Stakeholder engagement and material concerns 2018 - santander.com - Banco ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ILUSTRACIÓN Stakeholder engagement and material concerns 2018 santander.com
Our approach
“ By delivering on our purpose, and helping
people and businesses prosper, we grow as a
business and we can help society address its
challenges too. Economic progress and social
progress go together. The value created by our
business is shared – to the benefit of all.
Communities are best served by corporations that
have aligned their goals to serve the long term
goals of society.
Ana Botín ”
By being responsible, we build loyalty
In our day-to-day businesses,
we ensure that we do not simply
meet our legal and regulatory
requirements, but we exceed people´s
People Customers
... Santander expectations by being Simple,
treats me Personal and Fair in all we do.
responsibly
Shareholders Communities
I´m loyal to Santander because...
We focus on areas where, as a
Group, our activity can have a
... Santander acts
responsibly major impact on helping people
in society and businesses prosper.
2 Stakeholder engagement and material concerns 2018Stakeholder engagement and
material concerns 2018
Index
1. Dialogue with 2. What our 3. Challenges and 4. Santander’s 5. Annex: UNEP
stakeholders, stakeholder opportunities 2018 progress: FI Principles
key for value tell us for Banco Contribution to for Responsible
creation Santander UN Sustainable Banking
a.The Santander Way
Development reporting
03 04 a. Main lines of
Goals
action & targets for 24
b. Active listening and
2021/2022 22
participation
20
05
c. Identification of
material concerns
10
31. Dialogue with stakeholders,
key for value creation
In today’s global context, stakeholders demand even greater responsibilities from
companies with which they interact. They increasingly seek to influence decisions
and to have an impact, either directly or indirectly, on the results and
sustainability of companies.
As a result, the importance of a continuous reater understanding of social, economic
G
dialogue with stakeholders increases for any and environmental factors, both current and
organisation aiming to be responsible and future, which enables companies to identify
sustainable. new markets and business opportunities.
Maintaining a dialogue with the various interest I ncreased trust and acceptability of the
groups provides various benefits for the company.
companies, including:
Dialogue with stakeholders currently shows
etter risk and opportunity management,
B – in good measure – how companies manage
which allows the stakeholders to participate sustainability. This engagement is generally
in the identification of significant issues for the acknowledged by a wide array of international
organisation. reporting standards, associations and initiatives
linked to sustainability as a key tool for
he development of new processes, products
T understanding the concerns of those with a
and services from the information collected connection with the company, and for detecting
in the relationship process established with risks and opportunities.
each stakeholder group, thereby enhancing
innovation at the company.
end
s
s
2. I
den Better risk and opportunity
al tr tation tifi management
ob xpec ca
tio
e n
rs'
old gl
keh is of
of
e
s
ma
and naly
teri
1. A
sta
Innovation: new processes,
al m
products and / or services
atters
Greater understanding of the context social,
economic and environmental
s
itie
4. V
es rior
alu
tiv ic p
ec
ea
g
tio a
te
str c
r
n of bje
ion o Increase trust and acceptability
finit and
3. De
of the company
4 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
2. What our stakeholders tell us
Analysing, assessing and responding to the opinions and concerns of all our
stakeholders is a fundamental part of our effort to operate as a responsible bank
and make all we do Simple, Personal and Fair (SPF).
Earning and keeping people’s loyalty is the key The relationship with our stakeholders is,
to creating lasting value. To do this, we must therefore, essential to defining our corporate
understand the concerns of all our stakeholders. strategy and culture.
By listening to their opinions, and measuring
their perceptions of the Group, we not only
identify issues, we also spot opportunities.
The Santander Way
The Santander Way is our strong global culture, fully aligned to our
corporate strategy. It includes our purpose, our aim, and how we do
business. It is the bedrock of our bank, a responsible bank.
Our Our aim Our
purpose as a bank how
To help people To be the best open Everything we
and businesses financial services platform, do should be
prosper. by acting responsibly and Simple, Personal
earning the lasting loyalty and Fair.
of our people, customers,
shareholders and
communities.
Simple, Personal and Fair is how we do business and behave as part of our corporate
culture. It embodies how all Santander’s professionals think and operate, and represents
what our customers expect of us as a bank. It defines how we go about our business and take
decisions, and the way we interact with customers, shareholders and the community.
Santander corporate behaviours
Show Truly Talk Keep Actively Bring Support Embrace
respect listen straight promises collaborate passion people change
5Dialogue integrated
into policies and processes
All our activity is guided by policies, principles relationship model with our main stakeholders
and frameworks to ensure we behave (virtuous circle).
responsibly in everything we do.
And our general sustainability policy
Our general code of conduct and corporate defines and identifies the key aspects of the
behaviours define and establish the basis for Bank’s relationships with each of its main
The responsible banking, sustainability
all actions to be applied by Bank personnel stakeholders. And reinforce our commitment
and culture committee is responsible
in their day-to-day activities, including those to maintain a permanent dialogue and to have for supervising and monitoring the
related to the Bank’s stakeholders. available consultation channels. corporate reputation and involvement
with stakeholders and also for
Our corporate culture policy establishes In addition, Santander has other policies and analysing and reporting to the board
about social and ethical environmental
common minimum standards which are frameworks that set out the guidelines to take into aspects and about the expectations of
the backbone of our culture, including our account engagement with specific stakeholders. stakeholders in this regard.
