ACTIONS FOR MEXICO 2012 ANNUAL Sustainability Report
www.santander.com.mx
Actions FOR mExico 2012 ANNUAL Sustainability Report
Grupo Financiero Santander México, S.A.B. de C.V.
Reach This report presents the major achievements, progress and actions of Grupo Financiero Santander México in the economic and financial, environmental, social and community outreach areas; corporate governance and relations management with the principal stakeholders during 2012.
(Santander México) is one of Mexico’s leading financial groups and a subsidiary of Banco Santander, headquartered in Madrid, Spain. It provides a wide range of financial products and services, including retail and commercial banking, securities brokerage, financial advisory services and other
Just as in the two previous years, external verification was carried out by Deloitte.
related investment activities. Santander México offers a International standards The report was prepared according to the international methodology of the Global Reporting Initiative (GRI), version 3.1. Reports are presented annually and the measurement techniques and figures presented in former years have not had significant changes neither in their methodology, reach or coverage.
multi-channel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multi-national companies in Mexico. As of December 31, 2012, Santander México had total assets of Ps. 750.3 billion and more than 10 million customers. Headquartered in Mexico
Preparation process The materiality of the report was determined through a meticulous analysis of all aspects of sustainability and public issues of the greater relevance for the Group, vis-à-vis the expectations and requirements of its stakeholders. This activity was reinforced by interviews with and specific questionnaires to leaders of diverse areas of the organization, as well as an analysis of the financial reports and official documents of the Group.
City, the Company operates 954 branches and 216 points of sale nationwide, and has a total of 13,385 employees.
Assurance The methodology applied for the preparation of this report was verified by Redes en Línea LT S.A. de C.V., reaching a B+ application level. The assurance letter can be found in the electronic version of the report at www.santander.com.mx
CONTENTS 2 Key sustainability results 4 About the organization 4 Vision and values 5 Main figures 6 Santander and sustainability 8 Santander a sustainable bank 10 Message from the Chairman 12 Message from the Executive President of Grupo Santander Mexico
14 Sustainability model and stakeholders 16 Social sustainability and community engagement 26 Economic sustainability 36 Environmental sustainability 39 Corporate governance and citizenship 42 Awards and recognitions 43 Glossary 44 External assurance 46 GRI Index
Grupo Financiero Santander México Corporate Headquarters Avenida Prolongación Paseo de la Reforma 500 Colonia Lomas de Santa Fe Delegación Álvaro Obregón C.P. 01219 México, D.F. Tel. +(52) 55-5257-8000 design:
www.signi.com.mx printing: artes gráficas panorama cover photo: © unicef mexico / mauricio ramos
Social responsibility contact:
[email protected]
At Santander, we have taken solid steps to affirm our leadership, sharing our vision and model of sustainability. Our actions are transmitted in our contributions to the economy, the environment, and society, and in our community engagement. 1
2012 Annual Sustainability Report
KEY SUSTAINABILITY RESULTS
■■ At Santander, we have built an institution with a long-term vision, committed to the growth of this country. But we are much more than a top banking institution. We have a clear social commitment that we express through our many initiatives in the area of corporate social responsibility.
ITEM
2010
2011
2012
Var 12/11
Customers
9,099,725
9,310,681
10,013,228
7.5%
Employees
11,828
12,395
13,385
8.0%
Assets (billions of pesos)
$ 676.0
$ 739.2
$ 750.3
1.5%
$ 228
$ 314
$ 351
11.8%
949
944
954
1%
Investment in training (millions of pesos)
$ 110
$120
$127
5.8%
Number of cases handled by the Customer Ombudsman
1,121
981
1,390
41.7%
Number of cases handled by the Employee Ombudsman
386
293
262
-10.6%
$ 2,432
$2,535
$3,815
50.5%
Deposits (millions of pesos)
$ 263,012
$ 309,194
$ 362,452
17.2%
Financing (millions of pesos)
$ 227,556
$ 313,673
$ 350,683
11.8%
Total loans (billions of pesos) Branches
Taxes paid (millions of pesos)
2
ITEM
2010
2011
2012
Var 12/11
$31,951,181
$24,911,895
$23,070,694
-7.4%
1,391
1,373
1,469
7.0%
Number of collaboration agreements
142
147
161
9.5%
Projects submitted for the Santander Prize for Business Innovation
417
267
463
73.4%
1,000,000
1,300,000
1,600,435
23.1%
Number of students benefited by Universia (millions)
2.2
2.3
2.5
9.0%
Number of teachers benefited by Universia (thousands)
245
267
271
1.5%
–
32,160
45,229
40.2%
37,173
18,167
13,058
-28.1%
46
66
69
4.5%
Amount of support (millions of pesos)
$6.2
$6.9
$7.0
1.4%
ITEM
2010
2011
2012
Var 12/11
Certified
Certified
Certified
–
142,645
126,458
107,275
-15.16%
Electrical energy (mWh)
138,437.09
134,104.76
135,745.20
1.22%
3
Water (m )
435,099.15
444,967.00
436,988
-1.79%
Paper (kg)
3,192,190.08
1,900,217.39
2,691,714
41.69%
Electronic equipment (units)
10,946
2,406
2,820
17.20%
Air travel (trips)
11,939
12,896
15,561
20.70%
Paper and cardboard (metric tons)
558.78
557.67
458.02
-17.90%
Plastic (metric tons)
174.66
161.23
106.34
-34.00%
Glass (metric tons)
36.654
35.90
47.81
33.17%
72,381
71,544
81,291
13.6%
Nd
1,754
1,729
-1.40%
770.09
754.81
621.17
-17.7%
Total donations collected through ATMs for social causes Santander Universidades Number of scholarships by Santander Universidades
Student smart cards provided Universia
Job placements through the job bank Por los Niños de México Trust Fund Number of children benefited Number of organizations supported
ISO 14001 Recertification of Santa Fe Corporate Offices National consumption Fuel (l) – diesel
National management
National generation Total GHG emissions (metric tons CO2 eq) Other GHG emissions (metric tons CO2 eq) Santa Fe transport – carpooling Total waste (metric tons)
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2012 Annual Sustainability Report
Company profile At Santander México, we provide our more than 10 million clients innovative, high-quality products and services, specifically designed for each business segment. We have proven our strength and experience by delivering excellent results for more than 60 years. In 2012, the Group confirmed its reputation for trust in Mexico by placing 24.9% of its capital stock in a public offering that totaled 4.21 billion dollars. With this transaction, Santander became the only Mexican bank registered with the SEC and listed on the New York Stock Exchange (NYSE), which translates into the adoption of the best international practices in the field of accountability and corporate governance.
VISION AND VALUES Vision Santander is a large international financial group. Its main business is retail banking, through which it offers comprehensive solutions to satisfy the full range of its clients’ financial needs, while providing high value for its shareholders. To achieve this, the Group maintains a leading presence in ten main markets, where it operates through subsidiaries with autonomous capital and liquidity, to which it provides global business policies and corporate organizational and technological capacity. Values Dynamism: We stay in the lead, with the agility to discover and take advantage of business opportunities before our competitors, and the flexibility to adapt quickly to changes in our markets. Strength: Our solid balance sheet and prudent risk management are the best guarantees of our capacity to grow and generate long-term value for our shareholders. Leadership: Our mission is leadership in all the markets where we are present. We have the best people working for us, in client-focused, results-oriented teams. Innovation: We are continually seeking new products and services that can meet the growing needs of our clients while increasing returns faster than our competitors.
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Quality service and customer satisfaction: Clients are the center of Banco Santander’s business model. We are a bank for their ideas. We want to understand their needs, respond with innovative solutions, and build lasting, long-term relationships based on trust. Professional ethics and sustainability: In addition to complying with laws, codes of conduct and internal regulations, all the professionals at Santander work with the utmost transparency and honesty. In performing their duties, they share the bank’s commitment to the economic, social and environmental progress of the communities where we are present.
MAIN FIGURES
SOCIAL INVESTMENT
BALANCE SHEET AND INCOME STATEMENT
Millions of euros (gross amounts)
Universities
Community 182 170
130
117
100
2010
52
53
148 48
2011
2012
2011
% 2012/2011
2010
1,269,628 720,483 968,987 80,821 1,387,769 43,675 23,559 6,148 2,205
1,251,525 750,100 984,353 80,400 1,382,980 42,754 23,195 7,812 5,351
1.4 (3.9) (1.6) 0.5 0.3 2.2 1.6 (21.3) (58.8)
1,217,501 724,154 985,269 75,273 1,362,289 40,586 22,682 9,077 8,181
Ratios (%)
2012
2011
2010
Efficiency (with amortisations)* ROE(3) ROTE(3) ROA(3) Core capital (BIS II) Ratio (BIS II) Non-performing loan (NPL) ratio NPL coverage
46.1 6.7 9.8 0.5 10.3 13.1 4.5 72.6
45.7 9.4 14.2 0.6 10.0 13.6 3.9 61.4
44.1 11.8 18.1 0.8 8.8 13.1 3.6 72.7
OTHER FIGURES
2012
2011
% 2012/2011
2010
3,296,270 101.9 186,763 14,392
3,293,537 100.0 189,766 14,756
0.1 1.9 (1.6) (2.5)
3,202,324 93.6 175,042 14,082
43,791 21,394 1,837 6,884 10,326 2,177 170
2.1 (8.5) (41.6) 1.8 (0.03) (54.4) 7.3
42,083 22,509 3,330 6,402 9,330 3,299 148
22,397 5,260
12.2 15.7
19,573 4,999
In millions of euros
2012
Total assets Customer loans (net) Managed customer funds Shareholder funds(1) Total managed funds Gross income(2)* Net profit before provisions (net margin) (2)* Results from continuing operations(2)* Profit attributable to the Group
DistribuTIOn OF SOCIAL INVESTMENT %
Art & culture 9.8%
Universities 71.5%
Number of shareholders Number of customers (millions)* Number of employees* Number of branches
Community & environment 18.7%
distribution of community investment* %
Rest of countries 3.1% Mexico 0.8% Chile 2.3% Sovereign 3.8%
Brazil 34.1%
Significant sustainability indicators (millions of euros) 44,695 Economic value generated(4) 19,576 Distributed economic value 1,073 Dividends, cash option(5) 7,006 Other administrative costs 10,323 Personnel costs 992 Tax on profits and other taxes(6) 182 CSR investment Retained economic value (economic value 25,119 generated less that distributed) 6,086 Total shareholder remuneration(5)
* 2010 and 2011 data have been recalculated, to make them comparable with 2012 financial information, by taking into account the sale of Banco Santander Colombia and the partial sale of Santander Consumer USA, and are thus only presented for comparative purposes. In 2012, the scrip dividend data for May 2013 is estimated. Before one-off capital gains and write-offs. (3) Calculated on ordinary profit. (4) Gross margin plus net capital gains on asset sales. (5) In addition to the 1,073 million euros in cash, 3,684 million euros of shares were earmarked for remunerating shareholders in the framework of the scrip dividend scheme. The Bank’s administrators have estimated that the percentage of share applications for the complementary dividend at 86.4%, for which it is estimated shareholders will be remunerated with approximately 1,329 million euros in additional shares. (6) Only includes the cost of tax on earnings and the taxes assessed in the exercise. The decrease with respect to previous years is mainly due to the fall in results caused by real estate provisions made in Spain to comply with the government’s Royal Decree. (1) (2)
Spain 25.8% United Kingdom 30.1% *
52 million euros invested
Source: Sustainability Report 2012; Grupo Santander
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2012 Annual Sustainability Report
SANTANDER AND SUSTAINABILITY
Geographical diversification is balanced between mature and emerging markets, which contributed 45% and 55% to earnings in 2012, respectively. This balance guarantees Banco Santander’s sustainability. The Bank focuses on 10 key markets: Spain, Germany, Poland, Portugal, the United Kingdom, Brazil, Mexico, Chile, Argentina and the United States. The global business areas develop products that are distributed by the Group’s branch networks and serve customers at the global level.
United States Customers:1,688,000 Employees:9,525 Social investment:€ 8,761,137 University accords:26 Grants: 1,002 Volunteers: 662
Customers:10,009,000 Employees:13,954 Social investment: € 5,589,341 University accords:161 Grants:1,760 Volunteers:9,458
Brazil Customers:27,315,000 Employees:53,707 Social investment: € 33,328,503 University accords:421 Grants:16,603 Volunteers:35,689
Main countries Other countries in which Banco Santander has retail banking businesses: Peru, Puerto Rico, Uruguay, Norway, Sweden, Finland, Denmark, the Netherlands, Belgium, Austria, Switzerland and Italy
Chile Customers:3,499,000 Employees:12,355 Social investment: € 5,112,289 University accords:56 Grants:266 Volunteers:1,702
Argentina Customers:2,452,000 Employees:6,805 Social investment: € 2,885,748 University accords:68 Grants:584 Volunteers:376
The employee data presented is broken down according to management criteria, and is not therefore comparable to that featured on page 69, which is presented by legal entity. Source: Sustainability Report 2012; Grupo Santander
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For Banco Santander, being sustainable means: • Integrating ethical, social and environmental criteria into the business. • Having the best corporate governance. • Combining long-term vision with anticipation of the challenges of changing environments, to make the most of opportunities. • Contributing to social and economic progress in the communities where the Bank is present. • Maintaining stable and lasting relationships with main stakeholders in order to understand their expectations and respond to their needs.
