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1、 For a brighter tomorrow 2022 Annual report 2022 Annual report Unless otherwise specified,references in this annual report to other documents,including but not limited to other reports and websites,including our own,are for information purposes only.If the contents of such other documents and websit
2、es refer to this annual report,they are not nor should be considered part of it.Unless the context suggests otherwise,Banco Santander means Banco Santander,S.A.,and Santander,the Group and Grupo Santander mean Banco Santander,S.A.and subsidiaries.Consolidated directors report 7 Business model and st
3、rategy 17 Responsible banking Consolidated non-financial information statement 20 2022 Overview 23 Our ESG strategy 30 Building a more responsible bank 76 Our progress in figures 92 Further information 104 ESG reporting standards and references 154 Independent verification report 157 Corporate Gover
4、nance 160 2022 Overview 166 Ownership structure 172 Shareholders.Engagement and general meeting 179 Board of directors 227 Management team 229 Remuneration 256 Group structure and internal governance 259 Internal control over financial reporting(ICFR)266 Other corporate governance information Audito
5、rs report and consolidated financial statements 503 Auditors report 513 Consolidated financial statements 529 Notes to the consolidated financial statements 765 Appendix 303 Economic and financial review 305 Economic,regulatory and competitive context 309 Group selected data 311 Group financial perf
6、ormance 356 Financial information by segments 399 Research,development and innovation(R&D&I)401 Significant events since year end 402 Trend information 2023 410 Alternative performance measures(APM)419 Risk management and compliance 421 Risk management and compliance 429 Risk management and control
7、model 436 Credit risk 455 Market,structural and liquidity risk 468 Capital risk 470 Operational risk 477 Compliance and conduct risk 484 Model risk 486 Strategic risk 487 Climate and environmental risk 497 Glossary 808 General information 2022 Annual report Contents Responsible banking|Corporate gov
8、ernance|Economic and financial review|Risk management and compliance 2022 consolidated directors report This report was approved unanimously by our board of directors on 27 February 2023 Our approach to this document We changed the layout of our consolidated directors report in The consolidated dire
9、ctors report also includes all information 2018 to include the contents previously provided in these required by Spanish Act 11/2018 on non-financial information documents,which we no longer prepare separately:and diversity.It can be found in the Responsible banking chapter,which constitutes the con
10、solidated non-financial Annual report information statement(NFI).Consolidated directors report Annual corporate governance report(CNMV format document)Board committee reports Sustainability report Annual report on our directors remuneration(CNMV format document)Auditors reviews As required by law,ou
11、r 2022 consolidated directors report was subject to three reviews by our independent statutory auditors,PricewaterhouseCoopers Auditores,S.L.They can be summarized as follows:PricewaterhouseCoopers Auditores,S.L.verified that the information in this report is consistent with our consolidated financi
12、al statements and that its contents comply with applicable regulation.For more details,see Other information:Consolidated management report section of the Auditors report within Auditors report and consolidated annual accounts.PricewaterhouseCoopers Auditores,S.L.issued a verification report,with li
13、mited assurance,on the non-financial and diversity information indicators as required by Spanish Act 11/2018 and included in this consolidated directors report.To read the verification report,see the Independent verification report in the Responsible banking chapter.PricewaterhouseCoopers Auditores,
14、S.L.issued an independent reasonable assurance report on the design and effectiveness of Banco Santanders internal control over financial reporting,which can be found in section 8.6 of the Corporate governance chapter.Non-IFRS and alternative performance measures This report contains financial infor
15、mation prepared according to International Financial Reporting Standards(IFRS)and taken from our consolidated financial statements,as well as alternative performance measures(APMs)as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority
16、(ESMA)on 5 October 2015,and other non-IFRS measures.The APMs and non-IFRS measures were calculated with information from Grupo Santander;however,they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors.We use the APMs and non-IFRS m
17、easures when planning,monitoring and evaluating our performance.We consider them to be useful metrics for our management and investors to compare operating performance between accounting periods.Nonetheless,the APMs and non-IFRS measures are supplemental information;their purpose is not to substitut
18、e the IFRS measures.Furthermore,companies in our industry and others may calculate or use APMs and non-IFRS measures differently,thus making them less useful for comparison purposes.For more details on APMs and non-IFRS measures,see section 8 of the Economic and financial review.4 2022 Annual report
19、 Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Non-financial information This report contains,in addition to financial information,non-financial information(NFI),including environmental,social and governance-related metrics,statements,
20、goals,commitments and opinions.The NFI can be found throughout the report but mostly in the Responsible banking chapter.NFI is included to comply with Spanish Act 11/2018 on non-financial information and diversity and to provide a broader view of our impact.NFI is not audited nor,save as expressly i
21、ndicated under Auditors reviews,reviewed by an external auditor.NFI is prepared following various external and internal frameworks,reporting guidelines and measurement,collection and verification methods and practices,which are materially Forward-looking statements Banco Santander hereby warns that
22、this annual report contains“forward-looking statements”,as defined by the US Private Securities Litigation Reform Act of 1995.Such statements can be understood through words and expressions like expect,project,anticipate,should,intend,probability,risk,“VaR”,“RoRAC”,“RoRWA”,“TNAV”,target,goal,objecti
23、ve,estimate,future,“commitment”,“commit”,“focus”,“pledge”and similar expressions.They include(but are not limited to)statements on future business development,shareholder remuneration policy and NFI.However,risks,uncertainties and other important factors may lead to developments and results that dif
24、fer materially from those anticipated,expected,projected or assumed in forward-looking statements.The important factors below(and others described elsewhere in this report),as well as other unknown or unpredictable factors,could affect our future development and results and could lead to outcomes ma
25、terially different from what our forward-looking statements anticipate,expect,project or assume:general economic or industry conditions(e.g.,an economic downturn;higher volatility in the capital markets;inflation;deflation;changes in demographics,consumer spending,investment or saving habits;and the
26、 effects of the war in Ukraine or the COVID-19 pandemic in the global economy)in areas where we have significant operations or investments;climate-related conditions,regulations,targets and weather events;exposure to market risks(e.g.,risks from interest rates,foreign exchange rates,equity prices an
27、d new benchmark indices);potential losses from early loan repayment,collateral depreciation or counterparty risk;political instability in Spain,the UK,other European countries,Latin America and the US;legislative,regulatory or tax changes(including regulatory capital and liquidity requirements),espe
28、cially in view of the UKs exit from the European Union and greater regulation prompted by financial crises;different from those applicable to financial information and are in many cases emerging and evolving.NFI is based on various materiality thresholds,estimates,assumptions,judgments and underlyin
29、g data derived internally and from third parties.NFI is thus subject to significant measurement uncertainties,may not be comparable to NFI of other companies or over time or across periods and its inclusion is not meant to imply that the information is fit for any particular purpose or that it is ma
30、terial to us under mandatory reporting standards.NFI is for informational purposes only,without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law.acquisition integration and challenges arising from deviating
31、 managements resources and attention from other strategic opportunities and operational matters;uncertainty over the scope of actions that may be required by us,governments and other to achieve goals relating to climate,environmental and social matters,as well as the evolving nature of underlying sc
32、ience and industry and governmental standards and regulations;and changes affecting our access to liquidity and funding on acceptable terms,especially due to credit spread shifts or credit rating downgrade for the entire group or core subsidiaries.Forward looking statements are based on current expe
33、ctations and future estimates about Santanders and third-parties operations and businesses and address matters that are uncertain to varying degrees,including,but not limited to developing standards that may change in the future;plans,projections,expectations,targets,objectives,strategies and goals
34、relating to environmental,social,safety and governance performance,including expectations regarding future execution of Santanders and third parties energy and climate strategies,and the underlying assumptions and estimated impacts on Santanders and third-parties businesses related thereto;Santander
35、s and third-parties approach,plans and expectations in relation to carbon use and targeted reductions of emissions;changes in operations or investments under existing or future environmental laws and regulations;and changes in government regulations and regulatory requirements,including those relate
36、d to climate-related initiatives.Forward-looking statements are aspirational,should be regarded as indicative,preliminary and for illustrative purposes only,speak only as of the date of approval of this annual report and are informed by the knowledge,information and views available on such date and
37、are subject to change without notice.Banco Santander is not required to update or revise any forward-looking statements,regardless of new information,future events or otherwise,except as required by applicable law.5 2022 Annual report Contents Responsible banking|Corporate governance|Economic and fi
38、nancial review|Risk management and compliance Past performance does not indicate future outcomes Statements about historical performance or growth rates must not be construed as suggesting that future performance,share price or earnings(including earnings per share)will necessarily be the same or hi
39、gher than in a previous period.Nothing in this annual report should be taken as a profit and loss forecast.XHTML electronic format and XBRL tags This annual report was prepared in eXtensible HyperText Markup Language(XHTML)format,and the consolidated financial statements it includes have been tagged
40、 with eXtensible Business Reporting Language(XBRL),in accordance with Directive 2004/109/EC and Commission Delegated Regulation(EU)2019/815.Not a securities offer This annual report and the information it contains does not constitute an offer to sell,nor a solicitation of an offer to buy any securit
41、ies.To view the XBRL tags,you must open this document with an appropriate viewer.You can find this document with an XBRL viewer on Banco Santanders corporate website.6 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Bu
42、siness model and strategy We follow The Santander Way:For more information see the Responsible banking chapter.7 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Our business model|Our customer focus,global scale and di