Active listening and participation
We encourage active listening and have development of policies or relevant positions on
several channels that enable us to understand the sustainable development agenda.
stakeholders’ expectations. Through these
channels, we maintains ongoing dialogue with For example, this year, Santander actively
them that is key to ensuring the success of the participated in consultations referring to the
Bank’s activities all along the value chain. agenda on the subject of sustainable finance
with various organisations. In particular, it played
In addition, in 2018 we conducted surveys to a part regarding climate change to express its
identify what our employees, customers and position and contribute to the debate on the
society think a responsible bank should do. These development of a more sustainable financial
findings helped us as we analysed what the system in the scope of the EU Action Plan.
leading environmental, social and governance Some examples of organisations with which
analysts are telling us. the Bank works in this regards are: Institute
of International Finance, European Financial
Relationship with investors, analysts and ratings Services Round Table, Association for Financial
agencies is also essential to define and manage Markets in Europe, and European Banking
our responsible banking agenda. And during Federation.
2018, the Sustainability function has maintained
a direct relationship with investors specialising This dialogue work by Public Policy takes place
in environmental, social and good governance before new regulations are approved. Once the
issues, in order to understand their expectations regulation receives approval, the Bank’s internal
and inform them of the Bank’s main lines of regulations are adapted to new requirements,
action in terms of sustainability and responsible and compliance with it is monitored and
banking. supervised by Compliance and the Relations with
Supervisors function.
There is also continuous monitoring for the
appearance of new standards and milestones Additional, to understand its real impact on
on international agendas. Public Policy and society, the Bank continues to identify social
Sustainability work closely together, within the and environmental externalities (both negative
framework of the Bank’s purpose and policies, and positive). This exercise helps Santander to
to actively participate in consultation processes detect possible risks for business and identify
led by both authorities and associations and opportunities to create additional value for the
other organisations with an impact on the society and the environment.
6 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Key dialogue channel for stakeholders Analysing, assessing and
Stakeholders Main dialogue channels Frecuency
responding to the opinions
Global Engagement Survey Annual
and concerns of all our
Employees Motivation and work-life balance Continuous
stakeholders is a fundamental
Whistleblowing channels Continuous
part of our effort to operate as
Commercial channels Continuous
Customers
a responsible bank and make
Satisfaction survey Continuous
all we do Simple, Personal and
Complaints management Continuous
Fair (SPF)
General Shareholder Meeting Annual
Group Strategy Update Annual
Shareholders
Shareholder service Continuous
Forum and meetings with shareholders Continuous
Collaborations with NGOs,
universities ans other institutions Continuous
Communities Collaboration with sectorial
organizations ans working groups Continuous
Social networks Continuous
We give a lot of consideration to NGOs by appropriate response, Santander has an internal
engaging in targeted conversations, taking procedure for systematically addressing how
part in working groups and answering specific consultations are received, analysed and
requests for information. To provide an responded to.
Results derived from the main consultation initiatives
88% 83% 1 million +40,000
of participation of employees survey to measure interviews to banked
in the global believe that their and monitor customer population about the
engagement colleagues behave satisfaction perception of Santander as
survey more simple Simple, Personal and Fair
86% 3,879 People Customers 13,217 326,094
of the employees complaints branches complaints received
feel proud to work received
for Santander through ethical
channels
6,000 1,235 10,000 391,926
interviews to agreements interviews to shareholder
university students with universities shareholders about and investor
about the perception and academic the perception of consultations
of Santander as institutions Santander as Simple, through studies and
Simple, Personal Personal and Fair qualitative surveys
and Fair
7,647 253 Communities Shareholders 166,149 252
queries managed meetings with
partnership with profiles and 16
by email, phone, shareholders
social institutions millions followers
WhatsApp and
and entities in social networks
online meetings
7Main international initiatives to
which Banco Santander is party
Task Force on Climate-related Additionally, in 2018, Santander and 27 other
Financial Disclosures (TCFD) large banks from five continents developed the
We are adhered to the main initiative in principles to adapt the sector to the SDGs and
the banking sector for implementing the the Paris Agreement on climate change. The
recommendations of the Financial Stability Board United Nations global round table published
(FSB) Task Force on Climate-related Financial in November the draft of the Principles of
Disclosures (TCFD). Responsible Banking for public consultation.
Over 600 organisations, with a total market
capitalisation of USD 9 trillion, have endorsed
the TCFD recommendations since 2017.
The Task Force released its first Status Report World Business Council for
providing an overview of current disclosure Sustainability Development (WBCSD)
practices and their alignment with the core The Bank has been a member of WBCSD since
elements of the TCFD recommendations on 2015. And our chairman, Ana Botín, is a member
September 26 2018. In time for the report of the executive committee.
publication, 513 organisations had expressed
their support for the TCFD recommendations, Through this initiative, the bank has been
signalling growing momentum for climate- working in recent years to develop and
related disclosures. implement a bespoke model to understand and
account for the social and economic impact of
the Bank in the communities where it operates.
This includes the impact generated through
“business as usual” banking activities, and also
through specific community investment.
United Nations Environment
Programme Finance Initiative And actually we participate in the WBCSD Future
(UNEP FI) - Principles for Responsible of Work initiative, by looking into how to adapt
Banking our own business and human resource strategy
This Principles provide the banking industry with to evolve with the digital age.
a single framework that embeds sustainability
across all business areas, and the UN Principles
align banks with society’s goals as expressed in
the UN Sustainable Development Goals (SDGs)
and the Paris Climate Agreement.
Transparency, accountability, governance,
target setting and working with all stakeholders
towards positive impacts are at the core of the
Principles and will help banks increase their
contribution to address global challenges.
