2018 Registration document and annual fi nancial report - BNP PARIBAS 519

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

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

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

FINANCING SOCIAL ENTREPRENEURSHIP Thanks to their hybrid business models , social enterprises (SE) (including Tech for Good), aim to generate a strong positive social or environmental impact, while seeking economic sustainability.

Strong growth of the bank's support: both in the fi nancing volumes and in the number of Social Enterprises

At 31 December 2018, the Group s support for social enterprises (including Microfinance Institutions) amounted to EUR 1.6 billion, up 59% compared to 2017. Over 2,000 customers and partners have benefi ted from it in 17 countries.

➤ FINANCING TO SOCIAL ENTERPRISES:

France

74%

Italy

9%

8%

Belgium

8% United States of America

1% Luxembourg

TOTAL : 1,126 million

➤ INVESTMENTS AND OTHER SUPPORT TO SOCIAL ENTERPRISES IN ADDITION TO FINANCING:

Social Impact Bonds 5%

15%

Equity Investments

33%

45% Client savings

Employee savings

2% Purchases

TOTAL : 145 million

An evolving approach to support S ocial E nterprises labelled Act for Impact in 2018

The Bank decided to further strengthen its support for social enterprises by creating the Act for Impact label, which streamlines and aggregates the entire existing social enterprises offer and enhances the range of products and services in that sector. This initiative was initiated by French Retail Banking and focuses on:

■ an increasing number of banking counselors trained in the specifi cities of social entrepreneurship (100 in France and 30 in Belgium at end 2018);

■ a Specific Credit Policy for customised fi nancial analysis;

■ an impact measurement methodology, MESIS, co-built with CDC, INCO and KIMSO, to include social impact as a fully integrated analysis criteria and to make progress in collective thinking on measuring social impact;

■ solidarity investment funds for the employees of major companies or for individual customers, such as BNP Paribas Social Business France; those funds managed in total EUR 1.5 billion in 2018;

■ support for Social Enterprise ecosystems in the 17 concerned countries via the implementation of new partnerships in 2018. This is the case, for example, with French Impact, an initiative carried by the French government to develop a Social and Solidarity Economy ecosystem in the country or the Lab ESS incubator in Tunisia;

■ a mobilisation of the Group s expertise with the deployment in 2018 of a new pro-bono legal and consulting offering;

■ equity investments in positive impact products in 2018, in the fund dedicated to positive impact African SMEs, IPDEV II, in the microfi nance fund Helenos (see Products and services that are widely accessible, Commitment 7) and in Social Impact Bonds (SIBs) ;

■ dedicated spaces to promote the local anchoring of ecosystems: in 2018, BNP Paribas was one of the creators of Ascenseur (the Elevator) in Paris, which will bring together in a unique location over twenty associations, social enterprises, public and private actors from across the entire value chain of equal opportunities to provide benefi ciaries with a more effective integrated path;

■ chances for visibility, for example the MaPubICI competition in France dedicated to Social Enterprises in 2018.

SOCIAL IMPACT BONDS (SIB): BNP Paribas is leader in France and an important player in the United States

SIB , is a Payment by Results fi nancial tool supporting social innovation. Private investors assume the risks of failure of a social experiment carried out by an association or a social enterprise, in return for compensation. The investors are repaid by the public authorities only when an independant impact auditor testifi es that the project has achieved the expected social impact.

BNP Paribas continued to develop SIBs as an arranger and investor. In 2018, the Group invested in three of them and carried out the fi nancial structuring for four new SIBs (3 in France and 1 in the United States) for a total of EUR 9 million:

■ the Veterans CARE (1) programme (Veterans Coordinated Approach to Recovery and Employment) aims to support 480 veterans of the US armed forces suffering from post-traumatic stress disorders to enable them to fi nd qualifi ed , long-term employment;

■ the digital path programme from Wimoov, an association that supports 10,000 people towards employment each year by promoting their mobility. In partnership with 3 French ministries, this SIB aims to implement an on-line tool to detect mobility issues of vulnerable people ;

■ the Family Relay project with the Fondation Apprentis d Auteuil in Loire-Atlantique aims to avoid placing 68 children in foster care structures, by offering housing in family apartments and parental support to families in disadvantaged situations. This EUR 2.5 million experiment will be replicated in the Gironde Region ;

(1) Co-structured with Social Finance.