Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 175

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 175
---
 Santander Group already has the relevant information and data to manage environmental risks, including activity codes, customer and collateral location, EPC certificates and emissions.

The main challenges in terms of data availability, quality and accuracy include the following elements:

• The availability of energy efficiency certificates, especially in those geographies where there is no specific regulation or requirement.

• The collection and availability of customers' financed emissions, information that will improve in Europe with the recent entry into force of the CSRD regulation.

• Improving the granularity and accuracy of the information needed to assess physical risks. In this regard, as explained in Template 5, granularity has been increased in Spain, Portugal, the UK and Poland, and physical risk is now analysed on the basis of postcode.

In order to achieve the above, the following lines of work are being carried out:

• Enhance the internal ESG information available.

• Strengthen the customer registration and risk admission process.

• Supplement the information available through external providers.

• Assess the development of models and proxies to be able to estimate the information not available.

Link between environmental risks with other risks in the management framework

This section covers the requirement on qualitative information on environmental risk, specifically, the point on risk management, for questions (r)

We consider ESG risk factors, especially climate-related and environmental factors, cross-cutting and likely to have an impact on credit, market, liquidity, operational, reputational, strategic risks, among others.

The management of these factors adopts a risk-based approach prioritizing climate and environmental aspects based on the relevance and materiality in the Group and in the current landscape. We keep improving the consideration of the elements that stem from the transition to a low-carbon economy, the physical effects of climate change and biodiversity loss, and actions to consider negative impacts on nature. We identify below the typologies of climate and environmental risks:

246 2024 Pillar 3 Disclosures Report

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

| Transition risk (TR) |     |                                                                                                                                                                                                                                                                                             |     |                |     | Physical risk (PR)                                                                                                                                                                                                                                                                         |     |                                                                          |
|                      |     | Market sentiment                                                                                                                                                                                                                                                                            
 Changes in the supply and demand of certain commodities, products and services which are considered climate risks and opportunities, pose a reputational risk among other potential issues.                                                                                                 |     |                |     |                                                                                                                                                                                                                                                                                            |     | Acute