Since July 2017 we are collaborating with 15
other entities on a pilot project to develop
analytical tools and indicators to help assess and
disseminate risks and opportunities related to
climate change.
8 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Banking Environmental Initiative (BEI) financing operations of projects that are
In 2017, Banco Santander – along with 12 other under the scope of the Equator Principles and
financial institutions and 4 innovation start-ups – participate actively in the evolution of the criteria
formed part of the Fintech Taskforce, an initiative
created to analyse how financial technology
(‘fintech’) can tackle some of the most complex
social and environmental challenges currently
facing the world. The group finally came up with
11 recommendations, supported by three case CEO Partnership for Economic Inclusion
studies. In 2018, Santander, along with other 9
companies from a diverse set of leading
In 2018 we participated in two climate-related multinational companies formed a partnership
work streams, the Soft Commodities Compact to accelerate financial inclusion around the
and the new initiative Bank 2030 which aims world. They were convened by the United
to build a road map for the banking industry to Nations Secretary-General’s Special Advocate
2030 seeking to increase the financing to low for Inclusive Finance for Development, Queen
carbon activities. Máxima of the Netherlands.
Gathering for the first time during the World
Economic Forum, the CEOs of this companies
agreed to use their complementary assets,
expertise, and collective commitment to
Equator Principles meaningfully expand financial services for the 2
In 2017, Banco Santander joined the Designated billion people who currently have no access to
Countries Working Group created by the Equator basic tools such as savings, insurance, payments,
Principles Association Steering Committee. This or credit.
group aims to review the distinction between
‘designated’ (high-income OECD) and ‘non-
designated’ countries within the scope of the International Wildlife
Equator Principles (EP), and ensure that a robust Trade Financial Taskforce
environmental and social risk assessment In 2019 Santander joined the International
framework is applied in all the countries where Wildlife Trade Financial Taskforce as part of
the various financial institutions adhered to the the Group’s commitment to the prevention and
EP-run operations. The Group also takes part in deterrence of wildlife trafficking and associated
the Capacity Building & Training Working Group. corruption. A series of red flags in regards to IWT
have been shared with the local AML teams and
Aligned with this initiative, we analyse the a wider awareness training programme will be
environmental and social risks of all our issued shortly.
International initiatives to which banco Santander is party
orld Business Council for Sustainable
W Equator Principles
Development Round table on responsible soy
United National Global Compact Working group on sustainable Livestock
Banking Environment Initiative CDP (before Carbon Disclosure Project)
UNEP Finance Initiative Climate Leadership Council
Principles for Responsible Investment International Wildlife
The Wolfsberg Group Trade Financial Taskforce
CEO Partnership for Economic Inclusion
9ESG investors, analysts & indexes
“ We congratulate BANCO SANTANDER on its
Santander sustainability performance is
periodically evaluated by well-regarded
indices and ESG analysts. And we use these Silver Award in The Sustainability Yearbook 2019,
evaluations and their results internally to
measure our performance and find improvement which showcases the best performing companies
opportunities.
among industry peers and in terms of financially
In 2018, our results stand out in the Dow Jones material ESG metrics. As the Corporate Sustainability
Sustainability Index, where Santander ranked
third bank in the world and the first in Europe. Assessment constantly raises the bar, so the Yearbook
Additionally, in February 2019 we received from
RobecoSam the Silver Class distinction for our remains a highly credible source of corporate
excellent sustainability performance. sustainability insights. This year it is launched under
the SAM brand, and with increased public access
to the percentile rankings of all companies
Daniel Wild, PhD, Co-CEO RobecoSAM. ”
Banco Santander position evolution in DJSI*
3
6
Global position
9 The global position has increased
11 from the 9th position to the 3th.
This represent the best position ever
2015 2016 2017 2018 achieved by the bank in the DJSI.
*Based on percentile information.
Santander is also evaluated by ESG analysts Others ESG analyst valuations1
such as Sustainalytics, Vigeo Eiris, ISS-oekom Vs. Sector
or MSCI. The bank continuously monitors these rating/Scoring 2018 Vs. last year 2017 average
evaluations in order to identify opportunities ISS-oekom C = C >
for improvement, and for this purpose it has a
detailed scorecard of results and improvement MSCI A BBB >
aspects both globally and in specific areas.
Sustainalytics 70 68 >
Vigeo Eiris 57 46 >
1. Source, latest rating/scoring available at the end of reference period: Sustainalytic ESG Socre
relative to our peers at Nov 2018 and Dec 2017; ISS-oekom raing at Dec 2018 and Jan 2018. Vigeo
Eiris ESG overall score at Dec 2018 and Dec 2016; MSCI ESG Ratings assessment (on scale of AAA-
CCC) Oct 2018 and Oct 2017.
10 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Identification of material concerns
Importance of the materiality analysis
Banco Santander runs a systematic analysis This analysis, along with stakeholder-dialogue
every year to identify the social, environmental processes, are central to compliance with the
and ethical behavioural aspects that are most Global Reporting Initiative (GRI) standard and
relevant to its various stakeholders all along its allow the Bank to identify drivers in the area of
value chain. sustainability that have an impact on business
thus seeking to minimise risk, reduce costs and
generate revenue.
Historic evolution of the materiality study - Detail of inputs incorporated into the study on an annual basis
2018
Responsible banking surveys to customers and
employees; Impact analysis by business segment;
Impact analysis on SDGs; Reprisk insights on
environmental and social issues.
