2020 Universal registration document and annual financial report - BNP PARIBAS 579

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

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

Our social responsibility: developing and engaging our people responsibly

For a number of years, measures are taken locally to reduce any pay gap between men and women. Thus, the EUR 10 million allocated in 2019 for 3 years by BNP Paribas SA as part of measures to make up for any discrepancies in annual compensation, led to a budget of EUR 3.33 million for the year 2020. In addition, the budget provided by the subsidiaries in France amounts to approximately EUR 1.5 million (a slight increase).

For retention purposes, the Group awarded to over 7,700 key employees(1) a three-year retention plan (maturing in June 2023), known as the Group Sustainability and Incentive Scheme (GSIS), of which 20% of the initial award is related to the Group s CSR performance objectives, based on the 4 pillars of the Group s CSR(2) strategy, while the rest is indexed to the Group s operational performance.

Furthermore, as permitted by the government system, BNP Paribas SA and certain subsidiaries in France decided to pay one or more exceptional purchasing power bonuses to employees receiving an overall remuneration lower than three times the value of the minimum wage in France.

Social benefits relating to retirement and savings

To prepare for retirement, employees benefit from defined-contribution retirement savings schemes under the conditions set out in chapter 4 Financial Statements Remunerations and benefits granted to employees. Turning to savings, collective profit-sharing schemes may also be put in place to align employees interests with collective performance.

In France, the Group involves employees in its performance through profit-sharing and incentive schemes. Thus, several Group companies are supporting employees' voluntary savings efforts through savings plans (PEE and PERCO) with a cumulative contribution of EUR 65 million paid, which benefited more than 72% of employees in 2020 on the plans implemented for 2019. In addition, thanks to a protective agreement for employees (signed on 28 June 2019), the non-payment of dividends to shareholders in 2020 had limited repercussions on the amount paid in 2020 in respect of 2019.

In respect of 2020, EUR 137 million will be distributed to the estimated 63,646 beneficiaries of entities that are members of the Group profit-sharing agreement (compared with EUR 160 million to 66,305 beneficiaries in 2019). With regard to profit-sharing, more than 98% of employees are covered by a profit-sharing agreement at the end of 2020 (compared with 97.17% at the end of 2019). For BNP Paribas SA, EUR 103 million will be distributed among 42,808 beneficiaries for the financial year 2020 (compared to EUR 124 million to 44,881 beneficiaries in 2019). The amounts paid in respect of the same financial year under the profit-sharing agreements of the subsidiaries will be known at the end of the first quarter of 2021.

At the end of 2020, the percentage of the share capital held directly or indirectly by Group employees was estimated at 3.78% (3.61% at end 2019)(3).

Elsewhere in the world, similar schemes exist. At BNP Paribas Fortis in Belgium, part of the variable remuneration known as collective is linked to CSR goals such as promoting diversity, improvement of well- being in the workplace and the reduction of the Bank s negative impact on the environment. The 2020 objectives were met, and a total of EUR 21.8 million was paid to all employees.

In Luxembourg, the Bank paid non-managerial employees an incentive bonus with respect to 2019, which amounted to nearly EUR 3.6 million.

Employee benefits in terms of social benefits

In addition to the legal and contractual arrangements, depending on the regulations and practices of the countries in which the Group operates, employees may benefit from supplementary social protection and/or health insurance.

In accordance with the Global Agreement, almost all BNP Paribas Group employees (96% of the Social Reporting Headcount, i.e. an increase of 37% compared to the end of 2019) were covered in case of death in service or disability as well as medical, whether from a government scheme, an insurance scheme, or a combination of both. In accordance with its regulatory environment, each business/country determines what coverage is provided, the specific applicability conditions and the terms of financing. The few entities that have not yet put in place certain coverage - generally not offered locally - are in the process of taking it out, and will have it in place before 1 June 2021.

In France, the Group offers a mandatory mutualised health plan to employees and a protection insurance system that allows employees to adjust their level of protection according to their personal situation.

It also offers flexible employee benefits, enabling employees to select, to a certain extent, their level of coverage from a range of benefits offered aiming at long-term employability and offering sustainable choices. These benefits are available at BNL in Italy, at BNP Paribas Fortis in Belgium and in the United Kingdom.

FOCUS ON PEOPLE One of the Group s priorities for its employees is to ensure healthy lives and promote well-being for employees of all ages (UN Sustainable Development Goal 3).

Working conditions

In the past few years, as part of a consensus approach involving employees, employee representative bodies, and occupational health services, BNP Paribas has successfully updated its office environments and incorporated Flex Offices, promoting remote working. Within the Group in France, at the beginning of 2020, more than 12,000 employees opted to work remotely on a regular basis and 15,000 worked in Flex Offices.

This approach was a major asset for the widespread practice of remote working during the health crisis, which affected more than two-thirds of the Group s workforce according to applicable health restrictions.

(1) Key employees: senior managers, high-potential employees or key local resources.

(2) For the 2017 plan, payable in 2020, the achievement of 6 of the 9 CSR criteria defined when the plan was allocated triggers the payment of the amount initially allocated for CSR to the plan beneficiaries, in accordance with the plan s regulations.

(3) Percentage of share capital held by employees (and former employees of the BNPP Group), via employee savings plans (employee profit-sharing, incentive schemes, voluntary payments by the employees and matching contributions paid by the Bank invested into the BNP Paribas Actionnariat mutual fund) and/or Global Plan reserved for employee shareholding transactions.