Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 160

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 160
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 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

This phase of the risk management cycle encompasses a variety of tools and methodologies, as well as assumptions, used by the Group to manage 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:

2024 Pillar 3 Disclosures Report 233

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

| 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 for this exercise, including heatmaps, sectoral climate and environmental classification, historical information, idiosyncratic scenarios and forward-looking scenario projection to aid continuous monitoring. |     | Analysis of the transmission channels: we analyse how the factors identified in the previous stage can materialize and impact on the risk types included in our risk management framework. They can be macroeconomic (e.g. socioeconomic, productive) and microeconomic (e.g. affecting household wealth and/or income) in nature.                |
| Assessment of the materiality of the potential impact on the main risks: in this stage, we analyse the potential impacts that could arise from the materialization of the risk factors previously identified through the transmission channels described, based on qualitative and/or quantitative approaches.                                                                                                                                            |     | Overview of a consolidated materiality: for internal and external disclosure of the materiality of ESG factors analysed, we aggregate the results of the impacts for each risk type in a consolidated report (detailed on the following pages), based on a five-point RAGEstatus (from Low to Very High) across the short, medium, and long term. |

A. Task Force on Climate-related Financial Disclosures

B. A materiality database of dependencies between production processes and ecosystem services

C. Science Based Targets Network

D. Network for Green