Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 170

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 170
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 we developed a global tool to customize and store our numerous ESG surveys and assist in their identification and review. This will enable us to compile historical ESG data and conduct more aggregated analysis based on wider criteria. EQAL is now operational in Portugal and is currently being implemented in Spain. For Brazil, the system will be customized to replace the existing tool currently in use in the country.

11 To the extent required by applicable law, customers and transactions involving activities enumerated in this section will be subject to an enhanced due diligence process to determine the unique risks presented prior to decisioning.

12 SFICS: Sustainable Finance and Investment Classification System.

13 EQAL: ESCC Questionnaires & Assessments Library.

2024 Pillar 3 Disclosures Report 241

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

Lastly, we continue working on other mitigation levers: i. Credit committees, which embed environmental, social and climate change factors in transaction reviews. ii. CIB customer ratings, including qualitative environmental, social and climate change assessments for material sectors. iii. Special prices for certain products. iv. Collateral management (EPC), based on enhanced data acquisition, estimation model development, and information collection during the customer onboarding process. v. Specific procedures to analyse environmental, social and climate change risk. The board and its committees verify that decisions are made according to our ESCC and reputational risk policies. The first line of defence conducts a due diligence with special sector-based questionnaires for credit approval. The reputational risk assessment also forms part of decision-making contributing to compliance and preventing from risk of false accusations (with particular focus on greenwashing). The due diligence consists of assessing the CIB's project finance transactions according to the Equator Principles. vi. Lastly, we have a multidisciplinary working group, where, among others, ESG issues are considered. This group is coordinated by the reputational risk function and discusses actions needed to mitigate any matter that may have a reputational impact.

|                                                                                                                                                                                                                                                                                                                                                                                                                 |     | ESG classification meetings |
| Throughout 2024, we worked on extending our sustainable operations identification model to all global businesses, amending existing processes accordingly.                                                                                                                                                                                                                                                      
 We created local and global commercialization committees and ran ESG classification meetings as the governance bodies tasked, analysing and monitoring products and transactions with an ESG component, contributing to the fact that these bodies have experts to interpret and demonstrate ESG