BPCE - 2018 Registration document

2 NON-FINANCIAL PERFORMANCE REPORT CSR reporting methodology

CSR reporting methodology 2.6

This section aims to explain the methodology applied by Groupe BPCE in its CSR reporting.

2.6.1

CSR reporting structure

Sustainable Development indicators based on the Global Reporting Initiative (GRI) guidelines are used to complete the non-financial performance report, in line with the ESG risk analysis performed by the Group in 2018 (see Chapter 2.2.1). The indicator guidelines were also updated to incorporate the 2018 regulatory changes, the expectations of our stakeholders (rating agencies, investors, NGOs, etc.), feedback from sustainable development officers in charge of reporting, and the recommendations of the independent third party for fiscal year 2017. ENVIRONMENTAL INDICATORS For fiscal year 2018, the internal environmental indicators were collected from the entities’ sustainable development officers in collaboration with their logistics officers via the SPIDER data entry tool. For the carbon review, the Group uses the methodology defined in ISO 14064. Data are collected annually by each entity’s sustainable development officers, and are reported in the COGNOS tool, which was rolled out in 2015. Most of the emissions factors are based on ADEME’s emissions factors and are updated annually. In accordance with the general principles of carbon accounting, the integration of emission factors specific to to replace ADEME’s emissions factors (or factors from any other ● public or semi-public source) when they are not relevant or sufficiently detailed. Green growth indicators are business indicators (eco-loans) collected from centralized databases for both networks. Indicators on outstanding renewable energy loans are collected from the Group Risk division. HUMAN RESOURCES INDICATORS No major changes were made to the human resources indicators so as to ensure stability and to allow for comparison. Human resources data (excluding training) are extracted from two centralized information systems managed by the Group Employment and HR Operations division, namely the “Services” data center for companies in the Caisse d’Epargne network and the “Perse” info center for all other entities. The data extracted from the two information systems are verified following a regular control process at Group level according to the human resources indicators defined for the registration document. Permanent contracts include work-study contracts with an indefinite term. Fixed-term contracts include fixed-term work-study contracts (professionalization contracts and apprenticeships). Employees included in the headcount at December 31 of each year include those departing on that date and those whose contract has been suspended. Groupe BPCE is encouraged in the following cases: to compensate for a lack of appropriate factors; and ●

New hires data refer to new hires on permanent and fixed-term contracts signed between January 1, and December 31, including work-study contracts (professionalization and apprenticeships). Departures data include staff on permanent contracts leaving between December 31 of the previous year and December 30 of the current year for the following reasons (broken down quantitatively): dismissal, resignation, departure during a trial period, mutually-agreed termination, transfer within the Group and retirement. The departure rate corresponds to the number of departures among permanent staff in year N divided by the total number of permanent staff at December 31 in year N-1. Transfers between different Group companies are taken into account in the new hires and departures figures. Absenteeism figures are calculated at December 31 of year N, based on absences recorded at this date and reported in the HR information system when the data were extracted for the scope under review. Absenteeism is calculated as per Group human resources data. It corresponds to the ratio between the number of days of absence in year N and the hypothetical number of days worked in the same year. Indicators related to training are extracted from the new Apogée Formation data center. These data cover all of the training sessions assigned under the plan for a given year and approved by the training departments of the companies within the scope reviewed at the date the data were extracted. SOCIETAL INDICATORS Societal indicators are mainly business indicators such as socially responsible investments and loans to local authorities and to social housing operators and the social and solidarity-based economy. Data are extracted from centralized databases. Their accuracy is regularly verified at Group level. Indicators related to patronage, microloans and cooperative identity are provided by the two networks’ federations and by the Group’s outside partners (ADIE, France Active, Initiative France). Procurement indicators are provided by BPCE Procurement. There is currently no standard definition of SRI assets under management shared across Groupe BPCE. Accordingly, the amounts reported include different types of investments, which are grouped into three major categories: ESG integration – this type of investment involves analyzing ESG ● performance but fund managers have no formal minimum return constraints. It also applies sector exclusions ( e.g. coal) and minimum standards requirements (respect for human rights); SRI – this consists in formally establishing minimum thresholds to ● be observed by fund managers based on an ESG ratings scale or specific indicators. To be eligible for an SRI certification, these thresholds must eliminate at least 20% of the investment universe;

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Registration document 2018