Annual Report Integrated Financial Sustainability Report 2019
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Annual Report Integrated Financial Sustainability Report 2019 Let’s continue working for a better world santander.cl Annual Report 2019 A B Annual Report Integrated Financial Sustainability Report 2019 SANTANDER RESPONSIBLE 1 IN FIGURES 2 BANKING 04 Summary of financial results 18 Santander: A Responsible Bank 04 Infographics by interest group 18 Santander purpose 06 Awards 19 Santander Culture 20 Policies and principles 10 Letter from the Chairman of the 21 Sustainability model Board and Country Head 22 Interest groups and materiality 14 Letter from the Chief Executive 24 Desafíos de Banca Responsable Officer 26 Responsible Banking Priorities 27 Strategic pillars 28 Responsible Banking and Sustainability Government 30 Human Rights 31 Contribution to Sustainable Development Goals 34 1. Creating value for customers 44 2. Creating value for collaborators 72 3. Value to Shareholders 78 4. Creating value for society 104 5. Excellence in execution This integrated report will also be available online www.santander.cl 02 CORPORATE ECONOMIC AND FINANCIAL 3 GOVERNANCE 4 PERFORMANCE 112 Corporate Governance 137 Economic Environment 128 Compliance 142 Financial System 143 Financial results RISK SANTANDER AROUND ANNEXES 5 MANAGEMENT 6 THE WORLD 7 157 Risk culture 168 Business Model and 173 Report profile 157 Risk Governance Strategy 173 Materiality 158 Credit Risk 176 GRI Index 162 Market Risk 183 General information 167 Reputational risk 184 Financial statements 188 Contact details Annual Report 2019 03 GRI [102-7] Santander Chile in figures Summary of Infographics by interest financial results group SHAREHOLDERS $ 50,578 billion Assets +8.1% 16.7% 1.3% Loan growth ROAE ROAA $ 47,108 billion Total liabilities US$ 11,179.57 million 3.68% Market capitalisation Return on the last $ 32,732 billion dividend paid Total loans CLIENTS $ 23,490 billion Total deposits 16.1% 3.4 1,143,347 136,821 Million clients Current accounts (including Santander Life $ 554,176 million Life and Superdigital) Customers Consolidated net income for the year 4.8% 13.2% $3,470 billion Nº2 704,021 1,216,360 Equity Customer Loyal Digital Satisfaction customers customers 04 COLLABORATORS SUPPLIERS 11,200 54% 3,902 85% Total Women SME Local Suppliers suppliers 18% 74.9% 21 97.68% Women in leadership Unionisation Award-winning of bills paid in less than positions suppliers 30 days SOCIETY ENVIRONMENT $10.83 billion Total community contribution 2017 2018 2019 Paper consumption (ton) 1,662 1,512 1,268 Paper recycling (ton) 172 534 1,256 Volunteering Electronic waste (ton) 132 148 32.4 Power consumption (MWh) 29,605 28,640 28,139 Water consumption (m3) 107,074* 103,420* 149,106 Total emissions (tCO eq) 18,557 18,377 16,148 2,411 269,302 2 volunteers people positively *Estimate impacted Annual Report 2019 05 2019 Awards Financial Rankings BANK OF THE YEAR, ACCORDING TO BANK OF THE YEAR, BY LATINFINANCE BANK WITH THE BEST REPUTATION IN CHILE THE BANKER For the fourth consecutive year, Santander According to the Chilean Bank REP Lab Once again Santander Chile was chosen as Chile was recognised by LatinFinance study prepared by the Spanish consultancy Bank of the Year by the prestigious English Magazine as Bank of the Year. On this Villafañe & Asociados, Santander Chile is the publication The Banker, a prize also awarded occasion, the company was distinguished bank with the best reputation in the country, to Portugal, Argentina, and at a group level, for its digital transformation processes thanks to its good performance and realistic Western Europe and America. The journal and sustained revenue growth, thus objective indicators, obtaining 83.9 points in highlighted the institution’s commitment to consolidating its leadership in the market. the Global Index of Reputation. improving the customer experience and its ability to create excellent financial results in complex scenarios. BEST BANK IN CHILE, ACCORDING TO EUROMONEY For the eighth time, Santander Chile was recognised as the Best Bank of the Country by the English magazine. In the twenty- fourth edition of its annual awards, it also distinguished the entity as Best Bank for SMEs in Western Europe and Best Bank of Brazil, Portugal and Latin America. SANTANDER PRIVATE BANKING SANTANDER ASSET MANAGEMENT DISTINGUISHED AS BEST PRIVATE ACHIEVES OUTSTANDING PARTICIPATION BANKING, ACCORDING TO EUROMONEY IN PREMIOS SALMÓN 2019 In 2019, Santander Private Banking (SPB) Santander Asset Management had a won the most significant number of awards remarkable turnout in the Premios Salmón, in its history in the annual private banking which awards the most profitable funds in competition of the English magazine the industry, and obtained the following Euromoney and was