BPCE - 2018 Registration document

2 NON-FINANCIAL PERFORMANCE REPORT A CSR strategy aimed at incorporating sustainable development in our business lines and decision-making processes

Services) take part in business forums to develop CSR in the business lines, while the officers working in the Corporate departments (Real Estate and Logistics department, Human Resources, Compliance, etc.) are involved in projects to incorporate sustainable development into the company’s day-to-day operations. In addition, CSR governance is organized in each business line, with, for example, the creation of a Green Hub at Corporate & Investment Banking. This operational hub comprises experts who help issuers and investors all around the world by offering them solutions and expertise in green, sustainable financing. This expertise is applied to all asset classes: loan structuring and origination and investment solutions, in partnership with the business lines, which have designated Green Captains, and in coordination with the CSR department. At Asset Management, CSR officers have been active for several years (for example at Ostrum Asset Management, Natixis Assurances, and AEW Europe). Other business lines in the Specialized Financial Services division (Natixis Lease, Natixis Interépargne) and the Insurance division (BPCE Assurances) have also adopted a CSR policy since 2017 and have appointed CSR managers responsible for drafting a CSR roadmap for their activity. Improvements recognized by the ESG rating agencies Keenly aware of the major role played by ESG rating agencies and investors, Groupe BPCE makes every effort to meet the requests of these agencies and maintain a dialog with them. This is one of the CSR commitments set out in the strategic plan. The following table shows the most recent assessments of the top ESG rating agencies.

training initiatives on sustainable development issues: ● in 2018, two training sessions on “The Basics of CSR” were - provided to the business lines, two training courses on CSR reporting (organization and tools) - and two on the carbon review tool were provided, and three CSR reporting telephone hotlines were made available in 2018. The Group’s Sustainable Development division also works to educate the various divisions about CSR and interacts regularly with them, either during their own seminars (Risk function, Distribution function, Procurement function, Logistics function, Fédération Nationale des Banques Populaires, Fédération Nationale des Caisses d’Epargne, etc.) or at special events (such as Sustainable Development Week or Solidarity-Based Finance Week). Lastly, the Group set up an Intranet site for the sustainable development officers in 2015, and in 2017 two communication groups were created on our in-house social network: one on green, responsible growth with 552 members and the other on CSR with 368 members among the Group institutions. Strengthening CSR governance at Natixis Since 2017, Natixis’ CSR policy has been managed by a dedicated department reporting to the Natixis Corporate Secretary, who is a member of the Natixis Senior Management Committee. The CSR team, with 8 permanent employees, joined the CSR function which has been in place at Natixis since 2004. It works with the aid of a network of officers and in coordination with the BPCE Sustainable Development division. Representatives from Natixis’ business lines (Corporate & Investment Banking, Investment Solutions, Insurance, Specialized Financial

Agency

Current rating

Rating (year of last rating)

Rating (previous year)

OEKOM

C – Prime (2018)

C – Prime (2016)

C – Not prime (2015)

MSCI

AA (2018)

AA (2016)

AA (2015)

SUSTAINALYTICS

65/100 – Average performer (2018) 61/100 – Average performer (2016)

N/A

VIGEO EIRIS

57/100 – Robust (2018)

55/100 – Robust (2016)

Vigeo: 54/100 (2014)

A regular audit of CSR reporting and processes CSR has been an integral part of the multi-year audit plans since 2016. The Internal Audit teams of each Group institution regularly perform an audit of CSR governance, CSR reporting and coordination of the CSR approach. Audit standards were addressed during a joint project by the CSR teams and the Group Inspection Générale division and are regularly updated in line with regulatory changes.

PUBLIC COMMITMENTS MADE UNDER EXACTING STANDARDS United Nations Global Compact (Advanced level) Groupe BPCE renewed its adherence to the Global Compact in 2018 and to the ten associated principles covering human rights, international labor standards, environmental protection and anti-corruption. It obtained the Advanced level, which is the highest level of differentiation attributed by the Global Compact, reflecting its determination to continue incorporating these principles in its strategy, corporate culture and the conduct of its businesses.

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Registration document 2018