Banco Santander S A : ESG presentation Q1 2024

Q1'24

ESG

Towards a more sustainable world

1

Important Information

Non-IFRS and alternative performance measures

This document contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures. The APMs and non-IFRS measures were calculated with information from Grupo Santander; however, they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider them to be useful metrics for our management and investors to compare operating performance between periods. APMs we use are presented unless otherwise specified on a constant FX basis, which is computed by adjusting comparative period reported data for the effects of foreign currency translation differences, which distort period-on-period comparisons. Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not to substitute IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. APMs using ESG labels have not been calculated in accordance with the Taxonomy Regulation or with the indicators for principal adverse impact in SFDR. For further details on APMs and Non-IFRS Measures, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2023 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 21 February 2024 (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2024/sec-2023-annual-20-f-2023-en.pdf), as well as the section "Alternative performance measures" of the Banco Santander, S.A. (Santander) Q1 2024 Financial Report, published on 30 April 2024 (https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results). Underlying measures, which are included in this document, are non-IFRS measures.

The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the businesses included and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our geographic segments may differ materially from those of such subsidiaries.

Non-financial information

This document contains, in addition to financial information, non-financial information (NFI), including environmental, social and governance- related metrics, statements, goals, commitments and opinions.

NFI is included to comply with Spanish Act 11/2018 on non-financial information and diversity and to provide a broader view of our impact. NFI is not audited nor reviewed by an external auditor. NFI is prepared following various external and internal frameworks, reporting guidelines and measurement, collection and verification methods and practices, which are materially different from those applicable to financial information and are in many cases emerging and evolving. NFI is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. NFI is thus subject to significant measurement uncertainties, may not be comparable to NFI of other companies or over time or across periods and its inclusion is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. NFI is for informational purposes only and without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law.

Forward-looking statements

Santander hereby warns that this document contains "forward-looking statements" as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RoRAC", "RoRWA", "TNAV", "target", "goal", "objective", "estimate", "future", "commitment", "commit", "focus", "pledge" and similar expressions. They include (but are not limited to) statements on future business development, shareholder remuneration policy and NFI.

While these forward-looking statements represent our judgement and future expectations concerning our business developments and results may differ materially from those anticipated, expected, projected or assumed in forward-looking statements.

In particular, forward looking statements are based on current expectations and future estimates about Santander's and third-parties' operations and businesses and address matters that are uncertain to varying degrees and may change, including, but not limited to (a) expectations, targets, objectives, strategies and goals relating to environmental, social, safety and governance performance, including expectations regarding future execution of Santander's and third-parties' (including governments and other public actors) energy and climate strategies, and the underlying assumptions and estimated impacts on Santander's and third-parties' businesses related thereto; (b) Santander's and third-parties' approach, plans and expectations in relation to carbon use and targeted reductions of emissions, which may be affected by conflicting interests such as energy security; (c) changes in operations or investments under existing or future environmental laws and regulations; (d) changes in rules and regulations, regulatory requirements and internal policies, including those related to climate-related initiatives; (e) our own decisions and actions including those affecting or changing our practices, operations, priorities, strategies, policies or procedures; and (f) the uncertainty over the scope of actions that may be required by us, governments and others to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and governmental standards and regulations.

In addition, the important factors described in this document and other risk factors, uncertainties or contingencies detailed in our most recent Form 20-F and subsequent 6-Ks filed with, or furnished to, the SEC, as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume.

Forward-looking statements are therefore aspirational, should be regarded as indicative, preliminary and for illustrative purposes only, speak only as of the date of this document, are informed by the knowledge, information and views available on such date and are subject to change without notice. Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise, except as required by applicable law. Santander does not accept any liability in connection with forward-looking statements except where such liability cannot be limited under overriding provisions of applicable law.

Not a securities offer

This document and the information it contains does not constitute an offer to sell nor the solicitation of an offer to buy any securities.

Past performance does not indicate future outcomes

Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or results (including earnings per share) will necessarily be the same or higher than in a previous period. Nothing in this document should be taken as a profit and loss forecast.

