Warsaw, 9 September, 2022.

The ESG 2021 Report published by Santander Bank Polska is the ninth issue of the publication which presents the organisation's impact in the field of governance, social and environmental areas. This year's novelty is the climate report, developed according to TCFD criteria, as an integral part of the environmental section. The analysis of climate risks and opportunities contained therein is another step in the bank's conscious preparation for the challenges of the near future.

Looking to the future

Climate change has consequences both for the planet and the environment, as well as for the economy and the financial system. A key challenge for the coming years will be the implementation of the European Green Deal. Achieving climate neutrality in Europe by 2050 requires the development of new products and enhanced customer education.

Banks can make an important contribution to making these changes a reality. However, this requires conscious management, which must cover an entirely new area, including climate risk in particular. Santander Bank Polska treats this subject with great care, which is why a major part of this year's disclosures is the TCFD Report. It presents, among other things, the distribution of climate responsibility between the bank's corporate structure, the assumptions of the climate change strategy, as well as an analysis of the risks and opportunities that come with these changes.

Minimising climate change is very important goal for us. Comprehensive analysis of both opportunities and risks, in the TCFD model, under different scenarios and time perspectives, gives us a better understanding of the impact of climate change on our operations and those of our clients. It helps us align the way we manage climate risks with current policies and regulations and take the most appropriate and most effective action.

Michał Gajewski, CEO of Santander Bank Polska

The TCFD report, provides a detailed analysis of climate risks and opportunities under two scenarios - the first assumes the Paris Agreement targets are met and temperatures rise by no more than 2°C; the second one assumes a 4°C rise. The analysis, considers two main types of risks, physical and transformational, in the 19 sectors of the bank's portfolio and in three perspectives: short-term (2025), medium-term (2030) and long-term (2050).