AFD // 2021 Universal Registration Document

STATEMENT OF NON-FINANCIAL PERFORMANCE Identification of the main non-financial challenges and risks

AFD, both an industrial and commercial public undertaking (a French EPIC) and a financing company, whose securities are admitted to trading on a regulated market, follows an exemplary approach and publishes a Statement of Non-Financial Performance since the 2018 financial year, the content of which complies with legal and regulatory requirements. This statement provides information on the manner in which the Group monitors the social and environmental consequences of its activity and – for listed or related entities, including AFD – the effects of this activity on human rights and the fight against corruption and tax avoidance. It thus includes: the business model; the main risks related to the Company’s activity including, where relevant and proportionate, risks created by its business relations, products or services; the policies and action plans rolled out to manage these risks; results, including key performance indicators. The methodology used is described in the methodological note (see Appendix 9 below), while the actual statement is presented below.

The alignment between the Group’s missions, its CSR policy and the continued excellence of its non-financial performance was again acknowledged in 2021 through the Vigeo-Eiris rating. The overall ESG rating obtained from this assessment was 73/100, corresponding to a performance qualified as advanced, i.e. the best level, a result almost stable compared to 2019 (74/100). By comparison, in 2017, AFD obtained a score of 70/100. This rating enabled AFD to retain first place in the “Specific purpose banks and agencies (Europe)” category. Presentation of the Statement of Non-Financial Performance approach The publication of non-financial information as part of the Statement of Non-Financial Performance results from the transposition into French law of European Directive 2014/95/ EU, known as the Non-Financial Reporting Directive (NFRD).

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2.1 The business model

AFD’s business model is described in Chapter ɸ 1.

2.2 Identification of the main non-financial challenges and risks

major risks likely to limit or prevent the achievement of the Group’s strategic objectives and/or threaten its main assets (top-down approach). These two approaches are complementary: they make it possible to compare the risks identified at the closest level by the business lines and the risks identified by the executive body, and to prioritise the actions to be taken to strengthen the risk management system. P The non-financial issues deemed to be the most relevant for the AFD Group were identified and ranked through a materiality analysis. This analysis aims to offer a view of the most important issues for the organisation, in order to select the most relevant information for its corporate and social responsibility report based on its activities, its own objectives, and the expectations of its external and internal stakeholders.

Pursuant to the transposition into the French law-books of Directive 2014/95/EU pertaining to non-financial reporting by companies (see above), the Statement of Non-Financial Performance is based on the main non-financial risks and issues facing the AFD Group. P The priority risks for the Group are identified mainly through two mapping exercises: P the regulatory mapping of operational risks: it is based on the classification of the seven Basel risk families (2) . It is updated annually and reflects the vision of the business lines, with risks being identified and rated by managers at the finest level of the organisation chart (bottom-up approach), P the mapping of AFD’s major risks: all of AFD’s executive directors and of Proparco’s Executive Management are asked to express their views on “major risks”, namely the

(1) Order No 2017-1180 of 19 th July 2017 regarding the disclosure of non-financial information by some major companies and some groups of companies, and Decree No 2017-1265 of 9 th August 2017 implementing Order No 2017-1180 of 19 th July 2017 regarding the disclosure of non-financial information by some major companies and some groups of companies. (2) The seven categories of potentially risk-generating events defined by the Basel Committee on Banking Supervision (Basel II) are as follows: internal fraud; external fraud; employment and job security practices; clients, products and commercial practices; damage caused to physical assets; interruption of business and malfunctioning systems; execution, delivery and management of processes.

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2021 UNIVERSAL REGISTRATION DOCUMENT