Third Party Information

In this document, Santander relies on and refers to certain information and statistics obtained from publicly-available information and third- party sources, which it believes to be reliable. Neither Santander nor its directors, officers and employees have independently verified the accuracy or completeness of any such publicly-available and third-party information, make any representation or warranty as to the quality, fitness for a particular purpose, non-infringement, accuracy or completeness of such information or undertake any obligation to update such information after the date of this document. In no event shall Santander be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for inaccuracies or errors in, or omission from, such publicly-available and third-party information contained herein. Any sources of publicly-available information and third-party information referred or contained herein retain all rights with respect to such information and use of such information herein shall not be deemed to grant a license to any third party.

2

Index

01

02

03

04

05

06

ESGDecarbonization

strategyambition

Financing the	Financial	Corporate	External
green transition	Inclusion,	Governance	engagement
	Empowerment		& Recognition
	& Community
	support

3

01

ESG strategy

ESG strategy | Our approach

What makes us different

Financial Inclusion	Green Finance
Awarded Best Bank for Financial	#1 worldwide Bank in the
Inclusion in 2023 by Euromoney	financing Renewable Energy¹

Decarbonization	Governance
Net-zero decarbonization	Best practices and robust
targets as founding members	board composition
of the NZBA

1. Renewable energy finance ranking based on the league tables provided by Infralogic as of January 2023 for the last 10 years as of FY2023.

5

ESG strategy | Our approach

As a responsible bank we place sustainability at the centre of our core activities to deliver on our purpose of helping people & business prosper

Our vision	Our strategy	Our actions
is to play a major role in the	focuses on delivering our Net	materialize the Group's ESG strategy,
transition to a low carbon economy,	zero ambition by 2050, while	as we continue progressing and
supporting inclusive & sustainable	we continue helping customers	delivering on our responsible
growth and taking into account	transition to a low carbon economy,	banking commitments, to help
social and environmental risks &	develop best in class sustainable	tackle global challenges
opportunities	propositions, and do things in a
	simple, personal and fair way

Founding

Member 2021

Best bank for

Financial

Inclusion 2023

Principles for Responsible Banking, Founding Member 2019

Signing member 2009

Highest score in the Spanish Association for Standardization and Certification's (AENOR) Good Corporate Governance Index

6

ESG strategy | Our approach

Our Sustainability strategy

E

Ambition

Actions

Support and engage with customers in accelerating their transition and develop a best in-class sustainable finance and investment proposition.

Support the transition to a low-carbon economy

s

Promote inclusive growth

G

Strong governance and culture across the organization

Progress with decarbonizing our portfolios to align to net zero by 2050, while considering other environmental goals.

Promote employees' wellbeing and equal treatment and opportunity for all.

Support financial inclusion by promoting access to financial products and services and financial health, including financial literacy.

Foster customer information transparency and data privacy. Support education, employability and entrepreneurship.

Drive culture, conduct and ethical behavior, doing everything the Santander Way: Simple, Personal and Fair.

Continue integrating ESG in governance and our core activities, and enhancing capabilities across teams including business, risk management and data reporting

7

ESG strategy | Our journey

Our journey over the past years highlights our ongoing commitment to fight climate change and contribute to a more sustainable future

	Started	TCFD
Signed the	Endorsement
managing our
Equator	environmental
Principles	footprint

Approved 1st sectorial

policies2017

Top Risk exercise began covering Climate Risk

Creation of

The Responsible Banking Board Committee & Responsible Banking corporate team & network

Creation of

ESG Wealth

Management team, ESG Risk team

2018

Responsible Banking Commitments under each sustainability theme

Joined UN

Collective Commitment to Climate Action

Global Sustainable Bonds Framework creation

Founding members of the Principles for Responsible Banking

SCIB global ESG Solutions team creation

2019

Became carbon neutral in our own operations

Pledged to reduce our carbon footprint focusing on the most material sectors to climate risk

Creation of a dedicated ESG within Investor relations

2020

Set an ambition to be net zero by 2050 and became Founding Member of the Net Zero Banking Alliance

Development of internal Taxonomy - Sustainable Finance Classification System (SFCS)

Creation of an ESG dedicated Investor Relations team

2021

Creation of a Global Green Finance Team and Risk team reporting directly to the CRO

Publication of our Green, Social and Sustainability Funding Global Framework

We continued to embed climate management in business as usual across SCIB units and Risks

2022

Setting 2 new decarbonization targets for 2030 for corporate auto manufacturing and auto lending portfolio in Europe.

