Annual Integrated Report

8 [2-3; 2-5] Annual Integrated Report Table of Contents Introduction | Value Creation | Economic Performance | Environmental | Social | Governance | Appendices About the report At Santander, we are committed to presenting a clear and transparent portrayal of our activities to society. To this end, we publish an annual report constituted of two distinct documents that complement one another, thereby enabling our stakeholders to conduct multifaceted analyses from different perspectives: Annual Integrated Report We have incorporated elements of the Integrated Report, with a focus on the impact and value creation of our operation for a variety of stakeholders and the environment. The material also includes the Basis of Preparation, which explains the sustainability indicator concepts, as well as the boundaries and assumptions used in this Annual Integrated Report for 2022. Financial Statements The financial statements present the financial results for the period, according to established accounting standards. Good practices in the Report With the aim of ensuring technical precision and comparability to the Report, we have crafted this document based on the foremost standards for sustainability initiatives and corporate reporting. Throughout the process, we drew upon four key sources for guidance: ⚫ Santander's materiality assessment ⚫ Global Reporting Initiative (GRI) standards • Integrated Reporting and Connectivity Council (formerly known as the International Integrated Reporting Council - IIRC) ⚫ United Nations Sustainable Development Goals (SDGs) With the purpose of enhancing comprehension and cohesion, we added references throughout the document to indicate which standards or principles are being addressed in each section. As in previous years, at the conclusion of this document we have put together a glossary of technical terms and the GRI Content Index, with references to the topics addressed. If you have any questions or would like to suggest additional topics and indicators, please contact us at sustentabilidade@ santander.com.br. Capital glossary $ In compliance with the guidelines set forth by the Integrated Reporting Framework, this document thoroughly examines the capitals that are utilized or impacted by our operations. For greater clarity, we provide a brief exposition of the meaning of each capital, as outlined below. Financial Capital: It refers to the capital reserve of an organization, encompassing liquid assets such as cash, securities, certificates, and other negotiable instruments that can be readily converted into cash. Human Capital: it refers to the competencies, skills, and expertise of individuals, as well as their motivations to innovate. It encompasses the alignment with and support for governance structures, risk management, and ethical values, in addition to the ability to execute an organization's strategy. Intellectual Capital: it refers to intangible organizational assets that are knowledge-based. It encompasses intellectual property, such as patents, copyrights, software, rights, and licenses, as well as "organizational capital," such as systems, procedures, and protocols. Manufactured Capital: it refers to the physical assets that have been manufactured and are available to an organization for use in the production of goods or the provision of services, encompassing buildings, equipment, and infrastructure. Natural Capital: it refers to all environmental resources and processes that provide goods or services supporting an organization's past, present, and future prosperity. This encompasses water, land, minerals, forests, biodiversity, and ecosystem quality. Social and Relationship Capital: it refers to the intricate web of relationships that exist within and between communities, stakeholder groups, and other networks, as well as the ability to exchange information to enhance both individual and collective well-being. Understand the icons displayed in this report: - GRI [102-1; 102-50; 102-53; 102-54] 1 NO POVERTY - SDG - IIRC et $ ZERO HUNGER 3 GOOD HEALTH 2 SSS AND WELL-BEING Material Topics: Portfolio alignment to achieve net-zero emissions by 2050; ESG risk management, incorporating climate; ESG finance; Equality, diversity, inclusion, and [2-14; 2-23; 3-1; 3-3] well-being; Financial well-being of the client and responsible consumption; Productive inclusion and empowerment; Operational and business resilience; Culture, Conduct, and Responsible Banking; Privacy, data protection, cyber security, and technology; Advocacy Materiality By utilizing the materiality matrix, we have identified the most significant topics for the sustainability of our business. This enables us to steer our operational strategy and provides the foundation for creating our annual report. We conduct periodic revisions of this study to ensure that materiality remains dynamic and accurately reflects the most significant ESG risks and opportunities in the context of global change. In 2021, we devised a groundbreaking materiality framework by combining GRI standards with