2017
2015 Global trends, WEF map
Benchmark of other banks of risks, roadshows,
targets, Sustainable internal valuation session,
Development Goals. and country surveys
2016
2014 Big data and artificial
SASB, valuation intelligence. Other
2010 session of
countries, intranet,
analysts, other banks
materiality
Broader updated
Santander Today
analyst list
2009 2013
ESG analysts
Sustainability Committee, internal
2007 y 2008 valuation, , value chain, external
Sectoral and social 2011 opinion makers interviews
opinion makers Sustainability
performance
2012
Social networks (Twitter)
2006
senchmark sector,
press opinion
makers on internet
11This materiality analysis has been run for more
Main new developments
than ten years and has been strengthened in the 2018 study
and improved year on year, incorporating new
criteria, tools and methods of analysis to make
results more robust and useful, both for the Qualitative analysis
report and for decision-making. This continuous
improvement has been made possible thanks Responsible banking survey –
to internal review processes, constant work Customers & Employees
on identifying areas of progress, research into An internal workshop carried out with the
new sources of information and the use of new Sustainability team and other areas (Human
technologies. Resources, Compliance, Communication,
Investors Relations, etc.). During the session,
participants voted on and discussed the most
In 2018, Banco Santander continued to explore relevant issues for Santander with respect to
new and more sophisticated ways of analysing their influence on risk management, revenue
data to determine which subject areas are generation and improvement of efficiency.
important to its business. In this regard,
more use was made of new technologies, Impact analysis by business segment
including artificial intelligence and big data, Santander impact is related to its activities.
which enable the Bank to analyse large A deep analysis in the areas with major impact
volumes of qualitative information regarding has been developed to identified issues related
sustainability. to corporate governance, compliance, human
resources, internal environmental footprint,
This year, new analyses were also included community investment and suppliers.
using RepRisk Rating. This proprietary risk
metric captures and quantifies a company’s Reprisk
risk exposure related to ESG issues. It The RepRisk Rating is a proprietary risk metric
combines a company’s own ESG risk exposure that captures and quantifies a company’s risk
(Peak RRI) with the ESG risk exposure of exposure related to ESG issues. It combines a
the countries and the sectors in which the company’s own ESG risk exposure (Peak RRI)
company has been exposed to risks. with the ESG risk exposure of the countries
and the sectors in which the company has been
The Bank also carried out impact analysis both exposed to risks.
by business segment and on SDGs.
The issues are highlighted in relation to both
In addition, Santander has carried out online the number and severity of the risk incidents.
interviews to a sample of 10,000 customers
and 6,987 employees in the main operating Qualitative analysis
countries. The purpose of these interviews
is to identify the attributes that make a bank Impact analysis on Sustainable
responsible towards society according to Development Goals (SDGs)
Santander’s customers. An analysis of SDGs alignment with
material topics and key metrics. Taking into
Global results of these interviews have been account how Santander contributes to their
related to the list of material issues in this achievement.
study and results show that, in order to be a
responsible bank, the most material issues to UNEP FI Principles for Responsible Banking
foster are those represented in this chart.
12 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Process of identifying
relevant factors
The materiality study includes quantitative relevance as regards defining material matters
and qualitative analyses to allow the Bank to for the Bank. Weights are not distributed
draw up a table of relevant factors and assess statically but are reviewed every year to adapt
how important these flagged areas are. Each the study as much as possible to the current
of these inputs is weighted according to its context and reality.
Process of identifying material concerns
Quantitative analysis
ESG Indexes & Materiality and Responsible Voluntary
analysts and reporting of other banking survey Press Regulatory reporting
investor roadshows banks to customers Analysis framework frameworks Reprisk
External
Analysis of aspects Analysis and Surveys to identify Identification of Issue frequency Issue frequency Identification,
evaluated in DJSI and identification of the what our customers matters that have been analysis regarding analysis from voluntary assess, and
others analysts and matters that other banks and society think a treated in the media regulation applicable reporting frameworks monitoring of
ESG indexes as well as consider a priority and responsible bank written communication to sector in Spain and in as GRI, SASB and ESG and business
analysis of the comments reports in their annual should do. using tools of Big Data the major countries of Integrated Reporting. conduct risks
received in the in the and sustainability analysis. operation. in business and
most recent roadshows reports. investments.
with investors.
Responsible
Santander’s Sustainability President / CEO banking survey Internal valuation Santander
goals committee activity with employees session Today
Internal
Analysis of Santander Analysis of matters Analysis of the Surveys to identify Workshops and surveys Identification of
nonfinancial targets, addresses in Sustainability information what our employees with corporate areas the issues addressed
including those Committees, both provided in the speeches think a responsible and countries to in the news that
linked to the Board corporate and local, over by the President and the bank should do. identify and debate have appeared in
remuneration. the last 4 years. In addition, CEO in different about the issues that the Santander Today
matters treated in the conferences and events most influence in platform, throughout
Climate Finance Task Force held in the last year. risk management, the year.
have also been considered. income generation
and improvement of
efficiency.
Qualitative analysis
Impact on United NGOs Controversial Megatrends Value Social
Nations SDGs analysis events analysis chain networks
Sustainable Development Analysis of news (related Analysis of potentials An analysis of global The valued chain has Identification of
Goals alignment with with the financial sector) disputes identified trends that will affect been defined and, the most mentioned
material topics and key published in the last year in the financial sector. the sector in the short, taking as reference the issues during the last year
metrics. from NGOs active and medium and long main stakeholders, considering total volume of
relevant to the banking term to incorporate a relationships between mentions, trend
sector. vision of the future to these and the issues global and variability
the study. identified materials have throughout the year.
been established.