United Kingdom
Germany
Customers:26,212,000 Employees:26,186 Social investment: € 23,629,827 University accords:66 Grants:2,325 Volunteers:3,537
Customers:6,496,000 Employees:5,866 Social investment: € 478,122 University accords:3 Grants:40 Volunteers:-
Poland Customers:4,163,000 Employees:12,065 Social investment: € 487,488 University accords: 33 Grants: Volunteers: 231
Portugal Customers: 2,274,000 Employees: 5,896 Social investment: € 3,546,224 University agreements:45 Grants: 523 Volunteers: 2,450
Spain Customers:14,981,000 Employees:31,438 Social investment: € 97,575,747 University accords: 92 Grants: 6,834 Volunteers: 8,614
Source: Sustainability Report 2012; Grupo Santander
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2012 Annual Sustainability Report
Santander, a sustainable bank For Banco Santander, being sustainable implies doing business and, at the same time, contributing to the economic and social progress of the communities where it is present, taking into account its environmental impact while fostering stable relationships with its main stakeholders.
Santander has a sustainable, customer-focused business based on geographical diversification, the commercial strength of its branch network, the value of its brand, the disciplined use of capital and financial strength, cost control and prudent risk management.
This business model, together with a solid corporate governance structure, has enabled Banco Santander to retain its leading position among the main international banks in a very difficult economic and financial context and without any state aid.
Sustainable activity Customers and quality service
Products and services
Sustainable processes
The customer is at the centre of Banco Santander’s business model. The Bank has over 100 million customers worldwide who recognise it as a solid, solvent organisation in good shape to face the future. Understanding their needs, providing innovative solutions and building long-term relationships based on trust, forms the basis of Santander’s commitment to its customers.
Santander offers responsible and sustainable products and services that meet customers’ needs in each of the countries.
The Bank focuses its efforts on improving its internal processes to become more efficient and add value for the customer.
Santander’s products and services not only take into account financial performance criteria, but also incorporate ethical, social and environmental aspects. Examples include microcredits to help certain disadvantaged groups access banking services, socially responsible investment products and the development of financial solutions that contribute to tackling climate change.
Santander’s technological and operational systems makes it the most efficient international bank. At the same time, its network of data processing centres underpins the growth of its activity and data security, as well as minimising operational risk to customers.
Taking maximum care over the quality of service offered to the customer is essential for Banco Santander in its business. In recent years, it has been developing a corporate model for quality improvement, which is is introduced to more countries every year. Santander’s constant objective is to be among the leaders in service quality in all the countries in which it is present. The Bank also has corporate systems for managing incidents, complaints and claims.
Source: Sustainability Report 2012; Grupo Santander
8
Credit analysis Santander takes into account and assesses social and environmental aspects in the risk analysis and decision-making processes for its financing operations. The Equator Principles are applied to project finance operations throughout the Group. The social and environmental risk analysis carried out by Santander Brazil, for example, is a world first in this area.
Santander has made a significant effort to integrate social and environmental criteria into its internal processes, by: • Measuring and controlling the environmental footprint of all Group facilities worldwide. It has an ambitious energy efficiency plan to minimise the environmental impact of its business. • Managing purchasing processes in a coordinated way so that they are efficient and sustainable, and promoting compliance with the United Nations Global Compact Principles among its suppliers.
The current crisis has focused attention on the need to manage businesses in a sustainable and socially responsible way. This is the only guarantee that our activity will be viable in the long term.
Alfredo Sáenz Abad*
CEO, and chairman of the sustainability committee
2012 marked the 10th anniversary of the Group’s strategic sustainability plan, which has guided its activities during this period. The Group’s significant investment in higher education during the decade, via Santander Universities, has been a decisive differentiating factor.
ustainability is built into Santander’s S strategy, business model, internal policies and processes. It affects very different areas.
Social investment
Employees
In 2012, Santander earmarked EUR 182 million for social investment, of which 130 million was invested in higher education. Santander considers higher education to be key to social and economic development in the countries in which it is present. This is why it has maintained a long-term strategic alliance with universities for the past 15 years.
The 186,763 Banco Santander employees worldwide are the people who make the Bank’s sustainable business model possible and enable it to offer the best service to its customers.
Santander Universities is the main focus of the Group’s social investment. Via over 1,000 agreements with universities worldwide, Santander contributes to improving education, research and entrepreneurship. Santander promotes the use of banking and financial inclusion in the communities in which it does business. It sponsors initiatives to help the most disadvantaged sections of the population with the least purchasing power. In many cases, employees and customers take part in these initiatives. Likewise, the Group, through its foundations, is highly active in protecting, conserving and sponsoring art and culture.
Source: Sustainability Report 2012; Grupo Santander
Our people management model is structured around attracting and retaining the best international talent, knowledge management and professional commitment. This is based on solid values, fostering a sense of pride in belonging to Santander and the promotion of volunteer programmes. The professionalism of all Group staff goes beyond complying with laws, codes of conduct and internal regulations; they respect the social, ethical and environmental commitment of the Group.
Shareholders and investors Shareholders, investors and the market in general are increasingly coming to value the Group’s sustainability strategy. Santander is one of the financial organisations with the most shareholders in the world – 3.3 million. In accordance with the one share, one vote, one dividend principle, all Banco Santander shareholders receive equal treatment. There are no shareholders without a vote and none wields more than one. None have privileges when it comes to dividend distribution, nor is there any limit to the number of issues on which shareholders can vote. There are no quorums or reinforced majority voting except that established by law. Santander has always been at the forefront of information transparency and at the head of best practices in stakeholder dialogue. Likewise, in recent years, Santander has encouraged shareholder participation in annual general meetings through various measures.
*Due to Mr. Alfredo Sáenz stepping down as CEO, starting April 29, Mr. Javier Marín will assume this position.
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2012 Annual Sustainability Report
MESSAGE FROM THE CHAIRMAN
1
What does sustainability mean for Banco Santander and how is it important?
The first thing that needs to be sustainable is one’s own business; it is necessary to have a solid business model geared to generating recurring and stable revenues. Santander has a sustainable business model based on geographic diversification, a solid branch network, disciplined use of capital, financial robustness, cost control, prudent risk management and, of course, the strength of its brand. The focus of this model is on the customer. Being sustainable also means: • T aking into account ethical, social and environmental criteria in our decision-making; • Having long-term vision in stakeholder relationships; • C ontributing to progress in the communities in which we are present. Market interest in sustainability grows by the day. It is essential that big companies maintain their positions in socially responsible investment indexes, such as the DJSI or FTSE4Good, which have also become the best assessors of corporate sustainability. We are also convinced that sustainability breeds confidence and now, more than ever, generating confidence is essential - it is a game changer.
2 “SUSTAINABILITY breedS CONFIDENCE AND now, more than ever, generatING CONFIDENCE IS ESSENTIAL - it is A GAME CHANGER”
What are the major advances Banco Santander has made in sustainability in the past decade?
2012 marked the 10th anniversary of the Group’s presentation of its first social responsibility plan at Salamanca University in November 2002. That was a highly ambitious document in which we set out significant goals. What was new about the initiative at the time was not the commitment – the Bank has always had that – but the importance sustainability had acquired from a strategy and management viewpoint.
Source: Sustainability Report 2012; Grupo Santander
10
Over the decade, we have undoubtedly made significant progress, which has enabled us to integrate sustainability into strategy and the business. This has made us one of the benchmark organisations in this respect.
We are conscious of the difficult times many of our customers, both individuals and companies, are experiencing. Sustainability also involves responding to social concerns in tough circumstances like the present ones.
Our focus on higher education has been a decisive differentiating factor. Our university partnerships are unique in the world; the scheme has continued to grow and now incorporates over 1,000 universities in 20 countries. Through Santander Universities, we support the best in education, research, innovation, enterprise and knowledge transfer. In 2012, we invested over EUR 130 million in higher education. It is our main contribution to progress, complemented by a number of initiatives to promote the use of banking services and financial inclusion.
Santander’s approach is to take concrete and specific initiatives. Some we have recently introduced include:
We are promoting socially responsible products such as microcredit programmes in Brazil and Chile, which we would like to extend to other countries such as Mexico. We have included social and environmental criteria in our lending operations; Santander adheres to the Equator Principles, applying them to project finance operations throughout the Group. We also have a social and environmental policy that establishes Banco Santander’s sustainable general operating principles and we have corporate policies in sensitive sectors such as defence, energy and forestry. We have focused on initiatives to tackle climate change and, more specifically, energy efficiency. We calculate and manage the Group’s environmental footprint. We have highly ambitious targets for reducing our main items of consumption in all the countries in which we are present. We are also leaders in financing renewable energies.
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How is Santander responding to the difficulties being experienced by many of the countries where it operates?
Santander is a bank that puts its customers first. We are always seeking to put the best resources and most innovative solutions at the service of our customers to help them carry out their projects. The new corporate motto Santander, a bank for your ideas best reflects this commitment.
•A three-year moratorium on mortgage capital repayments that the Bank is offering to customers with economic problems in Spain. This measure, adopted in summer 2011, is our way of anticipating a particularly sensitive problem. • A nother example is the various initiatives we have developed to support SMEs, such as the Santander grants for university student internships in SMEs in Spain, which are proving enormously successful. we are investing a total of 13.5 million in this programme, which we are already extending to other countries. The new credit lines aimed at SMEs in Spain and Portugal are another good example of this support, as is the Breakthrough programme in the United Kingdom.
4
How will Banco Santander continue to move forward in sustainability?
The biggest challenge we face is to continue making progress integrating sustainability into the business. This integration will help us become a better bank, offer better products and services, and have more satisfied customers and prouder employees. Sustainability must be an objective for the Group as a whole, and be present in everything we do. For this, it is essential that top management provides the motivation. In Banco Santander, we have a very clear governance structure, the keystone of which is the sustainability committee, chaired by the CEO, which is mirrored by local sustainability committees operating in all our countries. We can also count on the fundamental support of the Bank’s board of directors, whose approval the committee seeks when submitting strategic plans and sustainability policies. To conclude, I am fully confident we will succeed in tackling the challenges the future presents to us. Emilio Botín Chairman
Source: Sustainability Report 2012; Grupo Santander
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2012 Annual Sustainability Report
MESSAGE FROM THE EXECUTIVE PRESIDENT OF GRUPO FINANCIERO SANTANDER MÉXICO
■■ For all of us at Santander México, sustainability is the central axis around which the rest of our activities revolve.
We understand sustainability as a comprehensive concept that covers many dimensions: the environment, respect for human rights, equal opportunities, and the construction of a more just and democratic society. We dedicate our energies to incorporating each of these areas into our day-to-day work, and we transmit this vision to the many stakeholders with whom we interact. In September 2012, we culminated an historic phase for our bank when we offered 24.9% of our equity on the Mexican and the New York Stock Exchanges, and becoming the first Mexican bank to be fully listed on both markets. This event was a milestone in our institutional history, which marked our renewed commitment to being a company that creates long-term value from a sustainable perspective. In other words, creating value while ensuring the development of our society and our environment. As part of our commitment to create value for our clients and shareholders, in 2012 we worked to improve and expand our infrastructure in order to improve our services. We welcomed 713,228 new customers in 2012 and now serve a total of 10,013,228 clients through 954 branches and 216 points of sale, 4,946 ATMs and a modern Contact Center that answers an average of three million calls every month. As part of our commitment to employees, we expanded our staff by 1,136 in 2012, and today have 13,385 active and committed employees, providing formal jobs that support the welfare of thousands of Mexican families. We also took on the task of enriching our most valuable asset, our human capital, by investing Ps.127.5 million in training, encouraging a balance between the development of professional and life skills. We provided a total of 63 hours of training a year per employee. As part of our commitment to society, and consistent with our global guidelines, the Group’s core support for social causes focused on higher education, through Santander Universidades and Universia. A total of 1,469 scholarships were granted in 2012, and under our 161 collaboration agreements with universities through Santander
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Universidades, we benefited 60% of Mexico’s student population. Furthermore, 45,229 Mexican students obtained jobs through Universia, the largest university education support program offered by any company in Mexico. At the same time, we continued our decisive support for other initiatives like Unicef, Fundación Vivienda, Bécalos, and our own trust fund, Por los Niños de México. In our efforts to preserve the environment of our planet, we have been able to complete a virtuous circle in which energy efficiency, reduced consumption of materials, investment in online banking and other environmental initiatives have translated into savings, efficiency and convenience for our clients, and ultimately improving our competitiveness and positioning. One example of this is the recognition we received from the Electrical Energy Savings Trust (FIDE) for the 53.7% reduction in energy use at our Querétaro Contact Center, avoiding the release of 8,356 metric tons of CO2 into the atmosphere.
