Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 159

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 159
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% • Financial inclusion: 20% • Socially responsible investment: 10% • Supporting transition: 50% This information can be found in the 6.4 'Directors' remuneration policy for 2025, 2026 and 2027' section in the annual report.

| Access 2024 annual report available on the Santander Group website |

232 2024 Pillar 3 Disclosures Report

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

### 10.1.3. Risk management
This section covers the requirement on qualitative information on environmental risk, specifically, the point on risk management, for questions (j), (l), (m), (n) and (q)

Integration of environmental factors in the risk framework: management, setting of limits and tools

At Grupo Santander, we manage climate and environmental factors with a special focus on those that are most material for the different risk types.

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.

In this section we explain how we consider environmental risks in the assessment of compliance with existing policies that affect risk management and, in particular, in the funding process by qualitatively assessing the environmental risks that may affect the assessment of their rating for CIB and Corporates portfolio customers in the sectors of the climate risk taxonomy.

Below we describe how we integrate these factors into the risk management cycle.

1. Identification

We conduct regular risk identification exercises to assess events that could threaten the Group's strategic plan. These exercises consider ESG risk factors — including mainly climate factors — with additional consideration of other factors such as greenwashing, environmental risks that go beyond climate (nature and biodiversity), social risks, among others.

Risk identification helps us understand the internal and external threats posed by the environment and climate change to our business model, profitability, solvency and strategy.

Moreover, our internal risk taxonomy, heatmaps and materiality assessments form the basis for identifying and classifying the material as environmental and climate-related risks in our portfolios.

2. Planning

We include risk management into the strategic planning process that has different time horizons, in addition to