Christopher Wells' presentation at 'Good practice, better finance: reducing risk and rewarding producers' session at Bonsucro Global Week 2022

1. E&S Risk in the sugar sector:
the view from Santander
Christopher Wells
Global Head, Environmental & Social Risk

2. How Santander analyzes the sugar sector
Annual review
Information sources
- Annual review using internal questionnaire
- Check for Bonsucro certification
- Client website
- News on the internet
Output of the analysis
- Statement/advice, usually valid for one year
- Sometimes, E&S strings attached to credit renewal

3. How Santander analyzes clients in Brazil
Annual review
Information sources
- Annual review using external questionnaire
- Questionnaire filled out by client
- Client website
- Review of govt websites (env. prot. agencies, Ministério Público, etc.)
- News on the internet
Output of the analysis
- Sustainability rating on scale of 1 to 5, which affects the credit rating
- Statement/advice, usually valid for one year
- Sometimes, E&S strings attached to credit renewal

4. What Santander values in the industry
In general
- In questionnaire filled out by client: transparency
- On website: transparency, performance data and targets
- In dialog with Santander: technical explanations, contact with E&S areas
Specifically for sugar mills
- In Brazil: Bonsucro certification (or preparation for such)
- Certification adds points to sustainability rating, which affects credit rating
- Care and transparency on suppliers
- Initiatives to conserve water
- Biodiversity
- Diversity of employees

5. RenovaBio
One CBio is equivalent to one ton
of CO2eq avoided in the
atmosphere.
5
Main objectives
I – Contribute to meeting Brazil’s Paris Accord commitments under the
UNFCC;
II – Contribute to energy efficiency and a reduction in greenhouse gases;
III – Promote the orderly expansion in biofuels production in Brazil’s energy
mix;
The main instrument of RenovaBio is the establishment of annual national
decarbonization targets for the fuels industry.
Through the certification of each sugar mill or biodiesel company, each
biofuels producer has an Energy-Environmental Rating equivalent to its
mitigation of a specific quantity of GHGs in relation to its substituted fossil
fuel, measured in CO² equivalent tons. 0.4
14.5
24.8
36.0
42.4
50.8
58.9
66.5
72.9
79.3
85.5
90.7
95.7
-
20.00
40.00
60.00
80.00
100.00
120.00
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
RenovaBio | 10 Year Mandate (MM CBIOS)
Target Upper Limit Lower Limit
Since 2019, RenovaBio has stimulated the production and consumption of clean fuels. The incentive for
production is made possible through trading of Carbon Credits (CBios). Santander helped create this market and
was the first trader.

6. Christopher Wells
Global Head, Environmental & Social Risk
Obrigado!