Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 162

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 162
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 European portfolio, from Nomenclature of territorial units for statistics at level 3 (NUTS3) to postcode in our core markets of Poland, Portugal, Spain and the United Kingdom; 2. The development of a new real estate module in Klima tool, which includes physical and transition risks; 3. Improved how we manage and assess collateral through the efficiency performance certificates (EPC) by obtaining data, developing estimation models and drawing up plans to gather such information during customer onboarding processes. 4. Implemented concentration metrics to monitor physical and transition risk management in our subsidiaries; and 5. Used internal climate stress test models (included in the ICAAP) to calculate financial impacts (customer “bottom-up” approach for the SCIB portfolio and “top-down” approach at sector and geography level for the rest of the portfolios). Klima

We run our materiality assessments through our ESCC Credit Risk Management tool Klima, where we aggregate, manage and monitor ESCC risks at local and Group level, by sector and geography. It also includes an analysis of the physical risks of several economic activities and collateral.

We continue to work on enhancing climate information, methodologies and use cases: 1. Climate materiality: Though the findings by sector of our 2024 credit risk materiality assessment (see table below) follow a similar pattern to 2023, transition risk exposure in CIB to most vulnerable sectors decrease slightly. Our portfolios continue to show less vulnerability to physical risk, given the concentration in low-risk locations.

2024 Pillar 3 Disclosures Report 235

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

| Materiality assessment -                                                                                                                                                                                  
 Climate risk analysis and portfolio heatmap                                                                                                                                                               |     |             |     |    |     |    |     |    |     |     |     |                |     |     |
| September 2024 (pre-mitigation) - EUR billion                                                                                                                                                             |     |             |     |    |     |    |     |    |     |     |     |                |     |     |
|                                                                                                                                                                                                           |     |             |     | TR |     | PR |     |    | CIB |     |     | Other segments |     |     |
| Power (conventional)                                                                                                                                                                                      |     |             |     |    |     |    |     |    |     |     |  26