BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

Supporting the energy, ecological and social 2.3 transition in local regions

RESPONSIBLE SAVINGS The initial responsible deposits and savings targets have already been exceeded. Interest in responsible bank deposits and savings (passbook accounts) is strong. The products distributed by Groupe BPCE’s networks are growing by between 20%-30% per year, confirming the appeal of these types of products. The next challenge is to adjust the range of solutions to address the issues at stake. The first priority is to address the theme of re-use. The themes to be covered must meet: consumers’ concerns, which are constantly changing; • the major CSR priorities set by governments; • banks’ sales targets. • The second priority is to enhance communications on these products to bring them into line with the highest standards of transparency and impact acknowledgement. The identification and traceability of financing for the energy and ecological transition are crucial to achieving the targets set. Since 2018, action plans have been implemented on the main retail markets (individuals, businesses, real estate, agriculture) to identify areas where CSR priorities are aligned with business targets. This has led to the launch of initiatives to expand the green growth financing market. The initiatives were focused on different issues in each market: Acculturation, Training, Products & Services, Distribution, and Communications. This work also refocused Groupe BPCE’s vision on four main areas of the energy and ecological transition, with four cross-business priorities.

The TEC 2020 plan set three major goals in terms of the Group’s “Commitment to its cooperative shareholders”: to reach €10 billion in outstanding loans to finance green • growth by the end of 2020; to record €35 billion in responsible deposits and savings; • to issue at least two sustainable bonds per year with its own • assets. As of December 31, 2019, one year before the end of this strategic plan, the initial conclusions can be drawn as to progress made towards these targets. Regarding the financing objective, outstanding loans are growing steadily, and have exceeded the initial target, at €10.8 billion, driven by loans to finance renewable energy projects. Large-scale projects represent €9.8 billion in outstanding loans. Groupe BPCE finances energy efficiency projects, including thermal renovations and low carbon mobility solutions for individuals, professionals and SMEs. As of the end of 2019, outstanding loans in this area amounted to €1 billion. Despite intense competition and the falling cost of facilities, demand for renewable energy structured finance is not slowing. Financing for green growth is a bullish segment. However, it is important to keep a close eye on market developments. RENEWABLE ENERGY SECTORS Wind and photovoltaic solar power solutions are reaching maturity and demand for energy transition project financing is intensifying. While interest rates remain persistently low, Groupe BPCE is using all its expertise to structure financing solutions adapted to the complexity of these projects. The quality of its relationships with its stakeholders allows it to find solutions suited to all players.

66

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

www.groupebpce.com