Green financing is acquiring greater importance. The increasing awareness of environmental problems and as a consequence the goal of a more sustainable environment, have brought enterprises such as Banco Santander to understand green financing as a basic tool for the transition towards a green economy.
It is summer time and it would seem a cliché to say that it is very hot. We could think that it is all right, or even too hot…but just glancing at the scientific statistics tells us that climate change is here now, and it is here to stay.
A few weeks ago, several European capitals, with Paris at the top, broke their own records of temperature as a direct consequence of global warming. That’s why we should become aware of it before it is too late and vouch for other types of energies and a more individual and sustainable civil behavior in connection to the environment.
It is time to take action and turn words into a reality. And many people and enterprises have already gotten to work, such as Banco Santander, which being aware of the problem, has been working for many years on possible solutions. The entity presided over by Ana Botín was the first bank in the world in green financing in 2018. According to the charts elaborated by the company Dealogic, Banco Santander is the entity that most supports financing clean energy projects. In all, it contributed to installing 6,689 MWs, i.e., a capacity equivalent to the consumption of 5.7 million houses.
Green bonus allocate funds to finance sustainable projects in areas such as renewable energies, energy efficiency, the clean transport or the responsible management of waste
Other figures that make Banco Santander a worldwide benchmark in the sustainability area include: it issued a line of credit of 200 million euros to build renewable energy power plants in Spain with the Council of Europe Development Bank (CEB); another 84 million in collaboration with the Banco de Desarrollo de América Latina CAF (America Latina Development Bank) to finance the purchase of photovoltaic equipment in Brazil; and 50 million euros with the European Bank for Reconstruction and Development (BERD) to finance investments in energy efficiency in Polish enterprises.
In this way, Banco Santander is the creator of financing lines of 345 million euros for energy efficiency and renewable energy projects. In addition to the investment in the last three years, the figure raises to 1,080 million euros for Brazil, Poland, Peru and Spain.
On the basis of such politics, the so-called green bonus acquires total relevance. These bonuses allocate funds to finance sustainable projects in areas such as renewable energies, energy efficiency, the clean transport or the responsible management of waste. These products are more demanded in the primary market and from the point of view of the profitability, they offer a better evolution. “66% of the green bonuses perform better than their reference index”, said Santander Asset Management. Last year the entity led the issue of green bonuses in Spain, ranking fifth at European Level.
In order to go on supporting sustainability and assisting its customers in the transition towards a green economy, the entity presided by Ana Botín has the goal of facilitating the mobilization of 120,000 million euros from 2019 to 2025, and 220,000 million from 2019 to 2030 in green financing to help address the issue of climate change. This commitment is part of the 10 responsible banking targets defined by the enterprise up to 2025 in order to contribute to the achievement of the Sustainable Development Goals (SDGs) established by the UN, guarantee the development of its activity in a sustainable way and contribute to the development of a more equitable society for everyone.
Loans for electric and hybrid vehicles and sustainable housing
On the basis of its commitment to sustainability, Banco Santander has just launched a loan for acquiring hybrid and electric vehicles. With a term of up to eight years and a maximum balance of 90,000 euros, it has an arrangement fee of 1.5% and a rate of 5.53% (Annual Percentage Rate).
If an automobile is one of the first acquisitions for anyone, the next one could be acquiring a house, and Banco Santander also supports sustainability within this sector. According to its new mortgage offer, Banco Santander will credit in 10 basic points the interest rate of the mortgages for sustainable housing.
Sponsor of the new formula E
The close relationship between Banco Santander and the sporting world is well-known. Currently focused on football with the sponsorship of the Liga Santander, Liga SmartBank, the Copa Libertadores and the UEFA Champions League, starting this year it will also include motor racing, where it already sponsored the McLaren and Ferrari in the middle of the first decade of the XXI century.
Now is the time for the motorcycling world and Openbank, the digital bank of the entity, to be shown off in the electric motorcycles that take part in the recently inaugurated MotoE World Cup. The championship, consisting of 6 races, was reduced to 4 races due to the fire occurred on May in the Jerez race circuit that caused the delay of the start of the season.
Finally, the electric engines started July 7 in the German race circuit of Sachsenring and the experts are really optimistic with the results of the long-awaited premiere. “People who will follow the competition are in favour of the innovation and the sustainability. Undoubtedly, they are the future, they are early adopters, in line with our customer base”, explained Ezequiel Szafir, CEO of Openbank, when presented the project.
Nico Terol and María Herrera are the pilots chosen by the Valencian champion Jorge Martínez “Aspar” to participate in the Ángel Nieto Team, which is sponsored by Openbank in this new competition of MotoE. Despite the 4 races of the championship will be raced in Europe, the project foresees races in America, with Argentina as a first place.
María Herrera, a bet on equality
The attractive point of the sponsorship of Openbank and the subsequent support of Banco Santander to the sustainability are related with a double disruptive axis. It is not only the technological field of the electric motorcycles, but also the social area. Maria Herrera is the only woman that drives a motorcycle in the current categories, MotoE, Moto2, Moto3 and MotoGP, which highlights again that Banco Santander supports equality as a strategic axis.
Banco Santander, along with more than 100 banks, signs the Responsible Banking Principles to contribute to the UN Sustainable Development Goals, demonstrating its commitment to a sustainable and inclusive future.