13Matrix for identifying material concerns
As a result of combining internal and external identified in the materiality study are the ones
perspectives, a table of results was obtained that have been seen to be most relevant and are,
to show the 16 most relevant subject areas for therefore, taken into account when drawing up
Banco Santander in 2018. These 16 subject areas the Responsible Banking report.
Relevant aspects for the Group matrix
External relevance
Ethical behaviour & risk
management control
Indirect environmental impact Talent attraction
and retention
Products and
services with social/
environmental
Cybersecurity & data protection added value Compliance and
adaptation to
regulatory changes
Strong corporate governance Customer
& management transparency Diversity satisfaction
Multichannel
Environmental footprint Financial strategy and
Community investment digitalisation
inclusion
Incentives linked
to ESG criteria
Transparent & Fair
products and services
Material Financial literacy
Issues
Internal relevance
Through this analysis, we have identified two major challenges
to move towards a momre responsible banking model.
CHALLENGE 1 CHALLENGE 2
New business Inclusive and
environmental sustainable growth
This results can be used to identify subject areas to be taken into
account for the sustainability agenda, so that the expectations
of stakeholders can be covered by different policies, initiatives,
plans and programmes
14 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Identification of material concerns
Expert interviews provided very valuable will also be a challenge to implement data
information for understanding the trends and analysis measures to improve customer
challenges facing the Bank. The experts who relationships, being necessary to attract
were consulted mostly coincided that the talent with advisory skills.
following aspects need to be reinforced in the
banking sector: Innovation in payment methods and in
the financial sector will be a great ally for
Transparent information on products and guaranteeing cybersecurity.
services as key to recovering confidence in
the sector. Environmental risks must be taken into
account if a company wants to succeed. It is
Climate change management must go an opportunity for companies that want to
beyond measuring our internal carbon be leaders by adapting their business models
footprint and be included in risk analysis and and offering transparent and fair products.
business opportunities.
Twitter analysis shows that climate change,
New financial products and services with cybersecurity and human rights are the subject
a social and environmental focus must be areas most discussed by users of this social
developed to meet new customer demands. media, representing 78% of the total.
It is important to strengthen diversity within Analysis of controversies relating to
the sector and to combat equal pay gap. transactions financed by the banking sector
shows that the main sectors of activity
Digitalisation will be key for meeting the impacted by controversial matters are mining
demands of an increasing population. It and the energy sector.
Taking into account main international standards
This materiality study is intended to comply non-financial and diversity information, the
with the principles to determine the content information requirements of this law were taken
of Santander Group’s 2018 Responsible into account when defining the list of issues for
Banking report based on the GRI Standards: this study.
Comprehensive option.
Additionally, a gap analysis carried out by the
In addition to the reporting standard applied Bank after the publication of the Sustainability
by Santander (GRI Standards), other voluntary and Annual Reports, was taken into account.
reporting frameworks such as the International
Integrated Reporting Framework and the SASB As in the previous materiality study, the results
(Sustainability Accounting Standards Board) of the Reporting Matters produced by WBCSD
framework have been taken into account in the and Radley Yeldar were taken into account. In
analysis. addition, recommendations provided by the
auditor of 2018 Responsible Banking report with
In order to be aligned with Law 11/2018 related regard to the materiality analysis were taken into
to non-financial and diversity information, which consideration.
transposes to the Spanish legal system Directive
2014/95/EU of the European Parliament and This study also included information obtained
of the Council of 22 October 2014 amending through the Datamaran tool, giving continuity to
Directive 2013/34/EU as regards disclosure of the use of new technologies including artificial
intelligence and big data in the identification of
issues relevant to the Bank.
15Value chain: to identify what is
important, for whom and where responsibility is broader and goes beyond its own
For reporting non-financial information Banco activities and extends to its relationships with
Santander recognised international standards, other business agents. Therefore, Santander
such as the GRI, which it took into account performs an exercise of identifying material
when preparing the Responsible Banking matters for the Bank, considering their impact
reports. These standards state that a company’s along the value chain.
Generated Value
Generated Value Generated Value
Employees more engaged More loyal
and commited customers
Regulators
Responsibility,
compliance and
governance
People Customers
Added Value
Managing and attracting Building loyal
talent in an inclusive and relationships
diverse environment Responsible and sustainable
business
Added Value Added Value
Added Value Added Value
Profitability and
Supporting people in Helping people listening to their
local communities and businesses prosper demands and concerns
Added Value
Communities Shareholders
Economic and social Contribution of capital
development and greater confidence
Suppliers
Generated Value Extended Generated Value
responsibility
Generated Value
LEGEND
Strong corporate governance Multichannel strategy & digitalization Products and services with social/
& Management transparency environmental added value
Diversity
Ethical behaviour & risk management and control Products and services transparent & fair
Financial inclusion
Customer satisfaction Incentives linked to ESG criteria
Community investment
Compliance and adaptation to regulatory changes Talent attraction and retention
Environmental footprint (internal)
Indirect environmental impact Financial literacy
Cybersecurity and data protection
16 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Generated Value
Material issue How the material issue impact on the value chain
Employees more engaged
and commited Talent attraction The Bank can act in this area through conciliation policies, training and a fair
and retention remuneration that allows to reduce the turnover rate and absenteeism.
The objective of being among the 3 best Banks to work, entails
People Incentives linked
employees commitment, greater satisfaction of them and
to ESG criteria
Managing and attracting will encourage the attraction and retention of talent.
talent in an inclusive and
diverse environment
The Bank should continue to promote its commitment to
Added Value Diversity diversity of its workforce, which is one of the core principles
guiding its operation, as a key to creating value.