At Santander, we strive constantly to make our institution an example of productivity and value generation for our clients, employees, shareholders and community, convinced that with a positive attitude, concrete action, and the joint commitment of companies, government, society and individuals, we can all build a better community where we can all develop.
Marcos Martínez Gavica Executive President of Grupo Financiero Santander México
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2012 Annual Sustainability Report
SUSTAINABILITY MODEL AND STAKEHOLDERS Because we want to build long-term relationships based on trust with our stakeholders, we make an effort to identify their needs and expectations, and develop projects and programs to engage ourselves with them.
SUSTAINABILITY MODEL
Vision Santander is a large international financial group. Its main business is retail banking, through which it offers comprehensive solutions to satisfy the full range of its clients’ financial needs, while providing high value to its shareholders. To achieve this, the Group maintains a leading presence in ten main markets, where it operates through subsidiaries with autonomous capital and liquidity, to which it provides global business policies, as well as corporate organizational and technological capabilities.
Values
Objectives
• Dynamism • Strength • Leadership • Innovation • Quality service and customer satisfaction • Professional ethics and sustainability
• Promote social programs and initiatives that encourage employee participation. • Encourage financial education for underprivileged groups. • Develop new channels for promoting the Group’s social initiatives in the various countries. • Continue measuring the environmental impact of this Group’s social initiatives.
Pillars
Investment in higher education
Long-term commitment to stakeholders
Community and environment
Core lines Social sustainability and community engagement
Economic sustainability
Environmental sustainability
Corporate governance
Stakeholders Non-profit organizations
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Society
Employees and their families
Clients
Authorities
Suppliers
Competitors
Environment
Share holders
Corporate governance
Stakeholders
Expectations
Society
Support for education and development in Mexico, caring for the environment and supporting society
Non-profit organizations
Institutional support for social causes, volunteer work, in-kind and cash donations
Channel for attention and communication
Frequency
Board of Directors of Universia, made up of the presidents of leading Mexican universities
Biannual
Higher Education Support Plan, with 4 lines of action: scholarship support, support for entrepreneurship, technological and infrastructure support, and academic support
Ongoing
161 collaboration agreements with universities in 2012
Ongoing
Support for organizations committed to environmental care and preservation: Reforestamos México, A.C. and Ciceana A.C.
Annual
Meetings, visits and feedback with organizations that work with the Por los Niños de México trust
Biannual/annual
UNICEF
Annual
Reforestamos México Fundación Vivienda Clients
Coverage, efficient service and competitive costs
Santander Customer Ombudsman
Ongoing
Contact Center Office communications media (TV channel, radio) Social networks SuperNet
Employees and their families
Maintain a balance between workplace and family life, and create favorable conditions for professional and personal advancement
Internal communications media
Ongoing
Work-life balance agreement Santander Employee Ombudsman Employee Hotline Human Development Portal
Shareholders
Transparent management of resources and information
Annual report
Annual
Shareholders’ report
Quarterly
Shareholders’ hotline: 5249-4455 from Mexico City +5255-5249-4455 from outside Mexico
Ongoing
E-mail:
[email protected]
Ongoing
Newsletters
Daily and monthly
Authorities
Compliance with general rules and corporate governance standards
Meetings and involvement in national trade organizations
Ongoing
Suppliers
Fair management of procurement process and long-term relations
Social Responsibility Protocol
Ongoing
Fair competition
Individual and trade meetings
Competitors
Meetings Ongoing
15
SOCIAL SUSTAINABILITY AND COMMUNITY ENGAGEMENT
■■ The welfare of the society that surrounds us depends on the growth of our business and the advancement of our employees and customers. That is why we invest in Mexico, primarily in education, as the most effective way to bring about lasting change and social development in this country.
Scholarships Social contribution Supported organizations
1,469 Amount donated by customers 2011
2012
Unicef
$2,338,845
$2,437,219
Bécalos
$13,659,810
$13,517,600
Reforestamos México
$3,159,970
$2,561,910
Fundación Vivienda
$5,753,270
$4,553,965
$24,911,895
$23,405,137
Unidos por Ellos Total
1,391
$334,443 2010
16
1,373
2011
2012
SOCIETY Santander Universidades The Global Santander Universidades division, with a team of 2,190 professionals in 17 countries, guides and manages Banco Santander’s commitment to higher education. Banco Santander has signed collaboration agreements with 1,027 universities in 20 countries. Our contribution to university collaboration projects reached EUR 130 million in 2012. In Mexico, this program accounts for the vast majority of human and financial resources: 97% of funding for social responsibility programs and activities are distributed through Santander Universidades, and 180 people work exclusively for the academic and professional development of Mexico’s universities and university students. The Higher Education Support Plan for Mexico (PAES) involves the following core lines of action: Mobility We encourage an interchange of university students and professors between countries and universities. In January 2012, we launched the Santander TOP Brazil scholarship program in Rio de Janeiro, involving 40 students and teachers from Mexico’s leading public universities. The Federation of Private Mexican Higher Educational Institutions (FIMPES) and Grupo Financiero Santander, through Santander Universidades, designed a joint SantanderFIMPES scholarship program to promote inter-university research. The Santander-FIMPES scholarship offers Ps.150,000 to cover tuition, transport, books and lodging during the academic trimester or semester.
Santander Universidades also introduced a scholarship program for university professors, academics and administrators interested in taking workshops with U.S. institutions, for which we offered them funds to cover enrollment, food and lodging. Santander Universidades and the Bank’s human resources department also granted 10 international exchange fellowships to outstanding students who are children of our employees. Innovation and entrepreneurship We encourage the development of this country by forging alliances and recognizing ideas that can have a positive impact on our society and economy, and which promote a culture of entrepreneurship among our young people. We demonstrated this commitment with the VII Santander Prize for Business Innovation, presented to the six winning teams by our Executive President, Marcos Martínez Gavica in a ceremony held in May 2012 at the Antiguo Colegio de San Ildefonso. The cash prizes totaled Ps.1.6 million. In 2012, 1,042 young entrepreneurs answered the call for entries, 75.1% more than in 2011, and with 73.4% more projects than in the previous year; 156 universities took part, 57 more than in 2011. Winners of the VII Santander Prize for Business Innovation 2011-2012 First Place Category: Business innovation projects Prize: Ps.500,000 Institution: Instituto Politécnico Nacional Team members: Jonathan Hernández Díaz, Miguel Ángel González Ortiz, Luisa Villalobos Benítez and Génesis Brígida Valdez Ramos Project: Biodimex
17
2012 Annual Sustainability Report
SOCIAL SUSTAINABILITY AND COMMUNITY ENGAGEMENT
First Place Category: Projects with social impact Prize: Ps.500,000 Institution: Universidad Autónoma del Estado de Hidalgo Team members: Pedro Ángel Bori Orozco and Nadia Margarita Guevara Reyes Project: SMASH A BALL
Biodimex developed an advanced biofuel based on castor or ricin oil. This biofuel provides superior lubrication and stability, less oxidation and higher yield than conventional diesel; it has a lower production cost and degree of contamination.
more projects submitted in relation to 2011
Santander Prize for Business Innovation Number of participating universities Number of projects submitted Number of university entrepreneurs participating
1,151
1,042
595 463
417 267
18
156
99 2010
On the other hand, through Red Emprendia, we supported university entrepreneurs through corporate internships. In the first edition of the
program New Entrepreneurs, Learning Entrepreneurship, Elizabeth Nava García, a graduate of the Marketing Department at ITESM Toluca, completed a three-month internship at the company 3R Ingeniería Ambiental, S.L. in Compostela, Spain.
73.4%
145
This electronic board game for children with visual disabilities improves their cognitive abilities and capacity to respond to stimulus.
2011
2012
Technological transfer As part of our Higher Education Support Plan for Mexico, this year we donated over Ps.13 million to more than 15 universities for technological transfer, infrastructure, and a variety of university programs.
The student smart card (Tarjeta Universitaria Inteligente, TUI) is a significant technological support for university students and professors. It can be used not only as an ID card but can be linked to a debit account. So far, 1,600,435 cards have been issued to more than 70 universities in Mexico.
new plan for the nation. The proposals were submitted by the Group’s Executive President, Marcos Martínez Gavica.
selected by Facebook nomination, to compete in the San Diego Rock’n Roll Marathon.
Collaboration agreements Santander signed 161 collaboration agreements in 2012—9.5% more than in 2011—among them a renewal of
University stipends We awarded social inclusion scholarships to university students who need to complete or continue their studies,
1.6
million students already have a Student Smart Card
Student Smart Cards (TUI)
1,600,435 1,300,000 1,000,000
2010
To support technology projects, we made a donation to the Universidad Autónoma de Aguascalientes to build a technological classroom for its new South Campus. University support More than fifteen years of work in Mexico have earned Santander and its program, Santander Universidades, widespread recognition and support. In 2012, through the initiative Plans for the Nation: University Leaders Propose, Santander Universidades, Universia and the magazine Líderes Mexicanos presented 1,800 proposals from university leaders around the country to the four presidential candidates on building a
our agreement with the Universidad Autónoma de Sinaloa (UAS), new agreements with the Escuela Libre de Derecho, the Universidad Regional del Sureste (USRE) and the Instituto de Estudios Superiores de Tamaulipas (IEST). The agreements give these institutions access to student smart cards as well as scholarship programs. Academic and sports support During the year, we supported the program Grandparents Who Read and Tell Stories, created by the Universidad Nacional Autónoma de México (UNAM). We also granted eight sports scholarships for Mexico’s fastest university students (four men and four women),
2011
2012
and also awarded stipends for students with excellent academic records but without the resources to attend university. Responding to needs we identified in the academic sector through market research, focus groups with universities, social networks, our web page (www.santanderuniversidades.com. mx) and other media, in 2013 we will award more stipends and international scholarships. The number of these increased from 138 in 2011 to 328 in 2012. We will also create foreignlanguage scholarships with which we hope to benefit 60,000 university students.
19
2012 Annual Sustainability Report
SOCIAL SUSTAINABILITY AND COMMUNITY ENGAGEMENT
Universia Since July 2000, Universia has become the largest university network in the world, with 1,242 affiliated universities in 23 countries and 15.3 million students and professors. Universia is the link between universities and society, meeting the demand for training and other pressing needs, like first job
According to Universia’s strategic plan for 2011-2013, we worked along four lines of action. Knowledge Managing and generating knowledge is the engine of innovation. We connect research with companies at Universia, using technology to disseminate
161
collaboration agreements signed with the most important universities in Mexico.
Knowledge
Employment
A driver for innovation and dissemination of knowledge
Relationship between talent and employment
Strategic lines 2011-2013 Collaboration agreements 161
147 142
2010
2011
Collaboration
Future
Connecting universities and the private sector
University students as future leaders
2012
search, university-business outreach, social networks and responsible leisure.
knowledge and promote lifelong professional training.
In Mexico, as of 2012, Universia had linked 2,567,216 university students and 271,212 professors through its collaborative and support network.
Revista Iberoamericana de Educación Superior (RIES) An online journal published every four months, providing an open forum for debate and multi-disciplinary research into the problems of higher educational systems, projects and institutions in this region. Contributors include writers, researchers and academics from throughout Latin America who specialize in education. The publication is a joint project with the Instituto de Investigaciones sobre la Universidad y la Educación (IISUE) of the Universidad Nacional Autónoma de México
Universia is a registered non-profit organization in Mexico. As a civil association, it has a board of directors made up of the presidents of leading Mexican universities, which guide it in promoting change and innovation within the university community and companies.
20
(UNAM). Eight issues have been published so far, with contributors from 12 countries and a total of 67,060 visits, 452,802 HTML downloads, and 91,257 PDF downloads. Universia also supported publication of a book entitled Ciencia e Innovación en México (Science and Innovation in
Universia jobs portal This initiative helps encourage young people to join the work force, and brings together Universia student members into a community job network using similar technological platforms.
