Impact on climate

Climate and environment

GRI:

[301-1] Materials used by weight or volume
[302-1] Energy consumption within the organization
[305-1] Direct greenhouse gas emissions
[305-2] Indirect greenhouse gas emissions by weight
[305-3] Other indirect greenhouse gas emissions

Other guidelines:

Banks play a crucial role in the orderly transition to a low-carbon economy. Santander Bank Polska supports and will accompany its clients in the process of energy transformation, financing those projects that significantly reduce the negative impact on the environment and society.

The risks of climate change have a high priority among other significant risks related to the development of the bank’s business.
We are developing a practice of monitoring the level of greenhouse gas emissions related directly and indirectly to our activities.
As a result of the adopted initiatives and policies, in 2019 we achieved a significant improvement and reduction of direct and indirect emissions resulting from the bank’s own operations, as well as in the monitored area of decarbonisation for energy sector clients, defined for the first time.

Greenhouse gas emissions from the bank's activities in 2019

In 2019, the bank’s total greenhouse gas (CO₂) emissions decreased by about 2.7% versus the total emissions in 2018.

GRI:

[305-1] Direct greenhouse gas emissions
[305-2] Indirect greenhouse gas emissions by weight
[305-3] Other indirect greenhouse gas emissions

Other guidelines:

[EC/TCFD]

Data in tabular form

CO₂ emissions in 2019 (in Mg/year)
CO₂ emissions from electricity purchased for the bank [tons]	25,355.16
CO₂ emissions related to heat generation [tons]	3,315.46
CO₂ emissions from transport and fuel burned in company vehicle engines [tons]	8,475.04

Source: Calorific values (CV) and CO₂ emission factors (EF) in 2016 reported under the Emission Allowance Trading Scheme for 2019. Report prepared by KOBiZE „CO₂, SO2, NOx, CO and TSP EMISSION FACTORS FOR ELECTRICITY based on information contained in the National Database on Emissions of Greenhouse Gases and Other Substances for 2018″, Warsaw, December 2019

GRI:

[301-1] Materials used by weight or volume

Consumption of energy resources in the bank in 2019
Petrol [m³]	3,525
Natural gas [m³]	1,417,876
Fuel oil [tons]	148
Diesel oil [m³]	114,115

Electricity consumption by the bank for 2017-2019

In 2019, the bank’s total electricity consumption decreased by about 8.8% versus energy consumption in 2018.

GRI:

[302-1] Energy consumption within the organization

Other guidelines:

[EC/TCFD]

Energy consumption in connection with the bank’s operations in 2019

Data in tabular form

Electric energy consumption in the bank in 2019 (MWh)
Total electric energy consumption [MWh]	33,144.00
Total consumption of energy from non-renewable sources [MWh]	18,018.23
including natural gas	15,100.38
including fuel oil	1,776.70
including diesel oil	1,141.15
Percentage of green energy purchased by the bank in 2019	15% – according to the law in force, in 2019 each seller had to sell energy with a minimum 15% share of RES. In 2020 we plan to obtain 100% of energy from RES.

Source: Electricity consumption based on reports from the seller. Consumption in large buildings, where the bank is re-invoiced, determined on the basis of values from invoices. Adopted rates of conversion of litres into MWh: 1 l of oil is 10 kWh, 1 m3 of gas is 10.65 kWh.

As part of the implemented #ResponsibleBanking strategy, as of 1 January 2020, 100% of electric energy purchased by the bank comes from environment-friendly sources. We have received an accession certificate for the Tauron Group’s ECO Premium product, which confirms that the electricity sold to the bank is fully covered by the Eco Energy Sales Guarantee system and comes from environment-friendly energy sources. Upon completion of the contract, Santander Bank Polska will receive a certificate showing to what extent we have contributed to reducing CO₂ emissions. As one of the first countries in the Santander Group, we have made such a significant contribution to the achievement of the Group’s objective to use only ecological energy in all the Group’s buildings by 2025. The bank will continue to purchase electricity from Renewable Energy Sources in the coming years.