43、versification are thefoundations for generating value for our shareholders01.Customer focusDigital bankwith branchesSantander provides access to financial services for our customers through several channels (universal branches,specialist centres,contact centres,etc.)and supports customers with more
44、digital services and products.We continue to enhance customer experience and satisfaction.All this is reflected in growth in customers and NPSA improvement.Top 3 in customer satisfactionAOur focus is to further transform our business and operating model throughour global technology initiatives with
45、the aim to build a Digital bank withbranches.A.NPS internal benchmark of individual customers satisfaction audited by Stiga/Deloitte H222.02.ScaleIn-market&globalIn-market scale in each of our core markets in volumes in each of our coremarkets combined with our global scale support greater profitabi
46、lity andprovide a competitive advantage over local peers.Top 3 in lendingAin 10 of our marketsGlobal scale and network business:SCIB and WM&I coupled with ourDCB capabilities in auto and payments drive in-market and Group profitablegrowth and value.A.Market share data latest available.Spain includes
47、 Santander Espaa+Hub Madrid+SCF Espaa+Openbank and Other Resident sectors in deposits.The UK:includes mortgages and retaildeposits.Poland:including SCF business in Poland.The US:retail auto loans includes Santander Consumer USA and Chrysler Capital combined.Deposits considering all states where Sant
48、ander Bank operates.Brazil:deposits including debenture,LCA(agribusiness notes),LCI(real estate credit notes),financial bills(letras financeiras)and COE(certificates of structured operations).03.DiversificationGeographicalContributionBusinessto Groups profitAOur diversified geographical footprint is
49、 well balanced between developingBalance sheetand mature markets.Business diversification between customer segments(individuals,SMEs,mid-market companies and large corporates).Diversification delivers recurrent pre-provision profit with low volatility.Our aim is to have a rock-solid,diversified bala
50、nce sheet which reduces riskand further contributes to profitability.A.2022 underlying attributable profit by region percentage of operating areas excluding Corporate Centre.Group net operating income(pre-provision profit)EUR billion Our strong model is reflectedin the resilience of our netoperating
51、 income.It is acompetitive strength thatcontinues to differentiate us.02324232526262425282008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20228 I2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and comp
52、liance 2022 results:our success shows our business model works Over the past seven years,we have laid the foundations and have reinforced our business model,based on customer focus,scale and diversification,which has resulted in a strong operating performance.Our Aim,our Purpose and How we do things
53、 remained the same:to be the best open financial services platform by acting responsibly and earning the lasting loyalty of our people,customers,shareholders and communities;to help people and businesses prosper;and to aspire to make all of what we do Simple,Personal and Fair.In 2022,we delivered re
54、cord attributable profit of EUR 9.6 bn,supported by strong net operating income,translated into increased profitability and cash dividend per share(DPS),and all of this,with sound credit quality,liquidity and capital positions.Our strategy execution delivered record results with an 18%A increase in
55、attributable profit Attributable profit EUR 9.6 bn Delivered record year in profit RoTE 13.4%Increased profitability,shareholder value and returns EPS+23%FL CET1 12.04%Further strengthened our rock-solid balance sheet CoR 0.99%Customers+7 mn Customer focus and scale drove profitable growth Total rev
56、enueA+12%The increase in profitability enabled us to grow our business,strengthen our balance sheet and generate value for our shareholders Note:FY22 data or year-on-year changes.A.In euros.In constant euros:attributable profit+8%,total revenue+6%.We achieved our 2019 medium-term and 2022 Group fina
57、ncial targets In 2022,we delivered strong financial results,while reaching the targets we set for ourselves at the beginning of the year:mid-single digit revenue growth in constant euros(+6%),contained cost of risk(below 1%),capital level(FL CET1 over 12%)and profitability(RoTE over 13%).We ended ve
58、ry close to our efficiency target of 45%,demonstrating an improvement compared to the previous year,and in a year with considerable inflationary pressures.9 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance We have a str
59、ong track record in delivering on our targets.We also met our 2019 Investor Day medium-term targets.We believe our success shows our business model works.Our 2022 and 2019 medium-term Group financial targets201920222022medium-term targetstargetsresultsRevenueMid-single digitgrowthA+6%Efficiencyratio
60、42-45%45%45.8%CoR13%13.4%FL CET111-12%12%12.04%Payout40-50%40%40%B A.In constant euros.B.Subject to approval of the final dividend at the 2023 AGM and completion of the Second 2022 Buyback Programme under the terms agreed by the board(see section 3.3 Dividends and shareholder remuneration in the Cor
61、porate Governance chapter).Our customer focus,scale and diversification drive profitable growth and doing so in the right wayIn a challenging year,we were able to increase profitability and shareholder remuneration.We believe ourdiversification also allowed us to further strengthen our strong balanc
62、e sheet.We have a high-quality,simple balancesheet that we believe is well prepared to face the current uncertain environment.At the same time,we have built a solidcapital level.We believe in-market scale and operational improvements allowed us to be leaders in profitability,whilst our globalnetwork
63、(global businesses combined with our Auto and Payments capabilities across our footprint)increased Groupvalue added to the countries where we operate.10 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 2022 results by r
64、egionWe leveraged our strategy to improve the operational performance and results of our three geographical regions andDigital Consumer Bank.Europe2022 Key data and highlightsLoansEUR 579 bnCustomer fundsEUR 737 bnEfficiency47.3%Cost of risk0.39%ProfitEUR 3.8 bnRoTEA9.3%Business transformation to de
65、liver accelerated growth,a moreefficient operating model and increased customer satisfaction.Customers,loans and deposits up in most countries.Double-digit profit growth(+38%in constant euros)supportedby strong NII performance,cost control and contained CoR.Costs decreased 7%in real terms and effici
66、ency improved 5 pp,reflecting the structural changes in our operating model.A.Underlying RoTE.RoTE adjusted based on Groups deployed capital calculated as contribution of RWAs at 12%would be 12.5%.North America2022 Key data and highlightsLoansEUR 157 bnCustomer fundsEUR 164 bnEfficiency47.7%Cost of
67、risk1.49%ProfitEUR 2.9 bnRoTEA11.1%Larger customer base and enhanced customer experience through tailored products and services.Overall volumes growth,driven by most segments in Mexico and by CIB,Commercial Real Estate (CRE)and Auto in the US.Profitability remained high driven by outstanding results
68、 in Mexico and high profit in the US.A.Underlying RoTE.RoTE adjusted based on Groups deployed capital calculated as contribution of RWAs at 12%would be 20.5%.11 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance South Ame
69、rica2022 Key data and highlightsLoansEUR 152 bnCustomer fundsEUR 183 bnEfficiency37.0%Cost of risk3.32%ProfitEUR 3.7 bnRoTEA18.8%Strengthening the connection and sharing best practicesamong units,capturing new business opportunities.Customer base growth(+7mn year-on-year).Profit up year-on-year boos
70、ted by revenue and a lower taxburden,more than offsetting inflationary pressures andhigher LLPs.High profitability,with double-digit RoTEs in all countries.A.Underlying RoTE.RoTE adjusted based on Groups deployed capital calculated as contribution of RWAs at 12%would be 25.1%.Digital Consumer Bank20
71、22 Key data and highlightsLoansEUR 125 bnCustomer fundsEUR 62 bnEfficiency46.7%Cost of risk0.45%ProfitEUR 1.3 bnRoTEA13.7%Value proposition further expanded with new commercialalliances,leasing,subscription and BNPL services.Significant market share gains as new lending increased(+10%year-on-year).R
72、evenue up(leasing and fees)more than absorbed negativesensitivity to interest rate rises and new TLTRO conditions.Costs grew well below inflation(-6%in real terms).Credit quality remains solid;NPL down to 2.06%and CoRlow at 0.45%.A.Underlying RoTE.RoTE adjusted based on Groups deployed capital calcu
73、lated as contribution of RWAs at 12%would be 14.4%.12 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 2022 results by global businessesOur SCIB,WM&I and Payments businesses increased Group value added to the countries
74、where we operate.Santander Corporate&Investment Banking2022 Key data and highlightsRevenueFee incomeEUR 7.4 bnEUR 2.0 bnProfitRoTEEUR 2.8 bn22.0%Wealth Management&Insurance2022 Key data and highlightsSCIBs client centric transformation from lenders to strategic partners isyielding strong results.Fur
75、ther diversified business model across clients,countries andproducts.Accelerated capital rotation.Robust operating performance driven by double-digit growth in all corebusinesses,especially Markets,Global Debt Financing(GDF)and GlobalTransactional Banking(GTB).Assets undermanagement(AuMs)EUR 401 bnP
76、rofitEUR 1.1 bnContribution toGroups profitEUR 2.7 bnA Total feesAEUR 3.7 bnRoTE59.7%Strong growth in contribution to Group profit in a challenging market.Private Banking:recognized as a Top 3 Best Global Private BankB byEuromoney and achieved a record year in results and cross-border business.SAM s
77、howed resilience despite market turmoil maintainingcontribution to profit level.Insurance:sustained growth in gross written premiums:+24%.A.Including fees generated by asset management and insurance ceded to the commercial network.B.Clients up to USD 250 million.13 Revenue performanceA 2022 Annual r
78、eport Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 2022 payments businesses resultsPagoNxt2022 Key data and highlightsPagoNxt revenue performanceAMerchant TPVActive merchants(#)EUR 165 bn1.32 bnA.Constant EUR mn and year-on-year chang
79、es in constant euros.Cards&Digital Solutions2022 Key data and highlightsPagoNxts revenue rose 72%in constant euros,achieving our+50%target set for 2022 earlier this year.Growth due to overall increase in activity and volumes in all regions.Merchants:in merchant acquiring,Total Payments Volume(TPV)ro
80、se 27%backed by Brazil(+16%),Europe(+39%)and Mexico(+35%).International Trade:over 30k active customers in Ebury and One Trade.97 million cards managed globally (+4%in 2022).Revenue grew 19%in constant euros,boosted by a 14%rise in total turnover and a +13%increase in the number of transactions.High
81、 profitability with a RoTE of approximately 30%.Turnover#TransactionsEUR 302 bn+13%A.Constant EUR mn and year-on-year changes in constant euros.14 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Our actions are enablin
82、g us to deliver on our customer and digital targets whilesupporting the transition to a green economyWe have an opportunity and a responsibility to do everything in the right way,so our ESG approach is embedded in allour businesses.We have a competitive advantage in supporting our customers in their
83、 green transitions.Note:2022 figures,unless stated otherwise.A.Cumulative since 2019.Public target of EUR 120 bn by 2025 and EUR 220 bn by 2030.B.According to Infralogic Dec-22.C.Includes bicycles,solar panels,electric chargers,green heating systems,etc.D.AuMs classified as Article 8 and 9 funds(SFD
84、R)from SAM,plus third-party funds and other ESG products according to EU taxonomy from Private Banking.We apply equivalent ESG criteria to SAMs funds in Latin America.Supporting our teams,strengthening our culture and promoting financial inclusionAt the core of our success is our effort and ability
85、to attract a diverse and talented workforce,our culture of teamworkand our promotion of financial inclusion.Note:2022 figures.A.Senior positions make up 1.2%of the total workforce.B.Employee net promoter score.According to external benchmark Workday Peakon Employee Voice.For more details,see the Res
