Santander pledges to achieve carbon neutrality by the year 2020
Santander Embraces Green Finance and Climate Commitments
Santander, one of the world's leading providers of renewable energy finance, has reaffirmed its commitment to tackling climate change. The bank has pledged to become carbon neutral this year, and by 2025, it aims to source all its electricity from renewable sources and cut its total emissions by nearly half.
At the UN Climate Change Conference (COP25) in Madrid, Santander's website joined the event as part of its sustainability and environmental commitment. The bank has already made significant strides in reducing its carbon footprint, having cut emissions by 27% between 2011 and 2018. By 2020, Santander's website has committed to offsetting all emissions generated by its own operations.
Ana Botín, Group Executive Chairman of Santander, emphasised the bank's commitment to playing a significant role in addressing climate change. In line with this, Santander has launched its first green bond in October and expects to cut total emissions by a further 46% from 2019 to 2025.
Santander's focus on renewable energy and sustainable infrastructure projects is evident in its sector-specific, scenario-based targets. As part of the Collective Commitment on Climate, promoted by the United Nations Environment Programme Finance Initiative (UNEP FI), Santander has committed to mobilizing €220 billion in green finance by 2030, building on its achievement of €120 billion ahead of schedule between 2019 and 2025.
This finance is aligned with green transition needs across different markets, supporting clean energy projects, sustainable economic growth, and transitioning away from fossil fuels in line with net-zero goals. While detailed quantitative breakdowns by sector under the Collective Commitment are not explicitly disclosed, Santander focuses significantly on renewable energy, clean technology, and circular economy projects.
However, recent policy changes have raised concerns as Santander has updated its stance to allow "sustainable finance" for coal power companies post-2030. This suggests a backtrack from stricter fossil fuel exclusions, indicating tensions in fully aligning all finance activities with strict net-zero pathways advocated by organisations like the International Energy Agency.
By 2025, 100% of Santander's buildings around the world will have the ISO 14001 certification, underscoring the bank's dedication to environmental sustainability. Santander's drive to cut its own emissions is part of its efforts to help the transition to the green economy. The bank's commitment to climate action serves as a testament to its role as a responsible global citizen in the fight against climate change.
[1] International Energy Agency [2] Reuters, "Santander to raise €120 billion in green finance by 2025", 2019. [3] Santander, "Santander's First Green Bond", 2019. [4] Santander, "Santander's Commitment to Renewable Energy", 2020.
Santander's focus on green finance extends to its aim of mobilizing €220 billion in financing by 2030, as part of the Collective Commitment on Climate. This finance is intended to support various sectors, including renewable energy, clean technology, and the circular economy. Meanwhile, the bank's business operations also demonstrate a commitment to the environment, with plans to have all buildings worldwide ISO 14001 certified by 2025.