•E
mployees should be aware of the Bank’s policies, frameworks
and procedures that ensure an ethical behaviour. For this
Ethical behaviour purpose, information and training are essential.
& risk management
and control •T
he Bank considers risk management as a responsibility of all
employees, regardless of their position and area of work. That is
why it promotes a strong risk culture among all the units.
Generated Value Material issue How the material issue impact on the value chain
• Ethical behaviour is an issue widely regulated in terms of anti-
corruption, tax evasion, fraud, etc. Stablishing internal control
Regulators mechanisms is essential for not being involved in fines and penalties.
Responsibility,
compliance and
Ethical behaviour • Risk assessment at both the economic and social and environmental
governance & risk management levels is very important to respond to regulators. This can be
Added Value and control achieved through compliance with recognised risk management
standards, such as the Equator Principles, applied throughout
the whole Group. In addition, public reporting on how companies
manage risks is increasingly being required by regulators.
Strong corporate Strong corporate governance & Management transparency
governance & is an issue widely regulated in terms of anti-corruption, tax
Management evasion, fraud, etc. Establishing internal control mechanisms
transparency is essential for not being involved in fines and penalties.
Compliance and Non complying or failing to adapt to regulatory changes
adaptation to may lead to fines and penalties that could be of high
regulatory changes importance depending on the non-compliance case.
*Strong corporate governance & Management transparency **Products and services with social/environmental added value
17Generated Value
Material issue How the material issue impact on the value chain
More loyal
• Clients are more protected when the Bank has strong ethical values. They
customers
Ethical behaviour & will receive a fair treatment from employees with a solid ethical culture.
risk management • In relation to risks derived from Santander’s customers, data protection
Customers and control is key. The strengthening of cybersecurity, where the Bank has
Building loyal established lines of action, is gaining importance in the sector.
relationships Customer
The Bank works actively to achieve the objectives marked for
Added Value satisfaction
satisfaction level (Top 3 of in 2018) and customer loyalty.
measures
Given the increased demand from customers for products and services
P&S with S&E
that bring social and environmental added value, Banco Santander should
added value**
continue to expand its portfolio of products and services of this type.
Products
Transparency is key to obtaining the trust of customers,
and services
who demand clear and quality information.
transparent & fair
Clients are increasingly demanding multichannel and digital
Multichannel
solutions. In addition, social networks have become a new
Strategy and
form of communication and care giving financial institutions
digitalisation
a new way to contact customers in a simple and direct.
Cybersecurity frameworks are the way of managing risks derived
Cybersecurity and
from digital transformation. It is important for banks to have robust
data protection
frameworks to protect their clients and do not lose their confidence.
Santander supports and promotes financial inclusion as a way of
Financial inclusion
contributing to the well-being of the countries in which it operates.
The bank’s financial education programmes promote financial
Financial literacy knowledge, in order to have better informed customers who take
better decisions.
Added Value Material issue How the material issue impact on the value chain
Profitability and • I nvestors and shareholders are concerned about ethical
listening to their behaviour as it could derive in sanctions and reputational
demands and risks that may lead to a loss in the company value.
concerns Ethical behaviour &
risk management • The identification and management of risks that affect the Bank
and control is important in the relationship with shareholders. In this area,
Shareholders Banco Santander is well positioned through its Zero Tolerance
Contribution Statement on compliance and reputational risk, along with
of capital and Corporate Programs for the Prevention of Corruption and Fraud.
greater confidence
Strong corporate governance with clear and well-defined sustainability
Generated Value Strong CG & MT*
roles and responsibilities are key to creating shareholder value.
Compliance and Investors and shareholders are concerned about non-compliance
adaptation to situations as they could derive in sanctions and reputational risks that
regulatory changes may lead to a loss in the company value and the license to operate.
18 Stakeholder engagement and material concerns 20182. What our stakeholders tell us
Added Value
Material issue How the material issue impact on the value chain
•T
he bank should continue working on the evaluation of
suppliers in terms of ethical behaviour, in this sense the new
whistleblowing channel for suppliers is a good advance.
Suppliers Ethical behaviour &
risk management •S
uppliers can be a source of risk if they do not meet the requirements
Extended
and control of the Bank. For this reason, it is necessary to continue working on
responsibility
the evaluation of suppliers in terms of social and environmental risks.
Generated Value
Progress in risk management in the supply chain can be achieved
through increased demands on critical issues such as Human Rights.
Suppliers play an important role in the Bank’s internal footprint through
Environmental
its products and services. It is important to work with those who
footprint (internal)
guarantee the minimum impact (green energy, certified paper, etc.).
Added Value
Material issue How the material issue impact on the value chain
Supporting people Society is the element that most benefits from the investments and
in local communities actions of a social nature that the Bank carries out (Santander Universities,
Community
Volunteer Programs, donations to NGOs, etc.) aimed at promote culture,
Investment
creation of employment and higher education. The relevance is reflected
in the strategic objective of achieving 5M of people helped in 2018.
Communities •S
ociety in general will be benefited from an ethical behaviour of companies,
Economic as this means looking for the interests of everybody. In addition, a good
and social Ethical behaviour & reputation in the society could lead to an increase of the number of clients.
development risk management •T
he Bank must take into account the environmental and
Generated Value and control social risks when financing projects. Progress has been made
in this area making sectoral policies more restrictive and
extending them to activities beyond Equator Principles.
