Six years ago around 200 global leaders signed the Paris Climate Agreement, binding their countries to the transition to a lower carbon economy by phasing out fossil fuel subsidies and pledging to limit the global average temperature increase to a maximum of 2 degrees Celsius above pre-industrial times. In Europe alone, the EUs’ national energy and climate plans (NECPs) for 2021 to 2030 have committed to achieve a 32% share of renewable energy by 2030.

Certainly, these targets are both commendable and necessary. However, considering amongst other important parameters the current role renewable energy plays in global energy generation, are they actually achievable? The answer is simple - financing and investing in renewable energy need to be significantly boosted if countries across the globe are to meet these targets.

According to the UN’s Global Sustainable Development Report, rising incomes, a growing population and increased urbanisation in both developing and developed countries mean that the demand for energy is expected to rise by 25% in 2040. The International Energy Agency (IEA) has concluded that to reach net zero emissions by 2050, annual investments in renewables will need to more than triple by 2030. The increasing number of countries that have pledged to achieve net-zero emissions nowadays covers around 70% of global emissions of CO2 however, even if successfully fulfilled, the pledges to date would still leave around 22 billion tons of CO2 emissions worldwide in 2050.

Without a doubt, more needs to be done. Boosting renewable energy investment can no longer be a matter of choice for institutions, governments and corporations - it is the only way forward towards a more sustainable future. Covid-19 has shown that business models with unsustainable practices may be at a disadvantage in the long-term, and customers will now be expecting the highest levels of social responsibility on behalf of corporations, governments and institutions. The EU is clear about the path and has allocated €1.8 trillion to rebuild a resilient and greener post-Covid-19 Europe.

A large number of banks are increasingly responding to both social and investor regulatory demands for more sustainable financing, with ESG statements often coming from the most senior levels of the organization. Nevertheless, a distinction must be made between merely commenting on the importance of sustainability in banking and implementing measures that will actually contribute to bringing about tangible change to the environment and society. In that sense, Banco Santander has committed to raise, finance and mobilize EUR 120bn of Green Finance by 2025 and EUR 220bn by 2030 – and Santander CIB has been one of the main contributors to the EUR 33.8bn raised, financed and mobilized in 2019 and 2020.

Moreover, a genuine commitment to improving the environment requires a complete transformation of a bank’s culture and offering; that is why Santander CIB has put sustainability at the heart of its corporate strategy, in particular through the recent creation of the ESG Solutions team, headed by Steffen Kram. This new unit is helping our clients to understand the implications of the decarbonization of the economy, assess the impacts on their business models, and more importantly, propose them tailored-made solutions and products to accompany them throughout this journey.

Since last year, Santander CIB has reached several milestones in its sustainability agenda by actively contributing to the reopening of the European market with the issuance of several green bonds in Italy,  also with the recent financing of an Offshore Wind Farm which will become the largest windfarm globally, the first ESG corporate finance advisory role in Hydrogen for an industrial player or with the closing of one of the largest ever sustainability linked Revolving Credit Facility (RCF) and the first syndicated facility of its kind among publicly listed companies in the beverage sector.

Santander CIB finished 2020 as the top financier of renewable projects globally and in our core geographies such as in Spain, both in terms of volume of financing and number of transactions, according to Dealogic. As such, we have helped to finance 13.765MW of new renewables energy capacity in the World in 2020, from 8.036MW in 2019.

The geographic reach of Santander’s financing of renewable energy projects is vast, ranging from, amongst other projects, photovoltaic plants, wind farms, and thermosolar and hydraulic power plants in the United Kingdom, the United States, Brazil, Belgium, Spain, Chile or Uruguay, to name a few. Those sustained efforts that have led us to be the leading international entity in the financing of renewable energy projects according to Dealogic are perfectly complemented in the project bond market (in particular in Spain) or in the debt advisory space, in which Santander CIB is one of the most active players in areas such as the Offshore Wind market, with several mandates in execution in Europe, US and Asia. Santander CIB is also at the forefront of the technological evolution of the sector, for example through our first mandate in floating Offshore Wind business. During 2020 SCIB acted as Sustainability Bond Structuring Agent and bookrunner in Banco Continental de Paraguay’s inaugural USD 300 million Sustainability Bond. This transaction was the first sustainable bond by a Latin American financial institution with an international distribution. Moreover, Environmental Finance named SCIB as Lead Manager of the Year for its role as bookrunner on the Republic of Chile’s CLP 1.6 trillion (USD 2.1 billion) social bonds. The notes were notable for being the largest single sovereign social bond issue in 202 and the first ESG bond issued in local currency by a Latin American sovereign.

