BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

On September 18, 2019, Banque Populaire du Sud opened EQWI – a sustainable e-branch for customers concerned about environmental and societal issues. EQWI is committed to: being a flexible, environmentally-friendly e-branch combining • the benefits of digital (availability, accessibility, zero paper) with human relations (in-branch appointments); offering solidarity-based savings: using its funds exclusively to • finance projects that contribute to environmental protection and sustainable development; granting responsible loans: financing its customers’ • environmentally-friendly projects such as the purchase of a low emission vehicle or home renovations and helping farmers with the transition to eco-friendly farming; being an e-branch for everyone: providing personalized • solutions to all customers (individuals, professionals, farmers, non-profits and start-ups); having specialized advisors: supporting customers’ projects • with the expertise of advisors trained in sustainability. https://www.eqwi.fr HELPING ALL MEMBERS OF THE LOCAL ECONOMY WITH THE ECOLOGICAL TRANSITION FINANCING THE TRANSITION IN THE AGRI-FOOD SECTOR The agri-food sector is undergoing major transformations due to rapid changes in consumer behavior. Producers, processing firms and distributors need guidance to move towards a more responsible, local and circular business model. Accordingly, several initiatives have been set up to facilitate farmers’ investments in local development and the agricultural transition with loans guaranteed by the European Investment Fund (EIF). These loans are named Foster (provided by the Occitanie region, Banque Populaire Occitane, and Banque Populaire du Sud) and Alter’na (issued by Banque Populaire Aquitaine Centre Atlantique). On December 4, 2019, Groupe BPCE signed the National Initiative for French Farming (INAF) agreement to set up and implement a similar guarantee system at a national level in partnership with the French government and the EIF (1) . Specific loans have been developed to finance direct-to-customer sales by farmers. These solutions support local economic and social development, improve access to quality food and reduce carbon emissions from transport. Innovative, collective, responsible practices in agriculture are promoted with awards for regional farming initiatives and a national prize. The communications campaign organized for these awards showcases these regional initiatives in favor of the social, ecological and energy transition.

December 31, 2019, 1,154 such projects had been financed for a total of €130 million. Thanks to a financing line provided by the EIB in July 2018, Groupe BPCE has financed investments by small, medium and intermediate sized enterprises. The €250 million credit line has been used in full. Negotiations are in progress for a new facility, PEM&ETI Green, provisionally for €300 million, to finance these companies’ investments in tangible and intangible assets. At least one quarter of the credit line will be allocated to Climate Action projects. Crédit Coopératif helps its customers reduce their environmental impact: In partnership with the European Investment Bank (EIB), the European Commission and the European Union’s LIFE program, Crédit Coopératif has designed a solution to issue loans exceeding usual risk limits to finance energy efficiency projects. The agreement also allows Crédit Coopératif to offer subsidized interest rates thanks to a guarantee mechanism. The loans are available to SMEs, non-profits, local public sector entities and intermediate sized enterprises (ISEs), enabling them to finance improvements in terms of heat or electricity consumption in existing buildings, production facilities or industrial processes. Crédit Coopératif benefits from technical expertise provided by specialized consultants to support its customers’ projects. LOCAL PUBLIC SECTOR STAKEHOLDERS AND THE SOCIAL AND SOLIDARITY-BASED ECONOMY The Banques Populaires 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. Groupe BPCE is the leading financer of the social economy: non-profits, foundations, mutual insurers, social entrepreneurs and cooperative groups. Among the Banques Populaires, Crédit Coopératif makes a particularly substantial contribution to this field. Meanwhile, the Caisse d’Epargne network is: the number one private bank in the social housing sector. It is • also a social housing operator via the Habitat en Région network, which manages 244,000 housing units. The Caisses d’Epargne are involved as partners in the governance of social housing landlords. They are on the Boards of one out of three organizations in France (public housing offices, social housing companies, cooperatives, non-profits, etc.). In 2019, the Caisses d’Epargne granted €2.36 million in loans to social housing companies; a major partner of the public sector: €3.64 in loans granted in • 2019. For more than 20 years, Compagnie Européenne de Garanties et de Cautions (CEGC), has been involved in the setting up of financing for social housing and non-profits working in the social and medical-social sector. In 2019, CEGC provided guarantees for 60 social housing renovation projects (energy efficiency renovations, enhancements, renovations or construction), as well as for 54 centers for disabled persons and nursing homes for the elderly, and 69 non-profits working on social integration and support.

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GUIDING CRAFTSMEN AND SMES ON THE PATH TO SUSTAINABLE DEVELOPMENT: A QUESTION OF COMPETITIVENESS

In its loyal commitment to the SME and craftsmen market, Banque Populaire offers a special financing tool to aid them in their ecological transformation. This facility is used to improve the energy efficiency of buildings and manufacturing equipment. Beneficiaries can also address waste management problems or polluting discharges, or adopt renewable energy solutions. At

(1) EIF – European Investment Fund.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE