BPCE - Risk Report - Pillar III 2020

14 CLIMATE RISKS

ACCELERATION OF THE INTEGRATION OF A SECTION DEDICATED TO CLIMATE RISKS AND ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CRITERIA

Financial risks

An analysis of bond portfolios has been offered by the Climate end of 2020, all investments were supplemented by this ESG Risk division to institutions since early 2020. The purpose of information, for the institutions that wanted this analysis in 2020 these analyzes is to provide institutions with reliable (the generalization is for 2021). As institutions become familiar information, based on the ratings assigned by an non-financial with these tools, it will be necessary to develop an investment rating agency. This information enables institutions to manage policy based on these ESG criteria in addition to the financial their liquidity portfolios in relation to the environmental, social criteria. Exploratory work was carried out during the year in and governance elements provided by the agency and to be able order to assess the alignment of these portfolios with the +2°C to communicate on their incorporation of ESG criteria. At the objective of the Paris Agreement.

Macro-risk mapping

Since 2019, the macro-risk mapping includes climate risks in the “strategic, business and ecosystem risks” category. Initial indicators have been defined and are being monitored in order to assess their relevance: the sum of “brown” assets under the ACPR definition dating from 2017, renewable energy assets and sectoral climate provisions are measured.

These indicators, which may be subject to change, enable an initial identification of outstandings and raise employee awareness of the climate risk of transition. In line with the mapping of ACPR and ECB risks, climate risks are clearly identified in the forward-looking risk analysis.

Creation of a tool for identifying asset exposure to physical climate risks

A tool for identifying asset exposure to physical climate risks has been developed by the Climate Risks division. Several data exposure to the climate hazard in question, thus facilitating risk sources are used, offering granular visibility of the exposure to management but also identifying potential risks. adaptation physical climate risks. More generally, the tool will enable opportunities for our clients and projects to be financed for the customer managers and the Risk division of Groupe BPCE’s banker. regional institutions to have an overview of their clients’

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RISK REPORT PILLAR III 2020 | GROUPE BPCE

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