In 2020, we participated in 59 Green and ESG loan transactions globally, and ranked third in Refinitiv's league table. Santander CIB’s close alignment with large institutions and entities committed to sustainable growth is an important element in our approach to renewables financing. Working in cooperation with multilateral entities, such as the European Investment Bank, the Council of Europe Development Bank (CEB), one of the main development banks in Latin America (CAF) or the European Bank for Reconstruction and Development (EBRD), Santander CIB offers its clients solutions for energy efficiency and renewable projects globally.

In line with the UN’s sustainable development goals, it is now critical for corporations to reassess their sustainable corporate strategy if they are to actively contribute to a lower carbon economy. Although sustainable financing is increasingly growing, it is only through active and sustained financing of renewable energy projects that the climate action goals outlined in the Paris Climate Agreement can be made a reality.

As millennials mature into management roles in investment banking and other traditional industries, we take a closer look at the characteristics that define their generation. Much has been said about them over the last few years – some good and some bad - but only one thing is certain: coming of age in a world undergoing profound economic disruption is no easy task.

These individuals – born between 1981 and 1996 – have a completely different set of behaviors and expectations in life than their parents. As one of the largest generations in history about to move into its prime spending years, millennials are in a position to redefine the economy and set the pace for how the banking industry will evolve.

If there’s anything we’ve learned from how millennials interact with the ‘retail’ experience is that personalization is key. But that’s not the only thing that defines millennials´ buying behavior. Here are some character traits which must be kept in mind when catering to this key demographic:

• Technology is essential: Having grown up with the rise of smartphones and the internet, this is the first digital native generation.
• Communication is key: Not just frequency and speed but the channel too. With social media as one of their preferred platforms, companies must stay cutting edge from a feature, functionality and interface perspective.
• Values matter: this one is not just limited to millennials – nowadays, the vast majority of investors care for Environmental, Social and Governance (ESG) causes and try to tailor their investments to their values. They show greater integration of money and values by investing in sustainable and impactful businesses.
• Flexibility, flexibility, flexibility: the speed of things has made this generation a lot more impatient which is why it’s even more important to be agile and flexible.

So what is Santander CIB doing to better serve these clients?

Personalization is expected across all sectors. We are committed to fulfilling our clients’ needs, surpassing their expectations and helping them to achieve their goals. That’s why, we continue to invest heavily in developing tailor-made solutions and in providing local expertise, fully integrated coverage and cross-border capabilities.

Santander Cash Nexus is an example of our ongoing commitment to deliver innovative digital banking products to our customers. This global payments solution provides access to local transactional services via a single point of entry. Users worldwide can benefit from a simplified payments process and greater visibility thanks to enhanced reports and more.

Terms like financial services and disruption are often coupled with one of the following technologies: artificial intelligence, analytics, machine learning or robotic process automation. At Santander CIB, we are looking into things like intelligent automation and other innovative technologies such as Blockchain to continue delivering our services at an even higher standard than before.

Indeed, when it comes to investment, regardless of the generation, people increasingly prefer to close the gap between personal and societal well-being. This is largely reflected in the way they live, the things they consume, how they work and their investment choices. Investors do not just want to earn a return from their investment but also want it to reflect their personal values and contribute to the social good.

We believe ESG initiatives and responsible banking standards are key drivers for the progress of society. That’s why, as part of our contribution to the Group’s Responsible Banking commitments, we aim to raise or facilitate the mobilization of 120 billion euros by 2025, and 220 billion euros by 2030 in green finance to help tackle climate change. 

Helping people and businesses prosper has always been our driver. With that in mind, the Group recently signed the ‘Green Recovery Alliance’ manifesto which calls for rebuilding our society around social and green principles once this crisis has passed.

With a predominantly millennial workforce, Human Resources is leveraging technology for strategic initiatives. These aim to help individuals identify their potential, learn continuously, upskill themselves and feel empowered to take control of their careers. Santander CIB will continue to bet on young talent by providing people with opportunities to develop a professional career in the Group’s wholesale banking area.

There is no such thing as a secret recipe but companies that can weave together technology, customization and relationships stand to benefit the most - and the longest - from this determined generation and those to come. 

