BNP Paribas : CSR Strategy - May 2023

BNP PARIBAS CSR STRATEGY

June 2023

S U STA I N A B I L I T Y F U LLY E M B E D D E D W I T H I N T H E G R O U P ST R AT E G Y

June 2023

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A LO N G - STA N D I N G C O M M I T M E N T TO G E T H E R W I T H O U R C L I E N TS W I T H C O N C R E T E A C T I O N S

Nov. 2010

Nov. 2015

Oct. 2017

May 2020

May 2021

Oct. 2021

May 2022

Jan 2023

First coal related	Doubled renewable
policy with	energy commitment
financing and	from EUR 7bn in 2015 to
investment	EUR 15bn in 2020
restrictive criteria	Commitment to invest
	EUR100m in transition
	start-ups
	No further financing of
	coal-fired power plants
	in high income countries

The first of the world's 35 largest banks to cease dealings with shale oil & gas (O&G) and tar sands companies

Commitment to cease financing the thermal coal sector value chain by 2030 in the EU & OECD countries, and by 2040 in the rest of the world

Publication of 1st TCFD report

Commitment to net zero by 2050 and signature of the Net-ZeroBanking Alliance

Initial interim commitment to reduce credit exposure to O&G exploration & production activities by 10% between 2020 & 2025

Creation of the Low-

Carbon Transition Group bringing together over 250 professionals worldwide to support & advise Corporate & Institutional clients on their transition to a sustainable & low-carboneconomy

Restriction of support to energy companies significantly involved in the Arctic2 & Amazon regions, in

shale O&G and tar sands3

Publication of 1st Alignment report on 3 sectors

Commitment to reduce credit exposure to Upstream O&G production activities by 12% between 2020 & 2025

New Commitment to reduce financing to oil exploration and production by 80% compared to the financing in Sep. 2022, to reach less than 1bn in 2030, and to decrease its financing to gas by 30% in 2030

Commitment to achieve a target of EUR 40 bn in financing for the production of low carbon energies by 2030

May 2023

Publication of the first Climate Report,

including net zero commitments for 3 new sectors (steel, aliminium, cement)

Update of the O&G policy including more detail on its plans to withdraw from new oil and gas field financing, and to oil and gas activity.

Commitment to no longer provide any financing dedicated to new oil & gas fields

Strong leading positions in sustainable finance

• World's best bank for Sustainable Finance 2022 award by Euromoney
• N°1 worldwide in sustainable bonds1 with $14.2bn at 31.03.23
• N°1 worldwide in green bonds with $9bn at 31.03.23
• N°3 worldwide in sustainability-linked loans with $3.2bn at 31.03.23

1. Including green bonds

June 2023

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C S R D A S H B O A R D : 1 0 I N D I C ATO R S W I T H 2 0 2 5 TA R G E TS TO M O N I TO R P R O G R E S S

Pillar	No.	Indicator	2022	2025 Objective
Our economic	responsibility	1	Amount of sustainable loans	EUR 87 billion	EUR 150 billion
2	Amount of sustainable bonds	EUR 32 billion	EUR 200 billion
3	Amount of assets under management at the end of 2022 in open-ended funds distributed in	EUR 223 billion	EUR 300 billion
Europe under articles 8 and 9 according to the SFDR.
Our social	responsibility	4	Share of women among the SMP population (Senior Management Position)	35.2%	40%
5	Number of solidarity hours performed by employees (#1MillionHours2Help)	1 126 142 hours	1 million hours
		(in 2021 & 2022)	(over two rolling years)
6	Proportion of employees who completed at least four training courses during the previous	97.4%	90%
	twelve months
Our civic	responsibility	7	Number of beneficiaries of products and services supporting financial inclusion	3.3 million beneficiaries	6 million beneficiaries
Our environmental	responsibility	8	Amount of support for our clients in the transition to a low-carbon economy	EUR 44 billion	EUR 200 billion
9	Amount of financing to companies contributing to protect terrestrial and marine biodiversity	EUR 1.8 billion	EUR 4 billion
10	Greenhouse gas emissions in tons of CO2 equivalent (tCO2eq) / full-time employees	1.65 teqCO2/FTE	1.85 teqCO2/FTE

Group Sustainability and Incentive Scheme:

20% of more than 8,400 key employees' deferred variable compensation relies on the performance of the 10 CSR performance indicators

See Dashboard definitions in the URD 2022page 626

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A C O M P R E H E N S I V E G O V E R N A N C E

Board of Directors

• to approve the CSR strategy and the annual reporting (e.g. 2022 vigilance plan)
• CGEN, Corporate Governance & Nominations Committee, extended its responsibilities to Ethics, Conduct and CSR in 2016

Executive Committee to validate the ESG strategy and Group commitments

Sustainable Finance Strategic Committee

Sponsored by CEO Jean-Laurent Bonnafé, meets bi-monthly

Attendees: majority of Executive Committee's members + representatives of Clients Coverage + head of CSR

• to approve the overall strategy in terms of sustainable finance,
• to decide on the overall commitments made by the Group and the Sustainable Finance commercial policies,
• to monitor operational implementation

Sustainable Finance Infrastructure Committee

Chaired by the Group COO

Attendees: key contributors from different business lines and functions.

• to industrialise ESG processes, data and reporting

ESG Regulatory Committee

• to assess the operational consequences of the main new regulations

Governing bodies covering

risk-related topics

CCDG

(General Management Credit Committee)

• procedure specifies CCDG will review all issues surrounding the acceptability of risks including ethics and CSR

GSCC

(Group Supervisory and Control Committee)

• to validate financing and investment policies

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