AFD - 2019 Universal registration document

STATEMENT OF NON-FINANCIAL PERFORMANCE 2 The Group’s contribution to sustainable development

2.4.3.2 AFD’s climate financing in 2019 In 2019, the AFD Group financed 273 climate protection projects in foreign countries, for a total amount of €6.1bn in financing (an increase of nearly 27% compared with 2018). In this way, 50% of the Group’s financing produces co-benefits for the climate, thereby achieving the goal set in 2012 that was renewed in its Climate and Development strategy. The climate projects financed in 2019 cover two areas, namely: P climate change mitigation: €4.1bn in financing; P adaptation to the impacts of climate change: €2bn in financing; The Group’s climate finance volume in 2019 exceeds the goals set in its Climate and Development strategy one year ahead of schedule, i.e. “to reach €5bn of climate finance volume, including €1.5bn for adaptation in 2020”. 61 mitigation projects will help to avoid 9.8 Ǿ MtCO 2 e every year throughout their life cycle. Moreover, the Group is continuing its action in the area of Climate Bonds, which it first issued in 2014 with its first 10- year Climate Bond for €1bn. AFD has committed to the “Green Bond Principles” and applies principles such as justification of the use of funds, monitoring of cash flows, as well as a recommendation and robust reporting on the structuring of its bonds. Following the adoption in 2017 of a new programmatic framework and the expansion of the types of projects backed by its climate bond issues to better reflect the diversity of the Group’s actions, it aims to position itself on the market as a regular issuer of climate bonds. At 31 Ǿ December Ǿ 2019, Climate Bonds outstanding reached €2.25bn. 2.4.3.3 A stronger partnership strategy AFD continues to play an important role within networks of players in the financing of development and climate issues. In 2017 AFD became Chair of the IDFC Club - International Development Finance Club – which brings together 26 national and regional development banks, through the AFD. In October Ǿ 2019, this position was renewed for two more years. This appointment demonstrates the confidence IDFC members have in the work AFD has carried out within the Club since 2017. In 2019, AFD also played an active role in the One Planet Summit event, in terms of both organisation and content. AFD took part in organising the One Planet Summit in Nairobi on 14 Ǿ March Ǿ 2019, which highlighted African stakeholders committed to the subjects of renewable energy, forests and adaptation. At this event, the President of the Republic, Emmanuel Macron announced thanks to the AFD’s results an increase in the French contribution to the Solar Alliance from €1bn to €1.5bn by 2022, and the creation of the AFD Biodiversity Facility. AFD continued to report in a transparent manner on all the initiatives and commitments made in the context of the One Planet Summit (1) In June Ǿ 2019, on the initiative of AFD, the IDFC Club and the

Green Climate Fund signed a statement of partnership, to work together to increase financing for the climate and to fight more effectively against climate change. As a French institution and in its role as Chair of the IDFC, AFD also provided itssupport for theClimateSummit of theSecretaryGeneral of the United Nations in September Ǿ 2019. AFD mobilised members of the IDFC to commit to providing $1 trillion of climate finance by 2025, signed a strategic partnership with the Green Climate Fund, published the results of an independent study carried out by I4CE and CPI on alignment with the Paris Agreement, created an IDFC Climate Facility and encouraged individual contributions from IDFC members on the end of coal financing. AFD continues its collaboration with the Green Climate Fund. It was accredited in 2015, and benefited from a framework agreement in 2017. In October Ǿ 2019, at the 24 th Ǿ Meeting of the Green Climate Fund Board, a project for re-use of water and irrigation in Palestine was approved for a total amount of €49.3M. The project will also finance development of a solar photovoltaic system to operate the wastewater treatment plant, once more asserting AFD’s commitment to the territories most vulnerable to climate change. This is the 4 th Ǿ AFD project to be approved by the Green Climate Fund, following i) the programme to combat flooding risks in urban environments in Senegal (AFD financing of €50 M), ii) project to develop irrigation and to adapt agriculture to climate changes downstream from the Kaddoussa dam in Morocco (AFD financing of €41M), and iii) large scale programme entitled “Transforming financial systems for the climate” (US$750M, of which €280M from the Green Climate Fund) to locally accelerate reorientation of investment flows towards low carbon resilient development. The strategic dialogue on climate between AFD and French civil society organisations strengthened in 2019. Several meetings and discussions took place during 2019 to explain how the 100% behind Paris Agreement objective was made operational in particular. In 2019, a Committee of climate strategy partners consisting of French CSOs and other civil society actors met twice to strengthen links with CSOs. Many subjects were covered in these meetings, including alignment with the Paris Agreement, financial climate risks, IDFC and the international climate agenda. 2.4.3.4 Direct environmental footprint and carbon offsets The lowcarbon trajectory, alignedwith the 100%Paris Agreement and 100% Social Ties commitments, is implemented within the AFD Group and its value chain by operational measures to adapt to climate risks. The AFD Group is mobilising to control its direct greenhouse gas emissions by taking action simultaneously to reduce these emissions and to offset them through actions contributing to the SDGs. The annual assessment of the Group’s climate footprint enables us to identify our organisation’s strengths and vulnerabilities.

(1) https://www.afd.fr/fr/one-planet-summit-suivez-la-realisation-de-nos-engagements.

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UNIVERSAL REGISTRATION DOCUMENT 2019

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