BPCE - 2018 Registration document

NON-FINANCIAL PERFORMANCE REPORT CSR reporting methodology

BUSINESS MODEL The Group’s business model is described in Chapter 1.1, “A business model that creates lasting value and has confirmed its solidity”. It sets out our main activities, the main challenges in our business environment, our business model and what stands us apart from our peers. The business model is updated each year as often as necessary.

conviction or thematic SRI – this involves selecting the issuers with ● the best social or environmental performance and/or investing in sectors with a positive ESG impact. To be eligible for the TEEC certification, the assets must contribute to the energy and ecological transition. The growth in Ostrum AM’s SRI assets under management was due to the conversion of certain investment mandates to ESG and/or SRI investments during the year.

2

SOURCES AND DETAILS OF BUSINESS MODEL DATA (CHAPTER 2.1.1)

Information

References

Market share: 21.5% in customer deposits & savings and 21.1% in customer loans (Banque de France, Q3 2018) Market share: 22.6% in household deposits/savings and 26.3% in home loans (Banque de France, Q3-2018). Total penetration rate of 30.1% (No. 2) among individual customers (SOFIA TNS-SOFRES survey, April 2018) (Banque de France, Q3-2018) - Quarterly SURFI reports - home loan outstandings 21.1% market share in loan outstandings, all non-financial sector customers (Banque de France, Q3 2018) CE APRI lending market share: 19.77% (Banque de France, June 2018), rising over 18 months. 51% (No.1) in terms of total penetration rate (2017 Kantar-TNS survey). This figure reported in the diagram is for 2017. The figure for 2018 will not be available until end-Q1 2019. reporting and answer their questions about the data collection process; awareness-raising among the Group’s business functions about ● CSR reporting issues through visits by the sustainable development team (national risk mapping meeting, the credit exposure managers club, real estate & logistics conference, national procurement meeting, etc.); two carbon review training sessions (beginners and advanced ● levels), a CSR reporting training session and two sessions on the basics of CSR; two conference calls attended by nearly all of the sustainable ● development officers to provide advice and answer questions about the non-financial performance report and the collection of CSR data. Reporting topics The following topics are considered relevant in terms of the bank’s indirect impacts: recycling and reuse, efforts to reduce food waste, combat food poverty, improve animal welfare and ensure responsible, fair, sustainable food supplies. These topic are not addressed in specific paragraphs in this report but are covered by the bank’s ESG risk analysis procedures. For its lending business, these topics are covered in sector policies. For investment and asset management activities, they are covered by ESG ratings methodologies for SRI fund management. 2017/2018 change in NPS (expressed in points)

2 nd largest banking group in France

No. 2 bank for individual customers Change in Net Promoter Score

26.3% market share in home loans

We fund over 20% of the French economy

No. 1 lender to the social economy

No. 1 bank for SMEs

65% of our employees are motivated

Reporting structure CSR reporting is organized by the Group’s Sustainable Development division, which coordinates the necessary work each year (updating the guidelines, indicators and user guides, advising the banks in the drafting of their own CSR annual report, etc.). Like every year, it worked with the Group’s operational divisions (IT, Human Resources, Real Estate & Logistics, Procurement, etc.) and federations (FNBP, FNCE) in order to make better use of centralized databases. More specifically, for the preparation of the non-financial performance report in 2018, the Group Sustainable Development division worked with the Group Risk division and its regional functions. Various initiatives were taken in this respect in 2018 in collaboration with all of the stakeholders of the non-financial performance report to facilitate the appropriation of this new process by all Group entities: groupwide distribution of a memorandum going over regulations ● and detailing the reporting process for the businesses; organization of two days of seminars for the CSR function: ● one day presenting the tool box used to implement the - non-financial performance report in their entities and the methodology chosen, attended by the four independent third parties working with the Group, a one-day conference for all sustainable development officers - from every entity to inform them about the importance of CSR

119

Registration document 2018