BNP Paribas : Exane ESG Conference - 28/09/2022 - BNP Paribas CSR Strategy

BNP PARIBAS CSR STRATEGY

LAURENCE PESSEZ

GLOBAL HEAD OF CSR

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Nov. 2010

Nov. 2015

Oct. 2017

May 2020

May 2021

Oct. 2021

May 2022

First coal related	Doubled renewable
policy with financing	energy commitment
and investment	from €7bn in 2015 to
restrictive criteria	€15bn in 2020
	Commitment to invest
	€100m 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	Commitment to net zero
financing the thermal	by 2050 and signature of
coal sector value	the Net-Zero Banking
chain by 2030 in the	Alliance
EU & OECD countries,	Initial interim commitment
and by 2040 in the rest	to reduce credit exposure
of the world	to O&G exploration &
Publication of 1st	production activities by
TCFD report	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

Commitment to assess & disclose the

GHG emissions of its financial portfolio in line with the PCAF4 Standard

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

Strong leading positions in sustainable finance	Pioneer in Sustainable Finance innovation
▪ World's best bank for Sustainable Finance 2022 award by	1st financing		€3.6bn5 of green		EIPF6: 1st European
Euromoney	of a Gigafactory		mortgages to		Real Estate impact
			fund to comply with
▪ #2 in sustainable bonds worldwide with €46.1bn1	in Europe for		reduce energy
		the Paris Agreement
Northvolt
		consumption		objectives
▪ #1 in green bonds in EMEA, #2 worldwide with €22bn1
▪ #2 worldwide in ESG-linked loans with €26.8bn1

1. Dealogic as at 31/12/2021; 2. Definition of the Arctic region aligned with the Arctic Assessment & Monitoring Program (AMAP) except Norwegian-operated areas;

3. Exemptions to be granted to companies having the most credible transition plans towards net-zero by 2050 based on clear criteria; 4. Partnership for Carbon Accounting Financials; 5. As of end-2021; 6. European Impact Property Fund

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Board of Directors

• to approve the CSR strategy and the annual reporting (e.g. 2020 vigilance plan; 2021 NZBA membership)
• 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: the Deputy Chief Executive Officer and 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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Pillar	No.	Indicator	2025 Objective
Our economic	responsibility	1	Amount of sustainable loans 1	EUR 150 billion
2	Amount of sustainable bonds 2	EUR 200 billion
3	Amount of sustainable investment and savings	EUR 300 billion
(assets under management of article 8 & 9 SFDR funds)
Our social	responsibility	4	Share of women among the SMP population (Senior Management Position)	40%
5	Number of solidarity hours performed by employees (#1MillionHours2Help)	1 million hours (over two rolling
		years)
6	Proportion of employees who completed at least four training courses during the previous	90%
	twelve months
Our civic	responsibility	7	Number of beneficiaries of products and services supporting financial inclusion	6 million beneficiaries
Our environmental	responsibility	8	Amount of support for our clients in the transition to a low-carbon economy	EUR 200 billion
9	Amount of financing to companies contributing to protect terrestrial and marine biodiversity 3	EUR 4 billion
10	Greenhouse gas emissions in tons of CO2 equivalent (tCO2eq) / full-time employees	1.85 teqCO2/FTE
			(buildings kWh, including IT, + business trips)

Group Sustainability and Incentive Scheme:

20% of more than 7,000 key employees' deferred variable compensation relies on the performance of the 10 CSR performance indicators

1. Cumulative amount of sustainable loans for 2022-2025 related to environmental and social issues, originated by BNP Paribas and granted to its customers
2. Cumulative amount of all types of sustainable bonds 2022-2025 (total amount divided by the number of bookrunners). 3 Loans and bonds contributing to the protection of terrestrial and marine biodiversity.

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