New projects using renewable energy, technological advances to make the production of goods and services more efficient, improving access to financial services, infrastructure for basic services such as education and health, reducing social inequality... Sustainable finance is key to achieving an economy that is more respectful of people and the planet. In order to contribute further to its development in a clear and transparent manner, we developed the Sustainable Finance Classification System (SFCS), with the criteria we use to classify our activity as green, social or sustainable.
Climate change and inequality are two of the largest challenges that we face today. Action to mitigate the effects of climate change without leaving anyone behind is both necessary and urgent and, although there is no single solution to addressing these challenges, sustainable finance is a tool to help achieve this. However, it can only be possible with the efforts of all of us, both individually and collectively.
In this regard, the world of finance is undergoing a progressive transformation toward its greener side, thanks to the growing number of people who want to invest in assets that are in line with their social and environmental concerns; and thus contribute to a more responsible future.
At Santander, as a transformative agent of change, we want to accompany them on this path. Hence, we developed Sustainable Finance Classification System (SFCS 2023); a document inspired by the European Union (EU) Taxonomy, but complemented by other green and social criteria set out in international standards such as the ICMA Green and Social Bond Principles, the Climate Bonds Standard and the Febraban Taxonomy in Brazil to adapt it to our geographical and sectoral reach.
The purpose of this report, reviewed by Sustainalytics, a leading company in corporate governance ratings and ESG criteria, is to afford transparency to the criteria we are applying to our products, services and investments when we classify them as green, social or sustainable. These are the products we offer to our customers in Santander Group’s business units and geographies, including financing, strategic advice, capital market instruments, trade financing and investment solutions.