Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 200

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 200
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 production, i.e. the intensity of the emissions of the company or P roject Finance weighted by the attribution factor, following the methodology defined by PCAF. In each sector, the parameters are defined according to different factors:

• For the Power generation sector, the scope is limited to companies and project finance for the electricity production activity, which is responsible for most of the emissions. The chosen alignment parameter is physical intensity (tonnes of CO2 equivalent/MWh), including scope 1 emissions of our credit portfolio.

• For the energy sector (oil and gas), our focus is on production companies and integrated companies with substantial revenue from exploration and production activities, and on companies dedicated solely to production. The objective is to reduce the absolute financed emissions of CO2 equivalent (scope 1, 2 and 3) for our credit portfolio, measured in tonnes of CO2 equivalent and calculated according to PCAF standards.

• In the steel sector, the objective is to reduce the intensity of CO2 equivalent emissions (scope 1 and 2) of our credit portfolio for steel manufacturers, measured in tonnes of CO2 equivalent for every tonne of steel produced.

• For the aviation sector, our focus is on passenger airlines and aircraft leasing companies. The objective is to reduce intensity of the CO2 equivalent emissions, measured in gCO2eq/RPK (scope 1 and 2), of our credit portfolio.

• Finally, the objective of the automotive sector is centered on scope 3 emissions from the use of sold goods – motor vehicles produced by light vehicle manufacturers. The objective is to reduce the intensity of CO2 emissions, measured in gCO2/km (scope 3), of our credit portfolio.

The NACE code provided in the template refers to the part of the value chain of each sector that is considered in the emissions calculation.

As for the rest of the sectors included in the portfolio alignment table, these will be published as and when additional decarbonization objectives are undertaken, in accordance with the implementing technical standards on ESG Pillar 3.

Various sources are used for these calculations, including S&P Trucost for production data or Carbon Disclosure Project for emissions. To obtain emissions intensities, we proceed in different ways: we either refer to the Transition Pathway Initiative (TPI), or gather them from JATO (for Automotive sector) and Woodmac (for Oil & Gas sector), or we calculate them based on data reported by the companies.

To set science-based decarbonization objectives for our financed sectors, we are choosing