Santander Asset Management
Santander Asset Management is an international asset management firm with 10 offices globally across Latin America and Europe. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
27% of total AUM (USD $51.5 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio decarbonisation reference baseline
Portfolio coverage baseline
Financial instrument data to be provided
Portfolio decarbonisation reference target
50% portfolio emissions in intensity terms
GHG scopes included:
We are using Scope 1 & 2 to determine and reach our targets of 2030 and 2050 as noted above. We aim to incorporate and disclose Scope 3 based on data quality and availability in the future.
Net Zero Investment Framework
IPCC 1.5°C P1 and P2 emissions pathway with no or limited overshoot
Proportion of AUM committed:
Certain asset classes are initially out of scope of our target due to methodological and data limitations. This includes sovereign, municipal and regional authority bonds, cash, derivatives, green bonds, alternatives and illiquid assets. The AUM in scope has been identified based on the PAII NZIF. As new methodologies become available and data granularity and coverage improves, additional financial instruments will be included.
Private client mandates are out of scope initially, subject to client consent. We are proactively engaging with our asset owner clients providing expertise and analytics on net zero investing and encouraging them to adopt net zero criteria in their mandates, with the aim to increase the proportion of clients’ mandates to be managed in line with net zero goals.
Policy on coal and other fossil fuel investments:
The scope of application of this policy will be all Santander Asset Management’s investment except for private client mandates, sovereign bonds, municipal and regional authorities’ bonds, cash, derivatives, liquid alternatives and illiquid assets.
Target setting: In addition to portfolio decarbonisation target, and with the goal of supporting real economy transition, we have been closely working with our main data provider to develop a custom-built solution to assess the alignment of assets according to the methodological approach defined by the Net Zero Investment Framework. This tool will leverage different sources of data to evaluate the six core criteria defined by the framework in the first phase, progressively incorporating the additional criteria 7-10 in the second phase.
The results of this assessment will be the basis for defining our asset level targets which will be set by end of Q4 2022.