BPCE - 2020 Universal Registration Document

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RISK FACTORS & RISK MANAGEMENT

CLIMATE RISKS

REFLECTION AND AWARENESS-RAISING WORKSHOPS ON CLIMATE RISKS Reflectionworkshopswere held quarterly for the whole of 2020 bringing together the Group’s sectors (Risks, Commitments, CSR, Commercial, Legal, Insurance, etc.). These moments of exchange are based on proven cases of physical climate risks such as floods, drought or hailstorms. Proven cases of transition risks will be developed in the course of 2021. The purpose of these scenarios is to identify the main consequences and opportunities related to the case study for the banker and the insurer, as well as to draw up an action plan with the main preventive measures (reducing risk). exposure to the incident) and possibly protection (reduction of impacts during the incident). The participants, brought together for their complementarity, thus appreciate the multiple facets of climate risks and each bring their skills and experience. CREATION OF A SECTOR AND ITS COORDINATION In June 2020 the Climate Correspondentsdivision was created, as recommended by the ACPR in its report “Governance and management of climate risks by banking institutions: some best practices” of May 2020. A correspondent is present within the Risk division of each Group entity. Their roles and missions are as follows: keeping up to date with the work of the Climate Risks division • in order to be able to mention it to the risk management and compliance director of the institution, or even to its governing bodies; be the local relay for the work to the teams concerned in order • to raise awareness and promote internal discussions on these topics; be informed of regulatory changes and market exchanges that • may impact the activity of establishments; respond to requests from working groups dedicated to certain • projects. In this respect, the launch day of this sector was held on Friday, September 11, which presented all the systems deployed or being deployed in terms of climate risks. The Climate Risks division organizes a breakfast conference each quarter involving internal and external experts. This involves presenting the latest news but also discussing and discussing climate risk tools and projects. This constitutes an additional communication mechanism.

A discussion group on the intranet is also dedicated to climate risks and sustainable finance. This channel is used to communicate the latest news on the subject within the Group. A monthly newsletter has been published by the Climate Risks division since October 2020. It presents the major projects of the month, recent and upcoming events, as well as the main climate news.

PARTICIPATION IN MARKET MEETINGS AND COMMITMENTS The Group participates in:

the AMF’s Climate and Sustainable Finance Commission, • created on July 2, 2019, whose role is to develop practices, increase transparency and facilitate the incorporation of sustainability and funding in favor of more sustainable activities; the ACPR’s Climate Commission, which regularly monitors • and assesses the commitments undertaken by banks and insurers, and ensures that such commitments are consistent with the strategic guidelines of institutions. It also coordinates with the NGFS (Network for Greening the Financial System) created by France, which now totals nearly 50 central bank and international organizations among its supervisors; the Climate Committeeof the FBF, chaired by the Chairman of • the ManagementBoard of Groupe BPCE. The FBF encourages its members to adopt a carbon strategy and to work with the supervisory authorities to develop methodologies to assess the exposure of their portfolios to climate risks and to align investment portfolios with a 2°C scenario. On September 23, 2019, Natixis and Groupe BPCE signed the Principles for Responsible Banking, which define the role and responsibility of the banking industry in building a sustainable future, in keeping with the UN Sustainable Development Goals and the 2015 Paris climate agreement. By joining, Groupe BPCE and Natixis are committed to being transparent about their positive and negative impacts on people and the planet. Groupe BPCE and Natixis will focus on where they will have the greatest impact, in their core business. They will set and then publish and implement ambitious targets to reinforce their positive effects and address any negative aspects in line with global and local targets. Groupe BPCE also contributes to the work of the European banking associations on the Net Zero Initiative, with the goal of making progress on its climate risk management policy and expanding its environmental expertise.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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