86、ponsible banking chapter.15 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance In summary,the Groups business model drove another strong year where we have delivered on profitability,capital and CoR targets We continue to
87、 serve more customers while maintaining a rock-solid balance sheet +7 million customers in 2022 Top 3 by NPS in 8 markets FL CET1 above 12%,while delivering on CoR target(800 communications(mainly on digital channels)and 163,761 queries answered by digital channels and telephone.201 events with shar
88、eholders For more details on Santanders shareholder engagement,see sections 1.4 Engagement with our shareholders and 3.Shareholder.Engagement and general meeting in the Corporate Governance chapter.28 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|
89、Risk management and compliance ESG ratings We engage with ESG ratings to signal our progress and keep improving with their feedback.Highlights in 2022:We maintained our positioning on the MSCI World Index.And weve consecutively featured in the S&P DJSI World and Europe indices since 2002 and in the
90、FTSE4Good since 2003.CDP.We were placed in the highest score band(Climate Change A List-Leadership level),improving on governance,risk disclosure,targets and portfolio impact.Sustainalytics We improved to 22.4 points,maintaining on medium risk,improving on business ethics,ESG integration,data privac
91、y and human capital.ESG Corporate Rating by ISS.We improved to 55.6 points,maintaining the ESG performance on“C”,above the sector-specific“Prime”threshold;Bloomberg Gender Equality Index(BGEI).We improved to 92.87 points,above the financial sector average(74.11).Highest ranked among banks and second
92、 company overall.Positioning in ESG ratings 2022 2021 evol.MSCIA MSCI Index AA MSCI Index AA=SustainalyticsB 22.4 23.9 pCDP A A-pS&P DJSIC World&EuropeIndex World&EuropeIndex=83 86 ISS-ESG C(55.6)C(51.8)=MoodysD 61(Advanced)61(Advanced)=FTSE4Good FTSE4Good Index 4.2 FTSE4Good Index 4.5=BGEI 92.87 90
93、.26 pShareaction 92 89 pA.Read the MSCI disclaimer on page 18.B.Sustainalytics risk rating:the lower,the better.C.Top scores in environmental and social reporting,financial inclusion and tax strategy.We improved our scores in corporate governance;business ethics;policy influence;sustainable finance;
94、climate strategy;labor practice;talent attraction&retention;corporate citizenship;customer relationship and privacy protection.D.Not rated in 2022 29 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.Building a more re
95、sponsible bank 3.1 A strong and inclusive culture:The Santander Way+3.2 Conduct and ethical behaviour+3.3 A talented and motivated team+3.4 Acting responsibly towards customers+3.5 Responsible procurement+3.6 Supporting the green transition+3.7 Socially responsible investment+3.8 Financial inclusion
96、 and empowerment+3.9 Support for higher education and other local initiatives+Our strong corporate culture is critical to succeeding in todays competitive,fast-moving environment.Our business complies with the highest standards of conduct and ethical behaviour.To succeed in the new business environm
97、ent,and to earn and keep our customers loyalty,we need a diverse workforce that is both talented and engaged.We develop our products and services responsibly,and aspire to deliver excellent customer service.We integrate environmental,social and governance criteria into our supply chain,supporting ou
98、r suppliers in their sustainable transition.Were fully committed to helping meet Paris agreement goals while supporting our customers transition to a low-carbon economy We embed ESG in our decision-making,offering a sustainable value proposition for customers,and an active ESG engagement.We help peo
99、ple access the financial system,set up and grow micro-businesses,and learn how to manage their finances.We support the communities where we operate,with a special focus on higher education as the driving force behind societys progress.30 2022 Annual report Contents Responsible banking|Corporate gove
100、rnance|Economic and financial review|Risk management and compliance 3.1 A strong and inclusive culture:The Santander Way 3.1.1 Our corporate culture GRI 3-3 The Santander Way is our approach to business.In 2022,we launched new corporate behaviours that we call TEAMS:Think customer,Embrace change,Act
101、 now,Move together and Speak up.To promote TEAMS,we ran employee workshops and other events with our Executive Chair,CEO and country heads across our footprint.More details about our corporate behaviours are available on our corporate website: 9(out of 10)Employees are fully aware of our TEAMS behav
102、ioursA A.Workday-Peakon,aggregated results for the last 12 months.Our Way is the Santander Way Living our Values of Simple|Personal|Fair Daily,through our Corporate Behaviours:And,through our solid culture of Risk Management:Risk Pro:our risk culture SASB FN-CF-230a.2,FN-CF-230a.3 The Groups risk cu
103、lture,Risk Pro,is central to the Santander Way and to our purpose of helping people and businesses prosper.It makes risk management the responsibility of all employees.Our performance review system,MyContribution,assigns all Santander employees a common risk objective that is 10%of their review.In 2
104、022,we made risk training a mandatory part of Corporate Centre employees and unit directors risk objective.Risk Pro is part of all stages of the employee cycle.We impart Risk Pro through constant communication,leading by example,support from senior management and speaking up.In 2022,we made further
105、headway in rolling out our risk culture target operating model,which is mainly based on the best practices identified in the different subsidiaries where we operate.Its main target is consolidate the risk culture across the Group.In November,we celebrated Risk Pro Month at the Corporate Centre.And w
106、e had our second global Risk Pro Week to raise employees awareness of why they should manage risk in their day-to-day.We also ran developmental training in the behaviours of our risk culture.We continued to develop courses on our learning digital ecosystem according to employees skills gaps.We ran i
107、nitiatives to enhance how we measure adherence to our risk culture.We revised risk culture questions in our new continuous listening survey,Your Voice,as well as Risk Pro scorecard indicators,with thresholds set for most metrics to monitor them across our footprint more consistently.31 2022 Annual r
108、eport Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.2 Conduct and ethical behaviour 3.2.1 General code of conduct GRI 2-15,2-25,3-3,205-2,205-3,406-1,415-1,FS1 Our new General code of conduct(GCC),approved by the board in July 2022,i
109、s now simpler and more accessible for our employees and stakeholders,with easy-to-understand,inclusive language set out in an appealing,digital format to enhance user experience.The GCC promotes such values as equal opportunity,diversity and non-discrimination,zero tolerance for sexual or work-relat
110、ed harassment,respect for others,work-life balance,and human rights.Its guidelines address day to day situations.It is also one the core elements to prevent penal Risk(more details,see section 7.2.Compliance and conduct risk management in the Risk management and compliance chapter).The Internal Audi
111、t area regularly reviews compliance with the GCC,with autonomy to check that it and subsidiary-level versions are appropriate and effective.Core initiatives We ran these initiatives to strengthen our corporate culture of ethical conduct and compliance:#yourconductmatters:campaigns via email,Intranet
112、 and other media to boost employees awareness of the GCC and related policy.Services to answer employees queries on ethics and rules in the GCC.Recommendations to prevent conflicts of interest between employees and the Group,and to review and manage conflicts.A whistleblowing channel,Canal Abierto,t
113、o handle complaints and enhance processes based on lessons learned.Common action plans for receiving courtesies or invitations from third parties,and require they be recorded for due diligence.Training Our employees undergo mandatory training to refresh their understanding of the GCCs guidelines;why
114、 every employees conduct matters in shielding the Group from liability;and how to handle conflicts of interest,or gifts and invitations from people outside Grupo Santander.In 2022,units ran information sessions with core vendors to explain the compliance culture and ethical behaviours that we hold a
115、ll business partners to.Procurement management policy Our procurement management policy dictates how employees negotiating with suppliers should conduct themselves to prevent conflict of interest and keep information confidential while procuring goods and services(see the Groups policy on conflict o
116、f interest,available on the corporate website ).Code of Conduct in Securities Markets(CCMV)Approved by the board in 2020,it sets out the standards that board members and employees must abide by when handling sensitive information or trading in securities markets on their own behalf.It outlines the n
117、ecessary controls and transparency to safeguard the interests of the Groups investors as well as market integrity.Our core units have tools to help detect potential market abuse and ensure the consistent management of those risks across the Group.Anyone bound to the CCMV must do regular training on
118、market abuse.Once a year,they demonstrate their understanding of Santander and its employees key obligations and penalties for failing to fulfil them.For more details,see section 7.2.Compliance and conduct risk management in the Risk management and compliance chapter 32 2022 Annual report Contents R
119、esponsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.2.2 Financial crime compliance(FCC)GRI 205-2 SASB FN-AC-510a.1,FN-CB-510a.1,FN-IB-510a.1 FCC for vulnerable customers Introduced in 2021,FCC due diligence of customer life cycle has a special secti
120、on for vulnerable customers.It supports the Groups commitment to“reducing the stigma in providing financial services to vulnerable customers”,with a compliance framework for business units to mitigate financial crime risk in a responsible manner.In 2022,we demonstrated our commitment by welcoming re
121、fugees from Ukraine,who came to the EU with little information and most of their money in cash.Early in the crisis,the Groups FCC area published special guidelines for branches to set up accounts for refugees in line with regulation,as smoothly as possible(More information on our support for Ukraini
122、an refugees see section 3.4 Acting responsibly towards customers and 3.9 Support to higher education and other local initiatives of this chapter).FCC for anti-bribery and corruption The updated Corporate Framework on Financial Crime Prevention that the board approved in 2021 addresses bribery and co
123、rruption as a financial crime risk.It describes core aspects of the Groups programme to fight bribery and corruption.In 3.2.3 Environmental,social and climate change risk management GRI 2-23,2-24,2-25,3-3,411-1,413-2,FS2,FS3,FS10,FS11 We embed environmental and social standards in risk management,in
124、 accordance with a sectorial prioritization,to support sustainable and inclusive growth,uphold human rights,preserve the environment and aid the transition to a low-carbon economy.Our Environmental,Social and Climate Change(ESCC)risk management policy sets out standards for investing in,and providin
125、g financial products and services3 to,companies and customers who engage in sensitive activities in the oil and gas,power generation and transmission,mining and metals,and soft commodities industries(especially retail customers involved in farming and ranching in the Amazon).We analyse customers sub
126、ject to the policy with a detailed questionnaire that their assigned banker completes before a team of analysts conducts an overall assessment of their ESCC risks(which we update every year).We also analyse one-off,project-related transactions in accordance with the Equator Principles and such inter
127、national regulations as the International Finance Corporation Performance Standards.Following our environmental and social(including human rights)due diligence of projects,we set out corrective measures based on their risk rating.We apply our ESCC risk management policy in conjunction with our Respo