Studies We took part in a number of studies that helped to generate knowledge and support materials on university professionalization, including:
■■ Study on youth in Mexico. Some 1,300 young people between 18 and 35 years of age took part in Mexico City, Mérida, Monterrey and Guadalajara. ■■ Study on professional competencies of university students and applicants. This study surveyed 846 university presidents, professors, students and employers from seven Latin American countries on how closely the professional competencies offered by preparatory schools and higher educational institutions match the qualifications required by their countries’ productive and social sectors. ■■ Survey on university students’ perceptions of Mexico and the government of their states. The survey received responses from 1,796 university students from 31 states of Mexico.
as a national congress on the theme Overview of Addictions: From Neuroscience to Society. Future In 2012, we were involved in two major events to promote total training and preparation of Mexican youth: i) the 9th annual Caracol de Plata
Revista Ibero-americana de Ensino Superior
Latin American Journal of Higher Education
Volumen III
Territorios Una mirada a la presencia de las mujeres en la educación superior en México - Adrián de Garay y Gabriela del Valle-Díaz-Muñoz > Deserción y graduación estudiantil universitaria: una aplicación de los modelos de supervivencia - Ana-María Osorio, Catalina Bolancé y Maribel Castillo-Caicedo > Formação de docentes no ensino superior: a experiência do Instituto Politécnico de Leiria, Portugal - Graça Seco, Luís Filipe, Patrícia Pereira, Sandra Alves y Ana-Lúcia Duarte
Genealogías La formación en Ciencias de la
Educación durante la última dictadura militar. Una comparación entre el Instituto Joaquín V. González y la Universidad de Buenos Aires - Marcela Mollis, Hilda Lanza y Sofia Dono-Rubio
Contornos
La investigación educativa en México: entre una semiprofesión y una práctica no consolidada - Raúl Osorio-Madrid > Perfil y prácticas educativas del docente orientado a la innovación en las escuelas de negocios en México - Jesús Lavín-Verástegui y Gabriela-María Farías-Martínez > Exploración del clima ético en estudiantes escuela de terapia ocupacional - Laura Rueda-Castro
Visiones Reseña del libro La investigación en el
posgrado de la Universidad Pedagógica Nacional 2010, coordinado por Ángel López y Mota, Ernesto Díaz-Couder Cabral y Andrés Lozano Medina -
Concepción Barrón.
http://ries.universia.net
Mexico), which reports on four major scientific projects, in conjunction with the Science and Technology Consulting Forum and the National Science and Technology Council (CONACyT). Seminars In 2012 we supported the participation in international seminars of 185 administrators from 138 universities in various countries. Jobs We seek to strengthen the relationship between talent and jobs, making it easier for university students to find a first job and internships.
Together with Trabajando.com, we developed a student and alumni administration software that we donated to a number of universities. As of 2012, we had donated 223 software packages for a system that stores 285,380 resumes, records on 25,707 registered companies, 112,733 job vacancies and a total of 45,229 placements. Collaboration We create forums for inter-university debate and outreach, and seek to position university professors as agents of entrepreneurial change. In 2012 we sponsored university-business engagement meetings and surveys, as well
Número 6 2012
Cuatrimestral / ISSN en trámite
award, a contest that encourages interest in solving Latin America’s social problems through communication. The theme this year was Sustainable Development. Contest entries included 875 posters, 11 videos, 30 digital media presentations and 78 alternative media presentations from a total of 16 Latin American countries; and ii) the forum Plans for the Nation: University Leaders Propose, which invited debate and reflection by encouraging university students to send proposals to Mexico’s presidential candidates.
21
2012 Annual Sustainability Report
SOCIAL SUSTAINABILITY AND COMMUNITY ENGAGEMENT
NON-PROFIT ORGANIZATIONS Por los Niños de México Trust For more than 18 years, Grupo Financiero Santander’s Por los Niños de México trust fund has been a shining example of this institution’s social responsibility. Its goal is to promote the full development of underprivileged Mexican children by providing
economic support, advice and training to previously-selected registered institutions. The initiative focuses on three primary aspects: education, nutrition and health. In 2012 we donated Ps.7.08 million to 69 organizations, benefiting 13,058 children. The donations were made possible by contributions from 8,411 employees, 16.1% more than in 2011. Health programs for Mexican children received 55% of these donations, 38% of them for children between 6 and 10 years of age.
22
We also strengthened the work of the trust through corporate volunteer work in the form of internships. Santander employees work closely with these organizations, which are able to take advantage of their know-how and abilities to evaluate their projects.
Among the initiatives of the year were the Solidarity Golf Tournament, in which members of supported organizations took part for the first time, raising a total of Ps.502,500. We also held the Third Annual Organizations Fair, which brought together our employees and the organizations we support. Organizations learn about the work our employees do and they buy some of the products made by the organizations. Seventeen organizations participated in this fair, raising sales of Ps.117,935.
During the year, ten students from the National University’s School of Social Work joined in the efforts of the trust fund under a new system, where students can work in private enterprise by pursuing social internships that were previously available only through the volunteer sector.
educational support efforts in the country. Santander has given its unconditional support to the initiative. Thanks to Bécalos, 90 out of every 100 students go on to the next school year. Without it, only 30 of every 100 would be able to do so.
Organizations supported by the Por los Niños de México trust
69
66
46
2010
2011
2012
Amount donated by Santander employees through the Por los Niños de México trust Thousands of pesos
6,895
7,075
6,175
Training is another form of support we offer to non-profit organizations, through conferences, forums, and training workshops, all of them effective in helping institutions to develop their projects. These strategies also provide feedback to the trust and contribute to Santander’s social responsibility efforts. Bécalos Supporting a total of 163,874 students, the Bécalos initiative, created by the Mexican Bankers’ Association and Fundación Televisa, is one of the most ambitious and successful
Unicef In 2003, Santander supported Unicef’s Every Child to School program. To date, we have raised Ps.121,452,929 in contributions through our ATMs. And thanks to the solidarity of our clients, we collected a total of Ps.2,437,219 in donations in 2012. Unicef distributed these funds as follows: Every Child in School (ECS) Chiapas, 25.5%; ECS Yucatán, 17.5%; ECS Zacatecas 32%, and the V Unicef Award, 25%.
2010
2011
2012
Number of internal and external employees participating in the Por los Niños de México trust 8,411 7,247 6,487
2010
2011
2012
23
2012 Annual Sustainability Report
SOCIAL SUSTAINABILITY AND COMMUNITY ENGAGEMENT
One of the initiatives developed by Unicef in the states where this program operates (Chiapas, Yucatán and Zacatecas) is the Nominal System for Children Not Attending School (SNNFE). The data obtained in this effort are useful for planning public education policy and for detecting, monitoring and channeling children currently not attending school back into the system. Thanks to the SNNFE, 5,389 children returned to school and 476 teachers were given training. We have also helped develop training processes for raising primary schoolteachers’ awareness about children’s rights and encouraging them to defend children’s right to education and gender equity. Some 24,827 educational professionals have participated in this effort in Chiapas. In the same state, we promoted a training strategy for improving educational quality in multi-grade schools located in indigenous regions where educational levels are particularly low, benefiting 978 teachers in 404 primary schools attended by 33,259 children. All in all, with the support of Santander, Unicef’s ECS program succeeded in bringing 9,983 children back to school and strengthened the capacities of 26,281 teachers. Also, together with Unicef, we presented the Unicef Award for Children and Teenagers’ Rights in Mexico, recognizing the best research projects and best practices in non-profit organizations that work in this field. The V Unicef award, in each of two categories (Research and Practice) consisted in a cash prize of Ps.225,000: Ps.100,000 for first prize, Ps.75,000 for second prize and Ps.50,000 for third prize.
24
Reforestamos México, A.C. We promote environmental care and protection through our support for initiatives like Reforestamos México, A.C., a nonprofit organization that works to preserve Mexico’s woodlands, and which we support by raising funds through contribution at ATMs and volunteer work in tree planting campaigns. Over the past five years, together with our customers, we have contributed Ps.14,593,664 to this organization. In 2012 alone we collected Ps.2,561,910.
Culture As an expression of our interest in Mexican culture and education, we supported publication of an exhibition catalog called Tamayo/Trayectos, celebrating the life and work of artist Rufino Tamayo, to accompany the exhibition of that name.
Ciceana A.C. For more than 17 years, Ciceana has been one of the leading non-profit organizations in the field of environmental awareness. Through education, training, communication, research and socioenvironmental projects, Ciceana, A.C. reaches hundreds of people and communities in Mexico with its message of environmental care and preservation. In 2012, Santander contributed Ps.80,000 to this organization, which received the SEMARNAT Ecological Merit Award. Unidos por Ellos In the first few months of 2012, a number of Mexican states were hit by droughts that afflicted entire communities. Through the Unidos por Ellos alliance, Grupo Financiero Santander launched a fundraising campaign using the Cuenta 100 Ayuda Santander, a special donation account, where it received a generous response from customers and employees. The final amount collected was Ps.334,443; the bank provided matching funds of Ps.321,697, and was able to turn over a total of Ps.656,140 to the Banco de Alimentos, A.C. for effective distribution in the drought-stricken zones.
The catalog, published by the Tamayo Museum in Mexico City, includes essays by Alberto Blanco and exhibition curator Juan Carlos Pereda, as well as a brief study of various pictorial genres by Adriana Domínguez, who also helped curate the show. Communication Council Through our internal communications media for employees and customers of our bank branches, we support the Communication Council’s campaign to promote reading. As a sponsor and
member of that Council, Santander supports this effort, which, according to the latest advertising tracking, shows that the number of people reading a book increased from 5 to 14, and the number of parents in the habit of reading to their children, from 25 to 52.
Santander Somos Todos volunteer corps For five days during Santander Week, our Santa Fe, Mexico City headquarters became a bicycle factory. With the volunteer efforts of 2,200 employees, we assembled 134 bicycles for kids from eleven organizations that receive
Ps. 4.6 million collected for the construction of
364 homes
We also promoted the third phase of our campaign Have Fun Reading among customers at our bank branches, and launched an internal campaign to bring our employees together to work on the challenge Reading to Grow, whose goal was to accumulate a combined total of 100,000 hours of reading. As of December 2012, we had achieved a total of 66,672 hours among 6,207 readers. We delivered recognitions and incentives for reading, awarding iPads to three employees and 100 Gandhi bookstore gift cards. We will continue this effort in 2013.
assistance from the Por Los Niños de México trust. The effort also encouraged teamwork among our employees, who donated a total of 2,026 hours of their time. Fundación Vivienda, A.C. Housing is a constant issue for Mexico’s neediest groups. For one month a year since 2007, Santander’s ATMs collect donations from customers to support Fundación Vivienda, A.C., which has been building housing units and homes for poor Mexican families since 1999. In 2012, we collected Ps.4,553,965 in this effort, which was
used to build 364 homes. The first 50 were delivered in October, benefiting around 250 people. The remaining homes will be delivered in 2013. From 2007 to 2012, through Santander and thanks to the generosity of our clients, a total of Ps.44,406,351 have been raised for Fundación Vivienda, A.C., to build 3,067 homes and benefiting approximately 12,268 people.
25
ECONOMIC SUSTAINABILITY
■■ 10,013,228 clients, 702,547 more than in 2011 ■■ 3.4 million calls a month and 1.1 million clients active with the Contact Center ■■ 12 new products and services ■■ 20 advertising campaigns ■■ 83% of cases resolved in the customer’s favor by the Customer Ombudsman ■■ 65% more followers in social networks ■■ Leaders in financing sustainable energy in Mexico ■■ Loans to small- and mid-sized enterprises grew 77% over 2011
Contact Center
87% service level
26
186
million transactions handled through SuperNet
116,000 monthly transactions through Telecom
CLIENTS Sustainability, part of our customers’ satisfaction With the goal of satisfying all of our customers, we ensure our economic sustainability and work to increase the breadth of the Mexican banking system, which has a significant impact on the economy and welfare of our country. Year after year, we develop and renew our products and services to meet their needs and expectations. In 2012, we launched new products: Cuenta Free, Súper Cuenta Total, Hipoteca Santander Premier, Hipoteca Inteligente Santander, Inversiones Santander (Más que CETES,
We have the most modern infrastructure for efficiently serving our clients, as well as innovative vehicles for addressing and resolving complaints, the results of which are shown in the table below. Santander Contact Center Our Contact Center took more than 36 million calls in 2012, equivalent to 3.5 calls from each customer. Through this service, we offer our customers up-to-date, simple and orderly information on our services and products.
Channels Contact Center
ፙፙ Handles 3.4 million calls a month ፙፙ 1.1 million active customers a month
SuperNet
ፙፙ 412,000 active customers a month ፙፙ 14% of bank transactions conducted online ፙፙ Equivalent to 186 million transactions a year
SuperMóvil
ፙፙ 65,000 customers ፙፙ 1.3% of bank transactions conducted through this channel ፙፙ Equivalent to 16 million transactions a year
Automatic bill payment
ፙፙ Automatic payment of utility bills and credit cards deducted directly from customers’ debit or credit accounts ፙፙ 731,313 automatic bill payments in 2012
Correspondent branches
ፙፙ We take advantage of other companies’ infrastructure to offer smaller transaction services closer to clients at lower costs ፙፙ Through Telecom, a network of 1,575 terminals, we handle 116,000 transactions a month ፙፙ The Oxxo convenience store chain provides more than 10,800 points of sale
Fondo Recompensa and Súper CETE Santander), Súper Crédito Pyme, the repositioning of the Santander Light card and Fondo Elite (Private Banking). The new services were: the real-estate portal casacompara.com, the online SME platform, payment media-cards portal, santandertwist.com.mx and SuperMóvil (mobile banking).
