Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 46

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 46
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 risks affect our business environment across the short, medium and long term to inform their business strategy process. The way that we strategically respond to changes and uncertainties in our business environment stemming from climate-related and environmental risks will impact the resilience of the business model over time. We are explicitly considering climate-related and environmental changes in macroeconomic and regulatory environment and the competitive landscape, in particular, and reflected in Santander’s business strategy processes, and demonstrated by documented management body meetings and discussions. 2.3.2 Risk management cycle At Grupo Santander, we manage climate and environmental factors with a special focus on those that are most material for the different risk types. Below we describe how we integrate these factors into the risk management cycle.

Annual report 2024 44

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

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 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 the ad-hoc analysis at each moment:

• One year for the short term (this is the standard time horizon for the short term in the Group).

• One to five years for the medium term (financial planning).

• More than five years for the long term (strategic plan).

3. Assessment

We consider ESG aspects as factors that may impact existing risks across different time horizons. We assess these factors regularly according to regulatory frameworks and practices.

The assessment of the ESG factors that could be material due to their potential impact on Santander's risk profile is conducted considering the following aspects :

| Identification of ESG drivers:we use recognized sources including but not limited to: TCFDA, UNEP FI, ENCOREB, SBTNC, NGFSD, to identify climate and environmental aspects that can impact several risk types. We also use several tools