2020 Universal registration document and annual financial report - BNP PARIBAS 621

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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

Towards its clients (banking and financial activities)

BNP Paribas strives to reduce potential violation of social and environmental rights, including human rights, from its financing and investment activities (please refer to Systematic integration and management of Environmental, Social and Governance risks (ESG), Commitment 3). Its ESG risk management system is based on:

■ the development of financing and investment policies managing the Group s activities in sectors with significant ESG issues;

■ the respect of the Equator Principles for major industrial and infrastructure projects;

■ the integration of ESG criteria in the Know Your Customer ( KYC ) process;

■ the progressive integration of ESG criteria in lending and rating policies;

■ the use of management and monitoring tools for these risks, including specific questionnaires for activities with significant ESG issues;

■ the training of financing business lines and control functions on the ESG risk framework;

■ an operational control plan.

ASSESSING EFFECTIVENESS Acknowledging the challenges of assessing and addressing modern slavery and human trafficking issues, BNP Paribas remains committed to the review and enhancement of its own processes and policies, in order to continually improve their range and effectiveness.

For employee-targeted policies

BNP Paribas takes stock of the effectiveness of its actions in this field through the percentage of employees contributing directly to the promotion of human rights who have received specific training. At the end of November 2020(1), 89% of the target population had received this specific training on how to address human rights in financing decisions. Since 2016, more than 12 000 employees of the Group have undertaken this training.

For supplier-targeted policies

The number of CSR assessments of suppliers and sub-contractors that are conducted as part of requests for proposal, in particular those relating to categories of at-risk purchases, is a metric of BNP Paribas monitoring actions towards this type of stakeholder. In 2020, 2,301 CSR assessments were performed, and 900 Sustainable Sourcing Charters were signed by Group suppliers.

For client-targeted policies

Opening and maintaining dialogue with clients is key to an effective monitoring of a number of issues, including Human Rights, and can be an important drive towards positive change. The evolution of the Group s exclusion and monitoring lists (i.e. the companies BNP Paribas decided not to work with, or that are closely monitored for progress on ESG criteria), is another indicator of the effectiveness of BNP Paribas policies. At the end of 2020, the exclusion list numbered 1,271 companies, and the monitoring list 175, for a total of 1,446 listed entities (against 1,087 in 2019).

PROCESS OF CONSULTATION This statement has been prepared with the collaboration of relevant subject matter specialists, as well as appropriate members of the BNP Paribas CSR network, reaching through all functions, business lines and countries of the Group (see CSR taken to the highest level in the organisation). The Group CSR and Group LEGAL functions have coordinated this collaborative process over the past year, and in particular have consulted the designated contacts and experts for the United Kingdom and Australia.

CONCLUSION This statement has been used by BNP Paribas to establish the annual statements required by the Modern Slavery Act 2015 of the United Kingdom and Modern Slavery Act 2018 (Cth) of Australia. The annual statement can be found on the Publications page of the Group website (https://group.bnpparibas/en/publications).

(1) A large-scale awareness campaign on human rights was launched at the end of 2020 among BNL staff. Therefore, the training rate was only calculated from January 1st to November 22nd 2020, in order to reflect the Group's performance over the long term, and assist with proforma reporting.

Jean-Laurent BONNAFÉ

Director and Chief Executive Officer

Jean LEMIERRE

Chairman of the Board of directors

23 February 2021