We also have other communications and transaction channels to give our customers access to the services and products offered by the bank, whenever and wherever they need them.
27
2012 Annual Sustainability Report
ECONOMIC SUSTAINABILITY
In 2012, we launched a service called SuperMóvil, through which customers can consult bank statements, conduct transactions and receive notifications of activity in their accounts, along with other advantages, quickly and easily. Social networks Social networks have become a powerful channel of communication with our various stakeholders. We continue to position ourselves in social networks like Facebook, where the number of our followers rose 70% last year, from 198,597 in 2011 to 338,253 at the close of 2012; and Twitter, where the number of followers increased by 6,449, from 4,448 in 2011 to 10,927 in 2012. Globally, Santander had more than 2.6 million followers, three times the number it had in 2011. Customers, quality and satisfaction In order to consolidate our commitment to the customer, we have introduced systems to measure their satisfaction with our products and services. Over the course of the year we made substantial progress in indicators on means of payment, insurance and offices, and in 2013 we intend to advance further by expanding the amount of information we collect to include complaints, suggestions and congratulations from all the channels open to our customers. Marketing During the year we pursued a number of social, regular advertising and sponsorship campaigns, in strict compliance with current regulations governing the financial industry: CONDUSEF, Banxico and the CNBV. The Actions that Bear Fruit campaign was conducted in advance of our stock offering on the NYSE and the BMV, in order to create a
28
strong, attractive brand that expressed the group’s identity and positioning. The following were our main advertising, PR and social support campaigns last year:
forms, and Santander México received and distributed 10,000 of these in 50 bank branches that serve as exchange centrals. Another type of support for the visually impaired is that all of our ATMs have a Braille code printed on the keypad.
2012 Campaigns Social campaigns
Recurrent campaigns
Sponsorship campaigns
ፙፙ Unicef
ፙፙ Deposit, demand and funds
ፙፙ Copa Santander Libertadores
ፙፙ Reforestamos México
ፙፙ Consumer credit
ፙፙ Formula 1 race, Austin, Texas
ፙፙ Bécalos
ፙፙ Mortgages
ፙፙ Cirque du Soleil – Michael Jackson
ፙፙ Fundación Vivienda
ፙፙ Payment media – cards
ፙፙ Monterrey Arena—Advance ticket sales year round with Santander cards
ፙፙ Unidos por Ellos, Cuenta 100
ፙፙ Insurance ፙፙ SME
ፙፙ Actions that Bear Fruit – Main campaign to support IPO (two phases)
ፙፙ Premier Customers – Select Branches ፙፙ Corporate and Institutional Banking ፙፙ Universities-Prize for Business Innovation ፙፙ Channels-SuperNet/ Automatic bill payment/ SuperMóvil Total 5
Total 10
Total 5
We are proud of receiving the 2012 Effie Award for the best marketing strategy in the category of financial services, for Autocompara.
For people with other physical disabilities, 50% of our branches have access ramps and we are including this feature into every new branch we build.
Banking accessibility In an alliance with the Mexican Bankers’ Association (ABM), we contributed to an important campaign to include persons with visual disability—more than 1.6 million Mexicans at present— into the banking system, by distributing forms for identifying the different types of bills.
Santander Customer Ombudsman Banco Santander has been strengthening the office of Customer Ombudsman during the last five years. Although it is not mandatory under Mexican banking laws, this sets Santander apart from the competition, by protecting the interests of our customers when they feel their rights have been affected. This is a pioneer initiative in Mexico, and so far unique in the industry in its total independence
In the first phase of this campaign, Banco de México printed half a million
of the bank and the fact that it reports directly to the Board of Directors. Between 2011 and 2012, the number of cases handled by this office rose by 981 to 1,390. All of these matters have been resolved, 73% of them in favor of the customer in 2011, and 83% in 2012. The increase in the
Once the complaint has been resolved, the customer is asked to respond to a survey about the quality of the service they received. Products and Services Support for SMEs Santander is a leader in services for small- and mid-sized enterprises,
while maintaining close attention to asset quality. Products for students: Best student loan program in Mexico As part of the National Higher Education Financing Program announced by the federal government, Banco Santander now offers the best student
Customer Ombudsman:
1,390 complaints, all resolved
Effie Awards
2012
for the best marketing strategy in the category of Financial Services, for Autocompara
number of cases can be attributed basically to the expansion of our customer base. To ensure that our customers are aware of the existence and availability of the Customer Ombudsman to address their concerns, we provide brochures in all our branches, banners on our webpage and training of our tellers and branch employees, who are given orientation about the importance of this program from the time they first begin working at the bank. We also have internal communication campaigns and talks, particularly for regional offices and newly-hired employees.
like loans and payroll management. For Santander, SMEs are a strategic segment with tremendous potential, because they are a significant source of jobs in the economy—more than 95% of this country’s companies fall into this category. In 2012, Santander México offered innovative products and effective solutions to assist in the development of these businesses. In recognition of this support, Nacional Financiera (Nafin) awarded us three SME Awards in the categories of Government, Small Taxpayers and Guarantees. Banco Santander reported a 76.7% growth in its portfolio of SME loans (Ps.14.30 billion) from 2011 to 2012,
loan in Mexico: a Nafin-backed financial product for undergraduate or post-graduate students. Products with a social focus: Crediferente In the last two years, Santander’s mortgage portfolio has grown more rapidly than that of any other bank in Mexico. This leadership has been accompanied by the continuous launch of innovative products like Hipoteca 10x1000, Hipoteca Light, Hipoteca Cofinavit AG, Hipoteca Santander Premier and now Crediferente Santander, a mortgage product for people who are not formally affiliated with the Social Security system and therefore have no access to Fovisste or Infonavit mortgage loans.
29
2012 Annual Sustainability Report
ECONOMIC SUSTAINABILITY
Crediferente is a totally new kind of mortgage program, designed by the Federal Mortgage Society (SHF) and the National Housing Commission (Conavi), which relies on subsidies and insurance to build the collateral banks require to extend mortgage loans for low income and entry-level housing. Autocompara This is the first and best-positioned auto insurance price and service comparison tool in Mexico. It enables customers to quickly and easily compare services among more than nine insurance companies, and pick whichever best meets their needs. Because of its convenience, this service has grown significantly since its inception. Casacompara In 2012 we launched Casacompara, which provides users an easy, fast and totally transparent online tool for viewing the best home choices on the market and simulating a mortgage loan from the Bank. At the close of 2012, the site offered 20,145 properties for sale or rent. Support for sustainable energy Santander invested the capital needed to develop four wind farms from SoWiTec, a major German developer of renewable energy projects. One of them will be located in the state of Nuevo León, another in San Luis Potosí and two in the state of Coahuila. We also committed financial support for the Piedra Larga II wind farm in Oaxaca, financing 80% of the capital needed to develop and finish the project—65 million dollars. The project, led by Renovalia de Energía, S.A., a Spanish renewable energy infrastructure developer, will have the capacity to generate 137.5 MW and is being built under a self-supply project permit.
30
EMPLOYEES AND THEIR FAMILIES We aim at providing our 13,385 employees with the best workplace environment and a balance of professional and personal life. We promote equal opportunities and invest continuously in creating new jobs.
At Santander, we offer a comprehensive package of wages and benefits superior to what is required by law and which is very competitive in the banking industry, with the aim of attracting and retaining the human capital that is crucial for growth and sustainability.
Training In 2012, we invested Ps.127,534,131 in training 100% of our employees, up from Ps.119,731,473 in 2011. The number of training hours increased from 746,499 in 2011 to 845,149 in 2012, an additional 98,650 hours of training.
Technical courses. These courses enable employees to dominate specific tools, processes or techniques they can use to better perform their daily duties. Regulatory courses. These are courses that are required by authorities, for example certification in the General Code of Conduct and a course on
money laundering prevention, mandatory for all of our employees. Management courses. These courses develop executives’ management abilities and promote teamwork in order to reach goals and attain personal advancement.
■■ 1,136 new jobs in 2012
■■ We support local talent: 98.9% of our employees are Mexicans
■■ 50.7% of our employees are women
■■ We invested Ps.127.5 million in training, Ps.8 million more than 2011
■■ 42.8% of our employees are less than 30 years old
■■ We provided an average of 63 hours of training in the Group as a whole, while the administrative and operating personnel have the highest average in the Group, with 67 hours of training per employee per year
■■ We have an excellent relationship with our unions; 74.3% of our employees are full-time and 11,685 work under fixed contracts
■■ The number of cases handled by the Employee Ombudsman was reduced by 10%, and 87.8% of total cases were decided in favor of the employee
■■ Our general turnover index was 14.8% in 2012, 2.7 points less than in 2011 Santander México employees Age
General turnover index
2011
%
2012
%
Turnover index 2012
Under 30
6,051
49.39
5,724
42.8
19.99%
Between 31 and 40
3,609
29.47
4,537
33.9
13.6%
Between 41 and 50
1,869
15.26
2,291
17.1
7.6%
720
5.88
833
6.2
5.5
12,249
100
13,385
100
17.77%
2011
2012
17.5%
14.8%
Employees
51 and older Total
2012 Foreign
Type of contract Temporary Fixed
11,685
10,963
13,246
Total
13,385
Unionized Non-unionized
9,948 8,847
8,422
3,406 1,286 2011
1,700
2012
139
Local
2010
3,402
2011
3,437
2012
31
2012 Annual Sustainability Report
ECONOMIC SUSTAINABILITY
Future Directors Program The Future Directors Program (FUDIS) promotes the careers of participating executives, training them in the use of tools for managing areas important to the Group. Seven participants graduated in various strategic positions in the departments of Private Banking, Personal Banking and SMEs,
Development website In November 2012, we developed a portal on the Group’s Intranet, which gives our employees general advice on advancing their personal and professional development at Santander. Contents are focused on promoting five institutional competencies: team management, leadership,
so far, we can mention: promoting a culture of respect for the workplace, introducing a recognition program for employees in the first quarter of 2013, and strengthening the Acércate (Get Closer) program aimed at our operating personnel, in which we post vacancies all across the country, so that
Employment category
Men
Average training hours
Women
Main employee benefits ■■ Full medical plan ■■ Pension plan ■■ Preferred-rate mortgages
Directors
580
139
42
Subdirectors
745
357
47
Managers
2,278
1,891
64
Administrative and operating staff
2,985
4,410
67
Total
6,588
6,797
63
e-learning (hr)
Total participation (hr)
■■ Preferred-rate consumer credits ■■ Marriage bonus Type of course
■■ Basic life insurance ■■ Voluntary life & spouse life insurance ■■ Life insurance for all loans ■■ Support for sports activities
Wholesale, Global and Media Banking. Five employees from Mexico were assigned to Chile, Argentina and Brazil, three of them women; and two FUDI graduates were appointed executive directors, who sit on the Management Committee; one in ten members of this committee is a FUDI graduate.
Ps. 127.5 million invested in training 100% of our employees
32
In person (hr)
Management
38,544
Regulatory
46,017
Internet (hr) 852
6,692
46,088
171,140
217,157
Technical
347,664
14,324
219,915
581,904
Total
432,225
15,176
397,748
845,149
communication, change management and results orientation. From the time of its launch to the end of the year, the portal received 283 visits, which in turn generated 811 views of articles and videos on the portal, an average of 2.8 visits per user. Quality of work-life balance In 2007, we created the Family Responsible Company Committee, to analyze, produce and introduce initiatives that will improve the balance between family, personal and professional life for employees of Grupo Financiero Santander in Mexico. Among these initiatives implemented
interested parties anywhere in Mexico can request a transfer to another branch. Santander Week In June, we held our traditional Santander Week, with various activities like photo sessions, chats on how to handle stress, Japanese-style productivity and teamwork workshops. We delivered seniority recognitions during the ceremony for 158 employees. Our Santa Fe headquarters became a bicycle factory for children who are beneficiaries of the Por los Niños de México trust and, during the weekend, 2,200 people participated in activities to bolster teamwork and promote Santander values and healthy living.
