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Supporting the transition
Banco Santander is concerned with the climate emergency. We continue working towards our ambition of net zero carbon emissions by 2050 by progressively setting specific actions to make headway with our three-pillar strategy.
To achieve our net-zero ambition, our main lever as a bank is supporting our customers in their efforts to transition to a low carbon economy. As a large financial institution, we have an opportunity to support our customers in their ambition to transition to low carbon business models.
Main lines of action
Supporting our customers in their transition goals
Working with customers to support their transition objectives and carbon reduction emissions goals is key to progressing towards a low-carbon economy. To do this we identify business opportunities for transition financing assessing key sectors, working closely with our clients and with the knowledge of our sustainability experts.
We have reached our goal of mobilizing EUR 120 billion in green finance between 2019 and 2025 18 months ahead of schedule, and are moving forward with the next target of EUR 220 billion by 2030. Santander Group is a leader in renewable energy financing, with more than 10 years of experience in the sector. In 2024, we were once again rank among the top banks globally in terms of number of transactions and business value according to Infralogic.
Sustainable activity is key to meeting our climate ambition. We continue to develop our criteria guidance (Sustainable Finance and Investment Classification System - SFICS), which we first published in February 2022 and have continued to update, drawing on the latest regulations and market practice.
Embedding ESG in risk management
We are working towards our ambition of zero net carbon emissions by 2050 by progressively defining concrete actions to support our clients in their climate goals and aligning our portfolios, focusing on those we consider most material from a climate perspective, and on our lending portfolio, as this is our most relevant financial activity.
- To phase-out to zero our thermal coal related power & mining by 2030;
- To reduce emissions intensity of power generation portfolio to 0.11 tCO2e/MWh in 2030;
- To decrease the absolute emissions of oil & gas portfolio to reach 16.98 mtCO2e in 2030;
- To cut out the emissions intensity of the aviation portfolio to 61.71 gCO2e/RPK in 2030;
- To lower the emissions intensity of the steel portfolio to 1.07 tCO2e/ tS in 2030;
- To diminish to 103 gCO2/vkm the emissions intensity of the auto manufacturing portfolio in 2030;
- To reduce emissions intensity of auto lending portfolio to a range 75-89 gCO2e/vkm in 2030.
Aiming to align our activity with the Paris Agreement Goals
As part of our climate ambition, our strategy to lessen the environmental impact of our operations involves: reducing our CO2e emissions; reducing and handling waste responsibly; and raising employees’ and other stakeholders’ awareness of environmental issues.
Since 2011, our energy efficiency and sustainability initiatives have helped us cut our scope 1 and 2 emissions by c.86%. In keeping with our commitment to efficiency, the target for 2030 is to reduce emissions from our own operations by 75% compared to 2020.
Tackling Global Challenges
1. Supporting the transition to a low-carbon economy
- Financing clean energy
in green finance raised and facilitated (2019-2024)
We achieved our target 18 months early
in green mortgages granted*
electric cars financed Scope: DCB Europe**
in green finance raised and facilitated (2019-2024)
We achieved our target 18 months early
in green mortgages granted*
electric cars financed Scope: DCB Europe**
**Scope: DCB Europe
*Credit stock as at 31 December 2024 based on EU taxonomy
- We have alignment targets in our credit portfolio for the highest-emitting sectors
7 targets in 5 sectors
- Coal mining
- Oil and gas
- Power generation
- Steel
- Transport (automobiles and aviation)
- Reducing the impact of our own operations
96% of electricity from renewable sources in 2024
Target to reach 100% in our 10 core markets by 2025*.
*In countries where we can verify electricity from renewable sources.
Free of single-use plastics
At our buildings and offices in core markets since 2021.
2. Socially responsible investment
in socially responsible investment (AUM)
in socially responsible investment (AUM)
3. Promoting financial inclusion through access to banking services and microfinance
people financially included (2023-2024)
in microloans granted to 1.3 mn entrepreneurs
people financially included (2023-2024)
in microloans granted to 1.3 mn entrepreneurs
Santander Sustainable Bond issuances
Through Santander’s Green, social & sustainability funding global framework, which draws on the Green bond principles and Social bond principles, we issue green, social and sustainable bonds to increase capital for sustainable projects that align with our sustainability strategy and ambition.
We updated this framework, which supersedes the 2022 Global Sustainable Bond Framework, in 2023. Sustainalitycs provided a second party opinion.
Our Global sustainable bonds framework provides a special explanation of each bond’s characteristics.
These are our issue frameworks:
Green Bond Framework
We finance renewable energy projects that aid the transition to a low-carbon economy.
Net proceeds from green bonds issued under this framework will finance and refinance renewable energy loans.
Vigeo Eiris provided a second party opinion.
Santander Green Bond Framework June 2020 (available in English only) (666 Kb)
Vigeo Eiris - Second Party Opinion - Santander Green Bond (available in English only) (473 Kb)
Banco Santander Green Bond Reports
Banco Santander Green Bond Report 2019 (available in English only) (534 kb)
Banco Santander Green Bond Report 2020 (available in English only) (1.963 kb)
Banco Santander Green Bond Report 2021 (available in English only) (1.05 Mb)
Banco Santander Green Bond Report 2022 (available in English only) (3.6 Mb)
Banco Santander Green Bond Report 2023 (available in English only) (5.4 Mb)