Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 58

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 58
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, developing estimation models and development plans to gather information.

→ In order to mitigate the risk of greenwashing, we have reviewed the most relevant processes and responsibilities to validate the correct definition, management and disclosure of our strategy, products and practices.

→ Progress in the implementation of the climate risk management model through the Climate Race initiative to integrate ESCC factors into the credit risk granting process.

→ Advances in materiality assessments in terms of biodiversity through an internal methodology to assess both nature-related impacts and its dependencies.

Annual report 2024 53

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

2.3.3 Reputational risk

This section outlines how we manage this IRO, considered a climate-related transition risk:

| R |     | Reputational risk based on the perception of bank progress with climate-related policies and objectives. |

Banco Santander manages reputational risk through the Reputational Risk Model, which sets out the principles to identify, manage, prevent and control reputational risk in every procedure, including related ESG factors. We conduct the reputational risk impact assessment through key ESG procedures. These include setting objectives; taking part in

ESG working groups and governance bodies, the structuring of transactions that may be ESG sensitive and in reporting. To evaluate the performance and effectiveness of these actions, Banco Santander has implemented a metric 8 based on the number of very high-impact reputational risk events that have materialized and have affected various interested parties. To manage this risk, across short, medium and long term horizons, we identify in the table of section 2.3. the possible impact of the risk factors, the actions we’re performing to manage them and next steps we have in mind.

2.3.4 Potential financial effects

To cover the CSRD requirements related to financial effects (E1-9), in this report we include information of the exposure affected by material physical risks. Since this is a phased-in requirement, we will expand the information in the next reports to provide full coverage of the Regulation. To comply with the requirements, we use the information disclosed in the Pillar 3 ESG report according to the 'Implementing Technical Standards on prudential disclosures on ESG risks' defined by the EBA (European Banking Authority). This report covers information of the banking book portfolio, including loans and advances, debt securities and equity instruments. The Group guarantees