included among the awards: 1st place Dynamic Santander top ten private banks in the world. The Select, Permanence series, Aggressive Chilean subsidiary won this award for the Balance category; 2nd place Santander seventh time in a row, which was also Aggressive Private Banking, Executive series, awarded to Argentina, Mexico, Portugal and Aggressive Balance category and 2nd place Spain, as well as at a Latin American level. Santander Chilean Shares, Executive Series, National Shareholder Large CAP category. Also, in the APV category, it achieved 1st place Santander Shares Emerging Asia, Shareholder Emerging Asia category, and 2nd place Santander Select Dynamic, Aggressive Balance category. SANTANDER AMONG THE TOP FIVE OF MERCO COMPANIES BBanco Santander was again recognized by Merco Empresas, reaching fourth place in this ranking that measures the companies with the best corporate reputations. 06 ESG Rankings BEST CORPORATE GOVERNANCE BY SANTANDER CHILE IN THE DOW JONES CAPITAL FINANCE INTERNATIONAL SUSTAINABILITY INDEX MILA 2019 MAGAZINE (CFI) Banco Santander remained for the Banco Santander Chile received for the third consecutive year in the Dow Jones first time the award for Best Corporate Sustainability Index of Integrated Latin Governance, awarded by the English American markets (MILA), the first index magazine Capital Finance International (CFI). of the Pacific Alliance that measures the economic, social and environmental performance of Chilean, Peruvian, SANTANDER CHILE INTEGRATES THE Colombian and Mexican companies. DOW JONES SUSTAINABILITY INDEX (DJSI) Once more, Banco Santander Chile is part of BANCO SANTANDER INTEGRATES THE SANTANDER CORPORATE GOVERNANCE DJSI Chile 2019, moreover ranking first in the FTSE4GOOD INDEX AMONG THE BEST IN THE COUNTRY local ranking among the banks that belong Santander Chile managed to position For the second consecutive year, Santander to this global benchmark in regards to itself as one of 19 companies in Chile to Chile’s corporate governance was recognised sustainable performance issues. During the be part of the stock index FTSE4Good as one of the top three in the country, year, Santander Group was featured on this Emerging Markets and Latin America, according to La Voz del Mercado study, an same index as the most sustainable bank in thereby demonstrating its leadership in evaluation carried out by EY, in conjunction the world. environmental, social and governance with the Santiago Stock Exchange and the matters. The FTSE4Good Index Series, which Institute of Directors of Chile. consists of a series of stock indices of the London Stock Exchange, is a tool to measure the performance of companies in this area according to recognised global standards. Annual Report 2019 07 Human Resources Awards SANTANDER IS RECOGNISED IN THE C3 RANKING OF CREATIVITY AND INNOVATION Santander Chile was awarded again in the C3 Ranking of Creativity and Innovation developed by Brinca Global and the Universidad del Desarrollo, which recognises companies that promote an open innovation climate and culture in their organisations, directly impacting the development of the country. On this occasion, Santander won third place among large companies, climbing one place compared to last year. BEST PLACE TO INNOVATE For the fourth consecutive year, Santander stood out among the companies that best manage innovation in Chile, according BANCO SANTANDER RECEIVES TOP to the Best Place to Innovate Ranking, EMPLOYER SEAL which identified the most innovative Banco Santander received, for companies in the country. Santander the second consecutive year, the was the only bank included in the 2019 Top Employer certification, which ranking, which this time contemplated recognises the companies with the best a 360-degree evaluation, incorporating conditions for the development of their senior executives, collaborators, suppliers employees globally, both personally and customers. and professionally, and which have the highest standards in the value TOP 3 IN GREAT PLACE TO proposition for them and that promote a WORK favourable internal climate. Santander was again recognised by Great Place to Work among the best companies to work in Chile, ranking third in the category of institutions with more than a thousand employees. 08 The efforts made by Banco Santander to innovate and maintain its leadership position in term of financial, labour and Responsible Banking have been recognized nationally and internationally. SANTANDER, BEST EMPLOYER FOR YOUNG PROFESSIONALS Banco Santander Chile was recognised as the best employer for young professionals in the financial industry in the country, and sixth in the general ranking of the survey Employers for Youth (EFY), by Firstjob jointly with the Adecco Group. The assessment considered various attributes, such as career development, benefits