Gross Scopes 1, 2 and 3 and Total GHG emissions (E1‑6)

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  • ESRS:
  • Gross Scopes 1, 2 and 3 and Total GHG emissionsE1-6
    Gross Scopes 1, 2 and 3 and Total GHG emissions

In the table below, we present information on our carbon footprint in relation to our own operations and the emissions financed within our financial asset portfolios.

Detailed information on the financial asset portfolio is available in the Consolidated Financial Statements of Santander Bank Polska Group for 2024. As of 31 December 2024, the Group held, in particular, a portfolio of net amounts due from customers amounting to PLN 174,776,281 thousand and a portfolio of investment financial assets amounting to PLN 76,912,655 thousand.

Greenhouse gas (GHG) emissions in tonnes CO2eq 2024
Gross Scope 1 GHG emissions 5,817.57
Gross location-based Scope 2 GHG emissions 21,745.58
Gross market-based Scope 2 GHG emissions 7,163.71
Scope 3 – Category 6 (business travel) 770.39
Scope 3 – Category 7 (employee commuting) 2,062.32
Scope 3 – Category 15 – GHG emissions financed by the Group 14,620,548.48
Total Gross indirect (Scope 3) GHG emissions:
Group’s Total GHG Scope 3 emissions (location-based) 14,623,381.19
Group’s Total GHG Scope 3 emissions (market-based) 14,623,381.19

For the calculation of CO2 emission levels, we used the Greenhouse Gas Protocol (GHG Protocol) standards, based on the revised version: ‘A Corporate Accounting and Reporting Standard Revised Edition, GHG Protocol Scope 2 Guidance Amendment to the GHG Protocol Corporate Standard’ and “Corporate Value Chain (Scope 3) Accounting and Reporting Standard, Supplement to the GHG Protocol Corporate Accounting and Reporting Standard” as required by the ESRS. We use the PCAF standard – The Global GHG Accounting and Reporting Standard for the Financial Industry – for portfolio emission disclosures.

The biogenic emissions of Group are generated by the consumption of fuel with biocomponents by its vehicle fleet. We calculated biogenic emissions using indicators published by the Department for Environment, Food and Rural Affairs (DEFRA). In 2024, they amounted to 280.4 tCO2e due to diesel oil consumption and 8.72 tCO2e due to gasoline use.

Methodological assumptions used to calculate the carbon footprint for the own operations

We used emission factors developed by the UK Department for Environment Food & Rural Affairs (DEFRA 2022), the National Centre for Balancing and Emissions Management (KOBiZE) and the Energy Regulatory Authority (URE). We assess these emission factors as published by reliable institutions and suitable for application to the Group’s operations. We have also applied these coefficients in previous years and have updated their values accordingly this year.

The emission factors used for the calculations do not exclude the emission of gases other than CO2 (e.g. CH4 or N2O), with the exception of the metrics used for Scope 2 for electricity and heat emissions published by KOBiZE and URE respectively (KOBiZE and URE metrics refer to CO2 only). GHG emissions were calculated using data consolidation based on operational control. The calculations were performed for the entire Group using calculation sheets specifically designed for this purpose.

The following table describes the scope of the emissions calculation, the emission sources and the calculation methodology:

Zakres kalkulacji emisji, źródła emisji oraz metodykę obliczeń
Scope Emission sources included in the report Calculation methodology
Scope 1 Leakage of refrigerants R410A
R417A
R32		 Emissions calculated on the basis of replenishment volume data for R410A, R417A, R32 provided by Santander Group companies and the emission factor obtained from DEFRA 2024 and EPA / Schiessl (R32) databases.
Emissions from mobile sources
  1. diesel
  2. petrol
 Emissions calculated using diesel oil and petrol consumption data for the transport fleet, provided by Santander Group companies, and an emissions factor obtained from DEFRA 2024.
Emissions from stationary sources
  1. natural gas
  2. fuel oil
  3. diesel fuel
 Emissions calculated using consumption data for heating oil and natural gas for heating, and diesel for emergency generators, and an emissions factor obtained from DEFRA 2022.
Scope 2 Electricity Offices Emissions calculated on the basis of electricity consumption data and an emission factor obtained from the KOBiZE.

Market-based emissions were calculated from data on the fuel mix of suppliers. Due to the lack of data on suppliers for some of the premises used by Santander, an average indicator determined from available indicators for suppliers of Santander Group companies was used.
District heating Offices Emissions were calculated on the basis of consumption data provided by Group subsidiaries and an emission factor obtained from URE.

Market-based emissions calculated from data on the fuel mix of suppliers. Due to the lack of knowledge of suppliers in some of the premises used by Santander, an average indicator determined from available indicators for suppliers Group companies was used.
Scope 3 Business trips By private car Emissions were calculated on the basis of consumption data provided by Group subsidiaries (from HR systems to account for business travel) and an emissions factors obtained from DEFRA.
By bus Emissions were calculated on the basis of consumption data provided by Group subsidiaries (from HR systems to account for delegations) and an emissions factors obtained from DEFRA.
By train Emissions were calculated on the basis of consumption data provided by Group subsidiaries (from HR systems to account for delegations) and an emissions factors obtained from DEFRA.
Flights Emissions were calculated on the basis of consumption data provided by Group subsidiaries (from HR systems to account for delegations) and an emissions factors obtained from DEFRA.
Employee commuting Employee commuting Emissions were calculated using data provided Group subsidiaries and emission factors obtained from DEFRA. Data on the distance travelled by employees came from surveys conducted among employees.

