Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 153

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 153
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 identification of customer-level priority areas, industry benchmarking, and opportunities to support our customers in financing their transition. Of the customers that are in scope of our targets, approximately three quarters included sustainability-related discussions in 2024. In addition, on a wider scope of climate-related topics, we are engaging with various public and private organizations. Review : the customer transition plan assessment is performed by relationship managers, in cooperation with ESCC risk analysts, followed by portfolio level reviews by Sustainability Solutions and Portfolio Alignment teams to determine final tierings. The portfolio level review is important to help identify key trends and challenges in each sector, as well as for future transition plan assessment methodology improvements. Initial assessments were completed for both steps for all sectors where targets have been set. Subsequently, transition plan quality assessments were reviewed and enhanced, drawing on updated reference methodologies and sector-specific research. This led to improved guidance, more focused set of questions and the inclusion of additional sector- specific questions for assessing transition plan quality.

228 2024 Pillar 3 Disclosures Report

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

The figure below shows the breakdown of our climate tiering system output for all entities in scope of our original sector targets, by sum of drawn exposures as of the end of 2024.

Climate tiering aggregated for the sectors for which we had set targets

#### A
A. Based on 2024 year-end drawn exposure, according to portfolio alignment methodology, and including project finance

Of our corporate customers with drawn exposure where transition plan assessments were conducted in 2024, approximately:

• two-thirds have set quantitative emissions reduction targets on sector-material GHG scopes between 2030 and 2039;

• one-third have set, or committed to set, science-based targets (SBTi), if available for the sector;

• over two-thirds have a time-bound action plan to align their business, with almost half providing details of the expected proportional impact of different alignment levers, according to our assessment ;

• over half provide details or commitments for CapEx alignment with future low-carbon solutions;

• over two thirds undertake some form of climate scenario planning; and

• over half have senior management remuneration linked to progress towards achieving their GHG emissions reduction targets.

#### 10.1.2. Governance
This section covers the requirement on qualitative informati on on environmental risk, specifically, the point on governance, for questions (e),