Annual Integrated Report

88 Glossary CBIOS: securities issued by biofuel producers based on production and commercialization volume. Although they are available for purchase on the stock exchange by investors, their primary destination is fossil fuel distributors, which must acquire decarbonization credits to satisfy government-established targets. CDP (CARBON DISCLOSURE PROJECT): international non-profit organization that works with businesses, investors, and cities around the world to measure and understand their environmental impact. CDP SUPPLY CHAIN: a CDP initiative focused on the supply chain to better understand how global companies manage climate risks and encourage these businesses and their suppliers to act. CLAWBACK: a mechanism that may be included in senior executive contracts or compensation plans to correct inappropriate or excessively risky behavior. It allows for the seizure of bonuses paid in instances of mismanagement or fraud. CBI (CLIMATE BONDS INITIATIVE): an international non-profit organization solely dedicated to mobilizing the securities market for climate change solutions. ENDOWMENT: a permanent fund consisting of capital from individual and/or legal entity donations that is invested in the financial market by a professional manager, with investment returns channeled to programs related to the social purpose of the donations. ESG: acronym for Environmental, Social, and Governance - a concept that encompasses the set of practices and principles adopted by companies in the Environmental, Social, and Corporate Governance domains. ESG-LINKED LOAN: a loan operation in which the financial terms are contingent upon the attainment of specific environmental and/or social targets (under the ESG concept) that are aligned with the strategic goals of the borrowing company over a specified period. In this loan type, the contracted amount may be used for any company-related purpose. GRI (GLOBAL REPORTING INITIATIVE): an independent international organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption prevention. GREEN BONDS: securities issued to raise capital for specific investments in sustainable assets and projects with a positive social and environmental impact. INTEGRATED REPORTING AND CONNECTIVITY COUNCIL (IRCC, FORMERLY INTERNATIONAL INTEGRATED REPORTING COUNCIL): global coalition of regulators, investors, companies, standard-setting bodies, accounting professionals, and NGOs. Its purpose is to promote communication on value creation as the next step in the evolution of corporate reports. LEED (LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN): a sustainable building certification established and awarded by the United States Green Building Council (a non-governmental organization), with the purpose of promoting and encouraging sustainable construction practices that meet green construction criteria. MALUS: a mechanism that enables the institution to reduce, in whole or in part, the amount of deferred variable compensation in cases of non-compliance with internal regulations and excessive risk exposure. NPS (NET PROMOTER SCORE): an international methodology for measuring consumer satisfaction and loyalty in which customers are asked to rate their likelihood of recommending the company's services on a scale from zero to ten. SDGS (SUSTAINABLE DEVELOPMENT GOALS): a set of 17 objectives established by the United Nations General Assembly in 2015 that encompass the environmental, economic, and social dimensions of sustainable development in an integrated and interrelated manner. GLOBAL COMPACT: United Nations (U.N.) initiative that encourages companies to adopt corporate social responsibility and sustainability policies. EQUATOR PRINCIPLES: a set of social and environmental criteria for voluntary adoption by financial institutions worldwide, as referenced in the International Finance Corporation's Performance Standards on Social and Environmental Sustainability and the World Bank Group's Environment, Health, and Safety Guidelines. PCAF (PARTNERSHIP FOR CARBON ACCOUNTING FINANCIALS): an initiative that supports banks in assessing and disclosing GHG emissions associated with financial activities, assigning varying scores based on the quality of data used by the financial institution, ranging from 1 - highest data quality to 5 - lowest data quality. Renovabio: a federal government program designed to promote biofuel production (ethanol, biodiesel, biomethane, biokerosene, and second-generation biokerosene, among others) in the Brazilian energy matrix and contribute to mitigating carbon emissions in the national transportation matrix. SCIB (SANTANDER CORPORATE & INVESTMENT BANKING): the global division of Santander that provides support to corporate and institutional clients. SUSTAINABILITY-LINKED BONDS: debt securities tied to the company's environmental, social, or governance objectives. Unlike Green Bonds, this instrument does not require the allocation of funds to a specific project. TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES ("TCFD"): a task force that brings together several organizations with the aim of developing a common standard for companies to measure and disclose climate-related financial risks. Annual Integrated Report Table of Contents Introduction Value Creation | Economic Performance | Environmental Social Governance Appendices Santander 89

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