BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

PUTTING OUR COOPERATIVE IDENTITY TO WORK FOR REGIONAL DEVELOPMENT

LOCAL PROCUREMENT Groupe BPCE uses ppliers and gives priority to small, medium and intermediate sized companies in its local communities.

12/31/2019

12/31/2018

Change 2018-2019

SMEs (1) as a percentage of all suppliers ISEs (2) as a percentage of all suppliers Amount of purchases made from SMEs Amount of purchases made from ISEs

89 %

87 %

+2.3 % (22.2%)

7 %

9 %

40 % 28 % 73 %

39 % 29 % 69 %

2.6 %

(3.5 %)

Percentage of local suppliers

6 %

2

Definition of SMEs (small and medium sized enterprises): companies with fewer than 250 employees and revenues below €50 million. (1) Definition of ISEs (intermediate sized enterprises): companies with 250 to 5,000 employees and revenues greater than or equal to €50 million and less than €1.5 billion. (2)

OUR COOPERATIVE STRUCTURE We are committed to contributing to the development of the regions in which we have a longstanding presence. Our cooperative structure shapes our approach to our businesses. We want to continue to build an environment that fosters growth for our cooperative shareholders and our customers both now and in the future. We serve all types of customers and are deeply committed to the communities in which we have 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. Both the Banque Populaire and Caisse d’Epargne networks have a federation that protects their identity, their values and their interests. The federations organize discussions, hear ideas and provide representation, producing positions shared by all network entities. They support the network’s CSR strategy, facilitate cooperative shareholder relations, provide training for directors and assist with governance. They also promote initiatives in local communities. BANQUES POPULAIRES The 4.58 million cooperative shareholders are the foundation of the cooperative structure of Banques Populaires. 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 2019, over 561,000 cooperative shareholders voted, i.e. an average turnout rate of 15% for the network. The cooperative shareholders are regularly invited to meetings 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 have the opportunity to join shareholder clubs 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 newsletters, magazines, and websites. In 2019, the Banque Populaire network had 225 directors (and 16 non-voting directors) who enrich discussions at Board of Directors’ Meetings in the interests of all customers and cooperative shareholders. They include business leaders,

researchers and teachers, all of whom are committed to the development of their local regions. The Fédération Nationale des Banques Populaires is responsible for ensuring that the members of the Boards of Directors have appropriate skills, and in 2019 it organized training sessions on topics such as: the role of directors, including personal development, • risk management and risk appetite, • the opportunities provided by CSR and how to incorporate it • into corporate strategy. To meet regulatory requirements calling for an assessment of the performance of the Board of Directors, the Federation has set up an online self-assessment solution available to all institutions in the Banque Populaire network. It uses an online tool to manage the online training program: 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. In 2019, it was rounded out by an application providing a single point of entry to the information and tools available from the Federation, including a bi-monthly press review. For the past three years, the Banques Populaires have organized the “Faites de la Coopération” event – a week-long initiative to raise awareness and allow discussion about the cooperative banking model. This event is part of Social and Solidarity-Based Economy month, which is held in November. This year’s event included employee training (with the launch of three modules on the B’digit application), a conference on the cooperative model in TED Talks format, creativity workshops hosted by Banque Populaire Corporate Foundation prizewinners, the announcement of the results of the DIFCOOP survey conducted in conjunction with Lyon 3 University and ways to put right 10 misconceptions about the cooperative banking model. Since 2011, the Banques Populaires have used a specialized tool to keep their cooperative shareholders abreast of their initiatives in the areas of societal and cooperative responsibility. The Banques Populaires’ Cooperative and Societal Footprint, which is inspired by the ISO 26000 CSR standard, identifies and measures the value in euros of the initiatives taken by each bank for its main stakeholders. The aim is to measure the “cooperative edge” offered by the Banques Populaires. These data are included in Groupe BPCE’s open data system.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE