Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 72

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 72
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 absolute and intensity reduction targets.

2. Action plan: it considers the credibility of the customer’s alignment strategy. We assess the business strategy integration of climate change risks and opportunities; the existence of climate scenario planning; as well as time-bound action plans to achieve alignment targets.

3. Disclosure: it focuses on the transparency of reporting on historical emissions performance across all relevant scopes, the level of assurance, as well as the degree of reporting alignment with the TCFD. Where possible, it also includes assessing whether or not previous GHG emission targets were achieved.

4. Governance: it considers the level of management oversight and governance of the customer’s transition strategy. We assess the level of seniority of executives accountable for climate strategy, board committee oversight of climate change issues, and whether executive remuneration is linked to climate change performance.

We draw on established transition plan assessment methodologies, such as the Transition Pathway Initiative (TPI), CDP, ACT (Assessing Low Carbon Transition), TCFD, as well as other related initiatives including the UK’s Transition Plan Taskforce (TPT).

Our transition plan assessment methodology includes higher weightings for assessment criteria deemed to be critical to credible transition plans, compared to lower weightings for those that are considered supporting criteria. The more highly weighted criteria are designed to prioritize focus areas for customer engagement.

Ultimately, our customer climate tiering system leads to four categories (Leader, Strong, Moderate and Weak).

Annual report 2024 61

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagement and compliance |

| Two-step tiering system            |     |                                                                       |
| GHG emissions profile alignment    |     | •Current GHG emissions profile                                        
 •Future targeted GHG emissions trajectory                             
 •Assessment of alignment with Santander’s pathway                     |
| ↓                                  |     |                                                                       |
| Transition plan quality assessment |     | •Internal methodology to assess perceived quality of transition plans 
 •Developed using established transition plan assessment methodologies |

| Transition Pillar |     | Overview                                                               |
| 1. Targets        |     | Quality and ambition of quantitative targets to reduce GHG emissions   |
| 2. Action plan    |     | Depth of alignment strategy to achieve GHG emissions reduction targets |
| 3. Disclosure     |     | Transparency on GHG emissions reporting across relevant scopes         |
| 4. Governance     |     | Management oversight and governance of transition strategy             |

| Tier