128、nsible banking and sustainability policy.In addition,the ESCC risk and compliance departments carry out extra due diligence on cases with red flags.The findings,which provide further input for decision-making,are submitted to risk approval committees.particular,it requires core processes and control
129、 to deal with the risk of bribery and corruption with third parties;and in sponsorship,charity,campaign donations,joint ventures,main investment,travel,courtesies,marketing,employment and worker relations.In 2022,we updated our policy on preventing bribery and corruption and reintroduced it to subsi
130、diaries,with guidelines and special training to handle the risk of bribery and corruption.FCC for training We advanced our strategic plan and training to transform our financial crime and conduct area in 2022.In particular,our post-pandemic programme at the Corporate Centre was entirely in person,wi
131、th intensive monthly courses,mini-working groups and experts from Santander and elsewhere to talk about terrorism financing,bribery,corruption,fraud,major regulation reform and other important topics.We have a yearly program to train our board of directors on this topic.For more details on financial
132、 crime compliance,see section 7.2.Compliance and conduct risk management in the Risk management and compliance chapter In 2022,we developed a methodology to analyze clients climate transition plans.During the annual analysis of environmental,social and climate change risks in selected sectors(Oil&Ga
133、s;Power Generation;Automakers;Steel;Cement and Airlines)clients were tiered according to current GHG emissions,governance of climate transition risks and future emissions targets.The Group follows the precautionary principle,analysing and managing key environmental and social risks throughout the va
134、lue chain as well as considering the direct impact on the assets where we operate and the indirect impact stemming from our activity.In 2022,the ESCC Risk and Compliance departments(in coordination with the Business)have also worked on strengthening the ESCC risk governance and the management of ESC
135、C risks in sustainable finance transactions,and continue enhancing the integration of environmental,social and climate change risk factors in market and operational risk management.For more details on environmental,social and climate change risk management,see Risk management and compliance chapter
136、of this report.Our Environmental,Social and Climate Change risk management,and sustainability policies are available on our corporate website .3 Defined as transactions giving rise to credit risk,insurance,asset management,equity and advisory services 33 2022 Annual report Contents Responsible banki
137、ng|Corporate governance|Economic and financial review|Risk management and compliance Equator Principles We have applied the Equator Principles to project-related transactions(especially project finance)since 2009.In 2022,we analysed 45 projects that fall within the scope of the Equator Principles(se
138、e table 35.Equator Principles in 4.Our progress in figure section of this chapter).Tackling environmental crime The principle of nature conservation extends to all the Groups units.The Financial crime compliance function understands the importance of recognizing that“behind every environmental crime
139、 there is a financial network”,not only because of the large sources of revenue that organized crime draw from these activities,but because crimes like illegal deforestation have a significant impact on carbon sequestration.Industries we consider restricted due to exposure to environmental crime ris
140、k include(but are not limited to)logging,pulp and paper mills,palm plantations,commercial fishing,trapping and transport of live animals and waste management.Given their restricted status,Santander entities that provide services to companies in those industries must respond to their elevated financi
141、al crime risk by implementing enhanced controls.Furthermore,our customer screening tools include specific terms on environmental crimes to help us flag issues and conduct assessments,and our global and in-person senior management training also includes environmental crime case studies and trends.We
142、engage in various public-private partnerships as part of our commitment to detect,disrupt and deter environmental crime.In 2022,our Head of Financial Crime Compliance Framework&Policies remained the chair of the quarterly United Nations Office on Drugs and Crimes(UNODC)Private Sector Dialogue on the
143、 Disruption of Financial Crimes Related to Forestry Crimes,which continued to bring together financial institutions,authorities,investigative law enforcement units and supranational governmental bodies to discuss intelligence sharing,typologies and policy strategies on disrupting the financial crime
144、 networks behind illegal deforestation.Santander also remains an active member of the United for Wildlifes Financial Taskforce against illegal wildlife trade.Protection of human rights Our board-approved Responsible banking and sustainability policy illustrates ESG Santanders commitments including h
145、uman rights protection of our employees,customers,suppliers and the communities we serve.We run initiatives to combat discrimination,forced labour,child exploitation and other affronts to peoples dignity,as well as to preserve freedom of association and collective bargaining,our employees health,and
146、 decent employment(see the contents relating to Diversity,equity and inclusion;Employees health and well-being;and Social dialogue at 3.3 A talented and motivated team section in this chapter).We protect our customers human rights through responsible business practices,and grating their data protect
147、ion(see 3.4 Acting responsibly towards customers section in this chapter).We improved our vendors questionnaires to ensure respect for human rights along our supply chain(see section 3.5 Responsible procurement in this chapter).Were also enhancing human rights questionnaires including risks in the s
148、upply chain to clients under Environmental,Social and Climate Change Risk Management policy.As a result,a strengthened analysis of clients exposure to social risks was achieved.We assess Human Rights impacts over transactions under the scope of Equator Principles In 2022,we included awareness on hum
149、an rights into Global Mandatory Training.We also added human rights into Environmental,social and climate change risk management in our refreshed material topics for greater focus(see section 5.2 Materiality assessment in this chapter).Complaints In 2022 none attributed human rights violations to an
150、y Group entities has been reported on our whistleblowing channel,(see section on Ethical channels in next page).34 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.2.4 Principles of action in tax matters GRI 207-1,207
151、-2,207-3 The board of directors approves Santanders tax strategy and revises it regularly.This strategy sets tax principles that the entire Group must follow.In October,the board updated the tax strategy,which can be found on our website().The Groups tax risk management and control,which draws on ou
152、r internal control model,must be consistent with the principles in the tax strategy.Since 2010,weve abided by Spains Code of Good Tax Practices and the UKs Code of Practice on Taxation for Banks.Furthermore,we participate in cooperative compliance initiatives led by tax authorities.Since 2015,weve v
153、oluntarily submitted an annual tax transparency report to Spains Tax Authority.Total tax contribution data is available in 4.Our progress in figures section.Core principles of Santanders tax strategy Satisfy our tax obligations based on a reasonable interpretation of tax laws,grounded on their spiri
154、t and intention.Respect the rules on transfer pricing and pay taxes in each jurisdiction in accordance with our functions,assumed risks and profits.Not give tax advice or planning strategies when marketing and selling financial products and services.Not engage in transactions or activities that faci
155、litate unlawful avoidance of taxes by our customers Communicate Santanders total tax contribution clearly,distinguishing between taxes borne by the Group and by third parties for each jurisdiction as well as any other information necessary to comply with generally accepted reporting standards on sus
156、tainability.Not create or acquire entities registered in offshore jurisdictions without board approval;and adequately monitor the Groups operations in such territories.A Maintain a good working relationship with tax authorities based on the principles of transparency and mutual trust to avoid disput
157、es and minimize litigation.A.By the end of 2022,we had one subsidiary and three branches in offshore jurisdictions.See detailed information on offshore entities in note 3 c)to the consolidated financial statements.35 2022 Annual report Contents Responsible banking|Corporate governance|Economic and f
158、inancial review|Risk management and compliance 3.2.5 Ethical channelsGRI 2-26,205-3,406-1 Canal Abierto is our global ethical,anonymous and confidential,channel for reporting misconduct.It protects whistleblowers byexpressly prohibiting reprisals or any negative consequenceagainst them.Every unit in
159、 the Group administers its ownethical channel in its local language according to the commonstandards of the corporate Canal Abierto.Minimum standards include:subsidiary CEOs endorsement ofthe ethical channel;employees awareness of the importance ofusing the channel;reporting to the Group about manag
160、ement,action and improvement plans;guarantee of easy platformaccess and anonymity(if desired);use of external platforms toreceive reports according to best practice;mechanisms in placeto manage conflicts of interest in internal investigations ofreported cases;and internal audits of the channel.These
161、standards are included in our Canal Abierto policy,which weapproved in 2020.Canal Abierto is mainly set up to receive reports fromemployees;however,its open in some subsidiaries to thirdparties(e.g.suppliers,customers,investors and other interestgroups),who cannot use it to submit complaints or quer
162、ies.All incidents reported through Canal Abierto are handledappropriately,even if they are found to be unsubstantiated.The average processing time was 34 days.3.2.6 Relations with political partiesGRI 3-3,415-1 Santander is committed to principles of transparency,honestyand impartiality in its inter
163、actions with political parties andother entities with public and social purposes that are alsopolitical in nature.These principles reject any act of corruptionby Santanders employees and managers.In 2016,our board executive committee-approved Santanderspolicy on financing political parties(available
164、 on our corporatewebsite)that has been applied to all our subsidiariesworldwide.It prohibits making monetary or in-kind electiondonations and contributions.However,it allows sponsorship bysubsidiaries of special events or activities,provided they havebeen approved by the Groups executive committee a
165、nd areconsistent with Santanders objectives and operations.Santander US participates in a US Political Action Committeecompliant with US law and with full transparency.Grupo Santander may only finance political parties onexceptional and limited terms approved by the Groupsexecutive committee and on
166、an arms length basis.The policyprohibits total or partial debt forgiveness to political parties andtheir affiliates.While the terms of the debt may be negotiated,the interest rate charged may never be below the market rate.In addition,this policy applies to electoral candidates of politicalparties t
167、o the extent provided by local law.2022 2021 Issues received 3,935 4,338 Issues deemed well-founded for investigation 3,477 3,628 Disciplinary actions 907 1,196 which led to dismissal 387 312 By category,the main concerns reported related to issues ofworkplace harassment,breaches of corporate behavi
168、our(SPF)and labour regulations,as well as internal fraud and marketingof products and services.In 2022,93 equal opportunity and non-discriminationcomplaints were received in the Group,11 of which resulted indisciplinary action,including 8 dismissals.We are not aware ofany complaints initiated by any
