Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 57

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 57
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. iv. Collateral management (EPC), based on enhanced data acquisition, estimation model development, and information collection during the customer onboarding process. v. Specific procedures to analyse environmental, social and climate change risk. The board and its committees verify that decisions are made according to our ESCC and reputational risk policies. The first line of defence conducts a due diligence with special sector-based questionnaires for credit approval. The reputational risk assessment also forms part of decision-making contributing to compliance and preventing from risk of false accusations (with particular focus on greenwashing). The due diligence consists of assessing the CIB's project finance transactions according to the Equator Principles. vi. Lastly, we have a multidisciplinary working group, where, among others, ESG issues are considered . This group is coordinated by the reputational risk function and discusses actions needed to mitigate any matter that may have a reputational impact.

|                                                                                                                                                                                                                                                                                                                                                                                                 |     | ESG classification meetings |
| Throughout 2024, we worked on extending our sustainable operations identification model to all global businesses, amending existing processes accordingly.                                                                                                                                                                                                                                      
 We created local and global commercialization committees and ran ESG classification meetings as the governance bodies tasked, analysing and monitoring products and transactions with an ESG component, ensuring that these bodies have experts to interpret and demonstrate ESG standards through centers of excellence as well as seeking input from business, risk and sustainability teams. 
 We began working to implement the updated sustainable classification model by identifying the affected processes and the changes to be made across markets.                                                                                                                                                                                                                                     |     |                             |

6. Reporting Transparent and regular reports to senior managers and stakeholders help us manage climate and environmental factors and comply with the law and supervisors’ expectations. We work so that the information available to our stakeholders is complete and consistent, conveys adequately Santander's sustainability strategy and management, and mitigates potential risks. Our reporting on climate and environmental risk management includes our Annual Report, the ICAAP exercise, and our Pillar 3 disclosures report.

#### Main activities in 2024
→ Advances in risk appetite, establishing new metrics and limits to support our strategy.

→ Development of internal climate models that enable us to enhance how we quantify the financial impact of transition and physical risks on credit risk variables.

→ Increased geographical granularity in physical risk information (acute and chronic) for the European portfolio, from NUTS3 to postcode in Spain, Portugal, UK and Poland.

→ Improvements on how we manage and assess collateral through the EPC by obtaining data