Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 81

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 81
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 most important alignment lever for this sector.

We are supporting our auto-manufacturer customers in the adaptation of their business models and product offering towards EVs and PHEVs. As a leading auto end-user lender in Europe, we are also helping our retail customers finance purchases of an increasing number of EVs and PHEVs.

We aim to align our global auto manufacturing and European auto lending loan portfolios, with a 2030 target and a 2030 target-range, respectively. Our approach is heavily dependent on supportive public policy frameworks that stimulate consumer demand.

Auto manufacturing

Sector boundaries : Within the automotive sector, CIB focusses on the manufacturing of passenger cars, i.e. on Original Equipment Manufacturers (OEMs). The target metric is scope 3 GHG emissions from OEMs, measured by the average CO 2 intensity per vkm of the fleet sold in the given year.

Industry dynamics: The switch from ICE to EV and PHEV is the most important alignment lever for this sector. The uptake of these technologies depends on multiple external factors.

Portfolio composition: The exposure remains stable at EUR bn 4.02. There are no significant changes in the portfolio composition in 2022 and 2023 compared to 2021. Aside from pure EV manufacturers, the carbon intensities of the OEMs’ fleets are within a relatively narrow band compared to other industries.

Portfolio evolution: The emission intensity improved from 138 gCO 2 e/vkm in 2021 to 133 in 2022, mainly due to an overall average reduction in the emissions intensity of our customers during this period. This reduction continued in 2023, although the emissions intensity increased slightly to 134 gCO 2 e/vkm due to minor portfolio exposure changes.

| Sector              |     |  Year |     |       |     | Exposure (drawn amount EUR bn) | Absolute emissions (MtCO2e) |     | Physical emissions intensity 
                   (gCO2/vkm) |     | Financial emissions intensity 
         (MtCO2e/ EUR bn lent) |     |     |     | PCAF score | 2030 target     |
| Auto manufacturing  |     |  2020 |     |  4.45 |     |                                |                        3.49 |     |                          149 |     |                          0.79 |     | 3.1 |     |            | 103 gCO2/vkm    |
| 2021                |     |