2020 Universal registration document and annual financial report - BNP PARIBAS 87

2CorPorate GovernanCe and internal Control

2

Report on Corporate governance

Qualitative criteria The Board of directors assessed the quantitative portion of the annual variable remuneration in terms of the application of the criteria provided for in the remuneration policy.

For 2020, the Board determined that Jean-Laurent Bonnafé had principally achieved the following:

■ resilient operating results in 2020 marked by a contained increase in the cost of risk, the achievement of the cost savings provided for in the strategic plan 2017-2020 enabling a positive scissor effect and the increase in the CET1 ratio over the year;

■ his decisive action in the management of the Bank during the Covid-19 crisis with (i) the maintenance of the Bank s services ensured by the use of remote working, (ii) his key role vis-à-vis major clients in particular. as part of the Group s mobilisation to support the economy, which

resulted in an increase in CIB s market share in Europe, (iii) adapting working conditions for employees by implementing health measures in accordance with the recommendations of the public authorities;

■ his commitment to making the Bank a recognised leader for its CSR strategy and his strong leadership as Chairman of the Enterprise for the Environment think tank;

■ his commitment to increase the number of women in governing bodies by defining objectives for the promotion of women in the medium term;

and for Philippe Bordenave, consistent with the outcomes assessed for Jean-Laurent Bonnafé:

■ resilient operating results in 2020 with, in particular, his involvement in the achievement of the cost control objectives defined in the strategic plan 2017-2020 and his role in the management of the Bank s balance sheet and liquidity, ensuring a solid financial structure;

Criteria linked to the Group s CSR performance The Board of directors reviewed the achievement of the multi-criteria measurement with regard to the three criteria linked to the Group s CSR performance provided for in the remuneration policy, each of which has a 3.33% weighting.

(i) Board s assessment of the CSR policy With respect to the qualitative assessment, the Board of directors considered that this criterion had been achieved taking into account the 2020 highlights in terms of climate and social issues:

BNP Paribas has an ambitious policy of societal engagement, with initiatives to promote ethical responsibility and consideration of social and environmental issues with a clear energy strategy. The Bank s aim is to be a leader in sustainable finance.

a) In terms of social issues, it promotes a more inclusive society:

■ Nearly EUR 60 million in emergency donations were made to address the health crisis (support for the health sector, aid to the most disadvantaged via NGO partners, assistance to young people);

■ BNP Paribas is ranked world s best bank for financial inclusion for its support of microfinance and its inclusive products and services by Euromoney;

■ the #JamaisSansElles Charter has been extended to BNP Paribas G100 members.

b) In terms of energy and ecological transition:

■ the Bank has announced a timetable for the complete exit from thermal coal by 2030 in the EU and the OECD and by 2040 in the rest of the world;

■ BNP Paribas and four other international banks adopted the PACTA methodology in order to assess the alignment of the Bank s loan portfolio with the conclusions of the Paris Agreement.

c) In terms of the management of environmental and social issues:

■ implementation of the ESG Action Plan, a multi-year programme aimed at strengthening the ESG risk management processes.

The Group s actions in these different areas are recognised:

■ the Group is rated A1+ and ranked fourth worldwide by Vigeo Eiris for all its CSR actions and is ranked as the leading French bank SAM s in SAM s 2020 rating;

■ BNP Paribas was recognised in 2020 as the world s best bank for financial inclusion (Euromoney awards for excellence);

■ for the sixth consecutive year, BNP Paribas has been included in the Corporate Knights ranking of the Global 100 Most Sustainable Corporations and is ranked second amongst European banks in 2020;

■ the Group is ranked first among the CAC 40 companies for climate strategy and actions according to the EcoAct ranking.

(ii) Market assessment of the CSR policy The CSR criterion linked to the Group s position, in relation to its peers, in the extra-financial performance rankings of FTSE, SAM and Vigeo-Eiris, was met as BNP Paribas was in the top quartile of their banking sector ratings.

(iii) Assessment of the CSR policy by alignment with employees Regarding the criterion of alignment with the Group s key employees, the three-year CSR targets set in the retention plan for the Group s key employees were also met.

Thus, the multi-criteria measurement, as a percentage of the target variable remuneration, amounts to 10.00% for 2020.

CSR - Assessment of the CSR policy

(i) By the Board (ii) By the market (iii) Alignment

with employees Multi-criteria

measurement

Weighting 3.33% 3.33% 3.33%

Measurement 3.33% 3.33% 3.33% 10.00%