2020 Universal registration document and annual financial report - BNP PARIBAS604

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a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas Our environmental responsibility: accelerating the ecological and energy transition

USE OF LOW-CARBON ELECTRICITY To continue reducing its environmental impact, the Group is increasingly turning to low-carbon electricity in all countries where this is possible. Renewable electricity accounted for 37% of the Group s total electricity bill in 2020 compared to 35% in 2019. It came either from purchase of renewable electricity certificates, or from direct consumption of renewable energy produced by the Group s buildings. This commitment is strengthened through an exclusively renewable electricity purchase agreement (PPA) in Poland, which will cover 100% of the electricity supply starting in 2021.

Overall, low-carbon electricity represented 75% of total consumed.

OFFSETTING RESIDUAL GHG EMISSIONS Each year, BNP Paribas offsets the residual GHG emissions from the previous year for the entire Group. Taking into account the additional purchases of low-carbon electricity, these emissions amounted to 340,030 teqCO2 in 2019. Also in 2020, these emissions were offset through four projects.

■ the Kasigau project, supported by the Group since 2017, is a programme to preserve and restore 200,000 hectares forest in Kenya. Led by the NGO Wild Life Works, it also finances access to healthcare, water and education for local populations;

■ the second project is based on a ten-year voluntary carbon offsetting programme between BNP Paribas and the GoodPlanet Foundation that will improve the living conditions of nearly 70,000 people in the state of Madhya Pradesh in India. Through the construction of 13,000 biodigesters producing methane through anaerobic digestion (decomposition of organic matter), the populations produce their own gas to meet household needs, thus avoiding cooking over wood fires and deforestation.

The other two projects were selected via the ClimateSeed platform (see Supporting companies towards carbon neutrality, in Enabling our clients to transition to a low-carbon economy respectful of the environment, Commitment 10). It is:

■ a support programme for seven Peruvian indigenous communities to preserve 127,000 hectares of threatened Amazon rainforest. This project is led by the local NGO AIDER which fights against deforestation and protects the living environment of these populations;

■ an initiative to restore and preserve tropical peatlands in Indonesia, covering over 150,000 hectares of swamp forest located in Central Kalimantan. In addition to protecting more than 40 endangered species of fauna and flora, the project helps indigenous peoples fight the devastating forest fires that occur during the dry season.

Thanks to the triple action of reducing greenhouse gas emissions , using low-carbon electricity and offsetting its residual emissions , BNP Paribas has been carbon neutral across its entire operating scope since 2017. This result is an important indicator of the Group s commitment and has earned it recognition as Climate Neutral Now by the United Nations Framework Convention on Climate Change (UNFCCC)

BIODIVERSITY AND CIRCULAR ECONOMY ACTIONS

Biodiversity conservation at the Group s sites

Aware that biodiversity is currently under serious threat, BNP Paribas promotes diversified initiatives on its own sites that contribute to the preservation of the environment, the reintegration of nature in urban areas and the participation of employees in collective actions promoting biodiversity. For example, the urban farm of BNP Paribas Real Estate, installed on more than 640 m2 on the terraces of its head office in Issy-les- Moulineaux (France), is a laboratory, a community vegetable garden and a showcase of its know-how for its customers. This experimentation of urban gardens is led by a community of employees/gardeners managing 26 plots which include 70 plant species.

In addition, several initiatives to promote urban vegetable gardens and beehives managed directly by employees are being developed within the Group, notably in France, Belgium, Luxembourg, Poland and the United Kingdom. Several Group departments have also initiated tree planting initiatives in partnership with local NGOs and directly involving employees.

Controlling impacts on ecosystems also involves reducing water consumption, which was 15,8 m3/FTE in 2020 for a total consumption of 3,058,462 m3. Various actions to improve this consumption are regularly carried out: leak detection systems, equipment that automatically cuts off the taps, optimisation of flow rates, etc.

In addition, BNP Paribas promotes less meat among its employees (animal husbandry is a significant factor affecting biodiversity): for example, in France, a very large majority of the Group s restaurants offer a daily vegetarian menu.

Responsible procurement and waste reduction

In order to contribute to the protection of forest ecosystems and biodiversity, the Group aims to use sustainable paper as much as possible from recycled or sustainably managed forests, that is, more than 50% recycled or PEFC (Programme for the Endorsement of Forest Certification) or FSC (Forest Stewardship council) certified. In 2020, the share of sustainable paper reached a record high of 75%. However, as the 2020 target, which was set at 80%, was not achieved, this effort will be continued in the coming years.

In addition, the Group is committed to making progress each year on the proportion of waste recycled per employee (mostly paper) and on the quality of these data. The total waste collected, calculated for 2020, is 21,085 tonnes, or 109 kg/FTE. 31% of the total volume of waste is recycled, or the equivalent of 33.4 kg per employee.