If you're here, it means that the ESG topics are important to you. They are important to us, too!
The Santander Group is strongly committed to responsible investing. We have developed an original methodology for analysing potential investments in terms of ESG aspects. Thanks to it, our offer includes subfunds that take into account ESG aspects, so you can choose a subfund that suits your preferences.
Click on the tiles below to learn more:
What is ESG
Investing in the spirit of ESG means that when we make investment decisions, we take following aspects into account:
E – Environmental
How the companies we invest in are addressing climate change. How their activities are impacting the planet through issues such as waste, pollution and deforestation.
S – Social
How businesses operate in their community. Do they take into account issues such as:
- working conditions,
- health and safety,
- employee relations,
- human rights,
- prevention of slavery.
G – Governance
How companies approach the issues of:
- executive remuneration,
- anti-corruption policies,
- culture of diversity,
- political lobbying,
- paying taxes.
This allows us to better manage risk and discover new opportunities to generate value for customers and society as a whole.
ESG creates value
increases efficiency
- better resource management (water, energy) lowers costs
- higher employee motivation increases efficiency
reduces risk
- taking care of the environment reduces the risk of fines and the costs of adapting to increasingly strict regulations
- ESG controversies damage reputations and may cause customer boycotts
opens an opportunity
- population growth, aging populations and climate change demand new, sustainable solutions
- rapid technological advancement rewards well-managed and supervised companies
Our philosophy
Our approach to responsible investment
Exclusions
We do not invest in companies whose business is mainly focused in particularly harmful types of activity, such as:
- controversial weapons,
- non-conventional fossil fuels.
In addition, we will gradually reduce our involvement in entities engaged in coal mining and coal-based power generation until 2030.
Avoiding controversies
We do not invest in companies that do not meet the minimum requirements and standards specified by institutions such as:
- UN,
- OECD,
- ILO.
For this purpose, we conduct constant monitoring of the so-called controversies.
ESG Rating
We analyse potential and actual investments according to our proprietary methodology. Based on it, we give the investments an ESG rating.
Engagement
We can actively use shareholder rights and influence the actions taken by the companies in which we have invested. we do that both by voting at general meetings of investors and by constant contact with the issuer.
Thematic analysis
Some of our sub-funds aim to identify issuers that contribute significantly to the development of specific social and/or environmental issues.
Best-in-class analysis
Some of our sub-funds:
- do not invest in companies whose ESG rating lags behind their peer groups,
- prefer companies with better ESG results.
ESG assessment of the portfolio
When pursuing ESG goals, our subfunds must maintain the total ESG score at the required level. It must be in accordance with the Santander Group's proprietary methodology.
Our regulations
We are aware that our investment activities have a positive or negative influence on ESG aspects. We try to minimise the negative one whenever possible. For this purpose, we apply the principles described, among other, in the following regulations:
Fund offer
We offer sub-funds investing in companies that consciously take into account environmental or social aspects:
Santander Prestiż Global Responsible Investment
SFDR Art.8
Santander Prestiż European Equity
SFDR Art.8
Santander Prestiż Future Wealth
SFDR Art.8
Santander Prestiż Prosperity
SFDR Art.9
Santander Prestiż Technology and Innovations
SFDR Art.8
Santander Equity Growth
SFDR Art.8
SFDR
On March 10, 2021, Regulation (EU) 2019/2088 of the European Parliament and of the Council of November 27, 2019 on the disclosure of information related to sustainable development in the financial services sector (SFDR Regulation) entered into force in the European Union countries. It imposes on financial market participants, including investment fund companies, the obligation to disclose information specified in this regulation, among others: by publishing them on the website.
Sustainability risks include:
- environmental risks (e.g. exposure to climate change risks),
- social risks (e.g. issues of inequality, health, social inclusion, labour relations, etc.)
- corporate governance risks (e.g. lack of oversight of material sustainability issues or lack of adequate business ethics policies and procedures).
The occurrence of sustainability risks may lead to financial risks that have a negative impact on the value of the sub-funds' assets. These may include:
- market risks (e.g. reduced demand for products and services due to changes in consumer preferences),
- operational risks (e.g. increased operating costs) or litigation risks.
These risks may consequently affect the return or availability of capital to the issuer of the financial instruments constituting the sub-funds' assets and, ultimately, result in these assets revaluation / impairment.
