562 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

Donations from the Group s employees, matched by the Bank, are used to finance initiatives carried out by the NGO partners of the Rescue & Recover Fund for inhabitants of regions particularly vulnerable to the consequences of climate change, or directly affected by those consequences. This was particularly the case for victims of Cyclone Idai in Mozambique in March 2019, and victims of the fires that devastated Australia in late 2019 and early 2020 (See Corporate philanthropy policy focused on the arts, solidarity and the environment, Commitment 9).

SUPPORTING THE ROLE OF WOMEN IN THE FIGHT AGAINST CLIMATE CHANGE While many studies show that women bear the brunt of the consequences of climate change, they can also provide solutions to effect the necessary change. As a Strategic Member of the Women & Climate Daring Circle of the Women s Forum, BNP Paribas worked on the development of the Charter for Commitment Accelerating inclusion: Women leading climate action and was one of its first signatories in June 2019. The aim is to encourage governments, local authorities, businesses, associations and individuals to commit to inclusive climate initiatives.

The role of women in the fight against climate change is also the cornerstone of the Group s commitment to the One Planet Fellowship, an initiative of AWARD(1). This seeks to support more than 600 researchers, more than half of them women in work on resilience and techniques for adapting to climate change which is already affecting Africa. This five- year programme has a budget of USD 15 million.

In Senegal, where women account for more than 70% of workers in the agricultural sector, BNP Paribas has contributed USD 1.8 million (of a total of USD 7 million) to a UN Women AgriFed programme to empower 30,000 women rice entrepreneurs through climate-resilient agriculture.

Lastly, more than half of the research projects supported by the BNP Paribas Foundation between 2010 and 2018 have at least one female researcher working on the project.

ACTIVELY CONTRIBUTING TO THE TRANSITION TO THE CIRCULAR ECONOMY BNP Paribas is committed to developing the circular economy by using three mechanisms:

■ financing actors in the circular economy, particularly those who innovate. BNP Paribas has for many years supported actors in the circular economy, particularly in the field of waste management, from the largest manufacturers in the sector to innovative social enterprises;

■ developing the sharing economy through lease finance;

■ engaging in the context of its own operations (see Reduce the environmental impacts of our operations, Commitment 11).

Developing the sharing economy through lease finance solutions

The leasing offer proposed by the Arval and BNP Paribas Leasing Solutions subsidiaries is a service based on the use, rather than the ownership, of an asset, thus optimising the use of assets and taking into account the whole life cycle of their assets. In order to broaden its approach, the Group has implemented several projects, such as improving financing solutions for extending equipment life cycles (rental solutions for new and used equipment, recycling and end-of-life).

In France, BNP Paribas Leasing Solutions offers a range of services relating to the leasing of low-carbon vehicles, such as natural gas- powered lorries, support for customers regarding their economic and environmental performance, LEDs with a long-term leasing offer and green real estate leasing to encourage clients to select energy efficient buildings. In 2019, the entity signed a contract with Canon Medical Systems Europe to offer its customers leasing solutions that take into account the residual value of their medical imaging devices at the end of the contract. Finance products have also been developed for new types of equipment such as electric vehicle charging points and exoskeletons.

Lastly, 2019 also saw the creation of BNP Paribas 3 Step IT, which offers companies an end-to-end service for managing their technological equipment at each stage of its life cycle. This circular economy model means that 97% of equipment can be reconditioned and then resold at the end of the contract. The remaining 3% is recycled responsibly. This joint venture has been awarded the "Solar Impulse Efficient Solutions" label from the Solar Impulse Foundation.

Launch of a circular economy fund

BNP Paribas Asset Management has launched the first exchange-traded fund (ETF) dedicated to the circular economy, called BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF. The fund tracks the ECPI Circular Economy Leaders Equity Index. It allows investors to gain exposure to the performance of 50 international large caps selected for their active participation in the economic model based on the circularity of goods, materials and commodities.

Structured partnerships for the circular economy

In order to move forward and innovate on circular economy, BNP Paribas Leasing Solutions is working within the Ellen MacArthur Foundation s Circular Economy 100 (CE100) programme to find solutions to the challenges posed by this new economy.

In France, the Group also joined the Institut National de l Économie Circulaire (INEC) in 2019. It participated in the working group on indicators for financing circular economy projects, set up to foster the emergence of robust and relevant analytical and quantification tools for the circular economy in the financial sector.

(1) African Women in Agricultural Research and Development.