Disclosure of financed emissions for UK Mortgages and Agriculture in Brazil.

2023

2009

2011

8

ESG strategy | Targets

From…to…

Accumulated

Target achieved

We have set targets in those areas where we have the greatest potential impact.

NEW IN 2023

Electricity from renewable sourcesA

Carbon neutral in our own operationsB

Green finance raised and facilitated (€bn)C

AuMs in Socially Responsible Investments (SRI) (€bn)

Thermal coal related power & mining phase out (€bn)

Emission intensity of power generation portfolio Absolute emissions of energy (oil & gas) portfolio Emissions intensity of aviation portfolio Emissions intensity of steel portfolio

Emissions intensity of auto manufacturing portfolio Emissions intensity of auto lending portfolioD

2018	2019	2020	2021	2022	2023
43%		50%		57%		75%		88%		97%

19

33.8

65.7

94.5

114.6

27.1		53.2		67.7
	7			5.9		4.9

0.21 0.17 0.19

23.84 22.58 27.43

92.47 93.05 97.21

1.58 1.40 1.36

149138

137

2025/2030 target

100% by 2025

Every year

120bn by 2025 220bn by 2030

100 bn by 2025

0 by 2030

0.11 tCO2e / MWh in 2030

16.98 mtCO2e in 2030 61.71 gCO² e / RPK in 2030

1.07 tCO 2 e / tS in 2030

103 gCO2/vkm in 2030

75-89 gCO2e/vkm in 2030

A. In countries where we can verify electricity from renewable sources at Banco Santander properties. It considers the 10 main countries in which we operate. B. Scope 1 and 2 emissions and scope 3 emissions from employee commuting and business travel. It considers wholly owned companies in Argentina, Brazil, Chile, Germany, Mexico, Poland, Portugal, Spain, the United Kingdom and the United States. C. Preliminary data as final League Tables for 2023 were not yet available at the date of editorial closing. CIB contributed EUR 20.2 billion to the green finance target, including EUR 5.6 bn in Project Finance; EUR 2.8 bn in financial advice; EUR 5.8 bn in green bonds (DCM); EUR 0.2 bn in export finance (ECAs); and EUR 5.8 bn in M&A, according to Dealogic, Infralogic, TXF and Mergermarket league tables. In 2023 there was no significant contributions from ECM and Project bonds. This refers to all roles undertaken by Banco Santander in the same project. It does not include financial inclusion and entrepreneurship. Green Finance raised and facilitated is not a synonym of EU Taxonomy. Please refer to specific section on EU taxonomy-related requirements for further details in this regard. This information will be updated to year end in the next Climate Finance Report. D. Consumer lending for acquisition of passenger cars, covering a significant majority of the exposure in Europe.

Commitment achieved Cumulative target

9

ESG strategy | Our achievements

We want to make a positive impact with actions that reflect our sustainability strategy and commitment

1,8 mn

Financial inclusion (#People)1

#1 bank worldwide

by number of deals in renewable project finance2

€114,6 bn

of Green Finance mobilized since 2019

3 Green bonds

issued since 2019 for an amount of EUR 1 bn each

>€1.1bn mn

Disbursed to support microentrepreneurs in 2023

97%

of electricity used from renewable resources already

€6.5 bn

in the financing of electric vehicles under our consumer businesses in 2023

66,6%

of independent directors and 40% of women representation at Board level

Note: Latest data available for FY2023

1. Starting Jan-23. Does not include financial education10

2. Renewable energy ranking based on the league tables provided by Infralogic as of January 2023 for the last 10 years as of FY2023.