2020 Universal registration document and annual financial report - BNP PARIBAS 541

7 A COMMITTED BANK: INFORMATION CONCERNING THE ECONOMIC, SOCIAL,

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

All the information presented in chapter 7 of the Universal registration document has been collected through specific requests addressed to the functions, business lines or territories of BNP Paribas, or through the use of the Group s internal management tools. It is expressly noted when the scope covered by information differs from that of the entire BNP Paribas Group.

In the area of its economic, social, civic and environmental responsibility, BNP Paribas has distinguished itself through its many accomplishments and areas of progress in 2020:

Following the Covid-19 crisis, the Group s teams across the world mobilised to contribute to a proper functioning economy and its financing.

■ The Group thus put in place, in a very short timeframe, health measures to protect employees health: massive use of remote working from March 2020, actions taken in terms of hygiene and individual and collective protection in the workplace, reinforcement of employee listening and psychological support systems in order to prevent psychosocial risks related to their work in this period of uncertainty. BNP Paribas also guaranteed to maintain the salaries of all employees of the 68 countries in which it operates, including those who cannot work. In addition, the Group did not wish to use the short- time work/ technical unemployment scheme (except for a secondary business activity and in only one country with full compensation).

■ In addition, the entities and their employees mobilised in all businesses and regions to promote and rapidly deploy the specific solutions required to support economic participants. In 2020, against the backdrop of the lockdown in the face of the health crisis, BNP Paribas mobilised its resources and expertise to organise more than EUR 396 billion in financing raised for its clients in the syndicated loan, bond and equity markets worldwide, two-thirds of which was in Europe. The Bank also helped the public authorities roll out their support measures for companies, in particular State-guaranteed loans: more than 120,000 guaranteed loans had been granted at the end of December in the Group s Retail Banking networks.

■ Lastly, BNP Paribas demonstrated its commitment to a vast support system coordinated internationally, with a global plan of emergency support of nearly EUR 60 million for hospitals, vulnerable populations and young people.

In addition, BNP Paribas commitment to corporate social responsibility (CSR) has been recognised with various distinctions:

■ the Group has consolidated its position as a world CSR leader in the eyes of extra-financial rating agencies, with scores considerably higher than the banking sector average. BNP Paribas is listed in the Europe and World Dow Jones Sustainability Indices following its rating by the SAM agency, and has positioned itself as the leading European bank in 2020 following its solicited rating by V.E(1);

■ Corporate Knights, the Canadian specialist magazine has placed BNP Paribas for the 7th consecutive year in its 2021 ranking of the 100 most sustainable companies in the world (Leading French bank and 2nd at European level);

■ thanks to the dynamism of the CIB division s teams, the Group has distinguished itself as the Investment Bank of the Year in Social bonds and Sustainability-Linked Loans during the Investment Banking Awards of the leading magazine The Banker. With a total of EUR 24.2 billion in sustainable bonds at the end of 2020, BNP Paribas is the world s leading player in the sustainable bond market according to Bloomberg.

In terms of the management of environmental, social and governance risks and opportunities, 2020 marked several major advances in the life of the Group:

■ BNP Paribas announced a strategy for a complete exit from the thermal coal value chain by 2030 in the European Union and OECD countries, and by 2040 in the rest of the world;

■ BNP Paribas strengthened its ESG system by deploying a multi-year programme the ESG Action Plan under the joint responsibility of the Head of Corporate Commitment and the Head of Risk. This programme aims to both define the Group s ESG standards and to develop tools to analyse the Group s performance at customer and loan portfolio level;

■ the Bank has begun work on aligning its loan portfolio with the objectives of the Paris Agreement using the PACTA methodology(1). In the electricity generation sector, the Bank s loan portfolio is already in line with the trajectory required to limit global warming to below 2 degrees. BNP Paribas also produced the first reporting according to the Poseidon Principles of CO2 emissions generated by its loan portfolio to the maritime transport sector. As at 31 December 2019, the alignment score of BNP Paribas loan portfolio in terms of carbon intensity stood at 2.88%, above the decarbonisation trajectory of the industry as defined by the Poseidon Principles;

■ at the same time, BNP Paribas continued its proactive strategy of financing renewable energies, with EUR 17.8 billion of financing for the sector in 2020;

■ lastly, the Group published its first TCFD (Task Force on Climate- related Financial Disclosures) report. In addition, Antoine Sire (Head of Corporate Commitment at BNP Paribas) was appointed co-chair of the informal working group tasked with preparing the work of the Task Force on Nature-related Financial Disclosure (TNFD).

(1) Formerly Vigeo Eiris.

(2) Paris Agreement Capital Transition Assessment.