Connect with us


Santander Launches Its First ESG-Structured Product with Environmental and Social Impact

Santander launched its first ESG structured finance product with the intention of protecting capital and generating positive environmental and social impact. It is linked to an index that excludes companies that do not meet international standards and has committed to reforesting 3.75 hectares in Albentosa. This initiative is part of Santander’s goal to mobilize €120 billion between 2019 and 2025 in green financing.



Santander accelerates in sustainable finance. The bank has launched its first ESG-structured financial product with the intention of protecting the capital of corporate clients with a strong cash position and generating a positive environmental and social impact.

Specifically, the bank has designed a structured product for an Aragonese company that, on the one hand, offers a guaranteed minimum return and, on the other, an additional variable remuneration linked to the performance of the Euro Stoxx 50 ESG X index. This is an index that includes European companies with the highest ESG scores and excludes those that do not meet international standards, such as tobacco companies, arms companies, military contracting, or thermal coal companies.

Beyond the sustainable impact of investing in companies with the highest ESG ratings, Santander has committed to reforesting more than 3.75 hectares in the municipality of Albentosa (Teruel), close to the location of the company’s headquarters, to generate an additional positive environmental impact. The land, owned by the town council, will be reforested with around 3,000 trees to create a native forest. Santander will assume all the costs. Additional employment will be generated for this reforestation work so that the project will also have a positive social impact.

Read more about Santander’s first ESg-structured product and find the most important economic news from around the world with our companion app, Born2Invest.

Santander initiative is aimed at increasing the weight of sustainable finance within the bank’s portfolio

Santander has set a target of mobilizing €120 billion between 2019 and 2025, and €220 billion by 2030 in green finance.

Last May, the bank reorganized its Green Finance area to give greater weight to its sustainable finance business. In this way, Santander grouped under the same umbrella the business related to investment banking (issuance of green bonds or equity investments) and sustainable financing offered by commercial banking (green finance products). The bank appointed Lucas Arangüena, who reports directly to the bank’s CEO, as head of this area.

With the appointment of Arangüena, Santander has set itself a twofold objective. The first is to develop the infrastructure that will support the green financing of the entire group. The aim is to incorporate the sustainable finance rating system (SFCS), strengthen the control system to assess and manage the risk of greenwashing, and implement a data strategy to measure and monitor the development of the business.

The second objective is to increase the green finance business, with new products such as the structured product it has just designed. Although it has been developed on an ad hoc basis for a particular company, Santander’s intention is to be able to sell it to more corporate clients as part of its portfolio.


(Featured image by Mike Mozart CC BY 2.0 via Flickr)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in CincoDias, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Anthony Donaghue writes about science and technology. Keeping abreast of the latest tech developments in various sectors, he has a keen interest on startups, especially inside and outside of Silicon Valley. From time to time, he also covers agritech and biotech, as well as consumer electronics, IT, AI, and fintech, among others. He has also written about IPOs, cannabis, and investing.