560 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 environmental responsibility: accelerating the ecological and energy transition

Financial innovation supporting the transition

Since 2015, BNP Paribas has launched 10 climate indices raising over EUR 2.75 billion (including EUR 750 million in 2019). These solutions offer investors a financial return while enabling them to contribute to the energy transition. In 2019, several innovative products were launched:

■ THEAM Quant Europe Climate Offset, the first French UCITS (Undertakings for the Collective Investment in Transferable Securities) with a carbon offset mechanism. The objective of this fund is to combine the financial returns of the European equity market with positive impact in terms of climate change mitigation and adaptation;

■ since September 2019, BNP Paribas has combined the marketing of structured products indexed to an ESG index with the planting of trees in France by Reforest Action. One tree is planted for every EUR 1,000 invested. By the end of 2019, 750,000 trees had been planted.

USING THIRD-PARTY ASSET MANAGEMENT TO SUPPORT THE ENERGY AND ENVIRONMENTAL TRANSITION

Exercising voting rights to adopt resolutions in favour of the energy and environmental transition

BNP Paribas Asset Management, the Group s asset management subsidiary, uses its voting rights in various companies to adopt resolutions in favour of the energy transition. BNP Paribas Asset Management is one of the world s most active asset managers in this area. The NGO Majority Action published a report entitled Climate in the boardroom: How asset manager voting shaped corporate climate action in 2019 . This reviews the actions of the world s 25 largest asset managers to make major energy companies in the United States of America more accountable in the fight against climate change. The report shows that BNP Paribas Asset Management aligns its commitments to tackling climate change with its voting. The Group s subsidiary is one of the asset managers who supported more than 95% of shareholder proposals analysed in the study, voting for improved emissions reporting and emissions reduction plans, transparency on political lobbying by companies, and governance reforms to improve accountability to shareholders in the long term.

Third-party asset management supporting the energy and environmental transition

In addition to its carbon risk management system (see Systematic integration and management of Environmental, Social and Governance (ESG) risks, Commitment 3), BNP Paribas Asset Management offers a diversified range of green funds invested, in particular, in alternative energies and energy efficiency. At 31 December 2019, they represented EUR 11.6 billion in outstandings.

FULLY SUPPORTING CORPORATE CLIENTS IN THEIR ENERGY AND ENVIRONMENTAL TRANSITION Climate change has become a systemic issue for businesses. The Group proposes supporting its clients throughout their energy and ecological transition strategy, which can range from efforts to reduce their energy consumption (energy efficiency), to sourcing clean energy and offsetting their residual greenhouse gas emissions.

Support for SMEs in Domestic Markets

In France, French Retail Banking offers solutions to support its corporate clients in the energy and ecological transition. A broad-based solution has been developed jointly with the Group s other business lines Arval, BNP Paribas Rental Solutions and BNP Paribas Leasing Solutions, and the energy savings partner Économie d Énergie (EDE) to reduce energy consumption in three of the Company s areas of operation: real estate, transport and mobility, and movable assets. At end-2019, the entity s support for the energy transition of French SMEs stood at EUR 2.7 billion.

In Belgium, through its Sustainable Business Competence Centre (SBCC), BNP Paribas Fortis provides expertise and support to its SME clients in order to design and finance infrastructure for the production of renewable energy or to improve the energy efficiency of their facilities. Its aim is to support corporate clients in their transition towards a sustainable business model that addresses climate change.

Arval and BNP Paribas Leasing Solutions: greener vehicles for their clients

If 2018 was the year when Arval defined its products and services for the energy and environmental transition, 2019 was the year when they were brought to market. At the end of 2019, the amount of hybrid and electric vehicle outstandings was around EUR 1.3 billion at Arval, up more than 60% from the end of 2018.

In Belgium, for example, Arval partnered with energy supplier Engie to set up Numobi, an integrated electric vehicle leasing service. This provides a complete package, covered by a monthly subscription, for businesses and individuals who opt for electric mobility. It consists of the long-term lease of an electric car, a charging point installed at home and at work, a charging card, maintenance and insurance via lease finance.

The BNP Paribas Leasing Solutions subsidiary has also developed a specific solution for sustainable mobility by financing electric vehicle charging points. By offering this service to companies, the subsidiary intends to encourage the take-up of low-carbon vehicles, expand the network of charging stations, and accelerate the energy transition.

BNP Paribas Real Estate Services, offering companies responsible real estate

In 2019, BNP Paribas Real Estate, 100% of whose commercial real estate business has received environmental certification (achieving the two highest levels of certification), is ranked fourth in the top 10 French low-carbon real estate developers. Five of its projects are in the process