2020 Universal registration document and annual financial report - BNP PARIBAS 587

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A COMMITTED BANK: INFORMATION CONCERNING THE ECONOMIC, SOCIAL, CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

Our civic responsibility: being a positive agent for change

COMMITMENT 7: PRODUCTS AND SERVICES THAT ARE WIDELY ACCESSIBLE

The Group strives to improve the accessibility of financial products worldwide, since the financial inclusion of populations is a major accelerator of economic development, and thus meets several Sustainable Development Goals of the UN such as the 1st (no poverty), 8th (decent work and economic growth) and 10th (reduced inequalities). This approach is notably accompanied by efforts to tailor the offering and provide the financial education needed to ensure better use of financial products.

WORLD S BEST BANK FOR FINANCIAL INCLUSION

Named World s Best Bank for Financial Inclusion by Euromoney, BNP Paribas has placed the fight against social inequality at the heart of its Corporate Social Responsibility strategy since when it was defined, in 2012.

BNP Paribas commitment to inclusive finance predates this date, however, with the launch of the Projet Banlieues in France in 2005 by the BNP Paribas Foundation, as well as, 31 years ago, the first financing of a microcredit institution, still a client of the Group today. Since then, its support for microfinance has benefited more than two million people thanks to the financing of 84 microfinance institutions (MFIs) in 33 countries.

This set up, like many other initiatives, reinforces BNP Paribas strategic commitment to having a positive impact on society, through the establishment of partnerships and the implementation of financial innovations with a social purpose.

➤ FINANCING AND INVESTMENTS SUPPORTING MICROFINANCE INSTITUTIONS IN 2020: EUR 376 MILLION

Others 1%

10%

Clients savings

17%

69% Direct Lending Employees savings

3% Equity

FINANCIAL INCLUSION: THE GROUP S SUPPORT FOR MICROFINANCE Committed for more than 30 years to microfinance, BNP Paribas uses different levers to promote its deployment: direct financing of microfinance lenders, the microfinance institutions (MFIs), investment in funds specialising in financial inclusion, creation and development of positive impact funds, distribution of savings products dedicated to microfinance, technical assistance missions, etc.

A development strategy built around financial and social performance

In 2020, the Group s overall support towards microfinance exceeded EUR 376 million, enabling the direct financing of 28 MFIs in 15 countries, and more than 100 MFIs indirectly in most countries around the world via 14 dedicated funds in which the different entities of the Group invest.

Due to Covid-19, micro-entrepreneurs have increased their economic vulnerability, which has led BNP Paribas to strengthen its support for MFIs facing liquidity and solvency problems. The Group has thus maintained the majority of its credit lines, while restructuring financing and accepting requests for a moratorium or relaxing financial covenants. Despite the crisis, the Group deployed new loans in particular to Vietnamese MFIs that exclusively finance women (CEP and TYM), to a Moroccan institution (Al Amana) and also, for the first time, to an MFI in the Netherlands, Qredits. To help MFIs cope with the crisis, the Group authorised a donation of EUR 1.2 million, paid to eleven MFIs. This has enabled French and Belgian MFIs to offer collateral-free loans to vulnerable people, while in India, Indonesia, Vietnam, Ivory Coast, South Africa, Tunisia, Morocco and Brazil, this donation helped, among other things, to support 15,000 people in need, including 1,200 Indian families who received 5,000 hygiene kits.

In 2020, the Group also continued to support European MFIs by subscribing to the equity increase of Permicro in Italy and that of Microlux in Luxembourg.

BNP Paribas also attaches great importance to the social performance of the MFIs in its portfolio, as evidenced by its score of 79% measured by the SPI4 tool (Social Performance Indicators 4) developed by the NGO Cerise, its global base reaching an average score of 63% in 2020 based on nearly 376 MFIs worldwide.