Products & services
The commercialization of products and services with
with social /
social and environmental added value make it possible
environmental
to promote a more sustainable model of society.
added value
Indirect The bank has an important role to drive forces for more proactive
environmental policies toward sustainable development and through the financing
impact and investment in projects with a positive environmental impact.
193. Challenges and opportunities
for Banco Santander
Like every business, Santander operates in a world that is changing fast, creating new
challenges and opportunities. Using the results of the materiality assessment, we have
identified two core challenges and we have establish a set of targets in each of these
challenges with the aim to build a more responsible bank.
Adapting to the new Supporting inclusive and
business environment sustainable growth
Santander, like all businesses, needs a motivated, skilled Santander can play a major role in helping to ensure
workforce which can deliver what customers want and growth is both inclusive and sustainable. Inclusive: by
harness the power of new technology. Meanwhile, we meeting all our customers’ needs; helping companies to
face new regulations and laws. These trends create create jobs; helping people to be financially empowered,
the challenge of new business environment in which and get the education and skills they need. Sustainable:
we operate. Our task is to exceed our stakeholders´ by supporting the transition to a low carbon economy;
expectations, to do the basics brilliantly, every day. Key to and by helping financing renewable energy, smart and
this is having a strong culture - a business in which all we sustainable infrastructures, while taking into account
do is Simple, Personal and Fair. social and environmental risks and opportunities.
e believe that by acting responsibly towards our
W e believe that we can help more people prosper and
W
employees, we will build a strong team that is willing to enjoy the benefits of growth by empowering them
go the extra mile for our customers. This will generate financially: giving them access to tailored financial
predictable returns for our shareholders, enabling us products and services and improving their financial
to invest more to support communities – which builds resilience through education. So we aim to financially
employees’ pride in Santander. This is the virtuous circle empower 10 million people from 2019 to 2025.
of loyalty which drives success. So we aim to be one
of the top 10 companies to work for in at least 6 of e believe that we can support our customers by helping
W
the core geographies where we operate by 2021. them in the transition to the green economy. So we aim to
raise or facilitate the mobilization of 120Bn euros from
e believe that to serve society better and understand
W 2019 to 2025, and 220Bn euros from 2019 to 2030 in
customers´ needs, we must have a diverse and inclusive green finance to help tackle climate change challenge.
team. This enables us to attract, develop and retain
the best talent, which in turn will help us to achieve We believe that, if we are to tackle climate change,
we have a responsibility to reduce emissions and our
better results. So we aim to have between 40% -
60% women members on our board by 2021; and to environmental footprint. So we aim to purchase 100% of
have 30% women in senior leadership positions. our electricity from renewable sources in all countries
where it is possible to do so by 2025. We also aim to
e believe that our employees deserve fair and
W eliminate unnecessary single use plastic in our
transparent remuneration for their work. So we branches and corporate buildings by 2021.
aim to have a fair salary structure and we are
working to eliminate our equal pay gap by 2025. e believe that education is the bedrock of a
W
fair society and strong economy. So through our
world leading Universities programme, we aim
to fund 200,000 scholarships, internships and
entrepreneurs programmes from 2019 to 2021.
e believe that we can play a major role to improve
W
lives in the communities where we operate. So
we aim to help 4 million people through our
community programmes from 2019 to 2021.
20 Stakeholder engagement and material concerns 2018Our targets
2018 2019 2020 2021 2022 2023 2024 2025
Top 10 company to work for (core geographies)1 4 6
Women in the Board 33% 40%-60%
Women in senior positions (%)2 20% 30%
Equal pay gap3 3% ≈0%
Financially empowered people4 10MM
Green finance raised and facilitated5 (euros) 120Bn
Eletricity used from renewable energy sources 6
43% 60%
Unnecessary single use plastic free corporate building and branches 0 tons
Scholarship, internships & entrepeneurs programmes7 200K
People helpe through our community programmes 8
4MM
* We will report our progress towards these targets in our annual report
1. According to a well-known external source in each country (Great Place to Work, Top our clients in the transition to a low carbon economy. Commitment from 2019 to 2030
Employer, Merco, etc.). is 220Bn.
2. Senior positions represent 1% of total workforce. 6. In those countries where it is possible to purchase renewable sourced electricity for the
3. Calculation of equal pay gap compares employees of the same job, level and function. properties occupied by the Group.
4.Financially empowered people (mostly unbanked and underbanked) through products 7. People supported trough Santander Universities initiative (Students who will receive
and services and social investment initiatives, to get access to the financial system, a Santander Scholarship, will achieve an internship in an SME or participate in
receive tailored finance and increase their knowledge and resilience. entrepreneurship programmes supported by the bank).
8 .People helped through our community investment programmes (excluded Santander
5. Includes Santander overall contribution to green finance: project finance, syndicated Universities and financial education initiatives).
loans, green bonds, capital finance, export finance, advisory and other products to help
By doing this, Santander is helping to address today´s main global challenges
• Sustainable Development Goal
Our activity and investments help us to
adress a number of the United Nation´s
Sustainable Development Goals.
• Paris Agreement
Supporting the Paris Agreement
to combat climate change
and adapt to its affects.
IMPORTANT INFORMATION
Santander cautions that this document contains statements that constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of
1995. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other
important factors, including those unknown or unpredictable, could cause actual developments and results to differ materially from our expectations. Forward-looking statements speak
only as of the date of this document and are based on the knowledge, information available and views taken on such date; such knowledge, information and views may change at any
time. Santander does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Neither this
document nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United
States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this document is intended to constitute an
invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000.