To support the goals of the Paris Agreement on climate change, we are setting our ambition to achieve ‘net zero’ carbon emissions in our portfolio across the Group by 2050. The ambition applies to the group’s own operations, which are already net-zero, and all client emissions that result from any lending, advisory or investment services provided by Santander.

To achieve this and help facilitate the transition to a low-carbon economy, by 2030 the bank will align its power generation portfolio with the Paris Agreement, and has published its first decarbonization targets:

• By 2030, Santander will have stopped providing financial services to power generation clients with more than 10% of revenues dependent on thermal coal.
• By 2030 the bank will eliminate all exposure to thermal coal mining worldwide.

These are Santander’s first decarbonization targets for its financial activities and affect material carbon emitting sectors. The bank will provide further details of its roadmap to achieving its net zero emissions ambition in its Climate Finance report, which will be published later this year.

At Santander CIB we are determined to play our part. As a global Corporate and Investment Bank we have a responsibility and an opportunity to support the green transition and encourage and enable more people and businesses to do so as well.

Working together with customers to support them in their transition to reduce carbon emissions will be key to achieving the net zero ambition. The bank will actively engage with customers to help support and enable this transition. Santander has specialist environmental, social and governance (ESG) teams in Santander Corporate & Investment Banking (Santander CIB) and Wealth Management to support that process, is working with the Banking Environment Initiative to develop a framework for client engagement, and is a signatory to Climate Action 100+ to promote action on climate change among the world’s largest corporate greenhouse gas emitters.

“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.” – Our journey to ‘Net zero’, by Ana Botín, Executive chairman, Santander Group.

Our path to decarbonization: what it is and what we pledge to do? Find out more

The start of 2021 has certainly been momentous for Santander with the launch of Santander’s XXV Latam Conference followed by the XXVII Santander Iberian Conference last week. Although every year the Iberian Conference provides us with key insights into the region’s economy and development, this year’s conference was particularly pressing considering the impact Covid-19 has had on the region.

Despite not being able to be held in-person, the conference still served as the key summit for Iberian issuers and main institutional investors in the region. Over the course of the conference, experts in the digital, ESG and tourism sectors discussed the economic outlook for 2021 and the path to recovery for the region.

The various panels featured top management representatives from leading companies and institutions in Iberia and the wider globe, including Ignacio Galán, Chairman and CEO of Iberdrola, Carme Artigas, Secretary of State for Digitalization and Artificial Intelligence in Spain, Werner Stengg, Member and Digital Policy Expert in the Cabinet of Executive, Pilar López, President & CEO at Microsoft Spain and Paul Misener, VP for Global Innovation Policy & Communications at Amazon.

While there has been much focus recently on the accelerated pace of digital transformation and the demand for more sustainable practices in light of Covid-19, an understanding of how these two factors can complement and drive each other was a key topic for discussion during the conference. Of course, both ESG and digital innovation lie at the heart of Santander CIB’s strategy, so it was extremely insightful to hear expert opinions on these topics from a range of sectors and perspectives.

An interesting view held by Werner Stengg, Member and Digital Policy Expert in the Cabinet of Executive, was that what digital transformation and the sustainable economy have in common is their focus on improved efficiency. Through digital innovation, governments and institutions can iron out inefficiencies by streamlining and optimising the processes necessary to achieving more sustainable practices, such as reaching carbon neutrality. In this sense, both the digital and sustainable transition go hand in hand.

Another important topic of discussion that many panel speakers were in agreement with was the shift in consumer behaviour during the pandemic, and the significant impact this will have on future investment decisions. The pandemic has pushed sustainability to the forefront, with customers increasingly making informed decisions about which companies to buy services from based on the business’s sustainability commitments. As certain businesses become more competitive in line with their ESG scores, retail demand will drive a revolution in institutional investment choices, where ESG investments are favoured over non-sustainable investments.

Moreover, the toll the pandemic has had on key industries in the Iberian region, particularly tourism, has forced companies and institutions to rapidly adapt their digital offering in order to retain customers. As companies and institutions increasingly cater to consumer demand for more streamlined and accessible digital services, AI and machine learning are only set to become increasingly embedded within business models.

In order for the Iberian region to leverage the digital and sustainable opportunities indirectly brought on by the pandemic, the conference showed that what will be vital is the nurturing of digital talent in the region. Carme Artigas, Secretary of State for Digitalization and Artificial Intelligence in Spain, insightfully showed us that currently Spain is investing more than 1 billion euros to bolster its 2025 digital strategy, with the aim of reducing the socio-economic, digital and gender gaps in the region. Through digital innovation, the plan will also aim to provide more unity between the various territories in Spain, in addition to ensuring 80% of the region’s population have digital skills, with 50% of those being women.

