Spain-based bank Santander has announced its intention to achieve net zero carbon emissions across the group by 2050.
The goal applies to the group’s own operations and all client emissions that result from any lending, advisory or investment services provided by Santander.
Furthermore, to achieve this ambition, the group aims to do two things by 2030:
- It will have stopped providing financial services to power generation clients with more than 10% of revenues dependent on thermal coal, and
- Santander will also eliminate all exposure to coal mining worldwide.
Ana Botín, Banco Santander executive chairman, said: “Climate change is a global emergency. As one of the world’s largest banks, with 148 million customers, we have a responsibility and an opportunity to support the green transition, and encourage more people and businesses to go green. There is much, much more to be done, but today’s commitments are important steps on the journey.”
Santander and net zero
According to a statement, Banco Santander will achieve net zero in three ways.
- Aligning Santander’s portfolio with the Paris Agreement goals. It aims to do this by enhancing climate-related disclosures and implementing the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD). Further collaboration with global experts will also be utilised as it updates its ESG risk management policy;
- Supporting the transition to a green economy. At the end of 2020, Santander CIB was the world leader in renewable financing, according to Dealogic. It also wants to raise or facilitate the mobilisation of €120bn ($145bn) in green finance by 2025, a figure that will increase to €220bn by 2030. In addition, green products for customers will be developed including green mortgages, energy efficiency loans, ESG investment solutions, and additional services such as eco-cards or carbon footprint measurement tools, and
- Reducing Santander’s own environmental footprint with a carbon-offset scheme. using 100% of electricity from renewable sources in all countries in which it operates is another huge target for 2025. Single-use plastics will also be completely removed by the end of 2021.