Annual Integrated Report

40 Annual Integrated Report Table of Contents Introduction | Value Creation | Economic Performance | Environmental | Social | Governance | Appendices [2-25] Environmental Management TWe are committed to continuously enhancing the environmental efficiency of our operations. To this end, we make ongoing investments in cutting-edge technologies and the implementation of best practices in natural resource management. Over the past few years, we have been resolutely pursuing two public targets related to this theme: using only renewable energy sources for 100% of our operations by 2025 and eliminating single-use plastics from our buildings and branches. The progress made is tangible. The plastic goal was fully achieved in 2021. In April 2022, we reached 100% renewable energy consumption in our stores and buildings within our operational control. This milestone was accomplished through Distributed Generation ("DG") projects, energy procurement in the Free Market ("150"), and acquisition of International Renewable Energy Certificates ("iRECS"). It is crucial to underscore that regarding other service locations (such as mini branches) situated within condominiums or industrial facilities, we do not manage energy consumption. Hence, this consumption is not included in our targets. Beyond our specific endeavors to achieve these goals, we are continuously improving our management model and daily practices, with a focus on greenhouse gas ("GHG") emissions, energy and water consumption, and waste management. We have been carbon neutral since 2010 and have successfully achieved our objectives of eliminating single-use plastics and utilizing 100% renewable energy sources in our stores and buildings. Emissions measurement and reporting [305-5] Our first emissions inventory was conducted in 2009. Since then, we have utilized the information gathered each year to define and guide our mitigation and offsetting strategies. Since 2011, we have been responding to the Carbon Disclosure Project ("CDP"), the preeminent database on corporate practices pertaining to climate change, emissions, water, and forests. Our emissions history is readily available on the Brazilian GHG Protocol Public Emissions Registry. See our answers on the CDP website and Santander's sustainability webpage. Over the past few years, we have made our operations more efficient by reducing fuel consumption, treating waste in a more sustainable manner, creating programs to lower consumption of goods such as paper, minimizing travel, and increasing the use of renewable energy sources. These initiatives have contributed to decreasing our total emissions. [305-1, 305-2, 305-3] Emissions in CO₂ equivalent metric tons (tCO₂e) •We continued to adopt measures aimed at reducing emissions related to employee commuting, such as expanding the use of video conferencing, controlling ground and air travel, and providing bike racks for those working at the Santander Headquarters in the capital of São Paulo and the Data Center in Campinas, located in the state's countryside. • We concluded the year with at least 20 distributed generation plants connected to ensure the supply of our stores with renewable energy. Through the measures implemented, in December 2022, the energy matrix of our stores and buildings' was composed of 13% hydropower, 9% solar power, 6% biogas, 2% gas cogeneration, 34% from the free market, and 36% from iREC certificates. 2022 2021 2020 Scope 1 2,695.70 6,434.25 13,037.47 Change (2022 x 2021) -58.1% Scope 2 1,133.55 27,765.03 8,495.73 -95.9% Scope 3 21,332.26 28,354.63 12,631.54 -24.8% In addition to the GHG Protocol methodology, which enables us to compare our results with our counterparts in Brazil, we also employ a global methodology from the Santander Group ("Huella Ambiental") that measures GHG emissions from all units. The total emissions for Brazil calculated by the Group using this global methodology amounted to 19,728 tCO, (scopes 1, 2, and 3). These emissions will be offset by Santander Brasil in 2023. [305-5] Emissions mitigation Apart from measuring and monitoring, we have instituted several initiatives to mitigate the greenhouse gas emissions associated with our operations. In 2022, we undertook a host of actions, including the following: • We inaugurated a solar power plant on the rooftops of two of our administrative buildings (Digital Generation and Radar). The installation comprises no less than 3,000 solar panels, which generate enough energy to power nearly 800 homes or 100 small shops. Our projections indicate an annual generation of 1,500 MWh. . The energy matrix of the Data Center (situated in Campinas) was converted to a renewable source. • We began manufacturing all our new SX and Elite cards (which account for 80% of our card base) with recycled plastic, resulting in a reduction of conventional plastic usage in our operations by 85%. 24% Renewable Energy Matrix¹ 54% Plants² i50 22% iRECs 'Considering the buildings and stores over which we exercise operational control. 2Considering CGH, Biogas, Solar Energy, and Gas/Cogeneration Seals and certifications The Headquarters, Radar, and Data Center buildings are ISO 14001-certified and recognized by external auditors, having undergone an annual maintenance process. We also possess the LEED (Leadership in Energy and Environmental Design) certification at our Headquarters, Data Center, and Granja Viana store in Cotia (state of São Paulo), which was the first project in South America to obtain this certification. This seal certifies the sustainability and environmental impact reduction of buildings. In November 2022, the Data Center was awarded the operational maturity certification by ICOR, with the highest seal of recognition for the energy efficiency of its facilities. [305-5] Emissions offsetting We have been carbon neutral since 2010 by fully offsetting all our scope 1 (direct responsibility) and scope 2 (indirect responsibility, arising from electricity consumption) emission sources. From 2009 to 2013, our offsetting was achieved by planting native trees in degraded areas through two projects: Santander Forest and Ecological Corridor. Since 2013, we have been purchasing carbon credits from projects authorized to issue Verified Emission Reductions ("VERS"). We have adopted our own methodology for selecting these projects, ensuring social and environmental benefits for the regions in which they are located. Since 2021, credit acquisition in Brazil has been aligned with Santander's global methodology, which guides the Group's carbon neutral strategy across all its business units. The methodology is comparable to Brazil's, operating with certified projects. We seek to engage our suppliers in addressing climate-related challenges. Ever since we joined the CDP Supply Chain in 2017, we have encouraged our suppliers to report information on their climate management practices. In 2022, we had a 64% response rate, representing a 31-percentage point increase from the previous year. Westas Santander 41