BPCE - 2018 Registration document

2 NON-FINANCIAL PERFORMANCE REPORT

Sustainable development built on our cooperative identity

WHAT SETS US APART Our cooperative structure

The Banque Populaire and Caisse d’Epargne networks each have a federation that protects its identity and values and defends its interests. The federations organize discussions, hear ideas and provide representation, producing positions shared by all Group entities. They support the network’s CSR strategy, cooperative shareholder relations, training for directors, and governance, while promoting initiatives in local communities. Our large regional footprint Through its dense network of branches and its different brands, Groupe BPCE finances more than 20% of the French economy. It has a strong nationwide footprint with its 29 regional banks. With the loans it grants to local authorities, locally established corporate customers and individual customers, Groupe BPCE is a leading fund provider in its areas of operation. We understand and know our local customers better, meaning we can pick up on signals and respond proactively, offering products and services tailored to local needs. Our strong positioning in banking inclusion and entrepreneurship Groupe BPCE has adopted major initiatives to foster banking inclusion and serve protected adults, in particular via the Caisse d’Epargne network. In addition, it has worked alongside entrepreneurs for over one hundred years, mainly via the Banque Populaire network. customers and cooperative shareholders. They are value creators (CEOs, researchers, lecturers, etc.) who, through their roles, are involved in driving economic and social development within their regions. The role of the Fédération Nationale des Banques Populaires includes overseeing the individual and collective skills and expertise of Board members. In 2018, in addition to furthering their understanding of the bank’s businesses, it offered them training on topics such as the history of the Banque Populaire network, the Banque Populaire cooperative banking model, governance (the role and responsibilities of directors), the director’s stance (personal development: active participation in Board of Directors’ meetings/challenging ideas), risk management (particularly the prevention of fraud and corruption), the opportunities presented by CSR, and how to integrate it into the corporate strategy. Finally, to meet the regulatory requirements calling for an annual assessment of the performance of the Board of Directors, the Federation also established an online self-assessment questionnaire available to all institutions in the Banque Populaire network. Since 2014, the Fédération Nationale des Banques Populaires has used a new online tool to manage the training program for Banque Populaire directors: the Académie des Administrateurs, or Directors’ Academy. This solution meets several goals: offering a view of the entire training catalog provided by the ● Federation; allowing directors to sign up for training modules online and to ● access their transcripts; facilitating access to training through e-learning modules and ● videos; measuring director satisfaction and the relevance of issues ● addressed at training seminars, to ensure that the Federation is in tune with the directors’ expectations and needs.

Our goal is to actively contribute to the development of the regions in which we operate, alongside our customers, our cooperative shareholders, our employees and all our stakeholders. We are a cooperative group owned by our 9 million cooperative shareholder customers who hold all the shares in the Banque Populaire banks and the Caisses d’Epargne. They live and work in the areas where we operate. Our cooperative structure shapes our approach to our businesses. Throughout our history of serving the economy and society, we have taken a different approach to how we do business over the long term and in our local regions. We want to help build a sound, positive environment for our cooperative shareholders and our customers for both the present and the future. We serve all types of customers and are deeply committed to the communities where we have developed extensive roots. We work with local stakeholders to strengthen ecosystems and improve quality of life in local regions. We strive to increase the positive impact of our activities on our regions’ economic and human development. This is the foundation of the Groupe BPCE 2018-2020 CSR strategy presented in Chapter 2.2.3. The 14 Banque Populaire banks and the 15 Caisses d’Epargne fully own the central institution, BPCE SA group, which coordinates and organizes their common strategy. Accordingly, the national strategic decisions of Groupe BPCE are made in keeping with their regional requirements. The Group’s cooperative governance structure is described in Chapter 3 of the registration document. BANQUE POPULAIRE BANKS The 4.44 million cooperative shareholders are the foundation of the Banque Populaire banks’ cooperative structure. They own the share capital, vote at Annual General Shareholders’ Meetings and directly elect the directors who will represent them at Board of Directors meetings. In 2018, over 570,000 cooperative shareholders voted, i.e. an average turnout rate of 16% for the network. In addition to Annual General Shareholders’ Meetings, cooperative shareholders are regularly invited to in-branch meetings and special events where they can talk with company managers and directors about the latest news affecting their bank. At some banks, they issue awards to local solidarity-based projects they wish to see supported. Cooperative shareholders also have the opportunity to join shareholder clubs (strategic guidelines, budgets for associations, etc.) and help support recipients of microloans through organizations such as “Grand Ouest Coopération”. They enjoy access to special information channels to keep up to date with news about their banks, including dedicated newsletters and magazines and interactive websites. In 2018, the Banque Populaire network had 225 directors (and 17 non-voting directors) whose experience and diversity enrich discussions at Board of Directors’ meetings in the interests of all A strong cooperative identity 2.1.2

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Registration document 2018