One particularly important goal for Santander Bank Polska is to achieve climate neutrality by 2050. We are pursuing this goal by implementing the Net Zero Strategy.
Environmental (E)
Sustainability, caring for the environment and tackling the effects of climate change are the key elements of 'Security and Trust' - one of the six strategic directions of the bank's overall business strategy for 2021-2023. Our approach to ESG and sustainability is also defined in the Responsible Banking Strategy which is an integral part of the business strategy.
Key environmental objectives
Our Responsible Banking Strategy announced in 2019 guides the Bank’s actions for the coming years and identifies climate protection and the environment as key areas.
We have committed ourselves to:
- minimising the environmental impact of our facilities (considering our internal environmental footprint, e.g. energy consumption, operation of facilities),
- taking into account the environmental impact of our banking activities,
- promoting products and services that respect the environment,
- taking into account and assessing the impact of projects financed on climate change.
Our Net Zero strategy:
Our Net Zero strategy envisages that the entire Santander Group will be zero-carbon by 2050. The reduction includes both internal emissions, caused by electricity consumption or business travel, but also emissions that result from our financing – lending, advisory or investment services provided to clients from all segments.
We achieved internal carbon neutrality already in 2020. This was made possible by the transition to green energy (100% of the energy purchased by the bank comes from RES) and the purchase of carbon credits, i.e. green certified assets that offset emissions.
The Net Zero Strategy goals:
-
from 2030
onwards, we will cease financing energy companies with more than 10% of their revenue from coal-fired power generation.
-
by 2030
we plan to completely reduce the bank's exposure to thermal coal producers
-
by 2050
we will achieve climate neutrality.
For more information, see our ESG Report.
Environmental and climate impact governance model
We conduct our business activities using an ESG approach, whereby environmental issues are one of the criteria in making business decisions. We carry out an assessment – according to ESG guidelines – of the various assets we finance. This allows us to take a broader view of the risks involved and provides opportunities for sustainable development.
Policies
We apply the prudence principle in managing our environmental impacts, and the overarching document describing our approach to environmental issues is our 'Sustainability Policy’, in which we commit to:
- minimise the environmental impact of our facilities, i.e. take into account our internal environmental footprint (e.g. energy consumption, operation of facilities);
- take into account the environmental impact of our banking activities;
- promote products and services that respect the environment;
- take into account and assess the impact of projects financed on climate change.
In 2021, we implemented the „Social, Environmental and Climate Change Risk Management Policy”.
For more information on the bank’s environmental policies, see our ESG Report.
Environmental impact of our operations
Below is a summary of the calculation of the amount of CO2 emissions in our own activities (Scope 1) and those directly dependent on Santander Bank S.A. operations. (Scope 2), as well as business travel (Scope 3). The methodology and scope of calculations are included in the bank’s ESG Report for 2022.
Emissions
tCO2e
Scope 11
5,264.9
Scope 2 (location-based)2
26,348.7
Scope 2 (market -based)2
14,234.9
Scope 3 (business travel)3
870.1*
Total Scope 1+2
(location-based)231,613.6
Total Scope 1+2
(market -based)219 499.8
* Only location-based data from DEFRA was used
1. Scope 1 is defined as direct GHG emissions that are controlled by the bank
2. Scope 2 is defined as indirect GHG emissions arising from the consumption of purchased electricity, heat or steam used by the bank
3. Scope 3 considers GHG emissions across the bank's value chain– upstream and downstream
Implementation of the bank’s internal environmental footprint reduction plan
The energy we purchase directly comes exclusively from renewable sources. In 2022, electricity consumption in the bank’s offices decreased by 19.6% compared to 2021. In addition, we reduced natural gas consumption for central heating and hot water by a quarter (also relative to 2021).
A summary of our detailed environmental data for 2022 and previous years can be found in our ESG Report.
Green financing
We support our clients in the transition to a low-carbon economy and in the development of their sustainable and green investments. We consistently participate in the country’s energy transition.
We were the first financial institution in Poland to offer financial solutions in which the margin is based on the customer’s fulfilment of social and environmental criteria (ESG-linked loans). We have both local and global experts in ESG, which makes us stand out in the Polish banking market.
As part of our 'green finance’, we offer:
- loans for sustainable investments, including RES,
- loans linked to the Sustainable Development Goals,
- green bonds and sustainability bonds,
- sustainability-linked bonds,
- advice on sustainable financing options,
- financial advice in the ESG area,
- SolarLease of photovoltaic installations
- leasing of electric vehicles
- leasing of carbon-free heat sources, energy storage, electric vehicle charging stations.
In 2022, for selected customer segments (largest customers, mortgage and leasing customers), Santander Bank Polska S.A. implemented the Sustainable Finance Classification System, which defines the technical criteria that green and general purpose financings must meet in order to be called green or socially sustainable. This system is based on internationally recognised industry guidelines and principles, such as the ICMA Social and Green Bond Principles, the Climate Bond Standards and the EU Taxonomy. The bank has targets for green financing consistent with the Classification System. In 2022, we provided EUR 566.4 million in 'green finance’, thus meeting our EUR 400 million responsible banking target.
Our dedicated products:
- A cash loan to finance customers’ green needs. The reimbursement of commission for the purchase of „green products” encourages borrowers to, among other things, modernise heat sources, replace lighting, build domestic water treatment plants or install equipment using biomass. With this loan, it is also possible to finance the purchase of energy-efficient household appliances as well as electric cars and bicycles.
- Simplified application rules for photovoltaic financing offered by Santander Leasing. The financing period can be up to 10 years with the transaction secured by a BGK guarantee. In 2022, we have also launched electric vehicle leasing financing under the government programme „My EV”.
- Payment cards that consist of 85% recycled plastic. By using recycled material in the production of these cards, the carbon footprint has been reduced by up to 75%. According to the Banco Santander Group’s plan, by 2025 all debit, credit and pre-paid cards in Poland, Portugal, Spain and the UK will be produced from sustainable materials such as recycled PVC or corn-based materials.
Analysis of climate risks and opportunities
In 2022, we presented a climate analysis for the second time in accordance with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) working group. The result is a detailed list of climate risks and opportunities in two scenarios – the first assumes that the Paris Agreement targets are met and temperatures rise by no more than 2°C, the second assumes a 4°C rise. Such a comprehensive approach provides an understanding of how different the impacts of climate change may be on the bank’s business and its customers. Following the TCFD approach, the analysis considers two main types of risks – physical and transformational – across the 19 sectors in the bank’s portfolio and in three perspectives: short (2025), medium (2030) and long-term (2050). Climate opportunities were analysed in a similar way.
