2020 Universal registration document and annual financial report - BNP PARIBAS548

7 a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas

7

Our strategy

CSR, TAKEN TO THE HIGHEST LEVEL IN THE ORGANISATION Year after year, BNP Paribas is making progress in implementing its CSR policy, and this is thanks to the daily commitment of its 193,319 FTE employees, with multiple CSR initiatives in their business lines at all levels of the organisation.

A dedicated department is responsible for managing the Bank s CSR commitments, reporting to the Company Engagement Department and represented in the Group Executive Committee. The assignments and responsibilities of the CSR Function are clearly defined in a directive from the Executive Management. At the Head Office, the CSR team is structured as follows:

CSR Function

Methodology and data

Management of extra-nancial risks

® CSR stakeholder dialogue

® Promotion of human rights

Environment and Energy Transition

Micronance and Social

Entrepreneurship

® Communication ® Rescue & Recover fund

Company Engagement Department

It is based on a network created in 2012, which operates in the divisions, business lines, networks, departments and subsidiaries in order to facilitate the roll-out of the CSR policy across the whole Group. In total, more than 170 people spend all or a majority of their time on CSR matters within BNP Paribas. They can also call upon the expertise of nearly 400 contributors on specific topics such as direct environmental impacts, microfinance and even financing and investment policies. More generally, the Group s Executive Committee regularly decides on CSR topics and the Board of directors is given a presentation on the CSR strategy at least once a year. Finally, a member of the Executive Committee is responsible for CSR in each entity to ensure that CSR is integrated into the entity s strategy.

FOSTERING DIALOGUE WITH STAKEHOLDERS Dialogue with stakeholders is at the heart of BNP Paribas actions to promote social and environmental responsibility. This dialogue has a three-fold objective: anticipating change in our businesses developments and improving our products and services, optimising risk management, and finding innovative solutions which positively impact society.

■ Dialogue with the employees or employee representatives are described in the social pillar of this document (see Listening to employees and A quality social dialogue, Commitment 5). Employees may use the Company s whistleblowing system (see The whistleblowing system in Ethics of the highest standard, Commitment 2).

■ Individual and small business clients of all French Retail Banking entities have access to a complaint management system. Numerous entities provide their clients with the opportunity to use an independent ombudsman.

■ In the framework of its asset management activities, BNP Paribas Asset Management engages with companies in which the entity invests on ESG (environmental, social and governance) topics in order to preserve, or even enhance, the medium and long-term value of the investments made on behalf of its clients. In 2020, discussions focused on energy transition, corporate governance, deforestation, equality and human rights. BNP Paribas Asset Management supports the ESG commitments of these companies through its voting rights policy (see Inclusion of ESG criteria in assets under management, in Systematic integration and management of Environmental, Social and Governance risks (ESG), Commitment 3).

■ BNP Paribas regularly exchanges with its main suppliers, primarily through business reviews, information sessions and themed morning events. The Group also offers them a redress procedure in case of difficulties. In France, an internal mediator of the Group, appointed in accordance with the commitments of the BNP Paribas Responsible Procurement Charter and independent of the Group Strategic Sourcing function, can be contacted by any supplier in the event of a dispute (contact details can be found online at the following website: www.group.bnpparibas/en). Seven referrals, mainly relating to late payments, were recorded in 2020.

■ BNP Paribas presents its CSR strategy to investors several times a year and regularly informs extra-financial analysts. 30 different investors, based in Europe and North America, were met at least once in 2020 on ESG topics.

■ The Group has defined a policy and a management process for its relations with advocacy NGOs, in order to ensure a constructive, coordinated and productive dialogue with them. In 2020, BNP Paribas had 109 different exchanges with these NGOs throughout the world.