiversity, especially in the Amazon.
Banco Santander finances more renewable energy projects than any other bank, according to the Dealogic League Tables. We are also a leader in advisory services and are actively financing projects that help the environment. We’re intent on becoming an international mainstay in sustainable finance through stronger ESG products and solutions that suit corporate banking and investment clients’ strategies for sustainable models.
The bank internal green book, which classifies retail products under environmental criteria, contains mortgages, energy efficiency loans, leasing to install renewable energy, loans for clean modes of transport and low-carbon agriculture, and other green products we offer for retail customers, SMEs and companies. We also have lines of credit for energy efficiency and renewable energy projects with such multilateral bodies as the European Investment Bank (EIB), the CAF – Development Bank of Latin America and the European Bank for Reconstruction and Development (EBRD).
Additionally to this the bank aim to promote socially responsible investment, and as an asset manager is the pioneer in Spain to have an ESG team, assigning ESG rating to most funds offered and a wide range of ESG products to all wealth management clients. Private banking advisory service is adopting ESG criteria to complement its assortment of sustainable funds, green bonds and alternative products and manage the environmental and social risks for customers’ activities.
Financial Inclusion and Empowerment
Santander Finance for All helps people access the financial system, set up and grow micro-businesses, and learn how to manage their finances. Our strategy addresses the needs of individuals and SMEs in Europe, Latin America and the US who have problems obtaining credit, limited financial knowledge or financial difficulties.
Our three lines of action promote financial inclusion:
At Santander, we believe education is key to financial inclusion and protecting users of financial services. Teaching financial concepts helps people to take better decisions about their money and protect their finances.
Financial education is at the core of our responsible banking agenda, through which we aim to make economic concepts easier to understand, reduce asymmetric information between customers and financial service providers, protect the most vulnerable through special tactics and promote market stability.