214. Santander’s 2018 progress: Contribution
to UN Sustainable Development Goals
All social agents, including companies, have a responsibility to contribute to the Sustainable
Development Goals (SDG) of the United Nations. We contribute directly to achieving the SDGs
through our business activities and also through our community investment programmes.
Main SDGs where Banco Santander’s business activities and community investments have the most weight.
We support the health and well-being We invests more in support for educations
of our employees and the communities than any other private company in the
in which we are present. world. And we promote the largest private
scholarship program in the world.
•B
eHealthy Program: access for employees
to information and training to improve and •M
ore than 1,200 universities with which we
renew healthy living habits. Access to more maintain agreements.
than 40,000 affiliated health and welfare • More than 70,000 scholarships and grants awarded to students
centers around the world. in 2018. The largest private scholarship program in the world.
• Support to the community: +1 million people helped through
programs designed to address social exclusion and boost the Santander X, our international university entrepreneurship project,
well-being of people. chosen as good practice by the Spanish Network of the Global
Compact to achieve the SDGs in 2030.
We promote a diverse and inclusive We have a prepared and committed team
workforce that reflects society and that allows us to respond and meet the
allows us to face future challenges. needs of customers, help entrepreneurs to
create businesses and employment, and
•N
ew general principles on diversity and
strengthen local economies.
inclusion that provide global guidelines and
minimum standards. •9
4.6% of employees with a fixed contract
• 54.5% of women in the workforce, 20.5% of women in • 8.6% of the staff promoted.
management positions. • Flexiworking: incorporates multiple conciliation initiatives.
For the second consecutive year, Santander has obtained the In 2018 we received the Top Employers Europe 2018 certification
highest score among the 230 companies that are part of the and occupied one of the first three positions in the ranking of the
Bloomberg Gender-Equality Index. best financial institutions to work for in Latin America in 2018,
according to Great Place to Work.
We develop products and services for the We finance SMEs and self-employed
most vulnerable in society, giving them professionals who boost local economies,
access to financial services and teaching generate wealth and create employment
them how to use these in an appropriate opportunities.
way to manage their finances in the best
•1
17,420 million euros in loans to SMEs and the
possible way.
self-employed.
•1
60 million euros in loans granted at the end of 2018. • Agreements with multilateral entities such as the EIB and the CAF
• More than 273,000 micro-entrepreneurs helped. to boost financing to SMEs.
The Prospera microfinance program in Brazil, chosen as good • Global digital solutions that promote connectivity between
practice by the Brazilian Global Compact Network to achieve the companies, help export and offer more innovative and simple
SDGs in 2030. platforms to operate.
• We invest in fintechs that promote financial technology and
facilitate access to and use of financial services.
22 Stakeholder engagement and material concerns 2018We promote sustainable consumption We support the fight against climate
both in our own operations as well as change and the transition to a low carbon
with our clients. economy. And we commit ourselves to
actively contribute to the protection of the
•E
nvironmental footprint: 25.9% reduction in
environment.
paper and 13.5% reduction in electricity from
2016 to 2018. In 2018, 43% of the energy •6
,689 MW of renewable energy financed,
consumed by Santander was renewable equivalent to the consumption of 5.7 million
energy. households.
• Environmental and social risks analysis: 35 projects financed • Agreements with multilaterals for the financing and
under Equator Principles criteria. development of energy efficiency projects
• Responsible procurement: New principles of responsible • Financing of vehicles with low CO2, electric and hybrid emissions
behavior of suppliers; 95% Local group’s suppliers • Updated sector policies with new thermal coal prohibitions.
We participate actively and we are part Netherlands, Special Representative of the United Nations to
of the main initiatives and working promote Inclusive Financing for development.
groups at local and international level as • Principles of Ecuador. We analyze the environmental and social
an important way to support SDG 17 on risks of all our financing operations of projects that are under the
partnerships for the goals. scope of the principles of Ecuador and participate actively in the
evolution of the criteria
•W
orld Business Council for Sustainable Development
(WBCSD). Our president, Ana Botín, is a member of the • Principles of Responsible Investment. We manage our pension
executive committee. And we participate in the WBCSD Future funds of employees in Spain and Brazil applying criteria of
of Work initiative, by looking into how to adapt our own responsible investment.
business and human resource strategy to evolve with the digital • Others include: Wolfsberg Group; Round table on responsible
age. soy; Sustainable livestock working group; CDP (formerly Carbon
• Banking Environment Initiative (BEI). We participate in two Disclosure Project); Climate Leadership Council.
climate related work streams, the Soft Commodities Compact
and the new initiative Bank 2030 which aims to build a roadmap
for the banking industry to 2030 seeking to increase the
financing to low carbon activites. UNEP FI – Principles for responsible banking
• UNEP Finance initiative. Together with 27 other banks, we
The Principles provide the banking industry with a single
promote the principles for responsible banking of the United
framework that embeds sustainability across all business areas.
Nations. We also participated along with other 15 banks in
The Principles align banks with society’s goals as expressed
2018 in the UNEP FI pilot project on implementing the TCFD
in the Sustainable Development Goals and the Paris Climate
recommendations for banks.
Agreement.
• United Nations Global Compact. We are committed to the
development of our business activity with the ten principles Transparency, accountability, governance, target setting and
of the Global Compact and we extend them to our value chain, working with all stakeholders towards positive impacts are at
demanding our suppliers to assume and also comply with them. the core of the the Principles and will help banks increase their
• CEO Partnership for Financial Inclusion. We, along with other contribution to address global challenges.
9 companies are part of a private sector alliance for financial
inclusion, an initiative promoted by Queen Maxima of the
23You can also read
