84 2019 Universal registration document and annual financial report - BNP PARIBAS

2 CorPorate GovernanCe and internal Control

2

Corporate governance report

■ The Bank signed a global partnership with the Nobel prizewinner, Professor Yunus (Grameen Creative Lab) to promote the creation of social business and products with a positive impact;

■ The introduction, in 2019, of a cap on fees for payment irregularities affecting the bank accounts of customers considered to be financially vulnerable.

b) In terms of energy and ecological transition:

■ BNP Paribas is ranked as the top European bank in terms of sustainable development in the Global 100 Most Sustainable Corporations ;

■ The Bank announced that it would stop financing operators whose main business was related to the unconventional hydrocarbons sector and would stop all finance for coal industry projects by 2030 in the European Union and by 2040 in the rest of the world;

■ It revised its renewable energy funding target upwards.

(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, Robeco 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 2019.

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%

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 2019, the Board determined that Mr Jean-Laurent Bonnafé had principally achieved the following:

■ his decisive role in the Bank s management within the context of the 2017-2020 strategic plan, (solid operating results, additional cost reduction measures in order to withstand an environment of persistently low interest rates), whilst still ensuring an increase in the CET1 ratio in view of the Basel III revision;

■ his key role in relation to major clients;

■ ongoing process automation and the digitisation of customer journeys ;

■ his personal commitment to issues relating to transforming the Bank s information systems and his involvement in resolving IT incidents;

■ his role in the transfer of Deutsche Bank s prime brokerage business;

■ his commitment to make the bank a recognised leader in terms of its CSR strategy (the bank was named the world s best bank for corporate responsibility 2019 as a result of its sustainable finance initiatives (Euromoney awards for excellence));

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

■ solid operational results and robust asset and liability management as part of the 2017-2020 Development and Transformation Plan and support for the plan especially the financial, cost control and technological innovation aspects;

■ his involvement in the resolution of IT incidents and in the improvement and transformation of the Bank s information systems;

■ his role in brokering the agreement for the transfer of Deutsche Bank s prime brokerage business and in completing this transfer;

■ fulfilment of the commitments of Group CSR Policy;

■ his involvement in the reviews performed by the SSM.

Summary After taking into account all the criteria used to set annual variable remuneration, and the evolution of the Group s operating results, the Board of directors, on the proposal of the Remuneration Committee, set the variable remuneration awarded in respect of 2019 at:

■ EUR 1,611,515 for Jean-Laurent Bonnafé (representing 103% of his target variable remuneration);

■ EUR 1,031,700 for Philippe Bordenave (representing 103% of his target variable remuneration).