From solar-powered offices to electric cars: how Santander is reducing its environmental footprint

Initiatives such as International Plastic Bag Free Day, celebrated on July 3, confirm the virtually unanimous awareness among citizens about the need to promote sustainability and combat climate change. Companies and organizations must play a key role in this effort, as their actions can contribute to creating a more hopeful future for our planet.

This is the case of Banco Santander, an institution that has worked to develop a Net Zero-based strategy, encouraging issuers to commit to setting ambitious goals consistent with the objectives of the United Nations-sponsored Paris Agreement. Santander Asset Management (SAM) is also part of the Climate Action 100+ collaborative engagement initiative; and in 2023, it also joined the IIGCC Net Zero Engagement Initiative.

Today, the Group has more than 8,800 kW of solar installations for self-consumption in Brazil, Chile, and especially Spain. Thirty-seven percent of the workforce works in locations with some kind of construction, environmental management, or energy efficiency certification.

Regarding its environmental footprint (which it has been measuring since 2001), the Group has focused on reducing CO2e emissions and offsetting those that cannot be reduced with credits outside its value chain. It has also dedicated efforts to managing waste responsibly and raising awareness among employees and other stakeholders about environmental issues. By 2024, it aimed to ensure that 96% of its energy consumption would be renewable.

To achieve reduced consumption and emissions, the company has sought efficiency in its spaces, as well as in the management of maintenance and operation of offices and networks. It has also invested in technological improvements, such as heating, air conditioning, lighting, home automation, and control systems, implementing new, more efficient systems at more affordable prices.

The latest efficiency plan, currently underway, enabled the bank to close last year with a cumulative investment of €38.3 million and an annual reduction of more than 69.3 GWh in facility efficiency projects. The bank has also acquired an additional 213.8 GWh of renewable energy. It also has 2,103 electric charging stations in the garages of its commercial buildings and offices across all regions; a figure well above the target of 1,250 set in the plan for 2025. In addition to its firm commitment to electric cars, Santander maintains its policy of using shared company routes, public transport, and car-sharing initiatives as a more efficient way for its employees to travel.

Today, it has more than 8,800 kW of solar installations for self-consumption in Brazil, Chile and, above all, Spain, with a total self-generated electricity in its buildings of 18.5 GWh, which has allowed it to improve its Scope 2 emissions figures. 37% of the workforce works in buildings and premises with some distinction or environmental certification for construction or environmental management and/or energy efficiency (LEED, Breeam21, ISO).

In addition to its firm commitment to electric cars, Santander maintains its policy of using shared company routes, public transport, and carsharing initiatives.

Since 2021, facilities in key markets have been free of single-use plastics, meeting the goal set in 2019. At the same time, the bank is carrying out multiple employee awareness campaigns on the importance of reducing consumption and waste. Each subsidiary publishes news and articles about the environment and the Group's ESG initiatives on its internal portal. In 2024, for the fifteenth consecutive year, Banco Santander participated in Earth Hour by turning off the lights in its most iconic buildings.

The organization is already working to address the new challenges of the 2030 Efficiency Plan. It highlights the use of renewable and self-generated energy, including solar panels on Santander's buildings, data centers, and commercial premises, the use of geothermal energy, and contracts for the purchase of renewable electricity.

The organization is already working on taking on the new challenges of the Efficiency Plan for 2030.

We should also mention the projects for lighting and air conditioning efficiency; remote measurement and remote control of spaces and branch networks; improvements to façade materials; renovation and updating of commercial premises, as well as modernization of facilities. Furthermore, the bank pays close attention to internal communication and training to raise awareness and engage employees in efficient water, electricity, and paper consumption, as well as proper recycling. Other notable elements include the implementation of ISO 140001 continuous improvement programs in buildings and ISO 50001 in buildings and office networks in Santander countries, reinforcing the importance of good management of building teams and asset maintenance.

Regarding the reduction of direct emissions, the organization has taken initiatives such as monitoring potential refrigerant leaks in air conditioning systems and replacing conventional diesel or gas boilers with electric heat pump technology, where the climate permits. In short, a whole range of measures confirms Banco Santander's desire to set an example in terms of sustainability and environmental control, to promote social awareness on a crucial issue that concerns us all.

The relationship with other key actors

At Banco Santander, they are convinced that achieving their own goals is not enough. Nor is it sufficient to develop an environmental policy that serves as an example or inspiration for other companies. Furthermore, they must support their customers' energy transition and contribute constructively to the public debate, helping policymakers and regulators adopt a common approach to legislation.

The financial sector is undoubtedly a great facilitator, but it cannot be the sole driver of investment toward a low-carbon model. Therefore, the current regulatory approach, particularly focused on finance, needs to be reconsidered. It is essential to recognize the role of banks in supporting high-emission companies in their evolution toward much cleaner production models. Obviously, this may mean a temporary increase in the financed emissions of these entities, as they collaborate with companies embarking on the energy transition. But this should not be understood, under any circumstances, as a disconnection from common goals, but rather as the opposite: a full embrace of the challenge of achieving a much more sustainable economy in the near future.

It is essential to recognize the role of banks in supporting high-emission companies in their evolution towards much cleaner production models.

The major challenge is to establish the right levers to facilitate the transition of the entire global economy. This includes reviewing the current sustainable finance framework. It should be noted that, to date, significant progress has been made in areas such as sustainability reporting, taxonomies for classifying green activities, and financing. Furthermore, the European Commission's goal of streamlining and consolidating multiple requirements for companies is very positive, in the organization's view.

Reducing complexity and the regulatory burden would be a driving factor for the implementation of the framework, enabling the transition to positively contribute to business competitiveness and growth. It is also important to note that having such a framework should not lead to increased capital requirements linked to ESG risk factors (environmental, social, and governance criteria), as the prudential framework already takes their impact into account. In fact, increased capital requirements would be counterproductive and would inevitably add obstacles to the transition, especially in emerging countries and for companies in carbon-intensive sectors.

Banco Santander collaborates with international and local stakeholders to advance global and company objectives, in line with SDG 17.

Ultimately, the most desirable thing for everyone is for authorities to collaborate as fully as possible with companies and organizations in developing a regulatory framework that provides the appropriate tools to finance the global economic transition. Undoubtedly, in Banco Santander's view, partnerships with other companies and governments should serve to share best practices and learn from other experiences, in order to accelerate progress toward a model that truly confirms its usefulness in protecting nature and addressing the challenges arising from climate change. For this reason, the Group participates in various relevant organizations, partnerships, and working groups. Currently, for example, it collaborates with international and local stakeholders (industry associations, think tanks , universities, peers, and others) to advance global and company objectives, in line with SDG 17 (Sustainable Development Goal) on Partnerships for the Goals. It also participates with leading organizations working to improve banks' management of climate change and nature, for example, the World Economic Forum – International Business Council (IBC). The bank has specifically collaborated on the Transforming Energy Demand project, which aims to identify ways for companies to reduce energy demand and thus contribute to the global energy transition.

The IBC brings together 130 CEOs and presidents of companies from different sectors, from developed and emerging markets, across all continents. The members of this group are responsible for nearly 3% of global energy consumption. Their decision to join forces is significant, as the evolution toward an economic model that can achieve the goals of the 2030 Agenda, to "achieve a better and more sustainable future for all," largely depends on them.