GROUPAMA / 2019 Universal Registration Document

4 CORPORATE SOCIAL RESPONSIBILITY (CSR) Declaration of Extra-financial Performance

The environmental and climate issue (b) in the offerings (products and services) and the underwriting policy The significant risk associated with this is the failure to take into accountthe needs of policyholdersin terms of resilienceor support in the energy transition. This is an increasinglyimportant issue due in particularto climate change,while maintainingthe balanceof our business model through controlled exposure. In addition to this is the considerationof the environmentalimpact (degree of pollution, including carbon emissions) of our policyholders’ businesses and therefore the indirect impact of our insurance business on the environment. As mentioned in point 2.2.2.3.,being a responsible insurer and a contributor to the fight against climate change and to the energy transition means being a group capable of providing economically affordable solutions to policyholders in the face of major environmental andclimate changes. Groupexposure due to underwriting ● Given the exposure of Groupama Assurances Mutuelles, storms continue to be the greatest climate risk event. To assess the evolution of this risk in the face of climate change, Groupama Assurances Mutuelles uses models and knowledge developed jointly with various climate experts: global climate models (GCM), regional climate models (RCM), and IPCC  (3) scenarios.There is no major variationassociatedwith climatechange in the frequencyand severity of storms in France, but rather the increase in heat, drought, precipitation in certain areas,and risks of coastal flooding. In weather claims, natural risk events (CatNat  (4) , forces of nature, storms) are already assessed in insurance risks (non-life underwriting risks). Application of CatNat regulations and knowledge of the underwriting risk (verification of flood-prone areas, etc.) ensurethat the risk iswell controlled. Groupama has strong reinsurance protection and is also an innovativegroup in terms of cover solutions.Note: that an internal scenario for assessing the impact of a ● group-wide environmentaldisaster hasbeen devised; the concreteeffectivenessof our reinsurancestructures,which ● allowed a large part of the loss experience observed in southernFrance at the end of 2019 (floods, earthquake)to be absorbed. Regarding exposures, we assess reconstructioncosts as well as operating losses in the event of natural or man-madehazards with a mapping resolutionwith GPS coordinates,which then allows for mappings taking intoaccountthe criticalityof risks. In any case, the issue of insurability of weather events over time arises, andthe solution concernsall economic andsocial players.

Groupama (the Group and its financialsubsidiariesin particular)has undertakensignificant work over the past several yearsto address this issue andcontrol these risks, including: the development of an environmental analysis of issuers in ● collaborationwith GroupamaAsset Management:assessmentof the alignmentof our portfolioswith a scenarioof maximumglobal warming of 2° (Paris Agreement) with the PACTA methodology (based on real assets such as factories, etc.) and the GEVA methodologybasedon the strategicplans of emitters; an active voting policy means shareholder engagement, ● according to the PRI criteria, to which Groupama Asset Management isa signatory,or other criteria; the implementationof a responsible investment roadmap since ● November 2018:withdrawalfrom coal and oil sands; €1 billion in green investments over 3 years; training/instructionwithin the Group (national and local elected representatives, operational committees, etc.); a property certification policy; ● responsibleinvestmentsin infrastructurefinancefunds and green ● bonds. As of the end of 2019, Groupama had purchased €468 million in green bonds  (1) . The Group acquired a stake in the capital of Prédica Energies Durables (PED), a subsidiary of CA Assurances dedicated to investments in renewable energy production assets alongside Engie. Also in 2019, GroupamaAsset Managementlaunchedthe “G Fund Global Green Bonds” fund, a new bond picking solution invested in “green bonds” (securities offering returns and environmental benefits). All these aspects as well as the implemented policies and the results are detailed in the document published each year by Groupama, the “Art. 173” (of the French energy transition act) report. The third edition of this document,available on our website groupama.com,was published in June 2019. The next edition is expected tobe released in June 2020. Performanceindicator ● Amount of responsible investment –assets managed according to ESG criteria  (2)  – by GroupamaAsset Management:€76.1 billion,or 72% of total assets under managementas of 31 December2019; up sharply from the 2018 level (24%) due to the expansionof ESG criteria tobondmanagement.

Green bonds held directly in France mandates. (1) Environmental, social, and governance criteria. (2) Intergovernmental Panel on Climate Change, IPCC, an intergovernmental body open to all UN member countries. (3) Natural disasters. (4)

81 Universal Registration Document 2019 - GROUPAMA ASSURANCES MUTUELLES