2020 Universal registration document and annual financial report - BNP PARIBAS618

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a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas Duty of Care and Modern Slavery Act and Human Trafficking statement

The Group is meeting and exceeding its targets in terms of improving the gender balance of its global markets business lines by the end of 2020 with:

■ a minimum of 40% women among the young graduates recruited each year (currently 50% compared to 40% in 2016);

■ at least 40% of women in the Leadership Talent programmes (41% in 2020 compared to 31% in 2016);

■ an increase of 40% in the number of women among Senior Management Positions (21% women among SMPs in 2020 compared to 15% in 2016, i.e. an increase of 40%).

Similarly, for the Human Resources gender balance objectives, 27% of HR Business Partners appointed between March 2018 and December 2020 are men, i.e. an increase of 50%.

The NGO Human Rights Campaign Foundation once again gave it a score of 100/100 in its Corporate Equality Index for North American businesses that are most welcoming to and respectful of the LGBTQ population. The Group is continuing to develop its human rights training for Group employees directly involved in promoting human rights(1). At the end of 2020, 89% of the employees assigned the training had completed the online awareness module about taking human rights into account in funding decisions.

Since 2016, more than 12,000 employees have completed this training.

Our suppliers and subcontractors

At the end of 2020, 2,100 ESG(2) assessments had been carried out, and 900 Responsible Procurement Charters had been signed by BNP Paribas suppliers.

Human rights training was completed by 89% of Group Strategic Sourcing employees. In 2020, the system was supplemented by the launch, with three other banks and a third-party assessor, of an on-site audit of two purchasing categories.

Our own activity

Every year, BNP Paribas measures its environmental footprint of its own operations (scopes 1 and 2). This includes, among other things, the electricity and heating of the Group s buildings, as well as employee travel. At the end of 2020, the Group s GHG emissions amounted to 1.85 teqCO2(3) per FTE(4) (-20% compared to 2019). See also Reduce the environmental impacts of our operations, Commitment 11.

Our banking and financial activities

In 2020, BNP Paribas continued to strengthen its data protection system thanks to its network of more than 100 advisors, who manage the alignment of the Group s actions with the General Data Protection Regulation (GDPR).

BNP Paribas strengthened its ESG system by rolling out a multi-year programme (the ESG Action Plan) in 2020 under the joint responsibility of the Head of Corporate Commitment and the Head of Risk. This programme

aims to both define the Group s ESG standards and to develop tools to analyse the Group s performance at customer and loan portfolio level (see also Systematic integration and management of Environmental, Social and Governance risks (ESG), Commitment 3).

In 2020, the Bank began the work to align its loan portfolio with the objectives of the Paris Agreement using the PACTA methodology. In the electricity generation sector, the Bank s loan portfolio is already in line with the trajectory required to limit global warming to below two degrees. BNP Paribas also produced the first reporting according to the Poseidon Principles of CO2 emissions generated by its loan portfolio to the maritime transport sector. At the end of 2019, the alignment score of the BNP Paribas loan portfolio in terms of carbon intensity stood at 2.88%, above the decarbonisation trajectory of the industry as defined by the Poseidon Principles. With a much lower percentage of coal than the global mix, the Group s primary energy mix compares favourably with the global mix calculated by the IEA. See also Systematic integration and management of Environmental, Social and Governance risks (ESG), Commitment 3.

In 2020, the Bank committed to aligning its loan portfolio with the objectives of the Paris Agreement using the PACTA methodology(5). At the end of 2020, the Group s restriction list and monitoring list for managing ESG risks included 1,446 legal entities (1,271 excluded and 175 under monitoring), compared with 1,087 legal entities at the end of 2019. In 2020, 736 companies were placed on the restriction list of activities under energy sector policies. In 2020, the Group s CSR teams were asked to give an expert opinion in the assessment of ESG risks for 2,500 complex and/ or sensitive transactions related in particular to financing, new accounts, export support, and other matters, compared to 2,340 transactions the previous year.

Among the in-depth vigilance measures which have been put in place, in 2020 the businesses tested analytical grids in addition to pre-existing systems to provide an in-depth analysis of the Bank s corporate clients operating in countries and sectors identified as sensitive in terms of human rights and the environment. A related e-learning programme has been finalised. The operational control plan added a control point relating to these analysis grids (see also Systematic integration and management of Environmental, Social and Governance risks (ESG), Commitment 3).

The Group is also continuing its commercial efforts to redirect financial flows towards activities that have a positive impact on the environment, starting with those that are part of the energy and ecological transition, such as renewable energies. At the end of 2020, BNP Paribas' financing for companies in the renewable energy sector reached EUR 17.8 billion, in line with its objective of EUR 18 billion at the end of 2021.

OUR COMMITMENT TO CONTINUOUS IMPROVEMENT BNP Paribas vigilance approach is part of a drive for continuous improvement. As such, the Group will complete, where necessary, its identification, control and management tools for identified risks, and will report on them each year in its Universal registration document.

(1) As a large-scale awareness-raising campaign on human rights in the BNL workforce was launched at the end of 2020, the period for calculating the training rate was exceptionally stopped on 22/11/2020 in order to reflect the Group's performance over the long term, in a proforma reporting logic.

(2) Environmental, Social and Governance

(3) Metric tonne equivalent of C02

(4) FTE : Full Time Equivalent

(5) Paris Agreement Capital Transition Assessment