BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

MATURE ACTIVITIES WITH POTENTIAL

Energy efficiency in buildings

Renewable energy

Sustainable farming

Low carbon mobility

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CROSS SECTOR ACTIVITIES

Energy management, storage and transport

Blue growth

Recycling and reuse

Biodiversity

This vision in terms of priorities is shaping the strategic work in progress for the 2021-2024 period. The ten strategic projects prioritized by Groupe BPCE include one solely focused on environmental issues. It involves several executive and non-executive directors and will set out the Group’s new goals and the means to achieve them for the next four years, which will be a crucial period for addressing climate change.

2.3.1

Reflecting environmental, social and governance risks and our customers’ requirements and aspirations in our strategy

ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS ARE GAINING IN IMPORTANCE Groupe BPCE has stepped up its prevention and management of climate risk while pursuing the commitments set out in its TEC 2020 strategic plan (covering the period 2018-2020). RECOGNIZING THE CONSEQUENCES OF THE GROUP’S BUSINESS ACTIVITY AND THE USE OF ITS PRODUCTS AND SERVICES ON CLIMATE CHANGE. Integration of Environmental, Social and Governance (ESG) criteria IN SECTOR POLICIES APPLICABLE TO THE ENTIRE GROUP ESG criteria have been systematically incorporated in sector lending policies since 2018. As of the end of 2019, all the Group’s sector policies include ESG criteria. In particular, in 2019, the Group’s sector lending policies for the agri-food, construction and public works, and real estate professionals sectors were clarified and updated.

The ESG analysis methodology includes an initial identification of the impact of companies in each sector on the environment and an assessment of how these risks affect their activities. Social, societal and governance risks are also analyzed in terms of the impact they have on business models in the sector in question. The Risk division decides which sectors are reviewed each year and the review frequency based on a group-wide schedule. IN THE ANALYSIS OF CUSTOMER FILES The Group Climate Risk department drafted a specific questionnaire in 2019 to assess how its business customers and those in the social and solidarity-based economy have appropriated ESG risks. This ESG questionnaire is being tested among customers in the first quarter of 2020 by client managers in Group entities that are taking part in the pilot schemes. At the end of the test phase, the aim is to roll out the questionnaire in all the Banques Populaires and Caisses d’Epargne in 2020. Natixis is also working on an integrated approach to incorporate ESG criteria in its decisions for its Large Corporate clients. The process will be included in the bank’s existing onboarding and financing information systems and involves the business lines and the Compliance, Risk and CSR departments.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE