AFD // 2021 Universal Registration Document

STATEMENT OF NON-FINANCIAL PERFORMANCE 2 Contribution of the Group’s activity to sustainable development

2.4.3.5 Direct climate footprint and carbon offsetting The low-carbon trajectory is implemented internally within the AFD Group and in its value chain through operational measures to reduce the impact of its activity. The AFD Group is thus mobilising to control its direct greenhouse gas (GHG) 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 carbon footprint makes it possible to identify its strengths and vulnerabilities. With regard to the head office’s overall GHG emissions, the results show a slight reduction in emissions of 8% between 2020 (21,388 Teq ɸ CO 2 , or 12.2 Teq ɸ CO 2 per employee) and 2021 (19,707 Teq ɸ CO 2 , or 11.2 Teq ɸ CO 2 per employee). The ongoing international restrictions on mobility and the continued use of teleworking largely explain this relative stability of the GHG emissions of the AFD Group’s head office. However, it covers fairly significant changes: emissions related to travel, fixed assets and freight fell by 20%, 30% and 25% respectively, while those specific to inputs, mainly consisting of the purchase of intellectual services, increased by 2%. The increase for the largest item (representing 66% of the total) was enough to offset the various decreases and explains the slight change in the volume of Teq ɸ CO 2 emissions. The 2020 carbon assessment (Bilan Carbone ® ) for the Group’s network could only be calculated at the end of 2021 due to a change of service provider and tools. In 2020, in the context of the global pandemic, the impact of the health measures was felt across the network, as its premises were subject to more or less severe restrictions, mainly in terms of travel. GHG emissions were down 23% in 2020 compared to 2019, going from 12,600 Teq ɸ CO 2 in 2019 to 9,700 Teq ɸ CO 2 in 2020, i.e. approximately 9 Teq ɸ CO 2 per network employee in 2020. This decrease was due to a significant fall, of 35%, in travel-related emissions in 2020, while those from the purchase of services increased by 15%. The AFD Group is working to manage its carbon and environmental impact. The AFD Group thus established responsible purchasing as one of the three major areas of its new purchasing policy, and anticipated the law on the fight against waste and the circular economy by eliminating, in 2019, plastic cups and bottles at the head office. The extension of this approach to the network is continuing, with the Tbilisi local office, among others, having implemented similar measures. The 100% recycled paper used by employees (with the exception of the reprography department) is collected by a recycling channel at the Paris sites. As regards GHG emissions, a global approach, in the form of a “low carbon trajectory” project, was launched at the end of 2020 to define the axes and action plans to be adopted in order to further strengthen the exemplary approach and practices already in place. Firstly, the goal is to improve the energy efficiency of the real estate portfolio by optimising uses and drawing on renewable energies. At the head office, at the Barthes and Mistral sites, 100% of the electricity consumed is produced from renewable energy sources, including, in situ , from the Barthes photovoltaic modules which produced 11,195 ɸ kWh in 2021. This dynamic is gradually extending across the network: the local offices in

N’Djamena and Accra thus produce the majority of their energy needs from photovoltaic panels. Since the end of 2020, a Sustainable Mobility Package (“FMD”) has been set up for head office employees who use bicycles to commute at least 100 days per year, offering financial compensation of €650 gross per year. A study conducted in 2017 indicated that 15% of AFD’s employees travelled by bicycle. However, to date, 161 employees have subscribed to the FMD. In order to facilitate the use of bicycles, the number of bicycle racks has been multiplied at all AFD and Proparco metropolitan sites. The future AFD Group head office will make it possible to further increase such infrastructures. In addition, bicycle maintenance workshops are regularly held, notably during European Mobility Week – five were held in 2021, in compliance with the health measures, which made it possible to check and repair over 100 bicycles. Initiatives are also encouraged at the local level: for example, the Phnom Penh local office provides a fleet of bicycles for short trips. A number of local offices, such as the one in Tunis, organise carpooling among employees. In addition, as part of the Low Carbon Trajectory project, supported by the Corporate Project, a new “Responsible Consumption” plan provides for the implementation of new measures (from 2022) to reduce paper consumption, improve sorting and waste recycling, extend the lifespan of products, and optimise air travel; there is also a “Green IT” action plan to reduce the carbon and environmental impact of our use of digital resources. Lastly, by offsetting its residual emissions annually, since 2007, the AFD Group aims to achieve carbon neutrality. Due to the change of service provider and tools to collect and process the carbon assessment (Bilan Carbone ® ) data in 2021, the call for tenders for the selection of offsetting projects, located in the countries of operation of the AFD Group, will be launched in early 2022. 2.4.4 Impacts related to the Group’s activity in reinforcing social relations In 2021, AFD was able to structure its 100% social ties commitment through the adoption of a dedicated strategy, approved by its Board of Directors in March ɸ 2021, formalising one of the pillars of its strategic orientation plan. AFD now has dedicated targets, both in terms of combating inequalities (“Reducing inequalities in wealth and opportunities, both vertical and horizontal”) and in terms of living together (“Strengthening inclusion by improving how contexts are taken into account”) guided by a human rights-based approach. This document was published externally and translated into several languages. A communication brochure was also produced, for internal and external use, to explain the Social Ties strategy to a diverse audience. With the roll-out of this strategy, the AFD Group aims first and foremost to take inequalities into account, including in public policy dialogue, by providing diagnostic, impact and awareness-raising tools for the network’s local offices and regional directorates. This work will notably inform the studies

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2021 UNIVERSAL REGISTRATION DOCUMENT