Annual Integrated Report slide image

Annual Integrated Report

78 How Santander Open Channel works Open Channel received 1,741 reports in 2022, a decrease of 31% from the previous year. The following is a breakdown of the data: [2-26; 205-1] • Annual Integrated Report Table of Contents Introduction Value Creation | Economic Performance | Environmental Social Governance Appendices The following situations fall within the scope: Non-compliance with internal regulations or applicable laws; • Behavioral deviations (threats, conflict of interest, humiliation, discrimination, misuse of Bank property, and negligence, among others); . • Inadequate management; [3-3; 205-2] Mandatory training¹ Our conviction is that an organization can only foster bonds of trust when it upholds principles that are widely known and Online course 2022 2021 2020 Change (2022 x 2021) Content 1 The complaints are submitted through either the designated email address, [email protected], ⚫ Information security; or the electronic form accessible on the intranet for employees. 2 3 The Compliance department evaluates the received records before redirecting them to the appropriate parties for investigation and a decision regarding the adoption of necessary measures Information pertaining to the channel is compiled into reports, as mandated by regulatory authorities. The content is then reported to the Audit Committee and approved by the Board of Directors. To ensure that all employees are aware of our policies and codes, we have instituted mandatory online courses. • Internal fraud, including but not limited to those involving financial statements, internal controls, internal audit or influence on external audits, password sharing, document tampering, misappropriation of Bank or customer assets, signature forgery, sale of Bank products without customer authorization, target tampering, theft, robbery, and electronic point, among others; • Moral and/or sexual harassment; • Physical integrity risks; • Corruption and/or bribery and practice of detrimental acts, as defined in the anti-corruption law; Anti-competitive practices that may violate any Brazilian laws, including but not limited to Federal Laws No. 9,279/1996, No. 12,529/2011, and No. 8,137/1990; • Improper use of confidential or strategic information; [205-1; 3-3] Preventing and combating corruptiont 96.5% 99.1% 99.1% -2.6p.p. New Code of Ethical Conduct 98.8% 97.8% 99.0% 1.0p.p. Money laundering prevention 98.6% 98.9% 99.1% -0.3p.p. Antitrust - Introduction to Competition Law 99.4% 99.6% 99.2% -0.2p.p. Fraud Preventiont 99.3% 99.5% 96.7% -0.2p.p. Reports Received 1,741 2022 Total Reports 1,741 Validity 72% Anonymous 16% Response Time 29 days Conflict of Interest 99.2% 99.4% 96.7% -0.2p.p. Well-founded 76%¹ Unfounded 21%¹ 2021 2,526 83% 8% 29 days In progress 5%² Inconclusive 3%¹ Corporate Defenset 98.7% 98.2% 99.1% 0.5p.p. 'Calculation based on the total number of reports received and completed through 12/31/2022. 2Calculation based on the total number of reports registered in our system through 12/31/2022. 4% 19% The Compliance department has established a preliminary timeline of five business days for the report's investigation. However, depending on the complexity, determination, and implementation of measures, the time required for addressing the allegations may be extended. In 2022, the average completion time was 29 days, with no allegations of wrongdoing involving senior leadership. We adhere to a classification system consisting of 13 categories of allegations, with the main ones featured in the table below, detailing the progression from 2021 to 2022: Warning 36% Conduct risk in the sale 99.3% 99.6% 99.1% -0.3p.p. of products and services Ethics, fighting corruption and bribery. The course describes our practices, laws in effect and covers the Anti-Corruption Policy.t Ethical principles that must govern the actions of all Santander and affiliated companies' employees, in all relationships. Money laundering and concealment, origins of illicit funds, examples of atypical situations, whistleblowing channels and current legislation. The course also covers the Know Your Customer Policy. Guidance on communication, relationships, prohibitions, obligations, and competition rules between companies in the industry. Guidelines on fraud prevention, explaining how it is classified and what procedures should be adopted upon its detection, in addition to compliance with regulatory requirements of the Santander Group. Conflict of interest, examples of atypical situations and expected behaviors. The course also covers the General Interest Policy Guidance on how the Bank acts to prevent crime and inhibit inappropriate conduct. The course details control and oversight measures, the Corporate Defense model, the Criminal Risk Prevention Manual, the Criminal Risk Prevention Policy and the Open Channel. Ethical conduct risks and standards associated with the product creation, sale, and after-sale stages. Report Category Change 2022 Market Abuse Disciplinary Actions¹ Fraud 2021 2022 x 2021 0.2% 0.0% 0.2% 19.8% 35.7% -15.9% Securities Market Code of Conduct ("SMCC")² 99.5% 99.0% 99.1% 0.5p.p. Guidance on securities transaction rules Money Laundering 14.6% 14.3% 0.3% Information Security 13.6% 17.3% -3.7% Conflicts of Interest 10.5% 4.1% 6.4% 22% Marketing 14.7% 16.3% -1.6% Behavioral Deviation 16.1% 10.4% 5.7% 19% 'Considering the following companies: Banco Santander (Brasil) S.A, Aymoré Crédito, Financiamento e Investimento S.A., BEN Benefícios e Serviços S.A., Esfera Fidelidade S.A., FIRST Tecnologia e Inovação LTDA., Santander Brasil Gestão de Recursos LTDA., Santander Corretora de Seguros, Investimentos e Serviços S.A., Santander Holding Imobiliária, S.A., Universia Brasil, S.A., Webmotors S.A., Superdigital Instituição de Pagamento S.A., Santander Distribuidora de Títulos e Valores Mobiliários S.A., Return Capital S.A., SANB PROMOTORA DE VENDAS E COBRANÇA S.A., SX TOOLS SOLUÇÕES E SERVIÇOS COMP. LTDA., and Santander Corretora de Câmbio e Valores Mobiliários S.A. Among the employees who have not yet taken the course are the new hires, who are eligible, but may still be on schedule for completion. The figures reflect both completed and ongoing training. The total number of eligible employees differs from others because its calculation considers specific criteria from the Securities Code of Conduct. Harassment 6.4% 1.2% 5.2% Termination Without Cause Simple, Personal and Fair 2.9% 0.4% 2.5% Suspension Guidance Discrimination 1.2% 0.3% 0.9% 1 Termination With Cause Santander 79
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