169、 employee or theirrepresentative in relation to incidents of discrimination orviolation of fundamental rights in Banco Santander,S.A.4.We also received reports of 18 alleged cases of corruption in theyear,resulting in 1 dismissal.TYPES OF ISSUES RECEIVED8.2%4.4%9.7%25.8%23.9%6.8%5.9%4.1%11.2%Marketi
170、ng of products and servicesPrivacy/security and confidentiality of informationInternal fraudWorkplace harassmentSPF+labour regulationsMoney laundering and terrorist financing and sanctionsConflicts of interest/non-group activitiesCybersecurityOther typologies4 More details on fines and sanctions rec
171、eived in section 6.4 Global Reporting Initiative(GRI)content index(2-27)36 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.3 A talented and motivated team We want to be an employer of choice.Our approach strategy is
172、based on three pillars.Putting the employee at the center of all we do Ensuring that we have the best culture,and a great employee experience delivered through initiatives such as diversity,equity&inclusion,culture,health&wellbeing Ensuring we have the right talent and skills in place to ensure the
173、Banks transformation Attracting and engaging the best talent and encouraging our people to learn through great leadership,a strong focus on development and having a strong employee value proposition Aligning with the business to ensure we add value proactively and help deliver the strategic objectiv
174、es Having the best organisation design,making data driven decisions,and,utilizing new ways of working to drive value for all stakeholders 3.3.1 Putting the employee at the centre GRI 2-7,2-30,3-3,401-1,401-2,403-2,403-3,403-5,403-6,403-9,403-10,405-1,405-2 Diversity,equity and inclusion SASB FN-AC-3
175、30a.1,FN-IB-330a.1 We continue to cultivate a workplace where our people can be themselves and reflect the diverse society we live in.We do so via following Group networks:Global executive DE&I working group,which brings together senior positions from our geographies regularly to review results,prop
176、ose initiatives and drive internal change.Global DE&I team,which draws up global initiatives,coordinates the teams involved and acts as liaison for the subsidiaries and businesses.Local DE&I teams in each subsidiary and business,which are responsible for implementing strategic plans and initiatives
177、locally sharing best practice.In 2022,important highlights were:Holding the first global DEI awards to recognize best inclusive behaviours within the Group.Mandatory training for top managers5,including the two e-workouts,“Cultural connection”and“Listening to everyone”,to continue to raise awareness
178、.Creating the role of Bias Champion across the Group to fix implicit bias in the calibration of peoples potential and performance.The Bias Champions were previously trained on implicit bias.We included questions in our engagement survey about inclusion,to be aware and take action if any underreprese
179、nted group is not feeling equally considered and part of Santander.38.4 Average age of the workforce,-0.2 pp vs 2021 54%of employees are women equal vs 2021 Data at year end.8.8(out of 10)2.0%of employees have a disability,+0,1 pp vs.2021 Employees assessment of whether Santander supports Diversity
180、and Inclusion(in terms of gender,ethnic diversity,disability,socio-economic status,etc.)A A.Workday-Peakon,aggregated results for the last 12 months.5 Promontorio,Faro and Solaruco level 37 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk manage
181、ment and compliance Gender equity Santander fosters equal opportunity between all genders.While women make up 54%of our workforce,their presence in senior positions is less.In 2022,29.3%of the Groups management positions are held by women,which represents an increase of 3 percentage points compared
182、to 2021 and 5.6 compared to 2020.Were taking action to have more women at all levels of senior positions.We focus on equal consideration of both genders in hiring and promotion,in learning and development programmes,and especially,in senior-level succession plans.We have minimum standards for parent
183、al leave of 14 weeks for primary leave and 4 for secondary leave.Our Santander Womens Network grew year-on-year.LGTBI+In 2022,we prioritized spreading awareness and inclusive communication and building up our Embrace network.We commemorate LGBTI+Pride Day,with several events to share stories and exp
184、eriences inside the Group and out.Some highlights from the year are:In the UK,we increased our Evolving Minds LGBTI+library.It includes“Pride stories”by colleagues,as well as an LGBTI+calendar and alphabet,to better understand little known or misunderstood LGBTI+identities.We also take part in Tent
185、and Stonewalls mentorship programme for LGBTI+refugees,aiming at supporting more than 50 LGBTI+refugees by 2024.In Spain,we ran an anonymous survey to understand needs and expectations and take concrete measures in terms of awareness,inclusive communication and protocol to assist LGBTI+people.Ethnic
186、 and cultural diversity In 2022,we promoted visibility and awareness of cultural diversity and the influence of implicit bias on peoples actions and decisions.Top management undertook a mandatory training session,called“Cultural connection”to help teams look past cultural differences and get the bes
187、t from all backgrounds.Key local initiatives:In Brazil,we held workshops on ethnic awareness for mid-level managers.We also launched the anti-racist Black Allies initiative and saw an increase in the hiring,satisfaction and retention of black employees.In the UK,we participated in Solaris,an externa
188、l development programme for black women executives.We held ethnicity listening circles with our EthnicityWork network to hear the stories of people belonging to ethnic minorities from all over the Group.We also wrapped up the first“Accelerating You:Black Talent Programme”to drive black talent.%of wo
189、men in top management and other senior positions Women members Our target:Our progress:on our board 40-60%40%Women in senior Our target:Our progress:positionsD 30%29.3%D.Senior positions are 1%of total headcount.Grupo Santander features in the Bloomberg Gender-Equality Index and is its highest-scori
190、ng bank Persons with disabilities Our diversity,equality and inclusion strategy has a specific focus on the inclusion of persons with disabilities.In Argentina,Brazil,Mexico,Spain,the UK and the US,Santander has networks for employees with disabilities to share ideas,point out needs and areas for im
191、provement and promote active listening as the way to root out stereotypes and biases that undermine inclusion.Access to employment and education are two major obstacles for persons with disabilities.Santanders main ally in changing that reality is Fundacin Universia.In 2022,we held local and global
192、events to celebrate International day of persons with disabilities.Santander is part of Valuable 500,a cause that puts disability on the agenda of business leadership,striving for full accessibility at work,in communications and in the awareness of everyone in the countries where it operates.for mor
193、e details see 3.9 Support to higher education and other local inititatives section in this chapter or go to 38 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Equal pay Gender pay gap:30.2%What it measures:The gender p
194、ay gap measures differences in compensation between women and men in an organization,business,industry or the broader economy,irrespective of the type of work.At Santander,fewer women hold senior and business management roles than men(something we are focused on addressing),while more women work in
195、retail banking and support roles.We calculate the gender pay gap as the difference in the median remuneration paid to male and female employees,expressed as a percentage of the male remuneration.Our remuneration schemes factor in base salary and variable pay,but not corporate benefits/in-kind compen
196、sation or local allowances.Our progress:Santander addresses the gender pay gap with a methodology based on best practices and common guidelines for the Group.We maintain rigorous standards for hiring,promotions,succession planning,and talent pipelines to strengthen diversity.We also promote implicit
197、 bias training,communications from executives as well as mentoring,networking and other actions aimed at achieving greater balance in the organization.Local units have action plans in place based on their own characteristics and conditions.The pay gap has decreased significantly compared to the prev
198、ious year(32.3%in 2021)showing the effect of the structural measures taken in the Group.Equal pay gap:1%What it measures:The equal pay gap measures the equal pay for equal work for women and men in the same job at the same level.Our comparison does not consider such factors as tenure,length of servi
199、ce,previous experience and background.Our progress:Santander set up fair pay programmes to reduce the equal pay gap(our target is 0%in 2025).They include systematic reviews tied to remuneration cycles(merit-based promotions and bonuses),work reorganization and career development plans to recruit,eng
200、age and retain diverse talent.Gender and equal pay gap figures match 2021 trends,on the back of a firm commitment and ambitious action plans assumed throughout the Group.We continued to make progress in standardizing the criteria of our approach in all geographies and increasing the headcount of the
201、 segment we analysed.We will continue to conduct robust reviews and analyses of pay data to detect,understand and act on any gaps.39 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Employees health and well-being Our h
202、ealth and well-being strategy sets out how we protect the health,safety and well-being of all employees,associates and customers;promote a healthy lifestyle;and create long-term value.It includes a set of common guidelines to ensure a consistent,group-wide approach to mental and emotional health,dig
203、ital downtime,nutrition and obesity and other matters.In 2022,we published our Global Health,Safety and Well-being policy,which can be found on our corporate website.We regularly check our employees satisfaction with internal surveys that ask them about general health and well-being,physical health,
204、mental and emotional health,social care and Santanders support.Covid-19 In 2022,we adapted our Covid-19 strategy to address the severity of the Omicron variant early in the year before the pandemic began to subside.We continued to develop a response based on protocols and prevention measures to ensu
205、ring the health of our employees,consistent with domestic and international guidelines and recommendations on public health and safety.We undertook a gradual process to normalize our operations and return to the office,cutting back our COVID-related measures strictly within the labour laws in each c
206、ountry.8.1(out of 10)Average rating from employees about the statement“Employees health and well-being is a priority at Santander”0.2 above the finance industry benchmarkA A.2022 Peakon survey Occupational health We have collective agreements at bank and sector level,under which employee health and
207、occupational risk prevention are considered.We offer employees check-ups either regularly or after extended absence.We cooperate with competent local institutions on public health initiatives.We also revise occupational risk prevention plans regularly with employees legal counsel.We implement them t
208、hrough:regular workplace assessments of health and safety risks and preventative measures to handle or eliminate them;prevention measures when designing,procuring or acquiring offices,furniture,equipment,products and IT equipment;procedures to guarantee safe working conditions.The Occupational Risk
209、Prevention area draws up the plans with other units,with measures to prevent or minimize the risks they detect and review;employee awareness and continuous training;and occupational risk prevention in all operations that may impact on employees health and safety.Our offices have achieved several sec
