Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 78

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 78
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#### Aviation
Sector boundaries: For the aviation sector, we focus on commercial passenger airlines which include both general purpose lending and aircraft-specific financing. CIB refined the methodology for the latter for 2022 and 2023, as a result of the availability of a new specialized data source that allows the calculation of emissions at the asset level.

Industry dynamics : The IEA's updated Net-Zero by 2050 Scenario lowers expectation on emissions reductions in the sector due to the current trends for sustainable aviation fuel (SAF) – high costs and availability issues - as well the slow adoption of efficiency measures such as fleet renewal or use of lighter materials, raising concerns over whether the sector can reach its current 2030 targets.

Portfolio composition: The exposure to this sector reduced significantly from its peak in 2020 until 2023, driven in particular

by repayments from better climate tiered customers. Current exposure is significantly below the initial level at the time of target setting, and is very much concentrated in a small number of customers and long-term asset financing.

Portfolio evolution : Emissions intensity decreased from 97.21 grCO 2 /RPK in 2021 to 81.09 in 2022 due to COVID-19 recovery and increased to 82.99 in 2023 driven by changes in the portfolio composition (repayments from less carbon-intensive clients). The emission intensities of individual airlines continue to decline as airlines improve their efficiency, in addition to a normalization effect post-COVID in 2022. It is worth noting that absolute financed emissions have reduced by almost 70% since the baseline year 2019.

| Sector   |     | Year |     |      |     | Exposure (drawn amount EUR bn) | Absolute emissions (MtCO2e) |     | Physical emissions intensity 
                  (gCO2e/RPK) |     | Financial emissions intensity 
         (MtCO2e/ EUR bn lent) |     |     |     | PCAF score | 2030 target |
| Aviation |     | 2019 |     | 1.55 |     |                                |                        1.81 |     |                        92.47 |     |                          1.17 |     | 3.3 |     |            | 61.71       
 gCO2e/RPK   |
| 2020     |     | 2.44 |     | 1.08 |     |                                |                       93.05 |