BPCE - 2020 Universal Registration Document

NON-FINANCIAL PERFORMANCE STATEMENT

SUPPORTING THE ENERGY, ECOLOGICAL AND SOCIAL TRANSITION IN LOCAL REGIONS

2.3.1

Integrating the fight against climate change and the preservation

of biodiversity into our development strategy

Thanks to an ESG methodology Groupe BPCE’s Climate Risk division has developed an ESG methodology to integrate Environmental,Social and Governance criteria into risk analysis up to the granting of credit. This methodology was validated by the standards and methods committee on June 12, 2020. The methodology is suitable for sector policy analysis and can also be used for individual analyses. It is broken down into five components detailed in the Climate risk section of Chapter 6 – Risk Management: a background note; • recommendations and points of attention; • information on adherence to conventions, national and • international standards; a non-financial rating; • taking into account the European Taxonomy, if possible. • IN THE ANALYSIS OF FILES Retail banking: ESG questionnaire An ESG questionnairewas developed by Groupe BPCE with the aim of collecting ESG information from SMEs and SMIs, in order to measure their level of exposure and maturity on these issues. Serving as a support for a strategic dialog, it aims to determine the needs of support in the transition and to propose adequate banking and insurance products. This questionnaire will also make it possible to integrate the ESG information collected into the credit granting process, in line with the risk policies that already include them. The ESG questionnaire covers the three components: Environmental, Social and Governance. The questions were written so that they can be asked of all types of customers except individual customers (VSEs, SMEs, mid-sized companies, ESIs, non-profits, social housing companies and institutional investors, local authorities, etc.), at first contact with a new customer, at an Annual Meeting, or when a customer makes a specific request. The results of the ESG questionnaire are presented in the form of a summary sheet and an overall assessment, thus providing a quick overviewof the client’s ESG maturity as well as a sector comparison. Given the cross-functional nature of the questionnaire, the Risk and Commitments, BPA CSR and Business Development departments took part in its construction, and a test phase was begun with pilot sites. The impact of Covid-19 has changed the initial schedule, postponing the end of the test phase to 2021. The pilots are ongoing, drawing on user feedback from the questionnaires. The roll-out period should take place in 2021, taking the pilots’ suggestions for improvement into account. Indicator: Number of institutions that have begun to integrate ESG criteria in their credit files” indicator makes it possible to monitor the deployment of the questionnaire in the BP and CE networks. At the end of 2020, six of the Group’s entities began to interview their customersor certain customer segments on ESG criteria in order to enrich their customer files.

Groupe BPCE is aligned with the goals of the Paris Agreement, which are part of the European Union’s commitments to achieve carbon neutrality by 2050 and its ambition for greenhouse gas reduction by 2030, through the Green Pact. Climate change creates risks, both physical and transitional, but also many opportunities. The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) aim to bring together high-quality, consistent, useful and forward-looking data on climate-related financial impacts. This dissemination of information will give financial institutions a better understanding of the positive and negative impacts of their business on the climate, as well as a more accurate understanding of the climate risks weighing on their business and the opportunities afforded by the transition. Adoption of these recommendations by the greatest number of companies will lead to a more efficient allocation of capital and facilitate the transition to a more sustainable and low-carbon economy. Groupe BPCE continues to take account of climate change and biodiversity as well as social, societal and regional issues and governance issues in all components of its business and all of the entities. In 2020, Groupe BPCE took part in the movement to communicate its strategy and actions in favor of the fight against climate change by responding to the CDP questionnaire. https://www.cdp.net/fr/responses?utf8 = %E2 %9C %93&que- ries %5Bname %5D=bpce In 2021, Groupe BPCE will publish its first TCFD report. Groupe BPCE has developed analysis tools to support its clients and invested companies and analyze its portfolios, strengthen its climate governance, and raise awareness among teams. INCORPORATE ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CRITERIA INTO FINANCING ACTIVITIES IN GROUPE BPCE’S UMBRELLA RISK POLICY The Group’s overall risk policy incorporates the consideration of ESG risks, particularly those related to climate change. This umbrella policy is applied in the banks and at the central level in sector policies. The consideration of climate risks is updated at each review of the Group’s sector policies. In sector policies Since 2020, each sector in the Group’s nomenclature has been subject to an analysis of ESG factors to identify high-stakes sectors. This sector review of ESG risks was carried out by CoREFI (committee on non-financial risks, composed of the teams from the CSR BPA and Climate Risks department) in the first quarter of 2020. CoREFI has developed a sector rating based on ESG criteria, modeled on the ESG methodology described below. This rating was validated by the standards and methods committee. CoREFI’s rating resulted a sector classification, which was then approved by the sector monitoring committee, valid in all Group banks.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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