2018 REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

2018 Registration document and annual fi nancial report - BNP PARIBAS 517

7 A COMMITTED BANK: INFORMATION CONCERNING THE ECONOMIC, SOCIAL,

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

Our economic responsibility: fi nancing the economy in an ethical manner

7.2 Our economic responsibility: fi nancing the economy in an ethical manner

BNP Paribas primary mission is to meet its clients needs, in particular by fi nancing 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 fi nancial services in the 72 countries in which it operates, the Group s fi nancing 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 fi nancing with a positive impact;

■ Commitment 2: Ethics of the highest standard;

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

2018 saw numerous tangible contributions promoting BNP Paribas economic responsibility:

■ With EUR 168 billion at the end of 2018, total financing contributing to the energy transition and SDGs, has increased by 8.4%.

■ The Group has committed to complying with the Principles for R esponsible B anking , which state the role and responsibilities of the

banking sector in building a sustainable future in order to achieve the SDGs and the climate targets of the Paris Agreement.

■ The Group s total support for social enterprises (including microfi nance institutions) amounted to EUR 1.6 billion, a growth of 59% compared to 2017.

■ BNP Paribas has structured and launched 4 Social Impact Bonds (SIBs) (for a total of EUR 9 million), enabling social enterprises or NGOs in F rance and the USA to raise funds to develop their projects.

■ The SRI funds managed by BNP Paribas Asset Management stood at EUR 36.8 billion in assets as at 31 December 2018, representing growth of over 5.2% on the previous year.

■ The Group withdrew from fi nancing the tobacco sector and became a founding member of the Tobacco-Free Finance Pledge, launched in September 2018.

■ Through its Responsible Business Principles , published in December 2018, BNP Paribas made public its willingness to work with players that share the same environmental and social standards.

COMMITMENT 1: INVESTMENTS AND FINANCING WITH A POSITIVE IMPACT

SUPPORTING SMES AND BOOSTING EMPLOYMENT

Supporting SMEs

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 effi cient 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 specifi c 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;

■ BNP Paribas SA recognised a Competitiveness and Employment Tax Credit (CICE) of EUR 35 million at 31 December 2018;

■ BNP Paribas Asset Management has developed a savings product offering to facilitate access by SMEs to loans and alternative sources of fi nancing to traditional bank loans (BNP Paribas Action Entrepreneurs, Smallcap Euroland and MidcapFrance).

United Nations Principles for R esponsible B anking

In 2018, BNP Paribas helped develop the Principles for R esponsible B anking alongside 26 banks from 19 countries. Signed on 26 November 2018, they recognise the central role of banks in achieving the SDGs and the climate targets set in the Paris Agreement and commit the banks to aligning their practices with these major targets. They defi ne an overall framework for responsible banking and propose that each bank identifi es its contribution goals to the SDGs and ensures that it reports its impacts consistently and transparently. The actions selected to meet the transparency challenges of the Principles for Responsible Banking are indicated in the table of concordance (see Table of concordance GRI, ISO 26000, UNEP FI, Global Compact, Sustainable Development Goals, Principles for Responsible Banking and TCFD , section 7.8) .