2020 Universal registration document and annual financial report - BNP PARIBAS 551

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

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

Our economic responsibility: financing the economy in an ethical manner

CONTRIBUTING TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDGS)

A CSR strategy aligned with the SDGs

The Group s CSR strategy fully contributes to achieving the UN s 17 SDGs that aim to build a sustainable future by 2030: ending poverty and hunger, promoting equality and building sustainable cities, whilst protecting the planet. It covers economic growth priorities, inclusion of vulnerable populations and preserving resources.

BNP Paribas contributes in particular to SDG 17 (partnerships for the achievement of goals) through numerous partnerships between banks (see below or in the areas of the environment (see Advance awareness and sharing of best environmental practices, Commitment 12)) or reducing inequalities (see Commitments promoting a more inclusive society, Our strategy).

A driving force in the governance of the United Nations Principles for Responsible Banking

Following the signature of the United Nations Principles for Responsible Banking in New York in 2019, BNP Paribas chose to become even more actively involved in promoting the SDGs and the Paris Agreement. Thus, Laurence Pessez, Group CSR Director, was elected to the PRB Banking Board in 2020. The priority areas of work are to share best practices and methodologies as well as to set up an advisory body representing civil society stakeholders.

By the end of 2020, 210 banks from 49 countries joined the PRBs. The measures selected to meet PRB transparency challenges are listed in the table of concordance (see Table of concordance with GRI, ISO 26000, Global Compact, Sustainable Development Goals, Principles for Responsible Banking and TCFD in section 7.8).

Measuring our contribution to the SDGs

More generally, it is important for BNP Paribas to measure its contribution to the SDGs. At the end of 2020, the amount of loans to companies supporting the energy transition and sectors directly contributing to the SDGs was EUR 188 billion(1) (compared to EUR 180 billion in 2019).

Economic sectors making a full contribution to the SDGs

A methodology has been defined and validated by the extra-financial rating agency V.E. (formerly Vigeo Eiris). Some business sectors are identified for their positive overall contribution to the SDGs such as, for example, non-profit, social, education, health, waste management, public transport and renewable energies.

Other activities are also considered as having a positive impact, such as Group support to microfinance (see Products and services that are widely accessible, Commitment 7), to social enterprises (see Financing social

entrepreneurship, Commitment 1) to energy efficiency (see Enabling our clients to transition to a low-carbon economy respectful of the environment, Commitment 10) and also partnerships with international institutions.

Partnerships with development banks and institutions

Thanks to these partnerships, the total amount of which reached EUR 850 million in 2020, BNP Paribas provides specific support to targeted categories of customers and sectors: SME (Tunisia), support for exports and energy efficiency (Morocco and Poland), women entrepreneurs (Turkey, Morocco, etc.) and for greener maritime transport.

Financing with a strong positive impact

Some transactions do not belong to any of the sectors mentioned above but also contribute to the achievement of the SDGs through their positive impacts. This is the case for the financing of extension of telecommunication networks in low-income countries or financing pharmaceutical companies in these same countries.

In the area of positive impact transactions, Sustainability-Linked Loans (SLL) allow adjustment of the loan rate according to the achievement of environmental and/or social objectives by the borrower. BNP Paribas, which is one of the leaders in this sector, was ranked first for the Europe, Middle East and Africa (EMEA) region by Dealogic at the end of 2020. In total, BNP Paribas participated in SLLs for an aggregate amount of EUR 109 billion in 2020, including EUR 9.4 billion directly underwritten by the Bank with major corporate clients.

Other innovative products are also developed by the Bank. Following the first issue of a Sustainability-Linked Bond (SLB) in 2019 for ENEL, BNP Paribas made this SLB product available to support Suzanno, a company in the wood pulp sector. The Group also participated in the first sovereign bond issue linked to Mexico s Sustainable Development Goals.

Other products contributing to the achievement of the SDGs

In order to offer its large corporate clients short-term investment solutions in line with the SDGs, BNP Paribas developed in 2020 a short- term investment offer: Sustainable Deposit. The approach is based on the existing methodology for measuring the contribution to the SDGs and has been reviewed favourably by the extra-financial rating agency V.E.(2) The first Sustainable Deposit was signed in September 2020 with the Unilever Group.

To enable the savings of its individual customers and institutional clients to contribute to achieving the SDGs, the Group has developed an entire range of products and services:

■ thanks to a tool, MyImpact, BNP Paribas Wealth Management guides its clients towards sustainable investments and philanthropic actions supporting the SDGs that best match their needs and values. Building on its success in France (more than 3,000 user customers), this tool is now deployed in several other European countries;

(1) Amount including loans and bond issues related to companies in sectors considered as contributing directly to the SDGs, as well as investment solutions contributing to the achievement of the SDGs.

(2) Formerly Vigeo Eiris.