518 2019 Universal registration document and annual financial report - BNP PARIBAS

7 a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas

7

Our strategy

CSR TAKEN TO THE HIGHEST LEVEL IN THE ORGANISATION Year after year, BNP Paribas is making progress in implementing its CSR policy, and this is thanks to the daily commitment of its 198,816 Full-Time Equivalent (FTE) with multiple CSR initiatives in their business lines at all levels of the organisation.

A dedicated department is responsible for managing the Bank s CSR commitments, reporting to the Company Engagement Department and represented in the Group Executive Committee. The assignments and responsibilities of the CSR Function are clearly defined in a directive from the Executive Management. At the Head Office, the CSR team is structured as follows:

CSR Function

® Investments and nancing with a positive impact ® Methodology and Data

Management of extra-nancial

risks

® CSR stakeholder dialogue ® Promotion of human rights

Environment and energy transition

Micronance and Social

Entrepreneurship

® Communication ® Rescue & Recover Fund

Company Engagement Department

It is based on a network created in 2012, which operates in the divisions, business lines, networks, departments and subsidiaries in order to facilitate the roll-out of the CSR policy across the whole Group. In total, over 130 people spend all or a majority of their time on CSR matters within BNP Paribas. They can also call upon the expertise of nearly 300 contributors on specific topics such as direct environmental impacts, microfinance and financing and investment policies. More generally, the Group s Executive Committee regularly decides on CSR topics and the Board of directors is given a presentation on the CSR strategy at least once a year. Finally, a member of the Executive Committee is responsible for CSR in each entity to ensure that CSR is integrated into the entity s strategy.

FOSTERING DIALOGUE WITH STAKEHOLDERS Dialogue with stakeholders is at the heart of BNP Paribas actions to promote social and environmental responsibility. This dialogue has a three-fold objective: anticipating change in our businesses developments and improving our products and services, optimising risk management, and finding innovative solutions which positively impact society.

■ The steps to foster dialogue with employees or staff representatives are described in the social pillar of this document (see Promotion of diversity and inclusion in the workplace, Commitment 4, and "Good place to work" and responsible management of employment, Commitment 5). Employees may use the company s whistleblowing system (see The whistleblowing system in Ethics of the highest standard, Commitment 2).

■ Individual customers and small business clients of all French Retail Banking entities have access to a complaint s procedure. Numerous entities provide their clients with the opportunity to use an independent ombudsman.

■ In the framework of its asset management activities, BNP Paribas Asset Management engages with companies in which the entity invests on environmental, social and governance issues (ESG) in order to preserve, or even enhance, the medium and long-term value of the investments made on behalf of its clients. In 2019, discussions covered climate change and the energy transition, corporate governance, natural capital and human rights. BNP Paribas Asset Management supports the ESG commitments of these companies through its voting rights policy (see Inclusion of ESG criteria in assets under management, in Systematic integration and management of Environmental, Social and Governance risks (ESG), Commitment 3). Moreover, in March 2019, as part of its Global Sustainability Strategy, BNP Paribas Asset Management developed a forward-looking vision based on three topics (the 3Es): the Energy transition, Environmental protection, Equality and inclusive growth. As well as providing a starting point for discussions, these topics form the pillars of the commitment made by companies.

■ BNP Paribas regularly exchanges with its main suppliers, primarily through business reviews, information sessions and themed morning events. The Group provides its suppliers with a redress procedure in case of difficulties. In France, all suppliers may raise issues to an internal mediator within the Group. Independent from the Group Strategic Sourcing function, this mediator can be contacted (www.group.bnpparibas) as part of the commitments expressed in the Sustainable Sourcing Charter (contact available online at www.group.bnpparibas.com). Ten cases were referred to the internal mediator in 2019, all of them concerning payment terms.

■ BNP Paribas presents its CSR strategy several times a year to Socially Responsible Investing (SRI) investors and regularly informs extra- financial analysts on this subject. In 2019, BNP Paribas met 37 different SRI investors at least once in France, the UK, Sweden and Norway.