Targets related to climate change mitigation and adaptation (E1‑4)
- ESRS:
-
Targets related to climate change mitigation and adaptationE1-4Targets related to climate change mitigation and adaptation
Targets and metrics related to climate change mitigation and adaptation depend on the development of the transition plan. Targets and metrics may be set as the transition plan is being developed, in line with the agreed strategy. In particular, the transition plan is crucial for defining GHG emission reduction targets. As at the end of 2024, the Group did not have a transition plan in place and, consequently, did not set targets for reducing GHG emissions from its own operations or those financed as part of the portfolio.
For the environmental area, we set two basic targets (MDR-T) that are linked to the Group’s strategy and policies. They are subject to formal approval processes by the Management Board, periodic verification and updates depending on the market situation and the financial and operational results of the Bank. These objectives have been set on the basis of the knowledge and business experience of the Bank’s employees and Management Board and do not refer to specific studies or scientific research.
Purchased electricity from renewable sources.
The target is 100% share of electric energy from renewable sources (RES) in Bank’s total electric energy consumption. The target supports the ambition related to the reduction of emissions in scope 1 and 2 (market-based own operations). The target measured is as a percentage of electricity from renewable sources. The starting point was 87% of electric energy from renewable sources in 2023 at the Bank. The target was to achieve 100% renewable electric energy in 2024 and to maintain this performance in subsequent years, currently looking ahead to 2027.
We currently ensure the purchase of 100% of electric energy for the Bank from renewable sources through direct green energy supply contracts and guarantees of origin for the remainder of consumption. Implementation is monitored on a quarterly basis as part of the strategy implementation progress report delivered to the Management Board and Supervisory Board and as part of the sustainability objectives reporting at the ESG Committee. Implementation of the target is progressing according to plan.
Volume of financing in line with the internal classification system SFICS
The target relates to the volume of new finance provided according to the criteria of the internal SFICS classification system (as described in the section ‘Sustainable Finance and Investment Classification System (SFICS)’). This system comprises financing with dedicated purpose (use of proceeds) and sustainability-linked transactions. This objective supports the redirection of capital to environmentally sustainable projects.
The target is set in accordance with the planning processes applicable at the Bank, at the moment within the 2027 horizon. The target covers customers (downstream), and applies to the Group excluding Santander Consumer Bank which has its own banking licence, which means that it autonomously creates its own operating strategy, including and objectives.
In line with the above assumptions, we have planned to mobilise PLN 31,046 million of new financing according to SFICS in the planning horizon for 2024-2027. In 2024, the volume of new financing according to SFICS amounted to PLN 8,669 million.
Progress is evaluated quarterly in reports presented to the ESG Committee, and presented to the Management Board and the Supervisory Board. The target level is reviewed in annual planning processes, taking into account internal factors such as changes in methodology and external factors, including regulatory changes.