In addition, in 2021 the bank plans to carry out an energy efficiency audit which will also contribute to reducing energy consumption and emissions. In 2019 we started preparing the organisation for the implementation of an environment management system compliant with the requirements of ISO 14001:2015. In the period between 2020 and 2021, we want to certify the implemented management system. Another environmental target arising from the Santander Group’s goals is to have each HQ building certified for conformance with environmental standards by 2025.

Other guidelines:

[EC/TCFD]

Other emissions related to financial activities

For many years, Santander Bank Polska has been committed to publishing non-financial data as well as guidelines related to monitoring and improving the measurement of indirect impact of its financial operations. We understand our material role in the reduction of emissions which are included in Scope 3 (the so-called residual indirect emissions) of the main financial activities that affect the models and initiatives taken by the bank’s clients to prevent climate change, in particular in the most sensitive sectors.

The reporting of the bank’s indirect impact on the emissions of its clients depends on the quality of data provided by them, as clients also prepare for reporting in accordance with the new requirements. We have decided to start monitoring and reporting the indicators relating to emissions of selected groups of customers (the energy sector clients’ emission index described further in the report). The bank plans to improve and fully implement the reporting in this respect within the deadline set by the European Union i.e. the next two years.

Investing in sustainable projects

In 2019, we continued to implement the adopted principles of sustainable growth through sustainable and green financing, coal de-investment and support for the transformation of the Polish energy sector into a low-carbon model. Issuance of green bonds, execution of the first ESG-linked (E-environmental, S – social, G – governance) loan agreement in Poland, granting loans and leases supporting energy efficiency are just some of the many green initiatives that were undertaken by Santander Bank Polska.

2017 – launch of the first green bonds offered by a commercial bank in the history of Polish banking.
2019 – participation in the issue of 10-year and 30-year green bonds of the Ministry of Finance worth EUR 2 billion.
2019 – new ″Mining and Metals Sector Policy″.

In 2020, Santander Bank Polska provided the largest financing for photovoltaic assets in Poland to date (loan value approximating PLN 350 million, of which 50% comes from Santander Bank Polska). At the same time, the bank supports the transformation of the energy sector by using new green financing instruments which have not been employed in Poland so far: ESG-linked loans and SDG-linked bonds, described in more detail in other sections of the report. The amount of margin on these instruments depends, among others, on the reduction of CO₂ emissions and increase in the rate of RES in generated power.

The bank is also active outside the energy sector. One example is the first corporate green bonds in the media sector (Cyfrowy Polsat) where the main objective was to reduce CO₂ emissions.

> -30%

exposure to coal companies

In 2019, the bank’s exposure to enterprises with coal companies in their portfolio decreased by about PLN 974 million, i.e. over 30%. By 2030, we are planning to reduce the bank’s exposure to coal producers completely (this is connected with the expiry of all historical financing agreements).

In accordance with the 2019 declaration, we completely abandoned financing of new power coal mines and new power units fuelled with coal. By 2030, the bank’s exposure to energy coal producers will be reduced to zero.

All newly concluded financing agreements with companies from the energy sector contain clauses which explicitly exclude financing of capital expenditures related to coal energy from the provided funds. Santander Bank Polska has undertaken to support the transformation of the energy sector.

With regard to financial services, the climate change policy is implemented through financing and supporting projects associated with:

renewable energy
energy efficiency
electric, hybrid and low-emission cars
water and waste management infrastructure

products and services for sustainable construction
greenhouse gas emissions
products and services for the agricultural and livestock breeding sector (including weather-related and other natural risks) responsible investments
trading activities

Indirect emissions

The chart below shows the change in the power generation emission factor in the years 2018-2019 for the bank’s most important clients from the energy sector, representing not less than 80% of the sector’s clients in the bank’s financing portfolio.

As part of the disclosed results for 2018 and 2019, we defined a weighted average level of the electric energy generation emission factor for the bank’s client portfolio, based on the amount of financing granted to a given bank’s client and their specific CO₂/MWh emission factor for the energy generated by them.

GRI:

[305-3] Other indirect greenhouse gas emissions

Other guidelines:

[EC/TCFD]

Power generation emission factor in CO₂/MWh for the bank’s portfolio of energy sector customers in 2018-2019

Data in tabular form

Power generation emission factor in CO₂/MWh for the bank’s portfolio of energy sector customers in 2018-2019
Weighted average CO₂/MWh emission ratio for bank’s clients from the energy sector in 2018	0.8534 tCO₂/MWh
Weighted average CO₂/MWh emission ratio for the bank’s energy sector clients in 2019	0.8297 tCO₂/MWh

GRI:

[305-3] Other indirect greenhouse gas emissions

Other guidelines:

[EC/TCFD]

-3%

The CO₂/MWh emission factor in 2019

The CO₂/MWh emission factor in 2019 for the electric power produced by energy sector customers financed by the bank decreased by about 3% versus 2018.

The presented trend of decreasing emission factor of energy sector customers is consistent with the commitment adopted by the bank to actively participate in the transformation of this sector.

The abovementioned factor was calculated by the bank for the first time, on the basis of data collected and made available by bank customers. The methodology of data collection and verification will be improved in order to transparently follow the progressing trends in reducing the carbon footprint in those selected sectors that have the greatest impact on climate and in accordance with the policies adopted by the bank.

A systemic approach to monitoring such data and indicators will allow the bank to track and verify progress in the fulfilment of the bank’s commitment to participate in the energy transformation as well as to incentivise and support the bank’s customers on their journey towards a sustainable economy and in line with the guidelines to combat climate change.

Other guidelines:

[EC/TCFD]

Other activities of Santander Bank Polska indirectly related to climate change mitigation

In addition to minimising greenhouse gas emissions, we strive to ensure that our workplaces and customer services reflect our commitment to sustainability. In this spirit, we have taken steps to modernize the bank’s buildings and open up high-quality, modern spaces for our customers and employees.

In 2019, we comprehensively modernised 34 branches of the bank. We adapted the interiors to the New Distribution Model, which focuses on professional and comfortable customer service and creating a friendly working environment.

Each facility has been upgraded with new air conditioning units to reduce energy consumption and recuperative ventilation systems. Thanks to heat recovery from the exchanged air, we reduce the consumption of energy needed to heat the branches.

The lighting inside and outside (including signage lighting with the bank’s logo) are based solely on LED technology. The materials used for interior finishing are free from harmful volatile substances, and all wooden elements are FSC certified to confirm that the wood used in their manufacture comes only from legal sources.

Work Café

In September 2019, we opened the first branch in the new Work/Café format, which is located in Warsaw, in the Złota 44 building. It is a fully equipped co-working space, a café and a modern branch under one roof. The branch, just like the building itself, is equipped with the most modern technologies which guarantee the highest comfort, safety and low energy consumption optimized by the BMS system. We have created a comfortable workspace for our guests and clients with access to printers and Wi-Fi, equipped with meeting rooms and telephone booths.

It is the first facility of this kind in Poland which offers entrepreneurs assistance in business development and new opportunities to use the banking space for their own work: organizing meetings with customers, conducting training or business negotiations. Moreover, the branch offers space for organizing various types of events by entrepreneurs, researchers, foundations, etc. Work/Café is supported by a web service which not only complements but also expands the possibilities of this place.

In the Work/Café application you can:

check the latest news from the bank,
get to know the list of upcoming events organized in Work/Café,
book a meeting with our advisor or a meeting room for Clients,
but also see what’s on our menu!

Additionally, Santander Bank Polska clients can book meeting rooms free of charge and in the café they get a 30% discount on the whole menu.

Through Work/Cafe we combine new, important expectations of our clients with traditional functions of bank branches. This is part of our distribution strategy, according to which Santander Bank Polska wants to be an omni-channel bank, giving its customers the opportunity to contact us as they want it – through a wide network of branches, stands in shopping centres, Multichannel Communication Centre, the best mobile application and the online banking platform.

Arek Przybył

Vice President of the Management Board in charge of Retail Banking Division