Employee Ombudsman The Employee Ombudsman is an independent, impartial and confidential channel for employee concerns. It reports directly to the Board of Directors, and its job is to promote a climate of respect, ethics, cooperation, transparency and fairness among all Santander México employees, by offering them
Health Although our activities themselves do not pose a risk to health, at Santander we are continually looking for ways to preserve and improve the health of our employees and their families. We have formal crisis management and civil protection committees made up of management and employees,
The Employee Support hotline (LAE) provides advice and orientation to employees and their families 24/7 on dayto-day problems like personal and family difficulties, parenting, relationships, information about official papers, permits and requirements, legal advice, crisis situations, change management, life-work balance, stress, grief and loss, communication with coworkers, alcohol abuse and addictions. We also have a Comprehensive Medical Attention Program for active employees as well as retirees and their families, including everything from ambulatory care to high-specialty hospitalization.
an alternative channel where they may turn to when they believe their rights have been affected. It issues recommendations to the corresponding areas and to the institution, based on an objective investigation into the facts and trends in results. The Employee Ombudsman hotline received most of the complaints—61%; e-mail messages made up another 28%, and in-person visits, 11%. Complaints were down by 10% from 2011, from 293 to 262, and 87.8% of the cases were resolved in favor of the employee. Employees of the Retail Banking area accounted for 80% of the complaints received, and 20% corresponded to central areas.
including unionized personnel, and programs that offer assistance, advice and treatment in the case of serious illness. Our Total Wellness portal, linked to the corporate Intranet, is part of our Equilibrium preventive medicine program, which seeks to pinpoint and address leading risk factors, promote healthy lifestyles, measure changes in risk factors and follow up with patients suffering from chronic degenerative diseases.
Safety In keeping with the Federal Labor Law, and based on our commitment to the integrity of each employee, we work to ensure their safety while they are in the office and, to the extent possible, outside of it, through e-learning courses on what to do in an emergency on the job and elsewhere. We conduct drills to keep Santander employees prepared through Internal Civil Protection Programs (ICCP). In 2012, we provided civil protection training to 13,374 employees, 99.9% of the total, and held 414 training sessions across the nation. This year, Santander México obtained certification from the Great Place to Work® Institute, and was also ranked one of the Best Places to Work® in the category of more than 5,000 employees. This is obviously a major achievement of which we can all be proud, because it means we have created a corporate culture in a workplace environment infused by trust, respect, equality, pride and team spirit. Inspired by this achievement, we will continue to introduce strategies and programs that bolster teamwork and encourage pride in belonging to Santander.
33
2012 Annual Sustainability Report
ECONOMIC SUSTAINABILITY
SHAREHOLDERS
The offering totaled
4.21 billion dollars
Being a publicly traded company brings with it a great responsibility and the opportunity to share in the benefits and challenges of a company with an unwavering focus on creating value.
shareholders, investors and analysts throughout the world, the Investor Relations area has provided various means of communication, as well as quarterly and annual reports, to maintain a steady flow of information with the stakeholders.
Grupo Financiero Santander México listed its stock on the NYSE and the BMV, confirming our commitment to transparency and continuous communication with investors and analysts.
Our seamless flow of communication with investors and financial markets is rounded out by interviews, conference calls, office visits, meetings with investors and on our webpage at: www.santander.com/accionistas/mx.
Furthermore, to improve and maintain uninterrupted contact with our
■■ Santander México listed its stock on the New York Stock Exchange (NYSE) and the Mexican Stock Exchange (BMV) in September 2012 ■■ The offering totaled 4.21 billion dollars ■■ Recognized as the best stock offering of 2012 by International Financing Review and LatinFinance
34
SUPPLIERS We transmit our values and sustainability to our suppliers through fair treatment and by building long-term relationships of trust, which translate into common benefits and economic sustainability for society as a whole.
specification standardization unit that establishes fair protocols for purchasing based on equal treatment and mutual convenience. We are constantly monitoring our suppliers’ compliance with the labor requirements demanded by Mexican laws, particularly in outsourcing
COMPETITORS We maintain a relationship of respect, cooperation and exchange of best practices with our competitors, in order to strengthen the banking industry as a whole. Fair competition means more and better services and products for customers, while accelerating progress toward increasing the breadth of our financial system. This in turn brings considerable economic, social and environmental benefits for all of society, leading to a sound and sustainable development of our industry. We participate in the Mexican Bankers’ Association, and work in close collaboration with institutions like Banco de México and the National Banking and Securities Commission (CNBV).
AUTHORITIES Based on open, above-board dealings and cooperation, we seek to be an ally for Mexican authorities in the development of our country.
Our suppliers are an important stakeholder group for Santander, because it is largely through teamwork that we are able to achieve our goals. That is why we ensure transparency and fair dealings with them through Aquanima, a centralized procurement and
contracts. All of our suppliers are informed of and must sign a protocol of social responsibility, which includes the 10 principles of the Global Compact. During the year, 340 contracts incorporated this protocol.
We collaborate closely with the authorities, in strict compliance with the laws and regulations that govern our industry, as well as aspects requiring a steady flow of information about our operations.
■■ 97% of our purchases are with local suppliers, which translates into a substantial economic flow for Mexico ■■ All of our suppliers are informed of and sign acceptance of our social responsibility protocol
35
ENVIRONMENTAL SUSTAINABILITY
■■ At Santander México, we promote environmental conservation and remediation, and are enthusiastic participants in the battle against global warming. We know environmental preservation is important not just because of its social and economic benefits, but also because it creates significant business opportunities.
13.4% saved
in fuel consumption
36
For this reason, in 2012, we were more active than any other bank in Mexico in financing wind energy projects in various parts of the country. Santander’s environmental policy, in Mexico and around the globe, establishes criteria for operating in an environmentally-friendly manner, including our nationwide Environmental Footprint project (HA), and an Environmental Management System (SGA) for our Santa Fe headquarters in Mexico City. The purpose of these projects is to regulate our consumption and management of resources in order to avoid emissions and damage to the environment. In 2010, the Group’s Sustainability Committee in Spain approved a threeyear plan (2011-2013) for a global Environmental Footprint program, which establishes a dual goal for Mexico: reduce electrical energy consumption by 9% and reduce CO2 emissions by 9%. We are well on our way to achieving these goals. Among the outstanding achievements of the past year, we can mention the following: • Savings of 1.79% in water consumption at our headquarters, with a total consumption of 436,987 m³. • A 15.16% reduction in diesel fuel consumption. We follow environmentally friendly principles in replacing our office lighting systems, phasing out the old fluorescent overhead lighting with energy-saving electronic lights that provide excellent light and have a useful life of more than 20,000 hours. They also contain 38% less glass and phosphorous, and very little mercury. Additionally, as part of our commitment, we replaced regular air conditioning equipment with high-efficiency
SEER 13 units, which do not require gases or contaminants to operate. Santa Fe Corporate Offices The Environmental Management System used in our Mexico City headquarters obtained ISO 14,001 certification for the eighth year in a row, based on the following achievements: • With our carpooling initiative, we avoided the emission of 20 metric tons of CO2. • Energy savings of 5.41%, • We recycled 30% of specially-handled waste (paper, cardboard, PET, aluminum). • By introducing the practice of printing on both sides of the page, we reduced paper consumption by 24.8% between 2010 and 2011, and in 2012, by another 15.49%. • We lowered water consumption by 2.70%. Carpooling and reduced fuel usage Our Corporate Offices at Santa Fe and the Diamante building introduced this initiative to encourage employees to use fewer cars. Cars with a minimum of three occupants were given preferred spots in the parking area. As a complementary measure, we offer transportation routes for our employees. We have 22 routes to various parts of the city, as well as 40 vans that can carry at least 20 people. There is even a teleconferencing room, and 10 more conference areas were created to avoid the economic and environmental waste of traveling to meetings. Some of our employees also participated in the enterprise mobility survey at Santa Fe, a pilot project by the World Bank and the Center for Sustainable Transport (CTS) to encourage voluntary participation of private enterprise
37
2012 Annual Sustainability Report
ENVIRONMENTAL SUSTAINABILITY
in reducing congestion in their areas of influence. This is done through carpooling, encouraging the use of large-capacity vehicles, reducing car travel during peak hours and encouraging non-motorized transport.
Other waste • Special containers for waste separation. • The Group’s dining areas, for example in Querétaro and in the Corporate Offices at Santa Fe, follow strict waste management policies.
Querétaro Contact Center
53.7% energy savings
Projects for managing the generation of waste National management
2011
2012
Paper and cardboard (metric tons)
558.78
557.67
458.02
-17.9%
Plastic (metric tons)
174.66
161.23
106.34
-34.0%
Glass (metric tons)
36.65
35.90
47.81
33.2%
National generation Total GHG emissions (metric tons CO2 eq) Other GHG emissions (metric tons CO2 eq) Santa Fe transport – carpooling Total waste (metric tons)
Paper • We use environmentally-friendly bond paper that contains at least 50% recycled fibers, produced by paper residues or production tailings, and which use a chlorinefree bleaching process in their manufacture. • A new account application form reduced the number of pages from 76 to 10.
Energy • In addition to replacing all the current electrical equipment for other high-technology devices, the Bank is currently considering the possibility of using alternative energy sources in the near future. With these initiatives, we have reduced emissions from our operation, despite a growth in the number of employees and our infrastructure. In recognition for these achievements, Santander Mexico received the National Energy Savings Prize from the Fideicomiso para el Ahorro de Energía Eléctrica (FIDE) for the 53.7% conceptual energy savings and reduction of
38
Var. 12/11
2010
Var. 12/11
2010
2011
2012
72,381
71,544
81,291
13.6%
nd
1754
1,729
-1.4%
770.09
754.81
621.17
-17.7%
8,356 metric tons of CO2 emissions at our Querétaro Contact Center. Initiatives involving clients Thanks to the many means of payment and alternative forms of transaction we have introduced, currently more than 1.3 million clients use digital payment and transaction media, avoiding emissions created by in-person visits to our branches. We also launched the Paperless project to encourage clients and employees to receive their account statements electronically.
CORPORATE GOVERNANCE AND CITIZENSHIP Our sustainability is based on solid corporate governance, which guides the institution’s performance from a broad perspective of long-term value creation and a firm ethical foundation.
■■ 64% of our board members are independent ■■ The Board of Directors is supported by four committees ■■ All of our employees are informed of and have signed acceptance of the General Code of Conduct ■■ We are active in many associations and private initiatives that support Mexico’s development and welfare
Our Board members are appointed and/or ratified each year in the Annual Shareholders’ Meeting based on their experience, professional accomplishments, reputation and know-how in a variety of areas like finance, banking, business, management, society and technology.
Other external bodies with legal oversight responsibilities, like the SHCP, the CNBV and Banco de México, oversee the appointment, performance and technical and moral capacity of Board members and senior management.
Board of Directors Name
Position
Series
Carlos Gómez y Gómez
Chairman
F Series
Jesús María Zabalza Lotina
Director
F Series
Marcos Alejandro Martínez Gavica
Director
F Series
José Carlos Ávila Benito
Director
F Series
Antonino Fernández Rodríguez
Independent
F Series
Joaquín Vargas Guajardo
Independent
F Series
Fernando Solana Morales
Independent
F Series
Vittorio Corbo Lioi
Independent
F Series
Carlos Fernández González
Independent
B Series
Fernando Ruiz Sahagún
Independent
B Series
Alberto Torrado Martínez
Independent
B Series
Juan Sebastián Moreno Blanco
Alternate
B Series
Pedro José Moreno Cantalejo
Alternate
F Series
Eduardo Fernández García-Travesí
Alternate
F Series
José Eduardo Carredano Fernández
Independent alternate
F Series
Alberto Felipe Mulas Alonso
Independent alternate
F Series
Jesús F. Reyes Heroles González Garza
Independent alternate
F Series
Guillermo Güémez García
Independent alternate
F Series
Enrique Krauze Kleinbort
Independent alternate
B Series
Luis Orvañanos Lascurain
Independent alternate
B Series
Antonio Purón Mier y Terán
Independent alternate
B Series
The Secretary and Secretary Pro Tem of our Board of Directors are Alfredo Acevedo Rivas and Rocío Erika Bulhosen Aracil, respectively.
The Board of Directors is supported in turn by four committees: Audit, Corporate Practices, Comprehensive Risk Management and Compensation.
39
2012 Annual Sustainability Report
CORPORATE GOVERNANCE AND CITIZENSHIP Audit Committee The Audit Committee is responsible, among other duties, for the following: • Presenting its opinion to the Board of Directors. • Evaluating the performance of the external auditors. • Analyzing the official opinion of the external auditor. • Discussing the financial statements. • Informing the Board of the status of the internal control and audit system.
Corporate Practices Committee The Duties of the Corporate Practices Committee include: • Discharge Directors, Executive Directors or others in order to avoid taking advantage of the Group’s business opportunities for themselves or on behalf of others. • Monitor policies on promotion and sales, in compliance with the law and with ready access to legal defense as necessary. • Propose compensation for management and committee members.
Comprehensive Risk Management Committee This committee, which by law reports directly to the Board, is responsible for the following: • Proposing goals, policies and procedures to the Board for managing risk and limiting risk exposure. • Approving methodologies, models, parameters and scenarios for measuring the various types of risk. • Follow-up on matters of market, liquidity, corporate, counterparty, legal, and operating risks.
