Santander Chile to construct six solar power plants that will provide its own renewable energy

RIO DE JANEIRO, BRAZIL – For the second consecutive year, Santander Chile held a virtual meeting with investors, who were able to learn about the bank’s progress from the president, Claudio Melandri, and its general manager, Miguel Mata.

On this occasion, the focus of the event was on ESG (environmental, social, and governance) issues, highlighting, among others, the efforts Santander has made to help its customers move towards a greener economy, as well as its management to reduce its impact on the planet.

Read also: Check out our coverage on Chile

During the “Santander ESG Talk”, Melandri announced that the entity would be one of the first large companies in Chile and the first local Bank to produce its own renewable energy. This is thanks to the agreement with Gasco Luz and Fourtrees Capital. Six solar power plants of 300 kW each will be built, operational in 2022 and located in the Coquimbo, Valparaíso, and Metropolitan Regions.

The contract consists of a 10-year lease of these solar power plants, which are already under construction and involve an annual payment of approximately US$240,000 for the Bank.

100% of the energy produced by these plants will be used for the Bank’s consumption, which will enable it to reduce its carbon footprint by 1,380 tons per year. In this way, the energy generated by all these plants will be incorporated into the national electricity grid, which will allow Santander to offset its consumption with the contribution made to the grid.

“The commitment to carry out more responsible management with the environment and the communities is something we take very seriously.

“It is not a declaration of good intentions or empty actions. On the contrary, we set clear goals that we have been achieving over the years through various initiatives such as a full value offer for our customers to move towards a more environmentally friendly economy and a consistent reduction in our consumption of water, paper, energy, among others.

“Today we are announcing the construction of these solar plants, which are an unprecedented step for local banks and large companies, and with which we hope to continue contributing to the care of the ecosystem with our capacity and experience,” said Claudio Melandri.

The executive recalled that “climate change is a phenomenon that affects us all and that especially affects the most vulnerable communities. Therefore, it is the responsibility of everyone, from the private and public world, from individuals to large companies, to contribute with actions to protect our environment, which today is subject to a threat that could have catastrophic effects.”

The construction of these solar plants is in line with one of the commitments set by the Group at the global level to contribute to the SDGs promoted by the United Nations. In fact, in 2019, Santander set itself the target of having 100% of the energy it uses come from renewable sources by 2025 in countries where it is possible to certify the source of the electricity.

Since 2019, the entity in Chile has been mitigating its entire footprint. In addition, the loan portfolio is also set to be carbon neutral by 2050, in line with the goals established at the Group level and which are in line with the objectives of the Net Zero Banking Alliance, of which Santander is an adherent.

For his part, Miguel Mata pointed out that “sustainability crosses all our work and is at the core of our strategy, both at the level of our management and with regard to our customers.

“We have consistently demonstrated this, and this is reflected in the most recent results of the Dow Jones Sustainability Index, which position us in the index for Chile, MILA Pacific Alliance, and, for the second consecutive year, within the demanding DJSI Emerging Markets, keeping us as the only local bank to be part of this select group of companies.”

HELPING CLIENTS TO BECOME GREEN

Financial solutions linked to ESG criteria have been one of the Bank’s value offerings for companies seeking to advance in these matters. Through this financing alternative, Santander Chile has promoted a market that is still in its infancy at the local level.

“We have been part of important projects such as the Spence Desalination Plant, Cerro Dominador, and a series of ESG credits in which the rate is linked to compliance with certain KPIs in environmental, social, or governance criteria,” said Mata.

He added that “the Bank has a strict risk policy on activities in which it has restrictions to operate in line with the Equator Principles. All structured projects over US$10 million have been evaluated in accordance with the Equator Principles. This allows us to be consistent with both internal policies and international requirements for the generation of projects that are responsible with the planet.”

The S in the ESG acronym is focused on the contribution made to the sustainable development of communities. One of the stakeholders that fall into this category is precisely those who work in Santander. Always concerned about the development of its employees and generating a good working environment, Santander has made significant progress in this area.

The entity is the best company with over 1,000 employees to work for in Chile, according to the Great Place to Work 2020 ranking, and once again received the Top Employer seal, which highlights organizations with high standards worldwide in human resources management and for promoting a favorable internal climate.

In addition, this year, Santander became the first bank in the country to receive the “Iguala Conciliación” seal awarded by the Ministry of Women and Gender Equality, ratifying its commitment to continue promoting diversity in its teams and to consolidate its position as the best place to work.