Risks to sustainability can have a significant impact on the value of assets in the medium to long term.
Incorporating sustainability risks in the investment process is reflected in Santander TFI’s Socially responsible investment policy undefined. This policy:
- defines the approach to sustainable and responsible investment
- sets out the principles to be considered when taking ESG criteria into account in the investment process.
Complementing the above policy is the Policy of Engagement in Companies Listed on a Regulated Market and Application of Corporate Governance Measures. Based on this policy, we assess the responsibility of the business operations conducted by companies, as evidenced by the actions taken to secure and satisfy the ESG criteria. We attach great importance to the corporate governance of companies. The policy also describes the process of dialogue with companies and the rules for exercising voting rights at general meetings of shareholders
We continuously monitor our policies, procedures and risks to sustainability, reviewing the potential impact of these risks on sub-fund portfolios. If we identify a material adverse impact on a sub-fund's portfolio, we review:
- the relevant asset , to assess its potential impact on the sub-fund's performance
- the investment process,to identify its weaknesses.
The types of ESG criteria taken into account in the investment process are aligned with the specific nature of the asset under analysis, so as to capture as fully as possible all elements that affect the business model and the potential for issuer's value growth. It is worth noting that already at the stage of admitting the issuers' financial instruments to the investment process, the compatibility of the potential investment with the Santander Group's current policies on sensitive sectors is checked. Based on this, we may exclude a company from the investment spectrum based on the nature of its business. In addition, the Investment Department employees periodically monitor the ESG composition of Santander TFI's investment portfolios based on the Group's internal ratings and data from external providers. The way sustainability risks are taken into account is largely subjective and depends on the investment strategy of the sub-fund. With the development of legal requirements for non-financial information disclosure by issuers in the coming years, we expect the increasing availability and standardisation of this information , which will contribute to an even better analysis.
No consideration of adverse impacts of investment decisions on sustainability factors.
Sustainability factors mean environmental, social and labour issues, human rights and anti-corruption and anti-bribery.
With the exception of the subfunds Santander Prestiż Global Responsible Investment, Santander Prestiż European Equity, Santander Prestiż Future Wealth, Santander Prestiż Prosperity, Santander Prestiż Technology and Innovations and Santander Equility Growth we don’t consider principal adverse impacts of investment decisions on sustainability factors. This is dictated by the existing, noticeable at the moment, lack of sufficient disclosure data of portfolio companies as well as by the still undeveloped market practice in the area of principal adverse impacts. In the future, we plan to consider adverse impacts of investments decisions on sustainability factors for a higher number of products - our strategy in this respect adequately takes into account our size, nature and scale of activity, as well as the types of offered financial products.
We have adopted a remuneration policy in order to properly and effectively manage risk and to prevent taking risks that are inconsistent with risk profiles, investment policies, investment strategies, investment fund statutes or our internal regulations. The policy is also intended to support the implementation of our strategy and to prevent conflicts of interest and ensure consistency with the strategy for incorporating sustainability risks in the decision-making process.
The award of variable remuneration is based on the assessment of individual performance and the performance of the business unit concerned. The assessment of individual performance results shall take into account financial and non-financial criteria, including the person's impact on incorporating sustainability risks into the business operations. The appraisal is carried out using the periodic appraisal system in force at Santander TFI.
Our rules and regulations provide for a possibility of depriving an employee of a bonus (including deferred bonuses) in the event of a breach of the employee's duties (which includes acting contrary to the applicable internal regulations), as well as in the event when the Employee is found to have engaged in unethical activities in order to obtain benefits in connection with his/her employment with Santander TFI (conflict of interest).
Our actions
We want to have a positive impact on the environment. We introduce pro-environmental measures in our company.
We give up plastic and replace bottled water with filtered tap water.
We are replacing our car fleet with a hybrid one.
When selecting new office space, we take into account the building’s environmental features.
We also conduct pro-social activities:
We promote the participation of our employees in initiatives that are intended, among others, to support education and the development of science, promote equal opportunities, and build a civil society.
As part of the Santander Group, we respect human rights in accordance with the highest international standards in relations with employees, customers, suppliers and communities.
To care for our employees, we provide them with the following benefits:- co-financing for professional medical care,
- subsidy for sports classes,
- life insurance,
- specialist psychological support,
- access to a learning platform,
- lunch card.