Socially responsible investment
Banco Santander is committed to Socially Responsible Investment (SRI). The Bank has a range of products with different characteristics, each suited to customers’ requirements. These products meet financial performance criteria and environment and social standards, and recommended corporate governance and transparency practices. The range of SRI products includes investment funds in both Spain and Brazil.
Banco Santander has been offering SRI products since 1995 in Spain and 2011 in Brazil.
In 2008, Santander Brazil’s fund management unit signed the UN’s Principles for Responsible Investment (PRI). The PRI integrate consideration of environmental, social and governance (ESG) issues into asset management and long term investment decisions. Santander Pensions Spain and the employee pensions scheme, Santander Empleados, also embraced the PRI in 2010. Total assets managed by these units amounted to EUR 51,876 million in 2012, 34% of assets managed by Santander Asset Management worldwide.
In 2011, Santander Asset Management Brazil joined the PRI Advisory Council, which draws up the PRI strategy, a new step in the Bank’s commitment. In Spain, Santander cofounded SPAINSIF (www.spainsif.es), a non-profit association that sets out to promote the PRI in the Spanish market. Santander Asset Management has chaired this institution since 2011.
Santander Asset Management Brazil is also a member of Instituto Ethos, a highly reputable social responsibility institute acclaimed for fostering, studying and developing CSR.
The Group has set up several PRI funds. Most noteworthy are:
- Inveractivo Confianza FI (launched in 1995) and Santander Responsabilidad Conservador FI (2003): two socially responsible investment funds which base their investment decisions on the values of the Catholic Church. At end- 2012, they managed combined assets of around EUR 55 million.
- Santander Solidario Dividendo Europa, FI (launched in 1999): invests in businesses committed to human, labour and social rights, and environmental respect, dedicating 21% of its portfolio management fee to NGOs chosen by customers from 19 that make up the fund; these organisations are not the only beneficiaries of the donations, but, as members of the ethical committee, the fund’s governing body, they form part of the PRI.
- Fundo Ethical: With a decade of activity, this is the first socially responsible investment fund in Latin America. It invests in businesses that opt for environmental, social and corporate governance policies, and manages up to EUR 128 million.