Utilising digital innovation in order to support more sustainable and efficient practices is a top priority for us at Santander CIB. We strongly believe that digital transformation and ESG depend on each other for their full fruition, and the conference has confirmed that finding a way to intersect the two is on top of the agenda for many other institutions and companies across the region. Now more than ever public and private investments need to coordinate efforts to financially bolster these initiatives, and at Santander CIB we are fully committed to fulfilling our duty to the region.

By leveraging digital talent within the region and meeting consumer demand for more sustainable practices, the Iberian region is set to build an economy capable of facing the challenges of tomorrow. Of course, much still remains to be done, and we hope that by next year’s conference we will be meeting in person to share some of the exciting advancements we have pledged to achieve today.

Although the new year has been full of uncertainty and disruption due to Covid-19, an extremely important event was still able to go ahead - Santander’s 25th Annual Latin America Conference.

Even though this year’s conference was for the first time ever a purely digital event, the conference remained as relevant as its inception in 1997, uniting important leaders, figures and investment firms from LATAM’s political and economic sectors to offer valuable insights into the region’s future.

Through a series of round table presentations and one-on-one meetings, we took advantage of the conference’s virtual format to reach a far wider audience with a stellar line-up of speakers, including Hilary Clinto, former US Secretary of State; former US Secretary of State; Roberto Campos, President of Banco Central do Brasil; Mark Carney, former Governor of the Bank of England; and Alejandro Díaz de León, Governor of Banco de México. 

Looking at key topics such as LATAM politics, ESG and digital transformation, the conference celebrated LATAM’s potential to attract greater foreign investment and boost sustainable growth despite the severe setbacks of Covid-19.

Despite these challenges, opportunities in LATAM are vast. One of the most important takeaways from the conference was that LATAM cannot be treated as a homogenous region, with each country having different realities and needs. If investments in the region are to be successful, financial bodies and investors need to be flexible and take advantage of this difference rather than see it as a barrier. As LATAM emerges from the devastating impact of Covid-19, the region will be focused on restoring its economic infrastructure, opening up a much larger need for investments from the private sector and specialist investors.

Conference speakers also highlighted that what is needed now is greater global alignment in the approach to sustainable financing. Indeed, the increasingly high level of cooperation between countries in the region has greatly accelerated the rate of digitalization in LATAM. Moreover, LATAM’s major economies maintained low inflation, allowing central banks to keep interest rates under control, and the banking sector remained resilient with ample capital and liquidity buffers. With this economic backdrop, it is likely LATAM will come out of the pandemic stronger than before.

Santander has long recognised LATAM as one of the most promising regions for investments. As one of the richest regions in terms of natural resources and food production and boasting a strong talent pool, the demand for sustainable infrastructure development in the region is extensive.

As global attention increasingly gears towards LATAM, we expect to see gradual improvements in the region’s economic management, including better social inclusion and the raising of both private and public capital to boost investment in infrastructure, innovation and technology. Brazil, a key market for us, offers enormous potential in terms of ESG investments, and Mexico’s focus on fintech and digital banking is making exciting headways for digital transformation across the region. 

Although change in the region is not linear, the progress that is taking place on all fronts in LATAM has only strengthened Santander’s commitment to play a substantial role in the region. Having commenced trading with LATAM since 1857, we now have 76 million customers in the region, 56% more than three years ago. As we continue to invest extensively in the region under the leadership of 400 senior management teams, we will also expand on the work we did during 2020 to channel money across the region, reduce fees for SMEs, expand our scholarship programme and invest in new facilities.

If the inspiring conference speakers showed us anything, it is that the current crisis can be transformed into a crisis of resilience and sustainability. Now more than ever we need to treat climate risk seriously, and LATAM is proving an ideal place to do this. We hope that by next year’s conference, which will be held in person at Cancún, LATAM’s instrumental role within the global sustainable economy will be unquestionable.

Joao Simao will lead the new team as Global Head of Digital Solutions Group. 

The new unit will partner with global coverage and product teams, providing comprehensive support in the digital acceleration of customer’s business as well as developing value-added products and services, both in-house and in partnership with new entrants.

