2018 Registration document and annual fi nancial report - BNP PARIBAS 549

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

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

Our civic responsibility: being a positive agent for change

Right to privacy Data protection was a priority issue in 2018, with the introduction of European General Data Protection Regulation (GDPR), which came into force on 25 May 2018. The Group strengthened its data protection system and DPO network ( Data Protection Offi cers ) in 2018.

The implementation of a data protection system based on the responsibility of the teams for the processing of personal data is a signifi cant element with regard to meeting regulatory demands and is an integral part of the Group s mission to meet the expectations of its customers, employees, clients and partners.

In addition, the activities of its corporate clients may pose a risk to human rights, particularly in the area of workers rights, and have an impact on local communities.

Management of salient risks in the Group s fi nancing and investment activities

The Group uses its influence to strongly encourage the companies with which it maintains a commercial relationship to manage their own activities in a way that is respectful of human rights. It also aims to identify, assess (due diligence process), monitor and encourage improvements in current performance and work with clients operating in sensitive sectors in order to prevent them from having negative impacts on human rights, in their operations and in their supply chain.

In 2018, BNP Paribas published a Responsible Business Relationships Charter (available on www.group.bnpparibas.com) for its customers, thus reaffi rming the Group s desire to work with companies whose business practices demonstrate a high level of governance and responsibility with respect to human rights, fundamental freedoms, personal health and safety and the environment.

To ensure that the existing system is adapted to the requirements of the Duty of care law, in 2018 BNP Paribas fi nalized a risk mapping of its clients that covers all business sectors and all the countries where the Group s clients legal entities are located. As a result of this, and

depending on the level of risk exposure of client legal entities , in-depth diligence measures were decided by the business lines and functions concerned and validated by the Group s Supervisory and Control Committee (GSCC) (see Duty of care and Declaration on modern slavery and human traffi cking, section 7.6) .

Workers rights The human rights criteria of the policies for financing and investment in sensitive sectors deal with matters such as workers rights, in particular child labour and forced labour, employee health and safety and freedom of association. These issues are also taken into account for projects within the scope of the Equator Principles (see Systematic integration and management of Environmental, Social and governance risks, Commitment 3).

Rights of local communities Another salient issue identifi ed the one of local communities rights is at the heart of most controversies affecting major industrial projects. In accordance with one of the commitments of the Equator Principles (see Systematic integration and management of Environmental, Social and governance risks, Commitment 3), which, in particular, concerns potentially impacted stakeholders and communities, the Group ensures that the negative impacts are avoided and, if necessary, remedied.

Thus, in the sectors identifi ed as highly sensitive, BNP Paribas requests its customers to demonstrate that they have consulted the local population before the project or that they set up a mechanism to address grievances. For example, the human rights criteria of the policies regarding fi nancing and investment in sensitive sectors integrate local communities rights issues.

Due diligence and dialogue In the event of suspected or identifi ed serious abuses of human rights by a BNP Paribas customer or a company in its portfolio, the Group conducts in-depth due diligence procedures and discusses the matter with the company concerned (see Systematic integration and management of Environmental, Social and governance risks, Commitment 3).

COMMITMENT 9: CORPORATE PHILANTHROPY POLICY FOCUSED ON THE ARTS, SOLIDARITY AND THE ENVIRONMENT

BNP Paribas is developing a structured corporate philanthropy policy that is both global and local. The BNP Paribas Foundation coordinates this commitment around three areas of application: solidarity, the arts and the environment (see Advance awareness and sharing of best environmental practices, Commitment 12). In 2018, the BNP Paribas philanthropy budget of EUR 41.6 million was broken down as follows:

■ 69.6% for solidarity, including support for refugees;

■ 20.8% for the arts;

■ 9.6% for the environment.

SOLIDARITY The extent and diversity of BNP Paribas commitments are refl ected in the broad range of initiatives to promote social inclusion, equal opportunities and employee commitment.

Promoting social inclusion

Support the integration of refugees 2017 posted the bleak record of 68.5 million people forced to leave their country of origin because of violence and persecution. In response to this humanitarian disaster, since 2016 BNP Paribas has been supporting refugees in Austria, Germany, Belgium, Spain, France, Greece, Italy,