210、urity,quality and sustainability certifications,such as LEED O+M,Gold Level in the US,or ISO 14001 in Brazil.In 2022,our corporate centre,the Santander Group City,obtained ISO 45001 certification.For more details on absenteeism data,see the Our progress in figures section in this chapter.BeHealthy W
211、ere committed to being one of the worlds healthiest companies.We foster our employees health and wellness,raising awareness through our global health and wellness benefits.We also raise awareness through our global BeHealthy programme,which celebrated its sixth year in 2022.Its four pillars are:know
212、 your numbers;eat well;move;and be balanced.Throughout 2022,hundreds of initiatives and events have taken place around the world,involving thousands of employees.In April,we held BeHealthy Week,with daily,in-person and virtual events that covered the programmes four pillars.At the same time,we launc
213、hed an online campaign,#SantanderBeHealthy,which encouraged employees from Banco Santanders country units and divisions to share their own healthy habits,achieving 3 million impacts.We also joined global initiatives run by the World Health Organization,including Global Mental Health Week,Womens Heal
214、th Month and Mens Health Month.Pau Gasol joined us for a global event to celebrate World Nutrition Day with some 1,500 employees.All Group employees can access health-related platforms(like Gympass to use gyms)and apps for nutrition,mental health,physical health,exercise,meditation and other service
215、s free of charge or at bargain rates.40 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Our listening strategy SASB FN-AC-510a.2,FN-CB-510a.2,FN-IB-510a.2 In 2022 we set out a new strategy to listen to employees on a m
216、ore frequent basis.We changed our annual employee listening survey to a more regular listening model called“Your Voice”,with cutting-edge technology.We ran Your Voice three times in the year,gaining more regular and deeper insights.Managers can access Your Voice results in real time and review quali
217、tative opinions and sensitive observations to pinpoint areas with a high risk of employees leaving and the drivers to boost higher engagement.It helps managers promote dialogue,trust and transparency to raise employees performance and reduce resignation and absenteeism.Santander Group-2022 Your Voic
218、e result in a nutshell Employees can give feedback more often and leave comments on every question while preserving anonymity at all times.Your Voice surveys only take a few minutes to complete.The surveys we ran in 2022 showed positive results overall.For more details,see Ethical channels in 3.2 Co
219、nduct and ethical behaviour section in this chapter.8.3 Engagement In line with benchmark for Finance,and all sector companies Stable across all three rounds in 2022 Strengths 1)Meaningful work 2)Peer and team relationships 3)Goal-alignment and feedback 4)Diversity and inclusiveness Opportunities 1)
220、Autonomy 2)Simplification 54 eNPSA 14 above Finance benchmark 16 above all companies benchmark Top 10%of the Finance sector eNPS distribution 25%Passives 65%10%Promoters Detractors 89%Aggregated participation 1.9Mn Comments provided A.eNPS(employee Net Promoter Score)is a method of measuring employe
221、es satisfaction levels Volunteering Santander has a volunteering programme in every country where we operate.We focus on:Promoting financial education.Preventing early school-leaving and boosting the job skills of young people at risk of social exclusion.Supporting people with disabilities,women and
222、 children in difficulty,and other vulnerable groups.Subsidiaries also develop programmes based on local needs.Programmes for children in Latin America In Brazil,volunteers took part in financial education initiatives.The Bank also held the 20th edition of the Amigo de Valor program.In Mexico,we supp
223、orted Fideicomiso Por los Nios de Mxico(FPNM)(employees donate part of their salary to help disadvantaged children)and Fundacin QUIERA to boost young peoples financial skills and to improve their emotional health.In Chile,volunteers helped children through tutorials,school-based support,sporting and
224、 cultural activities,and camps.Europe and Ukrainian refugees In Poland,numerous volunteers took part in an project relief programmes that benefited over 1,000 people.In the UK,employees joined customers in donating money to the Red Cross and UNHCR.Some employees volunteered to fundraise and shelter
225、refugees in their homes.In Spain,volunteers helped Ukrainian refugees at our Corporate Centre.They taught Spanish and ran activities for children.In Germany,volunteers collaborated to collect refugees at the border with Poland.Some employees also took refugees into their homes.+25,000+77,400 employe
226、es hours volunteered participating in community activities For more details on our social contribution to communities,see the 3.9 Support to higher education and other local initiatives section in this chapter 41 2022 Annual report Contents Responsible banking|Corporate governance|Economic and finan
227、cial review|Risk management and compliance 3.3.2 Ensuring we have the right talent and skills GRI 2-17,3-3,404-1,404-2,404-3,FS4 Our talent strategy focus on talent attraction and retention.Strategy Workforce Planning exercises helps us to understand our current skills base and future needs(aligned
228、to the business strategy).Talent attraction&acquisition Talent attraction Our talent attraction strategy is focused on positioning the Santander Group as one of the worlds leading technology financial groups,one of the BigFinTech,ensuring a great candidate experience,and moving fast.In 2022 we focus
229、ed on digital transformation.We embedded a Acquisitions Tracking System(ATS)in all our core units for faster selection,a sound experience for candidates and managers,and efficiency,group-wide.We also began a pilot scheme to help us quickly screen applications for mass vacancies.Moving forward,we pla
230、n to roll out candidate screening technology to more areas as well as machine learning solutions to assist with candidate selection.Digitalization will also remain a priority.Attracting and retaining We implemented a strategy based on a strong employee value proposition(EVP)for STEM talent.It includ
231、es:1.Global BeTech!programme,to develop Santanders image as a tech company with a market leading proposition of flexible work,meaningful projects,DE&I,agile work,etc.We reinforced our EVP with hybrid working models for tech teams and more agile ways of working,as well as running these initiatives:“W
232、omen in Tech”,which aims to enhance the visibility and leadership of women in the tech field through roundtables and event sponsorship.“DiverTechies”,to help people with disabilities enter the job market and build a more inclusive tech industry.We reinforced our EVP with hybrid working models for te
233、ch teams and more agile ways of working.A global careers strategy we have implemented offers talented STEM professionals the option of working in the gig economy on Talent retention Mobility Our global career strategy sets out the principles to generate purpose-driven mobility,unlock the Groups tale
234、nt and provide clear standards for our managers and employees.We have simplified the internal mobility offering with four simple and transparent forms of mobility that align with business and employee needs:1.International assignments(EXPATS)2.Permanent movements 3.Project-based assignments(Mundo Sa
235、ntander)4.SWAP programme short-term,project-based assignments,plus swap programmes where they and a colleague switch roles for a set period.2.The Community of digital professionals.A key part of the Global BeTech!strategy was to create a community of digital professionals who act as Santander ambass
236、adors online.Since our employees are the most effective champions of our culture and work environment,their role as“micro-influencers”is helping us get our message out and attract new talent.3.The new Global landing page A new landing page has been launched in December 2022 for digital&tech talent t
237、o apply in the different open positions in most of our units().This way we show the candidates the strength of our global presence,our many opportunities,and the international careers that could be available by joining us.4.New Learning program to join technology and business Under our learning and
238、development strategy,we worked with some of the worlds leading universities and with such technical schools as Ironhack,The Bridge and Immune Institute,to launch upskilling and reskilling programmes.We also implemented the new Be Tech&Business programme to help gifted STEM professionals gain a inter
239、disciplinary knowledge in tech and business,with an emphasis on artificial intelligence,market places,DeFi and emerging technology.We also fine-tuned compensation schemes to better attract and retain our STEM talent and launched an innovative value creation plan for PagoNxt based on best practice in
240、 FinTech.We promote internal mobility as the best way to meet business needs and offer real opportunities to our employees,with internal vacancies posted on our Global Job Posting site.We refreshed our first global project marketplace,Mundo Santander,to offer employees temporary mobility and develop
241、ment opportunities:any business or support area may propose a project,which will be posted in Job Posting,and any employee from the Group who meets the requirements may apply.We also developed the SWAP programme for professionals with similar backgrounds to change roles for a short period as a way t
242、o share best practices and new ways of working and gain global perspective.In 2022 we reviewed the Global international mobility policy and created a separate guide for each mobility type.42 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk manag
243、ement and compliance Learning and development Our Global learning and development policy sets the standards for designing,reviewing,launching,overseeing and enhancing training and development programmes.We are developing a common catalogue of learning solutions that focuses on the most critical skil
244、ls our business demands,based on input from strategic workforce planning tool,the employees skills gap assessment and the business challenges identified with subsidiaries L&D teams and business stakeholders through the learning needs assessment.We encourage our employees to take the lead in their ow
245、n learning development and we ensure that their skills and knowledge stay relevant.We promote employee learning on our digital ecosystem for lifelong learning,with a vast array of study plans and“roadmaps”for employees to upskill and reskill and be in charge of their training and personal developmen
246、t.Present and Future Leaders Our development programmes for employees include:Young Leaders,a global programme for young,talented employees to continue developing to meet the demands of a changing world.We launched its third iteration in 2022,with a focus on cultural intelligence,“think customer”and
247、 future design.Global training Elevate:our global executive learning ecosystem for senior officers to participate in a 14-week hybrid learning experience on“evolving customer”,“caring leadership”,“responsible banking”and“building the future of Santander”.Talent Management Our learning and developmen
248、t strategy strengthens talent management across our footprint to select candidates for leadership initiatives.In 2022,our talent management included:Succession planning:We enhanced our succession planning by focusing on diversity,ensuring cross-pollination and using more data-driven analytics.Skills
249、 model:We designed and launched a skills model that helps us reskill and upskill employees(which weve already rolled out to most units).Potential assessment:We created a Common Potential Model and implemented a technology solution to assess our employees potential.We assessed our senior officers in
250、2022 and will extend the model to all employees in 2023.We build skills from the ground up with on-demand and sequential learning.We use proven,easy-to-follow,self-paced learning paths so employees can form a knowledge base,build proficiencies and develop new skills their way.Our main focus is on:Fo
251、stering innovation:We carry out expert programmes and bootcamps focused on data analytics,programming,computational thinking,cybersecurity,futures design,hyper-personalization,innovation and service design,which are key disciplines in employee upskilling and reskilling.New ways of working:The Agile
