Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 60

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 60
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 their ability to regulate climate and serve as carbon sinks. While our materiality assessment considers 'Biodiversity and ecosystems' an informative topic, we continue to oversee our

8 Monthly metric. Banco Santander has zero tolerance for very high impact events, including ESG-related ones. The reputational risk function puts forward events with ‘very high’ impact, which the compliance committee verifies. Circumstances that could lead to a ‘very high’ impact event are: i) events that trigger silver or gold crisis management committees; ii) regulatory requirements that uncover significant weaknesses or shortcomings: very high financial penalties (above EUR 10 million), permanent cessation of economic activity, capital aggregation, loss of banking licence, restrictions on dividend distribution, etc.; iii) events with a very high impact on public opinion: with widespread and sustained negative media and TV coverage in a single market and/or in other markets for over one week or very high impact on social media; and iv) suspension of shares trading or a drop in share price of over 5% in one day on the back of the issue in question.

Annual report 2024 54

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagement and compliance |

operations and impact on biodiversity and nature in view of our climate objectives. Given our financial activity, and the location of our buildings and offices, mainly in urban areas, no sites located in or near biodiversity sensitive areas are identified 9 . We are conducting an analysis to determine whether any of them could be in or near biodiversity sensitive areas. We conducted an assessment on our corporate portfolio, which considers the country in which our customers operate, to learn of the direct impact and dependency of their business on nature and biodiversity. We followed the Task Force on Nature-related Financial Disclosures’ (TNFD) LEAP 10 approach. We used two tools: • ENCORE: A materiality database of dependencies (physical risks) between production processes and ecosystem services. For our core markets, we complemented the database with internal localization criteria based on ENCORE’s hotspot depletion maps. These criteria cover three natural capital assets: soil and sediment, water, and biodiversity. • UNEP FI Impact Analysis Tool: This tool provides an in-built impact (transition risks) mapping that, combined with our internal data and context, enables us to identify the most significant impact areas of the portfolio. The ENCORE database helps us to begin to understand how the deterioration of natural assets