Santander Group methodologies. This framework incorporates the concept of dual materiality, enabling us to evaluate ESG factors from two distinct vantage points: . How these themes affect the financial performance of the company and its business value over the long haul; and ⚫ In what way the company's endeavors concerning these matters affect society and the environment. In our Integrated Report, we utilize the concept of materiality to determine the short-, medium-, and long-term themes that may have an impact on the company's value creation and, therefore, require disclosure. Our matrix underwent an update in 2022, following inputs from four executives, including our CEO and strategic suppliers. This process led to the emergence of two new crucial material themes ESG Culture and Advocacy - further reinforcing our engagement and positioning in environmental, social, and governance matters. Altogether, we have identified 17 pertinent themes for the Bank, of which 11 are deemed critical and constitute the material topics highlighted in this report. Take a look at them and how they relate to the Sustainable Development Goals (SDGs). [3-2] 1. Portfolio alignment to achieve net-zero emissions by 2050 (correlated with SDG 13) Assessing the current carbon footprint of our portfolios and their convergence towards the Paris Agreement by employing climate methodologies, ensuring alignment with sector-specific plans for mitigating climate change, and establishing goals and implementing measures to steer portfolios towards achieving neutral greenhouse gas emissions. 2. ESG risk management, incorporating climate (correlated with SDGs 12 and 13) Ensuring that our risk management framework incorporates environmental, climate, and social risks (such as human rights) of our clients and operations, reflecting them as drivers with an impact on all types of risks, policies, and procedures. 3. ESG finance (correlated with SDGs 2, 6, 7, and 13) Acting as a supportive bank and guiding agent for businesses in the fair transition towards a low-carbon economy, promoting the integration of environmental, social, and governance factors into our clients' operations and supporting the growth of sustainable financial products that foster social development, responsible consumption, and markets such as carbon. 4. Equality, diversity, inclusion, and well-being (correlated with SDGs 3, 5, and 10) Promoting diversity and inclusion internally, with clients and society at large. Ensuring equality, fair health and emotional/financial well-being, as well as mutual respect among employees, with zero tolerance for harassment and discrimination. 5. Financial well-being of the client and responsible consumption (correlated with SDGs 4, 8, 9, and 12) Providing support to clients and local economies by offering products and services that cater to their needs and promote an ESG culture, while encouraging responsible consumption. Treating them as individuals in a direct and fair manner. Fostering innovation and the use of digital technologies to maximize access to products and services and enhance customer satisfaction. 6. Productive inclusion and empowerment (correlated with SDGs 1, 5, 8, 9, 10, and 11) Designing, developing, and delivering products and services to all potential clients, ensuring access to the financial system, financing that meets their credit needs, and promoting resilience through financial literacy. Fostering employability, entrepreneurship, and income generation through business. 7. Operational and business resilience (correlated with SDG 9) Ability to respond to a dynamic environment, despite adverse events, while maintaining business resilience and advancing in accordance with strategic priorities. 8. Culture, Conduct, and Responsible Banking (correlated with SDGs 8 and 16) Ensuring exemplary conduct of employees and the institution, which includes a simple, personal, and fair work environment, integrated risk management, reporting mechanisms, transparent employee conduct towards clients, and best-in- class ethical behavior policies. 9. Privacy, data protection, cyber security, and technology (correlated with SDGs 8 and 9) Managing risks associated with the collection, storage, and use of personally identifiable information; the impacts of increased technological reliance on artificial intelligence; and the commercialization of carbon credits, green finance, and ESG products through crypto assets. 10. ESG Culture (correlated with SDGs 8 and 12) Promoting and disseminating the ESG culture both internally and externally through effective engagement and communication. 11. Advocacy (correlated with SDG 17) Supporting the advancement of the agenda and initiatives aimed at influencing public policies that foster sustainable development and facilitate the delineation of roles and responsibilities between various actors. The management of these material topics is described in detail throughout the Report. Nonetheless, the management process for all issues is the same: we have action plans, internal controls, and Santander 9