520 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 economic responsibility: financing the economy in an ethical manner

7.2 Our economic responsibility: financing the economy in an ethical manner

BNP Paribas primary mission is to meet its clients needs, in particular by financing the projects of individual clients and businesses in an ethical manner, in order to drive economic development and create jobs. Given its leading positions in financial services in the 71 countries in which it operates, the Group s financing capacity and the way it conducts its business can have a direct impact on local economies. Aware of this economic responsibility, BNP Paribas bases its actions on its three commitments:

■ Commitment 1: Investments and financing with a positive impact;

■ Commitment 2: Ethics of the highest standard;

■ Commitment 3: Systematic integration and management of environmental, social and governance risks.

2019 saw numerous tangible contributions promoting BNP Paribas economic responsibility:

■ in line with its strategy of speeding up the energy transition, in 2019, BNP Paribas decided to completely stop its financing of the coal industry by 2030 in European Union countries and by 2040 for the rest of the world. In 2017, BNP Paribas was also the first bank to announce that it was suspending its financing of companies which generate most of their income from unconventional oil and gas, a measure which today is still amongst the most advanced in the sector;

■ BNP Paribas updated its operational control plan for ESG risks with new tools and processes, and completed training for all relevant employees;

■ the Group and the European Investment Fund (EIF) launched the EUR 10 million BNP Paribas European Social Impact Bond Fund , created and managed by BNP Paribas Asset Management. It develops social innovation and supports social enterprises, by enabling the two investors to simultaneously invest the same amounts into Social Impact Bonds (SIBs) structured by BNP Paribas in the European Union. It has already completed three investments;

■ BGL BNP Paribas rolled out Act For Impact in Luxembourg, which supports entrepreneurs whose businesses have a strong positive impact on society. Thanks to the Act For Impact program BGL has continued the investments into an impact fund that helps an incubator for social start-ups;

■ BNP Paribas joined Business for Inclusive Growth (B4IG), a coalition launched by the OECD comprising around 30 multinationals. Its objective is to promote a more inclusive economy and business models to the benefit of society;

■ in 2019, the total support for Social Enterprises (financing, own investments and third-party investments) amounted to EUR 1.9 billion worldwide, representing a growth of 14% compared to 2018;

■ BNP Paribas entered into a partnership with the Grameen Creative Lab , a company set up by Nobel Peace Prize winner Muhammad Yunus to promote the creation of social businesses (based on the definition put forward by Professor Yunus) and the development of products with a positive impact within the Bank.

COMMITMENT 1: INVESTMENTS AND FINANCING WITH A POSITIVE IMPACT

SUPPORTING SMES AND CONTRIBUTING TO MORE INCLUSIVE GROWTH BNP Paribas has developed the necessary organisational system and has the tried and tested expertise required to contribute to the development of companies, SMEs in particular, which the Bank supports in an effective and efficient manner in its domestic markets and on the international stage. As a consequence, a wide range of products and services has been developed:

■ French Retail Banking has deployed a specific system dedicated to SMEs and their senior management teams which covers 300 expertise centres. Its long-term commitment makes BNP Paribas a go-to bank for SMEs, with more than 80,000 small business and corporate clients;

■ A new company called Portzamparc was created in September 2019 (following a merger between Portzamparc and B*capital), whose purpose is to provide better support to private clients, management companies and small and medium-sized companies wishing to invest in or raise financing from the stock market. it provides them with personalised support so that they can finance growth via the stock markets (IPO, capital increase, public offers, etc.).

Identifying models for more inclusive growth

In 2019, BNP Paribas partnered with 34 companies representing more than EUR 1 trillion in revenues within the Business for Inclusive Growth (B4IG) coalition partnering by the OECD. The coalition s aim of transforming the role of businesses in the economy is based on three pillars:

■ improve equal opportunities and reduce inequalities, including those linked to location, gender or sexual orientation, for example;

■ develop new and more inclusive business models;

■ implement innovative financing systems which bring together businesses, philanthropic actors and public authorities.