BPCE - 2018 Registration document

6 RISK REPORT Climate risks

Climate risks 6.12

Organization 6.12.1

Mindful of its responsibility to promote a lower carbon footprint economy, Groupe BPCE works tirelessly to incorporate climate risk and implement measures to reduce this risk. The Group endeavors to identify and manage climate change risk as it does all other risks incurred in its activities, and has included it in the 2018-2020 strategic plan. Like all French banking groups, Groupe BPCE takes part in the work of the ACPR, in accordance with Article 173, paragraph V, of the French Energy Transition for Green Growth Act. The general credit risk policy includes climate risk and incorporates Corporate Social Responsibility. One of the objectives of the Group’s strategic plan is to reduce its direct and indirect environmental impacts. Groupe BPCE has rolled out measures aimed at reducing these risks in all aspects of its business: Indirect impacts: a review of green growth markets, through the identification and ● assessment of each of the economic sectors affected, the analysis of the current positioning and performance of the Group’s banks on these markets, and the assessment of the business development potential for the Group’s banks; Groupe BPCE’s objective in making CSR a priority in its business lines and decision-making processes (Cooperative & CSR Committee, etc.) is to become a benchmark for green growth in the banking industry. To achieve this goal, it can draw on the complementary areas of expertise of its business lines, extensive regional knowledge and a network of staff fully capable of disseminating best practices. Groupe BPCE has confirmed its commitment to doing an even better job of incorporating climate change issues into its risk management system, with the aim of mitigating or adapting to climate change, by drafting transparent sector policies and including ESG (environmental, social, governance) criteria. Accordingly: the Group made this one of the ambitions of the “financing a ● responsible economy” project in the 2018-2020 strategic plan entitled “Promoting green growth: reducing the Group’s carbon emissions; - expanding the funding of the energy transition in terms of - outstandings and commitments; increasing responsible deposits and savings; - developing the brokerage of sustainable financing (green or - social);

internal CSR policies have been drawn up and included in the risk ● policies of the Natixis business lines working with the highest-risk sectors (defense, nuclear, energy/mining, and palm oil). On October 15, 2015, Natixis also committed to no longer financing coal-fired power plants or thermal coal mines anywhere in the world, given the current state of technologies; the financing of renewable energy and thermal renovations, ● through all of the Group’s main sales networks; a range of green savings and lending products offered to its ● customers. Direct impacts: annual measurement of carbon emissions stemming from energy, ● travel, real estate and procurement for all Group companies; establishment of action plans aimed, for example, at improving the ● energy efficiency of office buildings and reducing the impact of employee travel. Details on these actions are given in Chapter 2, “Non-Financial Performance Report”, of the 2018 registration document. incorporating ESG criteria in credit risk policies and drafting - transparent sector policies on controversial activities. awareness raising campaigns have been conducted, including the ● preparation and distribution of Regulatory Briefs and featuring of special articles in the regulatory workbooks in 2017 and 2018; and more specifically: training, summary reports and presentation of past and future - initiatives; coordination within the DRCCP and with other relevant divisions - of BPCE SA group and other Group entities during Group events on these topics; initiation, organization and coordination of working groups, for - application at the institutions and subsidiaries on a common foundation or standard. The directors of the institutions took part in plenary sessions held by the federations (FNBP and FNCE), including progress reports on the working groups. Connected tools, such as web apps and sites, including in particular the KiosK (sharepoint between the 3000 employees of the RCCP functions), are used to share information via posts, and a special group was formed on the internal social network (Yammer). Climate risk and green finance were the subject of:

Activities in 2018 and strategic guidelines 6.12.2

698

Registration document 2018