The surveys were conducted in 2024 (except for Santander Consumer Bank S.A., where the survey was conducted in 2023). On average, 66% of employees took part in the survey.

 

As a financial institution, the Group is not directly covered by the EU ETS (European Emissions Trading Scheme), therefore the above calculations do not include greenhouse gas emissions from regulated emission trading schemes.

Emissions from the credit portfolio

The table below presents the financed emissions of the Santander Bank Polska Group’s portfolio, broken down into business loans, retail loans, and government and corporate bonds. In business loans, we disclose emissions related to: general financing of companies and other entities, project financing, commercial real estate and corporate bonds. Definitions of the individual financing categories can be found on the following page. Retail real estate refers to mortgage-backed emissions. These categories and their definitions are taken from the PCAF methodology. The PCAF standard also defines a Data Quality Score ranging from 1 (highest) to 5 (lowest), which is applied to each asset class covered by the standard. The Group uses the emission metrics indicated by PCAF, which are expressed as CO₂ equivalents (CO₂e). This means that they include not only the emissions of carbon dioxide (CO₂) itself, but also other greenhouse gases (e.g. methane – CH₄, nitrous oxide – N₂O) converted to their equivalent impact on global warming in relation to CO₂.

The scope of data covered by the calculation for business loans is approximately 98% of the total portfolio, while for mortgage loans it is 96%. The lack of full coverage is due to the exclusion of intangible parts of the balance sheets of subsidiaries and cases of lack of sufficient data in the systems.

Finansowane emisje portfela Grupy Kapitałowej Santander Bank Polska.
Product type Financed emissions (tCO₂) Total exposure (PLN million) Exposure with calculated emissions (PLN million) Intensity (kgCO2/1 zł) Average Data Quality Score
Business loans 9,461,333.02 81,196.52 79,174.23 (98%) 0.120 4.03
Retail real estate 864,869.45 58,509.38 56,043.82 (96%) 0.015 3.91
Government bonds 4,294,346.01 66,831.71 66,831.71 (100%) 0.064 1.00
Total 14,620,548.48 206,537.61 202,049.76 (98%) 0.072 3.09

The following product types were excluded:

  • Listed shares and interests in associated companies (due to the immateriality of the exposure),
  • Central bank securities and trading assets (due to the non-investment nature of these products),
  • Motor vehicles (leasing under Scope 3, Category 13 of financed emissions) – a significant portion of the Group’s finance leases consists of assets other than cars (e.g., agricultural machinery), for which an emissions calculation methodology has not yet been developed. The Group is actively participating in the work of the Polish Leasing Association on a comprehensive methodology, which, once completed, will enable full disclosure of emissions for this category. At the same time, initial estimates indicate that motor vehicles account for less than 1% of total financed emissions, making this exposure immaterial from an emissions perspective.

Annual emissions are presented in tonnes of CO2-equivalent (tCO2e) and converted into PLN per unit of exposure. The calculation includes all three scopes of customer emissions. The exceptions are mortgages and commercial real estate, where only scope 1 and 2 are considered. Depending on the availability of data needed for the calculation, an average Data Quality Score (on a scale of 1-5) is assigned for each category. The level of detail provided depends on the availability of data in the Bank’s systems and the extent of actual emission data from customer disclosures.

Methodological assumptions used to calculate the carbon foot print for emissions financed by the portfolio of financial assets

When calculating financed emissions, we use an internal methodology based on the PCAF standard (’The Global GHG Accounting and Reporting Standard for the Financial Industry’). According to the PCAF standard, GHG emissions associated with loans and investments (category 15) are calculated based on the proportional share of a given loan or investment in the entity that benefits from the financing or is the subject of the investment. The allocation is based on the annual GHG emissions of the borrower or the invested entity for the year 2023.

Financed emissions are always calculated by multiplying the allocation factor (determined separately for each asset class) by the emissions of the borrower or investment entity. This is the proportion of the borrower’s or investment entity’s total annual greenhouse gas emissions accounted for by a given financing or investment. The allocation factor is calculated by determining the outstanding amount – the outstanding value of the loan or investment – relative to the sum of the equity and liabilities of the entity, project etc. benefiting from the financing or capital investment.

We disclose emissions related to all loans and credit lines (included in the balance sheet records) to companies, non-profit organisations and any other entities. These loans are not traded on the market and are for general corporate purposes, i.e. with no specified use of the funds, as defined in the GHG Protocol. We include here also emissions from our material corporate bond exposures. The business loans category represents the predominant share of financed emissions.

