Annual Integrated Report

Annual Integrated Report Table of Contents Introduction Value Creation | Economic Performance Environmental Social Governance Appendices classification, we reached R$ 14.8 billion in portfolio transactions, in addition to approximately R$ 4.3 billion in mobilized resources from market operations and advisory services. Based on this classification, sustainable businesses represented 3% of our overall loan portfolio in 2022. R$ 32.2bi Was the total we facilitated in sustainable businesses during 2022 27 2020 21% Evolution (R$ billion) 52 22 32 -37.5% 2021 2022 Disbursement % by type of operation Prospera Issuance of Green Bonds 50% 12% Other Sustainable Transactions Renewable Energy Project Finance - Energy 4% 13% Check out the themes and industries that drove our sustainable business generation in the year: Renewable Energy Since 2009, we have been responsible for structuring and funding over 30% of all wind energy projects implemented in the country, according to data from the National Electric Energy Agency ("Aneel"). We are also major financiers of other renewable energy sources, including solar power generation and small hydroelectric plants ("SHPS"), as well as energy transmission projects that strengthen the National Integrated System ("SIN"), connecting these sources to the main consumer markets. We also participate in the supply chain through, among other things, equipment importation guarantees and credit lines. In retail, we stand out for our financing of distributed solar generation through Santander Financiamentos, which provides specific credit lines for the purchase of photovoltaic panels for individual, corporate, and agricultural clients. In 2022, the total amount of new financing granted for renewable energies, considering both Retail and Project Finance, reached R$ 5.3 billion. The year 2022 also saw the launch of Energia+ Santander, an e-commerce platform designed to streamline the sale of photovoltaic systems. The platform generates projects based on the reported energy consumption and geolocation of the property, considering solar incidence and energy distributor characteristics. Customers can also simulate financing options, making it a strategic project for increasing the sales volume of solar products offered by our Consumer Finance unit. Responsible agribusiness In recent years, we have deepened our partnership with Brazilian rural producers as they transition towards a more responsible, efficient, and productive agriculture. We provide these customers with a portfolio of products to fund low-carbon practices and more efficient equipment. We were the biggest player in the on-lending of funds through the BNDES' ABC Program (Low Carbon Agriculture), which focuses on initiatives that contribute to mitigating greenhouse gas emissions and other environmental impacts stemming from agricultural activities, such as pasture recovery, no-till farming, and organic production systems. Along with our own resource operations, we disbursed R$ 394 million through these lines in 2022. New sustainable finance instruments Generating business through innovative sustainable finance instruments has been yet another action front:: Capital Market Operations Santander continues to maintain a prominent position in the issuance of ESG debt securities in both local and international markets. These transactions are structured in accordance with the best market practices (such as ICMA principles) and may have a dedicated use of funds or be tied to sustainability key performance indicator ("KPI") targets. In 2022, we participated in 14 operations of this nature. CBIOS The National Biofuel Policy, RenovaBio, promotes the decarbonization of Brazil's transportation energy matrix by setting emission reduction targets for the sector. To support this transition, the country established its first regulated carbon market in 2020, where decarbonization credits ("CBIOS") are traded. These credits are issued by certified biofuel producers and importers and can be purchased by individuals or companies seeking to offset their carbon dioxide emissions. Each CBIO represents one metric ton of CO2, that is prevented from being released into the atmosphere. We are pioneers in the underwriting of CBIOs transactions, having accounted for 54% of the volume underwritten in 2022, operating in both the primary and secondary markets. [3-3] Material topic: ESG finance Santander Asset Management Our commitments and initiatives towards environmental, social, and governance issues extend to the management of third-party resources. In Brazil, this role is fulfilled by Santander Asset Management ("SAM"), an affiliated company that has been operating in the national market for 25 years, offering a distinctive range of investment products, including fixed income, equities, multi-market, private pension, real estate, and infrastructure. SAM caters to a broad spectrum of customers, spanning from individuals (retail and private banking) to business entities (companies, universities, SCIB, and corporate) and institutional investors (pension funds, RPPS, governments, and institutions). The following are a few figures from our Asset: • 5th largest asset manager, with assets under management totaling R$ 396 billion in 2022 ⚫ Largest foreign asset manager operating in Brazil Approximately 590 investment funds ⚫717.5k clients ⚫Pioneer in the field of sustainable investments in the country ESG SAM provides our clients with investment options that integrate sound social, environmental, and corporate governance practices into their business strategies. With 20 years of experience in responsible investing, the company has been a signatory to the Principles for Responsible Investment ("PRI") since 2008. In 2022, SAM made strides towards aligning with the Group's Net Zero commitment and to establish a local commitment to integrate this goal into our investment processes and analyses. Today, the manager's portfolio includes two funds with an ESG profile: Go Global Equity ESG and Ethical Ações Sustentabilidade Special. The Ethical Fund was among the early adopters of the ESG methodology for investment analysis, implementing it since its inception in 2001. In 2020, the fund underwent an overhaul of its analysis methodology, adopting the global SAM methodology. Additionally, governance over the Asset's ESG processes has been revised, and the Ethical Fund is now subjected to monthly critical assessments by SAM's LATAM ESG Committee. This committee comprises ESG and investment management teams from all regions of Latin America where SAM operates. Learn more about SAM's policies and ESG Papers in the responsible investments section of the website. [2-23; 3-3; 304-2] Material topic: Portfolio alignment to achieve net-zero emissions by 2050 Amazon We are committed to safeguarding and restoring the Amazon rainforest, while simultaneously promoting sustainable development, which is crucial in tackling climate change and preserving biodiversity. We reinforced our commitment to fulfill the Amazon Plan agenda (see more below) and made progress in our efforts to achieve zero illegal deforestation with meat supply chain customers by 2025. Amazon Plan [2-24] Launched in 2020, the Amazon Plan is a banking alliance with Itaú and Bradesco with the goal of fostering sustainable development in the region. In 2022, we restructured our approach and narrative, with a focus on three strategic drivers: Sustainable Business, Climate Change, and Social Impact; and on two priority chains: the meat chain and the bioeconomy & sustainable crops. The practical effect of this change will be the focus on the ten measures outlined in the Amazon Plan, with a priority on transforming these chains, which are crucial for reducing deforestation pressure and generating economic alternatives for the local population that contribute to the maintenance of the standing forest. The 10 actions of the Amazon Plan ⚫ Zero deforestation in the meat supply chain • Encouraging sustainable crops • Promoting the development of an infrastructure for sustainable transportation • Enabling investments in basic infrastructure Providing green financial instruments ⚫ Capturing climate information for credit and investment policies • Financial guidance and inclusion • Land regularization • Socioeconomic development • Fostering the bioeconomy Amazon HUB In 2022, we established a specialized unit dedicated to promoting sustainable development in the Amazon region. This hub serves as a central point that connects and directs our efforts in the Amazon, influencing and supporting the formulation and implementation of the priorities we have selected for the region. The hub generates value for our operations and customers in the following ways: 34 Santander 35