40
Name
Position
Fernando Ruiz Sahagún
Chairman and Independent Director
Antonino Fernández Rodríguez
Independent Director
José Eduardo Carredano Fernández
Independent Director
Alberto Felipe Mulas Alonso
Independent Director
Antonio Purón Mier y Terán
Independent Director
• Preparing an opinion on the report by the Executive President. • Supporting the Board in preparing the annual report.
• Overseeing transactions with related parties and relevant employees.
Name
Position
Alberto Felipe Mulas Alonso
Chairman and Independent Director
Fernando Ruiz Sahagún
Independent Director
Antonino Fernández Rodríguez
Independent Director
José Eduardo Carredano Fernández
Independent Director
Antonio Purón Mier y Terán
Independent Director
• Monitor the extent to which corporate practices conform to the laws and applicable regulations. • Present a report to the Board based on the reports by the Executive President and internal committees. • Propose appropriate legal action against officers of the Institution and
its subsidiaries who fail to comply with the principles of loyalty and diligence. • The Corporate Practices Committee may request the opinion of independent experts as it considers necessary, in order to properly execute its responsibilities.
Name
Position
Guillermo Güémez García
Chairman and Independent Alternate Director
Marcos Alejandro Martínez Gavica
Executive President and Director
Antonino Fernández Rodríguez
Independent Director
Alberto Torrado Martínez
Independent Director
Joaquín Vargas Guajardo
Independent Director
Juan Sebastián Moreno Blanco
Vice President Retail Banking
Pedro José Moreno Cantalejo
Vice President Administration and Finance
José Carlos Ávila Benito
Deputy Director General Credit
Javier Pliego Alegría*
Executive Director Internal Audit
*Without voting rights
Compensation Committee This committee is in charge of developing rules and policies regarding the administration and evaluation of compensation plans. It prepares biannual reports and informs the authorities of any modifications.
Steering Committee Our officers have considerable experience and knowledge for carrying out their duties, which are to manage and represent Grupo Financiero Santander México.
Name
Position
Antonio Purón Mier y Terán
Independent Director
Alberto Felipe Mulas Alonso
Independent Director
Marcos Alejandro Martínez Gavica
Executive President
José Carlos Ávila Benito
Deputy Director General Credit
Enrique Luis Mondragón Domínguez
Deputy Director General Human Resources
Pedro José Moreno Cantalejo
Vice President Administration and Finance
Javier Pliego Alegría
Executive Director Internal Audit
Jesús María Zabalza Lotina
Director General Americas Division
Eduardo Fernández García-Travesí
Chief Legal Officer
Name
Position
Marcos Alejandro Martínez Gavica
Executive President and Chief Executive Officer
Pedro José Moreno Cantalejo
Vice President Administration and Finance
Juan Sebastián Moreno Blanco
Vice President Retail Banking
Eduardo Fernández García-Travesí
Chief Legal Officer
Emilio de Eusebio Saiz
Deputy Director General Intervention and Control Management
Estanislao de la Torre Álvarez
Deputy Director General Media
José Carlos Ávila Benito
Deputy Director General Credit
Juan Garrido Otaola
Deputy Director General Global Banking & Markets
José Antonio Alonso Mendívil
Deputy Director General Business Strategy
Rodrigo Brand de Lara
Deputy Director General Institutional Relationships and Communication
Pablo Fernando Quesada Gómez
Deputy Director General Corporate Banking and Institutions
Jorge Alberto Alfaro Lara
Deputy Director General Payment Systems
Javier Pliego Alegría
Executive Director Internal Audit
Alfonso Sánchez de Pazos Gómez
Deputy Director General Private Banking
Juan Pedro Oechsle Bernos
Deputy Director General Individual and SME Banking
Enrique Luis Mondragón Domínguez
Deputy Director General Human Resources
Citizenship As responsible corporate citizens, we participate actively in promoting the healthy development of our industry, by sharing information and best practices, making our infrastructure available for social programs and providing support through our collaboration in groups like the Mexican Bankers’ Association, Cemefi, the Communication Council and the Global Compact.
In 2012, we reaffirmed our commitment to the Global Compact and presented our first Communication on Progress (CoP).
41
2012 Annual Sustainability Report
AWARDS AND RECOGNITIONS
■■ First place in Mexico and second in the ranking of the 25 best banks in Latin America (América Economía) ■■ Socially Responsible Company for the eighth year in a row (Cemefi and AliaRSE) ■■ Water Deal of the Year in Latin America Award for the financing model for the El Realito project, which will take water to more than 850,000 inhabitants in San Luis Potosí (Project Finance) ■■ National Energy Savings Prize 2012 for the Querétaro Contact Center (FIDE) ■■ Three SME Awards 2012 in the categories of Government, Small Taxpayers and Guarantees (Nacional Financiera) ■■ Healthily Responsible Company (Mexico City Government) ■■ Ranking in Great Place to Work, in the category of more than 5,000 employees ■■ CLARES Award for Social Responsibility in the category of Company-University Alliance (Universidad Anáhuac) ■■ Best Private Bank in Latin America and Best Bank in Mexico (Euromoney) ■■ Best Bank in Mexico (The Banker) ■■ Best stock offering of 2012 (International Financing Review and LatinFinance)
42
GLOSSARY ABM Asociación de Bancos de México (Mexican Bankers’ Association) AliaRSE An alliance of various business associations committed to
FUDIS Programa Futuros Directivos (Future Directors Program) GRI Global Reporting Initiative. An organization created in 1997
and interested in promoting corporate social responsibility in Mexico
whose mission is to improve the quality, rigor and usefulness of sustainability reports based on the principle of triple results: economic, social and environmental
ANUIES Asociación Nacional de Universidades e Instituciones de Educación Superior (National Association of Universities and Higher Education Institutions)
Banxico Banco de México (the Central Bank) Biofuel A fuel obtained from the physical or chemical treatment of
IES Instituciones de Educación Superior
(Higher Education Institutions) IEST Instituto de Estudios Superiores de Tamaulipas (Tamaulipas Insti-
vegetable matter or organic waste
tute of Higher Studies)
Capitalization or compounding An operation consisting in adding
IISUE Instituto de Investigaciones sobre la Universidad y la Educación
interest to principal. We may also speak of capitalizing interest when creditors assume a portion of the company’s equity in turn for the liabilities they are owed
(Institute for Research into the University and Education)
CASE Council for Advancement and Support of Education CCE Consejo Coordinador Empresarial (Business Coordinating
Infonavit Instituto del Fondo Nacional de la Vivienda para los Traba-
Council)
Cemefi Centro Mexicano para la Filantropía (Mexican Center for Philanthropy)
CETES Certificados de la Tesorería de la Federación (Federal Treasury Certificates) CLARES Centro Latino Americano de Responsabilidad Social (Latin American Center for Social Responsibility)
IMCA Instituto Mexiquense Contra las Adicciones (Mexican Institute Against Addictions) jadores (National Workers’ Housing Fund Institute)
ITESM Instituto Tecnológico y de Estudios Superiores de Monterrey (Monterrey Technological Institute)
LAE Línea de Apoyo al Empleado (Employee Support Hotline) Loan portfolio Total amount of credit extended by a financial institution
Nafin Nacional Financiera (the national development bank) NYSE New York Stock Exchange Outsourcing Permanent management of certain business functions
CNBV Comisión Nacional Bancaria y de Valores (National Banking and Securities Commission)
by an external service supplier
CO2 Carbon dioxide
Repecos Régimen de Pequeños Contribuyentes. (Small taxpayer re-
Braille Code A tactile system of reading and writing for the visually handicapped
gime). This is an optional tax regime for individuals of low economic and administrative capacity, requiring minimal tax obligations
CONACyT Consejo Nacional de Ciencia y Tecnología (National Science and Technology Council)
SEC Securities and Exchange Commission. The federal agency in charge of the U.S. financial market oversight
Conavi Comisión Nacional de Vivienda (National Housing Commission)
SEMARNAT Secretaría de Medio Ambiente y Recursos Naturales de
CONDUSEF Comisión Nacional para la Protección y Defensa de los
SEP Secretaría de Educación Pública
(Mexican Ministry of Public
Usuarios de Servicios Financieros (National Commission for the Protection and Defense of Financial Service Users)
CoP Comunicación del Progreso (Communication of Progress) CTS Center for Transport Studies. A non-governmental organization that promotes and supports the introduction of public policy projects in the area of mobility, public transport, urban development, global warming and air quality
CUmex Consortium of Mexican Universities Diesel Also called gas oil, a fuel for diesel engines and heaters; it is made up primarily of petroleum fuel oils
DJSI Dow Jones Sustainability Index e-learning Short for electronic (online) learning FIDE Fideicomiso para el Ahorro de Energía Eléctrica (Electrical Energy
México (Mexican Ministry of the Environment and Natural Resources) Education)
SHF Sociedad Hipotecaria Federal
(Federal Mortgage Society) SITRAS Sindicato de Trabajadores del Banco Santander (Banco Santander Workers’ Union)
SMEs Small and mid-sized enterprises Stock issue One of the ways corporations can raise capital. A company’s first offering is called an “initial offering.” After that initial offering a company can continue issuing stock to increase its capital. Initial and subsequent stock offerings can be placed privately or through a public offering
UADY Universidad Autónoma de Yucatán
(Autonomous University of Yucatán) UAEMEX Universidad Autónoma del Estado de México (Autonomous
Savings Trust)
University of the State of Mexico)
FIMPES Federación de Instituciones Mexicanas Particulares de Educación Superior (Federation of Private Mexican Higher Education Institutions)
UAS Universidad Autónoma de Sinaloa
(Autonomous University of
Focus group A qualitative technique for studying opinions or attitudes in a given group
FOVISSSTE Fondo de la Vivienda del Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (Housing Fund for the Institute for Social Security and Services to State Workers)
FTSE4Good Sustainability stock index created by the London Stock Exchange, launched in July 2001. Consists of listed companies who meet globally recognized standards of social responsibility
Sinaloa)
UCLA University of California, Los Angeles
ULSA Universidad La Salle
UNAM Universidad Nacional Autónoma de México (National Autonomous University of Mexico)
Unicef United Nations Children’s’ Fund URSE Universidad Regional del Sureste (Regional University of the Southeast)
Wind energy Energy obtained from wind
43
2012 ANNUAL SUSTAINABILITY REPORT
44
45
2012 Annual Sustainability Report
Index of Global Reporting Initiative (G3.1) Indicators GRI Contents Indicator
Level of reporting
Reference/Page
Explanation
1. Strategy and analysis 1.1
Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.
Complete
10 - 13
1.2
Impacts, risks and opportunities.
Complete
2 - 3, 8- 11 & 40
2. Organizational profile 2.1
Name of the organization.
Complete
Inside front cover
2.2
Brands, products and/or services.
Complete
Inside front cover, 4 & 27
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
Complete
Inside front cover, 6&7
2.4
Location of organization’s headquarters.
Complete
Inside back cover
2.5
Countries where the company operates.
Complete
Inside front cover
2.6
Nature of ownership and legal form.
Complete
Inside front cover
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Complete
Inside front cover, 4&7
2.8
Scale of the reporting organization, including number of employees, number of operations, net sales, total capitalization broken down in terms of debt and equity and quantity of products or services provided.
Complete
4&5
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
Complete
2 - 7, 13 - 14
2.10
Awards received in the reporting period.
Complete
42
3. Report parameters REPORT PROFILE
3.1
Reporting period.
Complete
Inside back cover
3.2
Date of most recent previous report.
Complete
Inside back cover
3.3
Reporting cycle.
Complete
Inside back cover
3.4
Contact point for questions regarding the report or its contents.
Complete
Inside back cover
REPORT SCOPE AND BOUNDARY
3.5
Process for defining report content.
Complete
Inside back cover
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
Complete
Inside back cover
3.7
Specific limitations on the scope or boundary of the report.
Complete
Inside back cover
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
No information
3.9
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report.
Complete
3.10
Effect of any re-statements of information provided in earlier reports, and reasons for re-statement.
No information
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
Complete
46
Information not considered in materiality of report.
Inside back cover
Information not considered in materiality of report. Inside back cover
GRI Contents Indicator
Level of reporting
Reference/Page
Explanation
GRI CONTENT INDEX
3.12
Table identifying the location of the Standard Disclosures in the report.
Complete
Inside front cover, 44 - 47
Complete
Inside back cover
ASSURANCE
3.13
Policy and current practice with regard to seeking external assurance for the report.
Governance 4. Governance, commitments, and engagement 4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
Complete
39
4.2
Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).
Complete
39 - 41
4.3
For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.
Complete
39
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Complete
34, 39 - 41
4.5
Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).
Complete
40 - 41
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Complete
34, 39 - 41
4.7
Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.
Complete
39 - 41
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
Complete
4, 39 - 41
4.9
Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
Complete
39 - 41
4.10
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.
