Banco Santander
Climate Impact & Sustainability Data (2016)
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Sustainability
- Social Progress
- Environmental Protection
- Employee Engagement
- Community Investment
- Corporate Governance
- Risk Management
Environmental Achievements
- 8.5% reduction in electricity consumption in 2016
- 7,082 megawatts financed in renewable energy projects in 2016
Social Achievements
- Increased support for universities, providing more than 35,000 scholarships and grants
- Supported 250,000 microfinance projects across Latin America
- More than 60,000 employees participated in volunteering programs
- Coaching and mentoring programs in Spain helped disadvantaged individuals
- Recognized by the Dow Jones Sustainability Index as the best bank in Europe for sustainability
Governance Achievements
- Strengthened corporate governance and risk model
- Increased Common Equity Tier 1 (CET1 Fully Loaded) capital by €3 billion, reaching a ratio of 10.55%
- Appointment of Homaira Akbari as a new independent member of the Board of Directors, increasing the proportion of women on the Board to 40%
Climate Goals & Targets
Medium-term Goals:
- Achieve an 11% Return on Tangible Equity (RoTE) by 2018
- Achieve a CET1 capital ratio of 11% by 2018
- Support 80,000 entrepreneurs in 2017-18
Short-term Goals:
- Increase the number of loyal customers by a further 1.8 million to 17 million
- Raise the number of digital customers to 25 million
- Maintain a broadly stable cost-to-income ratio
Environmental Challenges
- Volatility in capital markets due to economic and political uncertainty
- Competitive environment and demanding regulatory agenda restraining profitability recovery
- Low interest rates and business volumes in mature economies
- Brexit's potential impact on UK business
- Recession in Brazil and Argentina
Mitigation Strategies
- Strong balance sheet and geographic diversification for predictable earnings
- Focus on cost control and efficiency improvements
- Investment in technology and digital transformation
- Strengthening of risk culture and risk management
- Acquisition of Citigroup’s retail assets in Argentina and Banif in Portugal to increase market share and profitability
- Implementation of the 1|2|3 strategy to increase customer loyalty and fee income
Supply Chain Management
Climate-Related Risks & Opportunities
Awards & Recognition
- Euromoney’s “Best Bank in Wealth Management” in Latin America
- Euromoney’s “Best Bank in the World for SMEs”
- Dow Jones Sustainability Index: Best bank in Europe