BPCE - 2019 Universal Registration Document

NON-FINANCIAL PERFORMANCE REPORT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

SRI AND ESG EXPERTISE SERVING THE SUSTAINABLE DEVELOPMENT CAUSE INCORPORATING ESG CRITERIA

second level: ESG integration – incorporation of ESG criteria in • investment decisions (including thematic and/or impact investments and exclusion strategies); third level: Certification – funds certified by recognized third • parties (the French SRI label, Greenfin, Finansol, Febelfin, LuxFlag ESG, Nordic Swan EcoLabel, FNG Siegel). Under an inclusive system, when a fund qualifies for Certification, it also joins the ESG integration category, and a fund that qualifies for the ESG integration level also enters the ESG analysis category.

Groupe BPCE’s asset managers offer a range of investment solutions that incorporate ESG criteria to different degrees: first level: ESG analysis – recognition of ESG criteria in the • analysis of issuers, without this systematically having an impact on investment decisions;

2

ANALYSIS AND INTEGRATION SUMMARY OF HOW ESG CRITERIA ARE TAKEN INTO ACCOUNT IN THE INVESTMENT ANALYSIS/DECISION PROCESS

Scope covered in billions of euros (total AuM in portfolio)

Percentage of AuM Analysis/Integration

Company

Analysis/integration Analysis/Integration

Ostrum Mirova DNCA

€274.1 billion €12.5 billion €22.34 billion €3.6 billion €9.7 billion €0.6 billion €4.2 billion €31.6 billion

93%/24.3%

Integration

100%

Analysis/Integration

71.7%/3.5%

Naxicap Partners

Analysis

98% 9.7% 100% 18.3%

Seeyond Thematics

Integration Integration Integration Integration

Ossiam

AEW Ciloger

16% of assets

CHANGE IN PERCENTAGE OF ASSETS UNDER MANAGEMENT THAT INCORPORATE ESG CRITERIA IN INVESTMENT DECISIONS

Change 2018-2019

Indicator (as a %)

2019

2018 21%

2017

2016

Ostrum AM

24.3% 100% 73.4%

5.6% 100% 64.9%

4.95% 100% 66.5%

15.7%

Mirova

100% 57.9%

0%

Ecofi Investissements

27% 67% 59%

Banque Palatine

3.5% 3.5% 9.7%

2.1%

0.7%

0.7%

DNCA

2.2% (1) 7.2% (1)

NC NC

NC NC

Seeyond

34.7%

Year of inception. (1)

Ostrum AM incorporates material ESG aspects in its analysis for both its equity and credit funds. The companies it invests in are always asked about ESG issues and how they include them in their business model. This process applies to €255.4 billion in assets under management, representing 93% of its total assets under management. Ostrum AM’s responsible investment approach applies to all its investments in sovereign assets from emerging and developed countries and over 90% of its credit investments. Since 2019, all its equity investments incorporate ESG dimensions throughout the investment process. In October 2019, Citywire ranked Ostrum AM fifth out of 220 investment management firms that are truly committed to ESG. Ostrum AM offers its customers socially responsible products on all its asset classes with a range of investment strategies, representing a total of €66.6 billion, or 24.3% of its total assets under management:

Best in Class and Positive Screening: selection of the best • rated issuers from an investment universe that excludes issuers with a high ESG risk profile; Best in Universe: selection of issuers from all sectors with the • best ESG performance in the investment universe; Bespoke Strategies: strategies co-built with clients for their • dedicated funds or discretionary mandates so as to match their ESG philosophy as closely as possible. Mirova, the Group’s sustainable investment affiliate, includes ESG criteria in its investment filters on all asset classes, representing €12.5 billion in assets under management. This year, Mirova was awarded the 2019 Gold Prize for Management Companies.

79

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE