Aligning the portfolio to the Net Zero 2050 targets

  • GRI:
  • Management of material topics (identified as material in the materiality matrix)3-3
    Management of material topics (identified as material in the materiality matrix)
  • Policy commitments2-23
    Policy commitments

In line with the Group’s Net Zero 2050 Strategy, we are working to align our portfolio with the objectives of the Paris Agreement, TCFD recommendations and European Union policies. In addition, our activities are underpinned by international and EU initiatives and guidelines related to promoting sustainable transformation. Including:

  • UN Sustainable Development Goals,
  • EU Taxonomy Regulation,
  • Sustainable Finance Disclosure Regulation (SFDR),
  • Corporate Sustainability Reporting Directive,
  • UNEP Finance Principles for Responsible Banking,
  • Equator Principles,
  • Aspects relevant to the industry mentioned by the ESG ratings – e.g. S&P ESG Scores and MSC ESG,
  • EBA/GL/2020/06 Guidelines for granting and monitoring credits,
  • EBA Report on management and supervision of ESG risks for credit institutions and investment firms EBA/REP/2021/18.

The sharing of international good practices also contributes to the achievement of decarbonisation goals. The Santander Group is a founding member of the Net Zero Banking Alliance, a United Nations initiative spearheaded by the banking sector, which guides the way forward regarding the qualitative analysis of our investment portfolio.

Environmental issues as part of ESG factors are also considered in investment analysis. Looking at non-financial factors is viewed within our Group as an opportunity to gain a more complete picture of the assets we manage and to make more balanced investment decisions. Among other things, we analyse issues of environmental strategy and management, climate change impacts, the extent to which natural resources are used and pollution prevention.