For this part of the portfolio, estimated emissions are calculated on the basis of data collected from the client’s reports (resulting in the highest Data Quality Score = 1) or based on the size of the company (capital and own assets), its revenue and type of business. In the absence of sufficient client information, emissivity is calculated based on the amount of exposure and the client’s type of business (lowest Data Quality Score = 5). We are currently working to collect as much emissivity information as possible directly from the client in the future, thus strengthening the relationship and establishing a dialogue to support their transformation. We have implemented a free carbon footprint calculator for small and medium-sized enterprises, which should also support the data collection and reporting process.

This category also includes financed projects, i.e., financing (recorded in the balance sheet) for specific investments or activities with a clearly identified use of the funds as defined in the GHG Protocol. For example, this could be the financing of a specific activity or activities, e.g. concerning a wind or photovoltaic farm or an energy efficiency project. Emissions are calculated only for the ring-fenced activities being financed. Emissions and financial data unrelated to the funded project are excluded. This is an important part of our business portfolio due to the significant volume of energy project financing, with a high share of RES projects (around 30% of the total energy portfolio). The data quality score for this category is better than in other categories (2.89) – we assume that the financed GHG emissions from this type of projects (RES) are approximately 0 and treat them as the actual reported emissions from the project.

Another category aggregated under this item includes commercial real estate (CRE) loans (recorded in the balance sheet) designated for specific corporate purposes: the purchase and refinancing of commercial real estate (CRE) and balance sheet investments in CRE, where the financial institution does not exercise operational control over the property. According to this definition, the financed property is used for commercial purposes, such as retail and service facilities, hotel, office, industrial, or residential spaces (large multi-family buildings for rental purposes). In all these cases, the property owner utilizes the real estate for profit-generating activities (general construction is outside the scope of CRE). The methodology for estimating emissions is described in the section on retail real estate ( below).

We disclose loans (recorded in the balance sheet) for specific consumer purposes, such as the purchase and refinancing of residential real estate, including single-family houses and multi-family buildings with a small number of flats. This definition indicates that the property is used exclusively for residential purposes and is not used for commercial activities. We disclose here Santander Bank Polska’s portfolio, excluding Santander Consumer Bank’s mortgage portfolio, under which new loans are no longer granted, the value of which has been gradually decreasing and has been deemed immaterial. At the end of 2024 the mortgage portfolio of Santander Consumer Bank represented 0.01% of the mortgage exposure of the Santander Bank Polska Group. The methodology for calculating emissivity is the same as for commercial real estate. We rely here on the emissivity factors assigned to the type and size of the building from the publicly available PCAF factor database and on information from the energy certificates of buildings.

To improve data quality, we are working towards using emissivity factors assigned to the energy labels of buildings, which are based on primary energy demand. This information is obtained directly from energy performance certificates. Next year, we plan to use a model to estimate emissivity for mortgages where we lack certificates, covering the rest of the portfolio’s collateral or commercial real estate.

Financed emissions from government bonds include investments in securities issued by national governments and public institutions. For these types of assets, the financial institution does not have direct operational control over how the funds are used. According to the PCAF methodology, emissions attributed to government bonds are estimated based on the total greenhouse gas emissions of a given country’s economy and its total debt. The methodology relies on emission intensity factors available in the PCAF database, which provides the highest-quality data (Data Quality Score 1). These data are based on verified annual greenhouse gas emission reports submitted by countries to the UNFCCC. The PCAF database provides emission intensities expressed as annual GHG emissions per unit of a country’s international debt, taking into account purchasing power parity-adjusted GDP (PPP-adjusted GDP). The analysis can use emission factors that either include or exclude emissions from land use, land-use change, and forestry (LULUCF).

The figures presented in the table above include emissions related to LULUCF, meaning that financed emissions also reflect the impact of the land use sector on a country’s overall emissions balance. Financed emissions values are allocated proportionally to the value of the held bonds relative to the country’s total government debt. The category includes also exposures of bonds not directly issued by the Treasury but fully guaranteed by it, which implies an allocation of issuance according to the national issuance profile.

Green house gas intensity based on net revenue

The Group’s carbon footprint per unit of net revenue is 0.62 kg CO2e/1PLN

GHG intensity per net revenue
Total greenhouse gas emissions (location-based method) per net revenue (tCO2-equivalent/monetary unit) 0.00062
Total greenhouse gas emissions (market-based method) per net revenue (tCO2-equivalent/monetary unit) 0.00062

The denominator assumes the value of consolidated net revenue amounting to PLN 23,440,451 thousand determined in accordance with ESRS 2 as the sum of the following items from the Consolidated Financial Statements of the Santander Bank Polska Group for 2024. Consolidated income statement of the Group: ‘Interest income and similar to interest’, ‘Commission income’, ‘Dividend income’, ‘Net profit on shares in affiliates’, ‘Trading income and revaluation’, ‘Profit on other financial instruments’, ‘Profit on discontinued recognition of financial instruments measured at amortized cost’ and ‘Other operating income’, less the value of the result on exchange items in the amount of PLN 375,075 thousand.