Madrid, 1st February 2020 - PRESS RELEASE

Santander Corporate & Investment Banking (Santander CIB) announced today the creation of a dedicated team to boost its offering in the area of Digital Solutions. This new global team, headed by Joao Simao, will collaborate closely with product teams across our platform to support our clients by providing strategic solutions as well as product and financing structures to help our clients in the digital acceleration of their business.

The new team will also develop value-added products and services, both in-house and in partnership with new entrants, in a moment where customer expectations and emerging technologies are accelerating the creation of new financial technology players.

Simao will lead the new team as Global Head of Digital Solutions, reporting to Darren Jones, Head SCIB UK and global head of Banking and Corporate Finance. This new team will elevate Santander’s strategic dialogue with clients in the area of technological and digital solutions, by developing innovative, sustainable and profitable digital capabilities and providing state of the art advisory services. It will produce also value-added products and services for clients, both in-house and in partnership with new entrants

Digital acceleration and Environmental, Social and Governance (ESG) are the defining trends for years to come. In 2020, Santander CIB successfully launched a dedicated ESG Solutions Team to help our clients in their transition towards a more sustainable business model. With the new Digital Solutions team, we are replicating the model to fully-leverage our internal expertise on the Digital arena. 

About Santander Corporate Investment Banking

Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is one of the largest banks in the world by market capitalization. Its purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising over €120 billion in green financing between 2019 and 2025, as well as financially empowering more than 10 million people over the same period. At the end of the third quarter of 2020, Banco Santander had more than a trillion euros in total funds, 147 million customers, of which 22 million are loyal and 41 million are digital, 11,500 branches and 193,000 employees.

Santander Corporate & Investment Banking (Santander CIB) is Santander’s global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication, as well as to responsible banking standards that contribute to the progress of society.

In the wake of covid-19, businesses and individuals alike have been further thrust into a digital society. To contend with the new normal, companies worldwide have placed an unprecedented focus on their digital offering to urgently meet the fast rising demand for services accessible anytime, anywhere.

In the corporate banking world alone, clients are increasingly relying on their financial institutions´ digital capabilities to conduct their day-to-day transactions and to service their more complex financial needs. The pandemic has proved that financial services providers, like Santander CIB, with robust technological abilities already in place, are well positioned to face this crisis whilst ensuring minimal disruptions to their clients.

Pre-covid-19

For many institutions in the corporate investment banking sector, the pandemic has accelerated the need to engage more deeply with their digital transformation agenda. However, even prior to covid-19, Santander CIB understood the importance of needing to implement technologically innovative processes to adapt to a changing and increasingly tech-savvy client base. Indeed, the digitally oriented client groups sought faster, streamlined, and more personalized experiences from their providers.

We identified that digital transformation was recognized as the key to driving profitability and simultaneously improving customer experience. In recent years, digital innovations such as machine learning, robotics, blockchain and cloud systems have completely altered the banking experience by providing, quicker, cost-effective and more efficient and secure banking solutions for clients and stakeholders worldwide.

It is now abundantly clear that institutions like Santander CIB - that were on the early wave of change and invested and explored new measures prior to covid-19 - are well positioned to provide their services to in an increasingly digitized corporate landscape.

Santander CIB Digital Transformation

Santander CIB recognizes that technological innovation results in mutually beneficial outcomes for both the business and its clients. Technology is one of the cornerstones on which Santander executes its strategic planning, capabilities for driving profitability, boosting customer experience and increasing customer loyalty.

In recent years, Santander CIB invested in a multi-year digital transformation. We changed our commercial model to offer greater availability and a more direct approach through digital channels, without losing our signature personal approach and services.

We used digital innovation to create an improved functional design that makes our services more comfortable to use. We have also made them more accessible, by stripping away architectural barriers and increasing the technology available, providing a more agile, personalized and customizable experience.

Another key aspect is the implementation of blockchain technology, which allows data and funds to be transferred in a completely secure manner thanks to sophisticated coding and encryption. Santander CIB is a pioneer in the use of this technology having launched the first bond with end-to-end blockchain technology. This is a first step towards a possible secondary market for tokenized securities in the future.

In addition to all of the above, Santander Group recently hired three leading technologists to help boost its strategy and digital transformation. Combined, all of these elements aim to provide our clients with an enhanced experience that caters to their needs, while allowing Santander CIB to become more competitive in the open market, deliver more cost effective services, and increase our returns.

As the digitized society continues to evolve, we are well positioned for what comes next, and we look forward to growing in tandem with our loyal clients.