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Banco Santander S.A. (2023)
| Signing Date | 30 Apr 2009 |
| Region of Headquarters: | Europe |
| Current EPFI Reporting Year/Period: | 2023 |
| Institutional Reporting: | Link to Report |
Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the EP website.
Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.
Project Finance Advisory Services
Total number mandated in the reporting period: 0
Project Finance Transactions
Total number that reached Financial Close in the reporting period: 36
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | |||
| Infrastructure | 2 | 2 | |
| Oil & Gas | 3 | 1 | |
| Power | 1 | 19 | 4 |
| Others | 2 | 2 | |
| Region | |||
| Americas | 4 | 3 | 2 |
| Europe, Middle East & Africa | 4 | 21 | 2 |
| Asia Pacific | |||
| Country Designation | |||
| Designated Country 4 | 5 | 22 | 4 |
| Non Designated Country | 3 | 2 | |
| Both | |||
| Independent Review | |||
| Yes | 8 | 24 | 1 |
| No | 3 | ||
| Totals | 8 | 24 | 4 |
1
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
2
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
3
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
4
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment.
Project-related Refinance & Project-related Acquisition For Project Finance
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Project Name Reporting For Project Finance (And Project-related Refinance & Project-related Acquisition Finance For Project Finance)
| No. | Project Name | Sector | Project Location(s) | Year of Financial Close |
|---|---|---|---|---|
| 1 | Project Sphere New Deal | Power | United Kingdom | 2023 |
| 2 | Project Pompey | Power | Germany | 2023 |
| 3 | Proyecto Serbal | Power | Spain | 2023 |
| 4 | Proyecto Castaño | Power | Spain | 2023 |
| 5 | Pato | Power | Spain | 2023 |
| 6 | Project Ceres New Deal | Others | Australia | 2023 |
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 30
Under EP4, project name reporting is required for Project Finance transactions that have reached Financial Close and encouraged for Project-Related Corporate Loans that have reached Financial Close.
Project-Related Corporate Loans
Total number that reached Financial Close in the reporting period: 5
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | |||
| Infrastructure | |||
| Oil & Gas | 1 | ||
| Power | |||
| Others | 3 | 1 | |
| Region | |||
| Americas | 1 | ||
| Europe, Middle East & Africa | 2 | ||
| Asia Pacific | 2 | ||
| Country Designation | |||
| Designated Country 4 | |||
| Non Designated Country | 4 | 1 | |
| Both | |||
| Independent Review | |||
| Yes | 4 | ||
| No | 1 | ||
| Totals | 4 | 1 | |
1
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
2
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
3
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
4
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment.
Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Project Name Reporting For Project-related Corporate Loans (And Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans)
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 5
Under EP4, project name reporting is encouraged for Project-Related Corporate Loans that have reached Financial Close and required for Project Finance transactions that have reached Financial Close.
EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Implementation of the Equator Principles
Grupo Santander has an internal procedure that establishes the process for the Management of Environmental and Social (E&S) Risks in transactions related to projects. This procedure guides the application of the Equator Principles (EP).
The assessment of transactions that potentially require application of EP starts with a Preliminary Assessment conducted by Front Office. The Environmental, Social and Climate Change (ESCC) Risk Global function sits at Santander Corporate and Investment Banking (CIB), reporting directly to Global Head of CIB Risk. ESCC Risk oversees Front Office´s Preliminary Assessment; also providing training and ad-hoc support to Front Office. Based on the conclusions of the Preliminary Assessment, an E&S risk review is conducted for applicable transactions, according to the following guidelines:
For Category C projects, the Preliminary Assessment is considered sufficient.
For Category B projects in designated countries, Front Office is required to complete a Due Diligence Questionnaire, which includes the results of the E&S risk analysis. ESCC Risk function provides guidance during the process.
For Category A and Category B projects that include any potentially high-risk factor or are located in non-designated countries, ESCC Risk leads the E&S Due Diligence process and prepares an E&S risk analysis report.
The conclusions of the E&S risk analysis for the transactions are included in the credit application package through which Risk Admission Committees are informed and a decision is taken.
Other E&S related policies, procedures and standards are also applicable in the decisions to provide project finance or project-related corporate loans.
For further information please refer to:
Santander´s Environmental, Social and Climate Change Risk Policy
https://www.santander.com/content/dam/santander-com/en/contenido-paginas/nuestro-compromiso/pol%C3%ADticas/do-environmental-social-and-climate-change-risk-policy-en.pdf
Santander´s Information on the Integration Policies of Sustainability Risks
https://www.santander.com/content/dam/santander-com/en/contenido-paginas/nuestro-compromiso/pol%C3%ADticas/do-informative-note-on-sfdr.pdf
Santander´s Responsible Banking and Sustainability Policy
https://www.santander.com/content/dam/santander-com/en/contenido-paginas/nuestro-compromiso/pol%C3%ADticas/do-responsible-banking-and-sustainability-policy-en.pdf
Santander´s Climate Finance Report 2023
https://www.santander.com/content/dam/santander-com/es/documentos/informe-anual-de-sostenibilidad/2022/ias-2022-climate-finance-2022-es.pdf
Santander´s Annual Report 2023
https://www.santander.com/content/dam/santander-com/en/documentos/informe-financiero-anual/2023/ifa-2023-consolidated-annual-financial-report-en.pdf
There is a minor discrepancy with the data reported in Santander’s Annual Report 2023 and Climate Finance Report 2023 related to category “C” projects holding an independent review. We consider this discrepancy not to be of material relevance, as it is not a requirement for C projects to have an independent review. However, the accurate figures are the ones included in this EP report.