Annual Integrated Report

The recent efforts to eradicate illegal deforestation add to a longstanding history of engagement in this matter. Sector-specific initiatives • We are co-founders of the Round Table on Responsible Soy ("RTRS"), which established the first certification for responsible soy production • We are co-founders and board members of the Sustainable Livestock Working Group ("GTPS"), a multi-sector initiative aimed at promoting best agricultural practices in Brazil • We participate in Febraban's forest and agribusiness working groups • We do not engage in business with customers who extract, process, or split native timber without a green seal certification ("FSC"). engage in activities that promote, either directly or indirectly, 3 engage in activities that promote, 4 manufacture, distribute, or sell anti-personnel mines, cluster munitions, nuclear, chemical, or biological weapons, or ammunition containing depleted uranium. In addition, we closely monitor the financing operations conducted in the following industries: Industry Portfolio (R$) Weapons and Ammunition² Alcoholic Beverages Fossil Fuels and Derivatives³ 2,421,257 786,328,140 7,048,023,588 Annual Integrated Report Table of Contents Introduction | Value Creation | Economic Performance | Environmental | Social | Governance | Appendices Assessments by segment 2022 Wholesale segment¹ Companies 3 segment (Retail)¹ Projects² Collaterals³ 8031 815 46 116 Real estate loans4 Flagged by Compliance5 Agribusiness operations 117 7 487 Total 2,391 % of the overall portfolio¹ 0.0%6 0.2% 1.4% In general, when a case of low severity arises, we act as promoters of good practices and condition the business and relationship to improvements. In more sensitive situations, the transaction may be denied, and the business relationship terminated. 'This figure represents the absolute count of economic groups assessed, which may comprise dozens of CNPJs eligible for Social and Environmental Risk ("SER") assessment. Further assessment details, as well as historical analysis indicators, including projects evaluated in accordance with the Equator Principles, are available on our Sustainability website. Properties used as collateral for client transactions include a social and environmental component in their valuation reports. If any areas of concern are identified, the Social and Environmental Risk unit must issue an opinion. 4Social and environmental risk assessments for Real Estate Loans may be conducted at the time of project financing (Business Plan). The reported amount refers to the Business Plan. "Wholesale customers who are beginning a relationship with the Bank undergo a thorough analysis that encompasses social and environmental aspects by the Compliance department. If any areas of concern are identified, the Social and Environmental Risk unit must issue an opinion. Specific cases of agribusiness operations with social and environmental risks (e.g., suspensions, indigenous lands, Conservation Units) detected through a proprietary tool developed by the Bank. 22 120 57 2.192 Industries sensitive to deforestation • We conduct an annual assessment of the social and environmental practices of our clients engaged in beef processing, as well as the sale of soy and timber. Companies with annual revenues exceeding R$ 200 million • We adhere to the global Environmental, Social, and Climate Change Risk Management ("ESCC") policy, which prescribes special consideration for activities that may have potential impacts on conservation units, as well as the verification of any extraction and/or sale of native tropical timber. • We have implemented procedures and controls outlined in the Social, Environmental and Climate Risk Policy ("PORSAC") to verify legal compliance and best practices of all corporate clients with activities in Brazil. Approximately 2,000 assessments are conducted each year, which includes businesses with operations in the Amazon, such as major grain producers and beef processors. Special restrictions Our policies specify the industries and customers with whom we must not do business due to the social or environmental impact of their activities. We do not engage in any business relationships with companies that: Health Hazardous4 Tobacco 168,421,151 266,255,576 Legalized Gaming and/or Betting5 18.865 0.0%6 0.1% 0.0% 6 Total 8,271,468,577 1.7% "Votal loan portfolio balance. We have a specific policy for the defense industry, establishing criteria for activities related to this sector. This category includes activities such as production and/or sale of fossil fuels and their derivatives. 4Industries whose products, when misused or abused, can lead to chronic diseases, such as cholesterol or hypertension, for example. 5Games that can lead to addiction in case of unhealthy habits. Banco Santander has policies restricting relationships with unlicensed bookmakers or "gambling", maintaining relationships only with licensed entities. "Value close to zero We do not invest in these industries, a restriction that applies to our controlled and affiliated companies, categories over which Banco Santander Brasil has control and whose accounting balances are therefore consolidated into its Financial Statements in accordance with the consolidation accounting rules for Financial Statements set forth by the Brazilian Central Bank. Social and Environmental Risk in 2022 In 2022, we conducted 2,391 Social and Environmental Risk assessments, which were classified according to the table below. Out of this total, 2,192 received a favorable opinion: See examples of how social and environmental risk assessments have been implemented in 2022. The topics may comply with the Bank's Social and Environmental Risk Policy, the Principles of the Equator, the National Pact for the Eradication of Slave Labor, or any combination of these commitments Industry Real Estate Loans Theme Addressed Construction of a property development on a strip of sand Approved Approved with reservation Declined Under review Outcome Social and Environmental Risk assessment results Unfavorable opinion following a thorough analysis of physical risks associated with climate change, such as rising sea levels, heavy rainfall, and landslides.. Agribusiness Manufacturer (auto parts) Insufficient traceability of indirect cattle suppliers in Amazonian meatpackers Civil inquiry into working conditions at a manufacturing facility Favorable opinion with restrictions. To obtain credit approval, the meatpackers began monitoring their indirect suppliers and committed to monitoring both their direct and indirect suppliers until December 2025, with the aim of ending illegal deforestation in the supply chain. Favorable opinion. In response to an inquiry on the subject matter, the client put forth a comprehensive action plan and mitigating measures, including equipment adjustments, employee training and upskilling, and the establishment of a health and safety team within the organization. 2 extract, process, or split native timber without green certifications - Forest Stewardship Council ("FSC") or Forest Certification ("Cerflor") operate in the extraction or manufacturing of asbestos- containing products 84 Cyber risk and information security In an increasingly digital world, we deem the management of cyber risk and information security to be material topics for our business. In view of this, we have adopted a governance structure that adheres to the industry's best practices and protocols. Our cyber security policies and processes are approved by the Board of Directors and monitored by this and other bodies, including the Integrated Operational Risk Committee, Operational Risk Forum, and Audit Committee. In these forums, the responsible department presents the leadership with security guidelines and updates on ongoing investments and projects. Santander 85