Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 73

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 73
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 Categories |     |          |     | Description                                                                                                  |
| Tier 1          |     | Leader   |     | •Emissions profile fully aligned with Santander’s pathway                                                    
 •Strong transition plan                                                                                      |
| Tier 2          |     | Strong   |     | •Emissions profile fully aligned with Santander’s pathway but improvement needed in transition plan; or      
 •Strong transition plan but emissions profile partially aligned with Santander’s pathway                     |
| Tier 3          |     | Moderate |     | •Emissions profile partially aligned with Santander’s pathway, but improvement needed in transition plan; or 
 •Emissions profile not aligned with Santander’s pathway, but strong transition plan                          |
| Tier 4          |     | Weak     |     | •Emissions profile not aligned with Santander’s pathway                                                      
 •Weak transition plan                                                                                        |

Internally organized training sessions were delivered to sector-specific relationship managers and Environmental Social Climate Change Risk (ESCC) analysts. These focused on gathering information to complete the transition plan quality assessment (the second step in our customer climate tiering system). These sessions were delivered by senior experts from our ESCC, Portfolio Alignment and Sustainability Solutions teams. Expert resources from our global Sustainability Solutions team are made available for further education and advice on customers' transition plans assessment.

Engage with customers: Our customer climate tiering system seeks to facilitate tailored transition dialogue to help lower-tiered customers move up to higher tiers over time. In 2024, we focused our customer engagement efforts on oil & gas as well as lower-tiered customers in other sectors. We developed internal transition assessment dashboards for relationship managers, designed to aid the 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 (for more details, see section 1.2 ‘Stakeholder engagement’). 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