BPCE - 2018 Registration document

NON-FINANCIAL PERFORMANCE REPORT Sustainable and responsible value creation

Sustainable and responsible value creation 2.4

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2.4.1

Contribution to regional economic development

FINANCING THE ECONOMY: LOCAL ROOTS – A KEY ASSET

via their branches, the Banque Populaire banks and the Caisses ● d’Epargne are also present respectively in 13% and 19% of priority neighborhoods as identified by urban policy (8) , with 415 branches; the policy applied to establishing branches in the regions is aligned ● with the new customer relationship model: digital channels and multimedia platforms are being ramped up, calling for the branches to be more specialized by customer segment, with advisors maintaining their role in managing the customer relationship. In terms of accessibility, the goals of the Banco 2020 plan stipulate that the distance from the point of sale to the furthest customer may not exceed 10 minutes in an urban setting or 20 minutes in a rural setting. FINANCING LOCAL PUBLIC STAKEHOLDERS AND THE SOCIAL AND SOLIDARITY-BASED ECONOMY The Banque Populaire banks and the Caisse d’Epargne are major sources of funding for local authorities, social housing operators and structures in the social and solidarity-based economy. Detailed information on these initiatives is provided in Chapter 2.3.2. RESPONSIBLE PROCUREMENT POLICY: THE AGIR PROJECT CSR is one of the priorities of the 2020 procurement strategic plan followed by BPCE Procurement and the procurement function. The Group has set the following targets for 2020: increasing the number of Group companies with Responsible ● Supplier Relations and Procurement certification from 7 to 14; raising the percentage of requests for proposals (RFPs) observing ● standardized procurement processes that include CSR criteria to 80%; paying suppliers in 28 days, on average. ● Incorporating CSR into the procurement policy In September 2012, BPCE Procurement launched “Agir ensemble pour des achats responsables” (Working Together for Responsible Procurement). This responsible procurement approach (AgiR) is part of an overall goal to achieve comprehensive, sustainable performance involving Group companies and suppliers. The approach builds on the commitments made by Groupe BPCE when it signed the Responsible Supplier Relations Charter in December 2010.

The 14 Banque Populaire banks and 15 Caisses d’Epargne embody Groupe BPCE’s close ties with the regional economy, sharing the values of social cohesion and support for local employment: in 2018, outstanding loans issued by the Banque Populaire banks ● and the Caisses d’Epargne amounted to € 444.6 billion, making them leading creditors of the French economy and local regions; Groupe BPCE is set to once again be the No. 1 bank issuing ● personal microloans with support (1) to individual customers in 2018, with 6,868 loans totaling € 20 million (end 2017: 33.03% market share by volume according to the fonds de cohésion social ). The Group is also still the No. 1 bank for professional microloans (1) (over one-third market share at end-2018); detailed information on this activity is provided in Chapter 2.3.2; in 2018, donations by the Banque Populaire banks and Caisses ● d’Epargne to general interest projects in local areas amounted to € 42.8 million ( versus € 31 million in 2017): € 11.5 million was earmarked by the Banque Populaire banks for - three uses: patronage by the Banque Populaire banks in their local regions, either directly or via their regional foundations, the Banque Populaire Corporate Foundation, and the charity fund of the Fédération Nationale des Banques Populaires, € 31.3 million was earmarked by the Caisses d’Epargne for three - uses: Caisse d’Epargne regional patronage initiatives (directly or via regional foundations), the Caisse d’Epargne network endowment fund and Fondation Belem; 87% of the Group’s suppliers (2) are SMEs (3) , 39% of purchases (4) are ● made from SMEs and 29% from ISEs (5) . Groupe BPCE companies give preference to local suppliers: 69% of suppliers have a local presence in their respective regions (6) . These companies contribute to local employment and economic development through their sub-contracting chain; although historically located in the cities, the Banque Populaire ● banks and the Caisses d’Epargne also play a role in the development of rural areas: 391 branches are located in rural areas (7) ;

Fonds de cohésion sociale (social cohesion fund)/Caisse des Dépôts. (1) From the sample of 30,074 suppliers with a SIREN number and approved by INSEE; this amount represents 85% of total purchases – Scope: Group total including BRED. (2) Definition of small and medium-sized enterprises: companies with fewer than 250 employees and revenues below €50m. (3) From the sample of purchases taken from the Codex 2017 database on suppliers with a SIREN number and approved by INSEE; this amount represents 85% of total purchases. (4) Definition of intermediate-sized enterprises: companies with 250 to 5,000 employees and revenues greater than or equal to €50m and less than €1,500m. (5) Average calculated based on entity reports according to the Group’s regional breakdown. (6) Definition: INSEE, French “communes” that do not fall under definitions of urban units, i.e. “communes” without zones of continuous development inhabited by 2,000 residents and (7) “communes” in which less than half of the population resides in a continuous development zone. Calculated based on 2009 census. Neighborhoods identified as being a priority in urban policy are defined by French law number 2014-73 of February 21, 2014 on urban planning and cohesion. The areas concerned are (8) determined using the single criteria of population revenue; 1,300 such neighborhoods have been identified. The list is established in ministerial orders 2014-1750 and 2014-1751 of December 30, 2014, for mainland France and the overseas territories respectively. The boundaries of each area can be viewed at geoportail.gouv.fr.

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Registration document 2018