2013 Annual Report
CLIMATE GOVERNANCE &
ENVIRONMENTAL MANAGEMENT
The performance of Santander Brazil to this effect
is extremely wide-ranging. It ranges from social/
environmental credit facilities (for the implementation
of solutions to increase energy efficiency and to improve
waste treatment, among other aspects) to the use
of social and environmental screening as a condition
for financing infrastructure projects and ownership
investment in low-carbon business such as wind farms
(for further information see infographic on page 116).
20%
REDUCTION IN CO2 EMISSIONS
AND POWER CONSUMPTION
BY 2015
Sunset at the company Cerâmica Irmãos Fredi,
a generator of carbon credits.
104,2
TONS
WAS THE TOTAL OF CARBON
CREDIT PURCHASED BY SANTANDER
IN 2013
THE ENVIRONMENT
AS A RESPONSIBILITY
Climate governance and
environmental management go
beyond the direct impacts generated
by the Bank's operations
In a scenario of climate change, one of the main challenges
faced by large corporations is the appropriate environmental
management of their activities, thereby contributing to the
promotion of a low-carbon economy.
The environmental impact caused by major banks such
as Santander Brazil can be so described: direct impact, arising
from operations, and indirect impact, arising from the activities
the Bank finances or invests in.
Committed to the fight against climate change, Santander
conducts an efficient environmental management of its direct
and indirect impacts. As such, the Bank uses a model which
prioritizes a reduction in consumption and offsetting greenhouse
gas (GHG) emissions in both its own operations and those
of clients and third parties.
Indirect impact G4-EC2
As an intermediate link in the production chain, banks have
the opportunity to support and encourage businesses to adopt
practices of sustainability as a means of helping reduce and offset
the impacts caused by their activities.
CLIMATE CHANGE AND
THE FINANCIAL SECTOR
*By Tasso Azevedo
The planet receives an average of 342
watts per m² (W/m²) per second of energy
from the sun. Part of this energy is
reflected by the atmosphere and returns
to space, whereas the other part circulates
between the atmosphere and the Earth's
surface and is then dispersed beyond the
planet. The main factors for the
accumulation of energy in the atmosphere
are clouds and the so-called greenhouse
gases (GHGs). These gases are capable of
reflecting part of the radiation striving to
reach space back to the Earth's surface.
Without the GHGs, the average
temperature of the Earth would drop from
15°C to -18°C and life as we know it
would cease to exist.
Throughout the history of the planet,
there are times when the concentration of
greenhouse gases in the atmosphere
increases naturally, and other times when
it diminishes naturally, always at intervals
of thousands of years. However, the
volume of GHGs we are emitting into the
atmosphere is at least four times that
arising from natural processes. The
concentration of CO2 (the main GHG) in
the atmosphere reached 400 parts per
million (ppm) in 2013, whereas the figure
for the last 800,000 years has always
ranged from 250 to 300 ppm. As such,
the average temperature of the planet has
risen one degree since the beginning of
the industrial age.
Research has revealed the impact of
climate change on the economy, health,
safety and well-being of the global
population, particularly in coastal areas
and regions deprived of infrastructure. The
consequences of the change in energy
balance include an increase in the
temperature, the expansion of the oceans
and melting of glaciers, in addition to an
increase in the frequency, intensity and
duration of extreme events such as
droughts, floods and periods of harsh
winter. Effects including changes in rainfall
patterns affect the production of
hydroelectric power, agriculture and the
availability of drinking water.
The emission of a ton of carbon anywhere
on the planet affects climate change in the
same way, but the impact these changes is
distributed in an extremely uneven
manner. As a rule, the most vulnerable
populations are not responsible for
large-scale emissions of GHGs. A
concentrated global effort is required in
order to reduce GHG emissions and to
prepare both cities and the countryside to
adapt to ongoing climate change.
International negotiations towards signing
a new global agreement in 2015 are vital
to the creation of a sense of purpose and
direction. This can be achieved by means
of a series of global targets to guide the
implementation of mitigation and
adaptation measures throughout the
planet. Nevertheless, the real changes will
be brought about by actions promoted by
local governments, businesses, civil
organizations and society in general.
It is crucial that financial institutions
understand and acknowledge the impact
of climate change on their decisions in
relation to investment, credit and
insurance processes, not only as a risk
factor, but also as an opportunity to help
create an economy based on low
greenhouse gas emissions. Even more so
due to the fact GHG emissions are sure to
be taxed in the near future.
*Tasso Azevedo is a social and environmental entrepreneur and a consultant in sustainability, forestry and climate change.
110 Annual Report 2013
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