2020 Universal registration document and annual financial report - BNP PARIBAS 559

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

■ In 2020, in the four Domestic Markets (France, Belgium, Italy and Luxembourg), 3.9 million surveys were sent to customers (by email, SMS or telephone) to collect their feedback. More than 500,000 responses (by email or SMS) were received, i.e. a response rate of around 13%. This feedback is essential to understand their expectations and adapt the offer and customer experience accordingly;

■ The results and customer feedback are communicated to an increasingly large audience of employees in order to raise their awareness and promote a continuous improvement approach in the branches and in the customer journeys;

■ The initial relationship process for individuals has been digitised and simplified with very positive results in France (+53 points on the transactional NPS(1) in one year). Customers can now take out a home loan digitally in Belgium, France and Italy.

Achievements within International Financial Services (IFS) ■ The systems for measuring NPS and customer dissatisfaction callbacks have been strengthened at International Retail Banking in Turkey, the United States, Poland, Morocco and Ukraine, in all customer segments;

■ BNP Paribas Personal Finance continued to roll out the programme in 19 subsidiaries. Over 75% of countries regularly measure NPS and the majority of them have now set up a systematic customer callback loop;

■ BNP Paribas Cardif carried out transactional surveys in 25 out of 28 entities. In 2020, 11 of them exceeded the Cardif Forward 2022 target (NPS > 50 for claims accepted);

■ BNP Paribas Wealth Management surveys its relationships in 70% of countries, with a systematic callback loop in 90% of cases at least for dissatisfied customers. NPS score benchmarks obtained in France, Belgium and Italy are in place;

■ At BNP Paribas Asset Management, the system is deployed in the Group s internal networks, targeting advisors in the three main countries (France, Belgium and Italy) in all segments;

■ BNP Paribas Real Estate will roll out a pilot project in two businesses (Property Management and Residential Development) from 2021;

■ The NPS questionnaires have been adapted in all businesses to better identify and meet the specific needs of customers in the context of the Covid-19 epidemic.

ETHICS AT THE HEART OF SUPPLIER RELATIONS In 2020, the Group's purchases amounted to around EUR 9 billion in expenditure globally.

BNP Paribas strives to develop balanced relationships with its suppliers. With this in mind, the Group has adopted a Responsible Procurement Charter which sets out commitments directed to both the Group and its suppliers.

In addition, the Procurement teams abide by strict deontological principles, in order to manage the risks of mutual dependency, adapt its practices to allow to compete in its call for tenders, implement processes for faster payment of supplier invoices, and offer suppliers an appeal process through an internal ombudsman (see Fostering dialogue with stakeholders in Our strategy).

In France, under its Diversity & Inclusion policy, the Group has taken multiple actions to foster procurement from suppliers working with vulnerable and disable employees (STPA). In 2019, BNP Paribas SA renewed for the fourth time its company agreement on the professional inclusion of people with disabilities, signed with all trade unions for a period of three years (2020-2022) and approved by the French Ministry of Labor. It includes an objective to reach sales excluding tax of services provided with the STPA of EUR 1.8 million over the period of the agreement. In 2020, this commitment to diversity in procurement was gradually extended to the entire social entrepreneurship sector.

During the Covid-19 health crisis, the Group Strategic Sourcing (GSS) team issued a policy for the Procurement sector to voluntarily engage in economic solidarity : this initiative has led in particular to organising protection for suppliers operating on BNP Paribas sites in France and abroad, securing the business continuity and enabling the Bank to play its role in supporting the economy. The following actions illustrate the implementation of this policy: proactive dialogue with suppliers, new directives to speed up the approval of supplier invoices, and increased use of digitized invoices.

(1) The transactional NPS is the recommendation score measured at the end of an interaction between the customer and the Bank.

COMMITMENT 3: ROBUST MANAGEMENT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISKS (ESG)

Financing and investing in industries with multiple environmental, social and governance (ESG) challenges, and operating in countries whose legal and governance environments have different levels of maturity, BNP Paribas faces a wide range of issues that require increased vigilance when making financing and investment decisions. The appropriate management of ESG risks is of prime importance as it helps financial

risks to be managed properly. The Group s ESG risk management system is part of an overall approach and is based on:

■ the development of financing and investment policies to frame activities in sectors with high ESG risks, such as coal-based electricity production;

■ the creation of a list of excluded goods and business activities, such as tobacco;