UNIVERSAL REGISTRATION DOCUMENT 2023

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

4.2.4

ENVIRONMENTAL ISSUES AND CLIMATE CHANGE ADAPTATION Environment/climate and associated risks: non ‑ life investments and offerings that fully contribute to the ecological transition

coal is the main source of greenhouse gas (GHG). 40% of GHGs can be attributed to coal, which by its nature releases more GHGs than oil or gas. ■ In 2020, the Group committed to a total withdrawal, in its investment portfolios, from the thermal coal value chain by 2030 in the European Union and OECD countries and by 2040 in the rest of the world. To achieve this total withdrawal from coal financing, Groupama is committed to not renewing any investment and gradually disengaging with any company: whose revenue or energy production mix is based more than 20% on coal, — whose annual production of coal exceeds 10 million tonnes, — whose installed capacity in coal ‑ fired power plants exceeds 5 GW, — that is developing new coal capacities. — The various thresholds will be lowered regularly to aim for zero exposure of investment portfolios to thermal coal; the rapid withdrawal from oil and gas is neither physically nor economically and socially feasible. It requires transforming the energy supply, but also products and services, manufacturing methods and value chains and therefore massive investments in all sectors of activity including energy. The aim is to replace fossil fuels, which now account for 80% of primary energy worldwide, with low ‑ carbon energies within 30 years. Furthermore, the energy transition will necessarily involve the use of gas as a transitional energy (in accordance with the European taxonomy) as a minimum. However, the types of fuels and/ or “unconventional” extraction techniques have environmental impacts on water quality, biodiversity, and local communities that are more significant than conventional ones. In addition, according to the IEA scenario, Arctic extraction, bituminous oil, and coal seam gas have greater impacts than conventional extraction techniques. ■ The Group is therefore committing itself initially and progressively to non ‑ conventional fossil fuels (NCFEs) through the following commitment: “We are committed to ending any new direct investment in companies contributing to the development of new unconventional oil and gas projects”, — However, we want to finance actions and projects contributing to the energy transition and will therefore continue to invest in a subsidiary or project of such a company dedicated to financing the transition and in the green bonds they issue, —

4.2.4.1

(a) The risk of not taking environmental and climate factors into account in investments We define sustainable investing as integrating environmental, social/societal, and governance (ESG) factors into investment processes to help manage financial risks and finance transitions. The challenge is therefore twofold: taking into account sustainability risks, i.e. risks related to ESG factors, in particular climate factors that may affect the value of or return on financial assets; ❯ managing the negative impacts linked to our investments and promoting the positive impacts of financial management on sustainability factors, in particular by contributing to the fight against global warming and contributing to the financing of the three major transitions (demographic, digital, and ecological). ❯ As a financial player committed to supporting the major challenges of transition, the preservation of the environment and the fight against climate change are indeed major issues; as a service sector company, the Group’s risks and impacts in this area are most significant not in its establishments or travel but in the area of its investments (hence the particularly significant materiality of the sustainable investment policy) and its insurance offerings; in the medium term, the risk of global warming is one of the highest; therefore two significant risks : (1) This corresponds to the concept of “double materiality”, which is the basis of the European definition of sustainable investment and therefore of all European regulations on sustainability issues. In particular, this policy must contribute to financing the transition to a low ‑ carbon and resilient economy, compatible with a scenario of global warming limited to 1.5 °C by 2100 compared with the pre ‑ industrial era, in an equitable manner. Risk control levers To date, this sustainable and responsible investment strategy is more focused on climate risk and is based on four pillars, which will be detailed in the rest of the document: asset management fully incorporating ESG criteria; ❯ an exclusion policy to address the highest sustainability risks and eliminate the most harmful financing: ❯

(1) See summary tables in the appendix. Regarding the Group’s ecological footprint, see section 4.2.4.3.

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Document d’Enregistrement Universel 2023 GROUPAMA ASSURANCES MUTUELLES