Baringa with Santander

Baringa with Santander

Sustainability Award

MCA Awards Finalist 2024The transition to net zero by 2050 is an existential challenge for society. Like many large global financial services organisations, Santander has committed to playing its role in supporting this transition in the “real economy” through the financing that it provides to its corporate and retail customers. However, in order to be able to identify opportunities to finance transition, and understand the risks associated with those opportunities, our client required a realistic, forward-looking transition scenario that does not assume that countries will achieve the targets that they have set, but instead reflects the real-world frictions that may prevent countries from achieving their targets.
Baringa therefore created for Santander a Base Case Climate Scenario, covering the EU, UK, China, US, Brazil and Mexico, and comprising 8,000 individual data points, with an accompanying 200-page report, describing:

  • The political, technological, and economic challenges facing countries’ ability to achieve their net zero targets, across key sectors (power, transport, buildings, chemicals, steel, and cement)
  • The likely future greenhouse gas emissions in each country, across sectors and technologies
  • The changes in technology deployment that are projected to deliver those emissions changes
  • The capital expenditure associated with these technology deployments, which presents opportunities for sustainable finance growth to the financial services sector

This scenario provided the insight critical for informing sustainable finance strategy, as well as projecting financed emissions. This insight will be critical for enabling Santander to achieve its target to raise or facilitate the mobilisation of over $220bn in green finance. More broadly, the insights delivered by the Base Case are critical for enabling the financial services sector to direct the $300 trillion of investment in new technologies that is required over the next 30 years to drive the transition to net zero.

View the Baringa Partners profile in the MCA Members Directory.