Complete
34, 39 - 41
COMMITMENTS TO EXTERNAL INITIATIVES 4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization.
Complete
8 - 13, 40
4.12
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.
Complete
2 - 3, 8 - 9, 16 - 38
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization has positions in governance bodies, participates in projects or committees, provides substantive funding beyond routine membership dues or views membership as strategic.
Complete
41
47
2012 Annual Sustainability Report
GRI Contents Indicator
Level of reporting
Reference/Page
Explanation
STAKEHOLDER ENGAGEMENT 4.14
List of stakeholder groups engaged by the organization.
Complete
15
4.15
Basis for identification and selection of stakeholders with whom to engage.
Complete
14 - 15
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
Complete
14- 15
4.17
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
Complete
14 - 15
Economic performance
EC1
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
Partial
5
Global data provided by Banco Santander, Spain.
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change.
Partial
8 - 9 & 37
Global data provided by Banco Santander, Spain.
EC3
Coverage of the organization’s defined benefit plan obligations.
Complete
16 - 25
EC4
Significant financial assistance received from governments.
Complete
Grupo Financiero Santander does not receive financial support from any government. Information not considered in materiality of report.
MARKET PRESENCE
EC5
Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
No information
EC6
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
Complete
35
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.
Partial
31
The total number of foreign and national employees does not specify how many are members of the highest governance body.
INDIRECT ECONOMIC IMPACTS
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
Complete
16 - 25
EC9
Understanding and describing significant indirect economic impacts, including the extent of impacts.
Complete
16 - 35
Environmental performance MATERIALS
EN1
Materials used by weight or volume.
Complete
3
EN2
Percentage of materials used that are recycled input materials.
Partial
3
Only applicable to paper-based materials.
EN3
Direct energy consumption by primary energy source.
Partial
3
Not broken down according to primary energy sources.
EN4
Indirect energy consumption by primary source.
No information
EN5
Energy saved due to conservation and efficiency improvements.
Complete
3 & 36 - 38
EN6
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
Complete
36 - 38
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
Partial
36 - 38
ENERGY
48
Information not considered in materiality of report.
There is no precise data on the reductions achieved through the initiatives undertaken with clients.
GRI Contents Indicator
Level of reporting
Reference/Page
Explanation
WATER
EN8
Total water withdrawal by source.
Partial
3
Not broken down according to primary water sources.
EN9
Water sources significantly affected by withdrawal of water.
Complete
Public water service is used.
EN10
Percentage and total volume of water recycled and reused.
No information
Information not considered in materiality of report.
BIODIVERSITY
EN11
Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
Complete
We have no service offices in natural environments.
EN12
Significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
Complete
Our economic activity has no significant impact on biodiversity.
EN13
Habitats protected or restored.
Complete
We do not operate in protected or restored areas.
EN14
Strategies, current actions and future plans for managing impacts on biodiversity.
No information
Information not considered in materiality of report.
EN15
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
Complete
Our economic activity has no significant impact on endangered species.
EMISSIONS, EFFLUENTS AND WASTE
EN16
Total direct and indirect greenhouse gas emissions by weight.
Complete
38
EN17
Other relevant indirect greenhouse gas emissions by weight.
Complete
36 - 38
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
Complete
36 - 38
EN19
Emissions of ozone-depleting substances by weight.
Complete
In our economic activity, we do not use of gases of any kind. Most of our newly renovated air-conditioning equipment is state- of- the-art, ensuring that no harmful gases will damage the ozone layer.
EN20
NO, SO and other significant air emissions by type and weight.
Complete
In our economic activity, we do not use gases of any kind.
EN21
Total water discharge by quality and destination.
Partial
37
EN22
Total weight of waste by type and disposal method.
Complete
38
EN23
Total number and volume of significant spills.
Complete
In our economic activity, there is no risk of spills.
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
Complete
In our economic activity, we do not transport waste of any kind.
EN25
Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff. Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.
Complete
In our economic activity, we exert no significant impact on biodiversity or on natural habitats.
We have a water treatment system, but we have no information as to the volume treated.
PRODUCTS AND SERVICES
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Partial
EN27
Percentage of products sold and their packaging materials that are reclaimed, by category.
Complete
27 & 38
We have no precise information on the reductions achieved through our initiatives with our clients. Because we deal with financial products, there are no packaging materials involved.
49
2012 Annual Sustainability Report
GRI Contents Indicator
Level of reporting
Reference/Page
Explanation
COMPLIANCE
EN28
Monetary value of significant fines and total number of non-monetary sanctions for non- compliance with environmental laws and regulations.
Complete
There have been no fines or sanctions from the environmental authorities.
TRANSPORT
EN29
Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.
Complete
36 - 38
OVERALL
EN30
Total environmental protection expenditures and investments by type.
No information
Information not considered in materiality of report.
Labor practices and decent work EMPLOYMENT
LA1
Total workforce by employment type, employment contract, and region, broken down by gender.
Partial
31
Breakdown by region is missing.
LA2
Total number and rate of new employee hires and employee turnover by age group, gender, and region.
Partial
31
Breakdown by gender and region is missing.
LA3
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operations.
Complete
30 - 33
There are only full-time employees.
LA15
Return to work and retention rates after parental leave, by gender.
No information
Information not considered in materiality of report.
LABOR/MANAGEMENT RELATIONS
LA4
Percentage of employees covered by collective bargaining agreements.
Complete
LA5
Minimum notice period regarding operational changes, including whether it is specified in collective agreements.
No information
31 Information not considered in materiality of report.
OCCUPATIONAL HEALTH AND SAFETY
LA6
Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.
Complete
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender.
No information
LA8
Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Complete
33
LA9
Health and safety topics covered in formal agreements with trade unions.
Complete
33
33
The Health and Safety Committee comprises 10 percent governance members and 90 percent employees. Information not considered in materiality of report.
TRAINING AND EDUCATION
LA10
Average hours of training per year per employee by gender, and by employee category.
Complete
32
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
Complete
31 - 32
LA12
Percentage of employees receiving regular performance and career development reviews, by gender.
Complete
100 percent of employees receive annual performance and career development reviews.
DIVERSITY AND EQUAL OPPORTUNITY
LA13
50
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
Partial
39
Breakdown by age group and minority group membership is missing.
GRI Contents Indicator
Level of reporting
Reference/Page
Explanation
EQUAL REMUNERATION FOR WOMEN AND MEN
LA14
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.
No information
Information not considered in materiality of report.
Human rights INVESTMENT AND PROCUREMENT PRACTICES
HR1
Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.
Partial
39 - 41
The governance bodies evaluate the ethical conduct and respect for human rights in all investment agreements.
HR2
Percentage of significant suppliers, contractors, and other business partners that have undergone human rights screening, and actions taken.
Partial
35
Suppliers sign a Social Responsibility Protocol that binds them to abide by the 10 principles of the UN Global Compact.
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
Partial
31 - 32
Although the number of hours devoted to human rights training is not specified, this area is an important part of the employees’ preparation process.
NON-DISCRIMINATION
HR4
Total number of incidents of discrimination and corrective actions taken.
No information
Information not considered in materiality of report.
No information
Information not considered in materiality of report.
Complete
Due to our contractual structure, there are no operations with these characteristics.
Complete
Due to our contractual structure, there are no operations with these characteristics.
No information
Information not considered in materiality of report.
Complete
We have no recorded incidents of this nature.
Complete
Due to our activity, our products, offices and operations have not been subject to human rights evaluations.
Complete
We have no recorded incidents of this nature.
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
HR5
Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.
CHILD LABOR
HR6
Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
FORCED AND COMPULSORY LABOR
HR7
Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.
SECURITY PRACTICES
HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.
INDIGENOUS RIGHTS
HR9
Total number of incidents of violations involving rights of indigenous people and actions taken.
ASSESSMENT
HR10
Percentage and total number of operations that have been subject to human rights reviews and/or impact assessment.
REMEDIATON
HR11
Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.
Social performance COMMUNITIES
SO1
Percentage of operations with implemented local community engagement, impact assessments, and development programs.
No information
Information not considered in materiality of report.
SO9
Operations with significant potential or actual negative impacts on local communities.
Complete
Due to the nature of our activities, there are no significant risks in this area.
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2012 Annual Sustainability Report
GRI Contents Indicator SO10
Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.
Level of reporting
Reference/Page
Explanation
Complete
Due to the nature of our activities, there are no significant risks in this area.
CORRUPTION
SO2
Percentage and total number of business units analyzed for risks related to corruption.
No information
Information not considered in materiality of report.
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures.
Complete
100 percent of employees annually.
SO4
Actions taken in response to incidents of corruption.
No information
Information not considered in materiality of report.
PUBLIC POLICY
SO5
Public policy positions and participation in public policy development and lobbying.
Complete
41
These public policies are established with the collaboration of trade unions and organizations.
SO6
Total value of financial and in-kind contributions to political parties, politicians and related institutions, by country.
Complete
No contributions of any kind are made to political institutions.
Complete
We participate in a highly competitive market where there is no monopoly.
No information
Information not considered in materiality of report.
ANTI-COMPETITIVE BEHAVIOR
SO7
Total number of legal actions for anti- competitive behavior, anti-trust, and monopoly practices and their outcomes.
COMPLIANCE
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non- compliance with laws and regulations.
Product responsibility CUSTOMER HEALTH AND SAFETY
PR1
Life cycle stages in which health and safety impacts of products and services are assessed, and percentage of products and services subject to such procedures.
Complete
The products and services of Grupo Santander do not affect the safety or health of its clients.
PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
Complete
The products and services of Grupo Santander do not affect the safety or health of its clients.
PRODUCT AND SERVICE LABELING
PR3
Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
Complete
PR4
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
No information
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Complete
27 - 30
28
Inside front cover &4
This information can be complemented on our website www.santander.com.mx Information not considered in materiality of report.
MARKETING COMMUNICATIONS
PR6
Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
Complete
PR7
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
Complete
No sanctions regarding marketing were received during 2012.
No information
Information not considered in materiality of report.
No information
Information not considered in materiality of report.
CUSTOMER PRIVACY
PR8
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
COMPLIANCE
PR9
52
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.
Grupo Financiero Santander México, S.A.B. de C.V.
Reach This report presents the major achievements, progress and actions of Grupo Financiero Santander México in the economic and financial, environmental, social and community outreach areas; corporate governance and relations management with the principal stakeholders during 2012.
(Santander México) is one of Mexico’s leading financial groups and a subsidiary of Banco Santander, headquartered in Madrid, Spain. It provides a wide range of financial products and services, including retail and commercial banking, securities brokerage, financial advisory services and other
Just as in the two previous years, external verification was carried out by Deloitte.
related investment activities. Santander México offers a International standards The report was prepared according to the international methodology of the Global Reporting Initiative (GRI), version 3.1. Reports are presented annually and the measurement techniques and figures presented in former years have not had significant changes neither in their methodology, reach or coverage.
multi-channel financial services platform focused on mid- to high-income individuals and small- to medium-sized enterprises, while also providing integrated financial services to larger multi-national companies in Mexico. As of December 31, 2012, Santander México had total assets of Ps. 750.3 billion and more than 10 million customers. Headquartered in Mexico
Preparation process The materiality of the report was determined through a meticulous analysis of all aspects of sustainability and public issues of the greater relevance for the Group, vis-à-vis the expectations and requirements of its stakeholders. This activity was reinforced by interviews with and specific questionnaires to leaders of diverse areas of the organization, as well as an analysis of the financial reports and official documents of the Group.
City, the Company operates 954 branches and 216 points of sale nationwide, and has a total of 13,385 employees.
Assurance The methodology applied for the preparation of this report was verified by Redes en Línea LT S.A. de C.V., reaching a B+ application level. The assurance letter can be found in the electronic version of the report at www.santander.com.mx
CONTENTS 2 Key sustainability results 4 About the organization 4 Vision and values 5 Main figures 6 Santander and sustainability 8 Santander a sustainable bank 10 Message from the Chairman 12 Message from the Executive President of Grupo Santander Mexico
14 Sustainability model and stakeholders 16 Social sustainability and community engagement 26 Economic sustainability 36 Environmental sustainability 39 Corporate governance and citizenship 42 Awards and recognitions 43 Glossary 44 External assurance 46 GRI Index
Grupo Financiero Santander México Corporate Headquarters Avenida Prolongación Paseo de la Reforma 500 Colonia Lomas de Santa Fe Delegación Álvaro Obregón C.P. 01219 México, D.F. Tel. +(52) 55-5257-8000 design:
www.signi.com.mx printing: artes gráficas panorama cover photo: © unicef mexico / mauricio ramos
Social responsibility contact:
[email protected]
ACTIONS FOR MEXICO 2012 ANNUAL Sustainability Report
www.santander.com.mx
Actions FOR mExico 2012 ANNUAL Sustainability Report