252、Academy umbrella provides us an extensive catalogue of contents and certifications on agile culture and roles.IT skills:Our learning plans cover different technologies,with a specific website for cloud-related issues.Core banking skills:We continue to develop core knowledge through our Global Risk a
253、nd Internal Audit schools.Global mandatory training:According to our Risk culture and strategy,we deliver required pills and e-learning courses quickly to impart knowledge on regulation,risk,cyber security,code of conduct,responsible banking,and financial crime.In addition,each subsidiary has mandat
254、ory courses on the law and regulation of its jurisdiction.Responsible banking:We have progressed on the 3 level training strategy we defined in 2021:We launched the first global mandatory training in ESG for all employees,“Sustainability for all”.We created ESG Talks,a series of online recordings av
255、ailable on our learning digital ecosystem,with internal experts from SCIB,Risk,Human Resources,Consumer Finance and Retail Banking for the areas involved in our sustainability agenda.We provided the contents for employees to obtain Santander ESG Commitment Fundamentals,International Sustainable Fina
256、nce Specialist-IASE level II and other ESG expert certifications.Some subsidiaries and global businesses provided additional training on climate change,sustainability,sustainable finance,sustainable investment,diversity and inclusion.In 2022,the Board of Directors completed training programmes on cl
257、imate change,with modules on the Paris Agreement,net zero,portfolio alignment,climate risk management,transition plans,regulation and reporting,and biodiversity.We also trained our employees on diversity and inclusion,health and safety,customer and supplier relations,the environment and anti-corrupt
258、ion.43 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.3.3 Supporting to the needs of the teamsGRI 2-17,2-19,3-3,404-1,404-2,404-3 Performance review and remunerationOur comprehensive remuneration framework combines
259、fixedand variable pay schemes based on targets for employees andthe Group.Short-and long-term variable remuneration reflectswhat we have accomplished and how,according to group-widequantitative and qualitative targets as well as individual andteam targets,behaviour,leadership,sustainability,commitme
260、nt,growth and risk management.It includes pensionplans,banking products and services,life insurance,medicalinsurance and other corporate benefits our employees canchoose.Fixed remuneration schemes reflect local market conditions.Toset pay,we strictly abide by the practices,regulations andcollective
261、agreements in force in each jurisdiction where weoperate.Our remuneration policy for all Group employees forbidsdifferential treatment that is not based on a review ofperformance and corporate behaviours.It also promotes equalpay between men and women.To comply with EU regulations on remuneration,we
262、 identified1,039 employees subject to a deferred variable pay schemebecause their decisions can have a material impact on equity.The policy defers a significant amount of their variable pay(40%-60%depending on remit)for four to seven years,inaccordance with internal and local regulation.50%of variab
263、lepay is delivered to them in shares and subject to potentialreduction(malus)or recovery(clawback).However,executive directors receive 50%in instruments(25%in sharesand 25%in share options),unless they choose to receiveoptions only.MyContributionKey initiatives in 2022The executive director remunera
264、tion policy for 2022 includedvariable,multi-year remuneration(2023-2025)based onrelative total shareholder return,return on tangible equityand ESG metrics.We measure our progress in ESG againstthese four lines of action and their related metrics:(1)percentage of women in senior positions;(2)financia
265、linclusion;(3)green finance and socially responsibleinvestment;and(4)exposure to thermal coal.In 2022 we began developing a new variable pay platform aspart of our commitment to better employee experience andbest market practice.We made progress with gender pay gap monitoring andanalysis.Our remuner
266、ation policy outlines our commitment toavoiding gender bias and removing inequality.For more details on boardremuneration,see section 6 of the Corporate governance chapter.MyContribution is our common performance managementmodel.We update it regularly,and it applies to all employees.44 2022 Annual r
267、eport Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Corporate benefitsWe offer several benefits to our employees in all geographies.Each subsidiary has programmes that adapt to localcircumstances.Benefits range from free services for e
268、mployeesand their families to discounts on products and services.We focus on well-being to help employees stay in soundphysical and mental shape,to support their families and toadapt health cover to new circumstances and needs.In Spain,our Santander Contigo programme provides assistance withdaily ta
269、sks,legal and computer support,and other services.In other geographies,services and financial aid for childcare andsupport for elderly relatives in their charge are also substantial.Transforming the way we workFrom early 2022,with different Covid infection and vaccinationrates in our markets,we had
270、to remain responsible,vigilant andflexible to rollout a“post-pandemic”work model.We focusedon two key areas:1.Return to office,with the objective of gradually bringingeveryone back as the pandemic subsided.2.A flexible working model that is fit for the future andresponds to business needs.We also co
271、ntinue to promote our employees work-life balancethrough flexible working,health&well-being programmes andoffice safety measures.A new way of workingWe implemented a global framework for managing hybridworking based on productivity,engagement and attractiveness.It enabled each subsidiary to deliver
272、a consistent model toemployees that they could adapt to local needs:For productivity,we created a new dashboard to measure thenew ways of working across the Group and measured KPIs forcontact centres and operations.For engagement,we asked employees to provide feedback onthe new ways of working.For a
273、ttractiveness,we followed up with job applicants to learntheir views on our new ways of working.Agile Way of WorkingWe have been implementing agile methodologies andorganizational structures across the business to ensure a strongcustomer focus and promote a more collaborative andmultidisciplinary wa
274、y of working.To enable change,we createdan Agile Transformation Blueprint and practices to helpsubsidiaries facilitate business agility.And we have booster our Agile Training Academy with severallearning modules available for all levels and specializations ofemployees.For more details on our initiat
275、ives promoting employees wellbeing,see Employeewellbeing in this section8.4(out of 10)Employees assessment of whether theybelieved they had the necessary flexibility to be able to balance work and family life.AA.Workday-peakon survey 2022 We set out five ways of working principlesThe customer comes
276、first.Behind any Way ofWorking arrangement customer and businessimpact MUST be considered at the first place.Managers are playing critical role in theorganizing teams work.Productivity of theteams and individuals are key decisions factorswhen building the models of work.Office is our main place to w
277、ork.Workspacesare no longer just a place of work but a socialdestination bringing people business together,and supporting different working needs,withthe best opportunity for collaboration,innovation and creativity.Building critical socialmass at the premises is key for our culture.Testing and learn
278、 approach trough constantlistening evolving over the time with the focuson customer,individual performance,productivity outputs,and employer branding.Flexibility,fairness,inclusion and equalopportunity are guiding principles in decision-making.45 2022 Annual report Contents Responsible banking|Corpo
279、rate governance|Economic and financial review|Risk management and compliance Enabling the business Enabling the business to take key decisions and manage human capital,was a key human strategy and objective for us in 2022 and will continue to be in the future.We want our people to make smarter,faste
280、r decisions about their teams and their needs.We are contributing value with our global technology platforms and giving the business data at their fingertips through:Enhance user experience through new solutions such as OneHR portal,OneHR Support,chatbots and mobile first technology.Maximize the pot
281、ential of our platforms,having added such end-to-end processes to them in 2022 as the skill model,talent review,succession planning and time tracking.Social dialogue In 2022,we continued to guarantee freedom of association and the right to collective bargaining.Our Responsible Banking and Sustainabi
282、lity policy considers forming or joining unions and other representative bodies a basic right of workers,in accordance with Article 10 of our General code of conduct.We also ensured respect for freedom of association,trade unions,collective bargaining and protections for employees representatives un
283、der the laws of each country where we operate.We continued to promote and comply with the International Labour Organizations Fundamental Conventions.We also remained in constant dialogue with employees legal representatives in bilateral and special committee meetings where all parties could discuss
284、reporting,queries and negotiations about work conditions and employee benefits.Create global data and data quality governance and new reporting dashboards,and used analytical and predictive models to harness HR Analytics for more insightful people management.Simplify and automate back-end processes
285、by moving towards more global shared service centres in Human Resources.Meetings we held in 2022:Occupational health and safety committees Equality plan follow-up committee Santander employees pension plan control committee Training committee Other meetings Employee listening Banco Santander mass re
286、dundancy agreement follow-up committee Registration of working hours Corporate behaviors Flexiworking policy Capitalization of pension supplements agreement follow-up meetings Meetings with subsidiaries union committees Bilateral meetings with trade union representatives 46 2022 Annual report Conten
287、ts Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.4 Acting responsiblytowards customers Our customers are at the centre of everything we do Introducing consumer protection principles into our practices Designing products to meet their Protecti
288、ng privacy and personal Cyber as a culture driver to protect needs and aid their sustainable data and using them our customers information transition appropriately Providing the best experience Strengthening our customer-obsessed culture 3.4.1 Customer experience and satisfaction GRI 2-29,3-3,FS5,FS
289、6 Transforming customer experience Our aim is to offer customers a great service and experience that produces optimal business outcomes.We created local and global opportunities to transform customer experience(CX),with the oversight of our management committees.In 2022 we focused on:1)CX strategy:D
290、evelop skills,processes and tools to manage CX within our Global CX management framework,which our core country units helped create.2)Create a Centre of Excellence for Behavioural Economics to better understand peoples choices.3)Customer-centric culture:A community to share know-how and innovation t
291、o develop subsidiary-level CX plans to raise NPS.We have a monthly newsletter and hold special workshops and training sessions.Customer satisfaction In 2022,we conducted over five million surveys to monitor customer feedback about Santander and find out how we can improve our products and services a
292、nd,ultimately,their experience.In 2022,we ranked in the top 3 in NPS in 8 of our markets(For more detail see tables 27,28 and 29 on 4.Our progress in figures section in this chapter).In 2022,among others,we ran these initiatives:“Serve from the heart”(SFTH),which brought us closer to customers real
