Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 44

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 44
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 require government subsidies. Lack of such subsidies and bureaucratic obstacles to aid has an impact on customer appetite.

2.2.5 Payments

In 2024, 84% of the cards we acquired (39 million) were made from sustainable materials (recycled PVC/PLA) and we have continued to make progress in providing solutions to our customers to calculate their carbon footprint based on the payments they make with their cards, as well as initiatives to offset it.

Annual report 2024 39

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

### 2.3 Embedding ESG in risk management
ESG factors risk management

Due to our ESG strategy, the scrutiny from stakeholders and the regulatory, reporting and disclosure requirements, we continue to work on embedding and monitoring ESG aspects in risk management. We consider ESG risk factors, especially climate-related and environmental, 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 manage social risk based on internal policies and frameworks, which draw on international principles and sector standards, and it adapts to the legal framework of the jurisdictions in which we are present.

Additionally, governance risk is analysed from a dual perspective, both the internal governance in Grupo Santander and the assessment of our customers’, considering proportionality and relevance criteria.

We identify below the typologies of climate and environmental risks:

| 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                                                                    
 Intense extreme weather events, such as wildfires, hurricanes or floods. |
|                      |     |                                                                                                                                                                                                                                                                                             |     |                |     | Chronic                                                                                                                                                                                                                                                                                    
 Changes in rainfall patterns