BPCE_REGISTRATION_DOCUMENT_2017

6 SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION Sustainable development built on our cooperative identity

6.1.2

A strong cooperative identity

Our essential differenceas a cooperativebanking structure is evident in our long-term vision of banking relationships, particularly strong regional ties, and the precedence we give to human relations. This difference is recognizableby its customers, cooperative shareholders and employees. It contributes to the economic, social and human development of each region. This is the foundation of the Group 2018-2020 CSR strategy presented in Section 6.1.3. As cooperative banks, the Banque Populaire banks and Caisses d’Epargneare owned by 9 million cooperativeshareholders,who own BPCE, the central institution, which is responsible for coordinating and communicating their common policies. For this reason, the nationalstrategicdecisionsof Groupe BPCE are made in keepingwith their regional requirements and their cooperative governance. The Banque Populaire banks and the Caisses d’Epargne are members of federations that protect each network’s identity and values and defend its interests. They support the networks on CSR strategy, cooperative shareholder coordination, training for directors, and governance. Groupe BPCE’s full cooperative governance structure is presented in Chapter2. BANQUE POPULAIRE BANKS The 4.3 million cooperative shareholdersare the core of the Banque Populaire banks. They vote at Annual General Shareholders’Meetings and directly elect the directors who will represent them at Board of Directors meetings. In 2017, over 530,000 cooperative shareholders voted, i.e. an average turnoutrate of 14.7% for the network. Alongside the Annual General Shareholders’ Meetings, the cooperative shareholdersare regularly invited to in-branch meetings and special events where they can talk with company managers and directors about the latest news affecting their banks and nominate local solidarity-based projects for bank sponsorship as part of the “Initiative Région” Awards. Cooperative shareholders also have the opportunity to get involved in shareholder clubs (strategic orientations, budgets for associations, etc.) and help support recipients of microloans through organizations such as “Atlantique

Coopération”. They enjoy access to special information channels to keep up to date with news about their banks, including dedicated newsletters and magazines and interactive websites. In 2017, the Banque Populaire network had 242 directors (and 17 non-voting directors) whose experience and diversity enrich discussions at Board of Directors’ meetings in the interests of all customers and cooperative shareholders. They are creators of value (CEOs, researchers, lecturers, etc.) who, through their roles, are involved in driving economic and social development within their regions. In 2017, the Fédération Nationale des Banques Populaires offered them training on topics such as the history of the Banque Populaire network, the Banque Populaire cooperativebanking model, governance (the role and responsibilitiesof directors), the director’s stance (personal development: active participation in Board of Directors’ meetings/challengingideas), risk management(particularly the prevention of fraud and corruption), the opportunitiespresented by CSR, and how to integrateit into the corporatestrategy.Finally, to meet the regulatoryrequirementscalling for an annual assessmentof the operation of the Board of Directors, the Federation also establisheda paperlessself-assessmentquestionnaire,availableto all institutionsin the Banque Populairenetwork. Since 2014, the Fédération Nationale des Banques Populaires has used a new tool to managethe training program for Banque Populaire directors: the “Académie des administrateurs”,or Directors Academy. This online tool, which is open to all Banque Populaire directors, includes all of the training options provided by the Federationin the form of classroom presentations and e-learning sessions. The DirectorsAcademyaddressesmultiple objectives: offering a full view of the training catalog provided by the ● Federation; allowing directors to register for training modules online and to ● access their transcripts; facilitating access to training through e-learningmodules; ● measuring director satisfaction and the relevance of issues ● addressed at training seminars, to ensure that the Federation is in tune with the directors’expectationsand needs.

COOPERATIVE INDICATORS: COOPERATIVE SHAREHOLDER BASE ➡

Change 2016-2017

At 12/31/2017

Banque Populaire banks

At 12/31/2016

At 12/31/2015

Numberof cooperativeshareholders (millions)

4.30 33%

4.14

3.95 44%

4%

Percentage ofcooperative shareholdercustomers (as a %) Average amountof sharesheld per cooperativeshareholder (in €) (2) Customer satisfaction rate (percentage ofvery satisfied customers – percentageof dissatisfiedcustomers) (3)

34% (1) 2,087

(3%)

2,167

1,969

4%

13.6

NC

NC

NC

Averagefigure for the BanquePopulairebanks (excludingBRED,CréditCoopératifand CASDEN). (1) Figurecalculatedbasedon total “numberof customers”and “sharecapitalexcludingcooperativeinvestmentcertificatesand cooperativesharesheld by the carrying SAS”. (2) Data from the BP & CE individualcustomersatisfactionsurveycoordinatedby the GroupCustomerResearchdivision(excludingCréditCoopératifand CASDEN). (3)

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Registration document 2017