293、needs and problems.It is running at branches,contact centres and central offices in the US,Brazil,Chile,Argentina,Uruguay and Portugal,and includes videos and podcasts.Also,in the US,we ran digital interaction initiatives and created a customer ombudsman programme to enhance claims and complaint res
294、olution,which boosted CX.In the UK,we use customer voice analyses to perform quick tactical testing.Initiatives also include gamified communication,proactive apology messages for unsatisfactory service and calls to detractors.In Poland,the COMPASS methodology ensures that new products and solutions
295、will prove useful to both the business and the customer,mitigating risks and boosting customer satisfaction.Also,our plain language communication policy boosts CX,our reputation for transparency,honesty,and straightforward terms of service.In Brazil,we developed an AI-driven“speech-to-text”(STT)prog
296、ram that leverages our ability to listen to our customers,bringing insights that allow us to improve our customers experience.We also continue working on the accessibility of our products and services,including our channels as branches,App y Webs.Top 3 in NPS in 8 countriesA A.Santander US has a dif
297、ferentiated objective and does not compute.47 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.4.2 Product governance and consumer protection GRI 2-26,3-3,416-1,417-1,FS15 Customer conduct risk model Being responsible
298、 means offering our customers products and services that are Simple,Personal and Fair(SPF).Our daily operations must be brilliant,and do more than what the law requires,to give our customers an exceptional experience.Our customer conduct risk model sets out the lines of action and standards for mana
299、ging and mitigating conduct risk in service design,sales,post-sales and execution.The Product Governance&Consumer Protection area pinpoints risk from banking regulation and good practice.It also conducts thematic reviews to avoid problems that might affect our customers and to ensure excellence.2022
300、 thematic reviews focused on pricing,account closure,services for elderly customers,care for victims of fraud,and payment protection insurance.We found over 100 areas of improvement.Product governance Santanders governance structure enables it to safeguard customers interests.Our product governance
301、forum ensures the products and services we market meet the needs of specific target segments and are reasonably and clearly priced.Transforming sales culture Training is central to Group Santanders strategy for a strong risk culture and sound risk management.All our employees complete a mandatory co
302、urse on conduct risk management.We also run special training programmes for our sales teams to learn skills to sell our products and services properly.Those programmes,plus the practices and controls we promote,ensure we offer products and services that are consistent with customers needs and prefer
303、ences.We avoid pressure selling and other inappropriate practices,and only offer product and service bundles if they add value for customers,who always sign up to them at their own discretion.We explain products and services to customers in a clear and thorough manner throughout the customer cycle,w
304、ith quality and conduct controls for marketing and sales material,brochures and contracts according to Santanders standards.We design customer-focused remuneration models to ensure quality sales processes and to promote sustainable business.In 2022,we verified that at least 40%of sales units variabl
305、e pay was based on customer satisfaction and quality metrics.We drew up plans to enhance pay schemes that promote suitable fixed and variable pay ratios and linear business objectives that will help avoid conflicts of interest and ensure sales will meet customers needs and profiles.We continued impl
306、ementing Rating de Oficina project to give branches a customer conduct and quality rating that impacts on employees pay,with technology to review real-time metrics for greater awareness and management of conduct-related risk.In 2022,we reviewed the pay schemes of call centre employees involved in sa
307、les and customer engagement,in addition to others working in credit approval,loan monitoring,recoveries and collections,to make sure good conduct and service quality were engrained in their objectives.Vulnerable customers In 2022 we made headway with the management of vulnerable customers and preven
308、tion of over-indebtedness in all our core markets.Each subsidiary has a roadmap to roll out a Group-wide model for training customer-facing employees to recognize vulnerable customers,escalate cases,and design products and services in such high-impact procedures as collections,fraud management and s
309、ervices for senior citizens.We focused heavily on vulnerable customer identification through internal awareness campaigns and metrics.In 2022:We implemented protocols for elderly customers to avoid exclusion and improve the experience of these customers.We were awarded in UK to be certificated by In
310、ternational Standard on Consumer Vulnerability and the Inclusive Service(ISO 22458).Conduct in collections and recoveries In 2022,we used customer conduct metrics to monitor recoveries in all our markets every month.We also checked employee training and quality control.Customer complaints regarding
311、recoveries fell 26%against the previous year(despite the Covid crisis and the war in Ukraine)on the back of the ethical standards we continued to implement and oversee since 2021.Conduct in fraud management Santander invests in advanced systems to protect itself and its customers from the devastatin
312、g effects of fraud.In 2022,we conducted a Group-wide analysis of how we manage fraud with customers.We reviewed regulatory trends,as well as our end-to-end processes,product and service design,claims handled,customer communications and control.Our findings helped us draw up action plans to boost our
313、 fraud management in 2023.48 2022 Annual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance Complaints managementHandling customer issues and complaints proactively andeffectively,analysing disgruntlement and applying lessonslearned
314、are vital to continuous improvement,innovation,and tostrong customer satisfaction and loyalty.Our complaints analysis and management are consistent withthe Groups Simple,Personal and Fair strategy,with standardsfor all units to properly handle complaints and offer the bestcustomer service.We use ana
315、lyses to enhance products andservices,with an early warning system to identify risks.In 2022 we reviewed complaints management and root-causeanalysis in all our core markets to identify commonworkstreams,good practice and areas of improvement.In 2023we will run initiatives on customer service excell
316、ence.We continued our holistic analysis of customer surveys andconsumer protection,with artificial intelligence to report rootcause,maximize oversight(e.g.pilot schemes in Brazil andMexico with over 27 million sets of data),avoid issuesreoccurring and follow best practice.Type of complaintsA,B(%)Res
317、olutionA,B(%)Our methodology harnesses the benefits of customer surveyalgorithms to get the most out of structured and unstructureddata on our systems.In 2022 we received few complaints from senior citizens andnew customers in our core markets relative to our totalcustomer base.We also use special t
318、axonomies to track fraud-relatedcomplaints in all geographies.In Mexico,cases of fraud,whichaccount for c.50%complaints there,have been fallingsignificantly,thanks to a new task force and the measures weretaking.In 2022,the average time taken to resolve complaints was 10.5days.For more details on co
319、mplaints management,see section 7.2.Compliance and conduct risk management in theRisk management and compliance chapter and ourCulture report in our corporate website.22.5%32.0%2.5%30.9%7.5%4.7%Banking proceduresLoansInvestmentsPayments methodsOthersInsurance80%20%In favour of the BankIn favour of t
320、he customerA.Personal Protection Insurance(PPI)Complaints excluded from the volume,distribution by product and resolution term figures.Regarding the uphold ratio,the UK has been fully excluded.B.Complaints metric follows the criteria established by the Group(homogeneous in all geographies).49 2022 A
321、nnual report Contents Responsible banking|Corporate governance|Economic and financial review|Risk management and compliance 3.4.3 Privacy,data protection and cybersecurity GRI 418-1 Privacy and data protection Our standards afford people greater control over their data,ensuring we only use their dat
322、a strictly necessary and for the specific and dully informed purposes for which it is collected.Thats why we only process personal data that are appropriate,relevant and necessary to the purpose for which theyve been collected,throughout the datas entire life cycle and in accordance with the law.We
323、apply all reasonable measures to erase or rectify data that are impertinent,inaccurate or incomplete.We only store personal data for as long as strictly necessary for their legitimate use.Our security measures ensure the unwavering confidentiality,integrity,availability and resilience of our data pr
324、ocessing systems and services.Our compliance programme guarantees robust management of data protection risks.It includes:corporate-based criteria as general lines of action to meet regulatory requirements.local subsidiaries responsibility to abide by the General Data Protection Regulation(GDPR)and l
325、ocal regulation on data protection.a solid governance model consisting of:corporate and local policies;a data protection officer(DPO)and managers in each unit.We formally disclosed appointees to local authorities;a corporate oversight programme based on management KPIs;annual reviews;and an annual m
326、onitoring forum chaired by the Group Chief Compliance Officer,where subsidiaries report on compliance status and other key data protection matters.Other items that bolster our commitment to personal data protection are:a homogeneous monitoring and reporting model among units that includes performanc
327、e indicators;work with third-party service providers that must comply with data protection regulation;data protection compliance embedded in the annual internal audit programme;data protection management tools to maintain a group-wide register of processing activities(some 6,000),regular KPI reports
328、 and security incidents management;promotion of corporate initiatives and the exchange of best practices among units,including workshops and online training courses;special training on data protection for DPOs and data controllers;constant monitoring of regulatory developments to update and consolid
329、ate criteria,methodologies and documents;and employee training and awareness Cybersecurity Our culture promotes behaviours to protect customers information and the Group.We help our customers and broader society stay safe and prosper online.Were working with public-and private-sector organizations t
330、o combat cyber crime through knowledge sharing on cyber security.At Santander cybersecurity is embedded in our culture.It is a part of our employee performance reviews.In 2022,we made our teams more aware of cybersecurity,with:an update to our mandatory cybersecurity course;special or extra cybersec
331、urity training for payment agents,IT professionals and developers,board members and executives;awareness campaigns about new hacking techniques;and regular phishing testing that helps us become more resilient to threats and encourages employees to report incidents or suspicious messages through the
332、relevant channels.We ran initiatives to help our customers and society stay safe online:“Cyber Heroes”interactive training,where our employees and the general public can test their knowledge of online safety.Available in Argentina,Brazil,Portugal,Spain and the UK,it has a rating of 9 out of 10.Aware
333、ness workshops for retail and corporate customers at our branches to explain online threats and how they can reduce them.Por una vida online y corriente(“An ordinary life online”),a new global cybersecurity awareness campaign about healthy online habits and protection against fraud.As part of our corporate sponsorship of Rafael Nadal,it consists of special websites,social media content,targeted an