We follow Grupo Santander's Defence Policy in all of our investment products. This is a list of listed companies which are excluded from our portfolios due to its relation with the production or distribution of controversial weapons. Thus, this is the first line of action of our Responsible Investment approach.
In addition, the SRI policy defines SAM’s ESG assessment, which takes into account different components:
- A valuation analysis where the behaviour of issuers is assessed in relation to different environmental, social and governance factors. For this assessment, SAM uses the information provided by external data providers, incorporating it into its own valuation methodology. This methodology is designed by the SRI team and based on market references and the main international frameworks and standards resulting in an ESG rating of each issuer.
- Exclusions based on the nature of the activities carried out by the issuers or on the identification of risks through the monitoring of possible controversial issues. The exclusions are based on the policies of Santander Group, which apply to different sensitive sectors. In addition, other exclusions are applied for non-compliance with regulations or are related to specific SRI products conditions.
The ESG assessment of companies is composed of general analysis criteria - common to all sectors - and specific criteria - depending on the sector and activity - covering all relevant ESG aspects related to the essential thematic areas for an environmental, social and good governance analysis (e.g. Climate change, Natural resources, Human Capital, Labour Rights, Corporate Governance, Business Ethics, etc.)