2018 Registration document and annual fi nancial report - BNP PARIBAS 553

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

CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

Our environmental responsibility: combating climate change

Arval and BNP Paribas Leasing Solutions: greener vehicles and equipment for their customers

Arval is developing new offers to encourage customers to use low-carbon vehicles with:

■ SMaRT (Sustainable Mobility and Responsibility Targets): an innovative consulting offer that enables fl eet managers to defi ne and implement their energy transition strategies, in particular by deploying alternative mobility solutions (low-carbon vehicles, telematics-based services, etc.);

■ a new green mobility offer: developed in partnership with Engie, the goal of which is to simplify access to electric vehicles for companies, communities and individuals. For the price of a month s rent, this integrated offer includes the rental of an electric vehicle as well as charging point installation and maintenance. It also includes a green energy option, making it innovative and unique in its market. The offer will be initially launched in Belgium in early 2019.

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 effi cient buildings.

HELPING PRIVATE CUSTOMERS REDUCE THEIR ENERGY CONSUMPTION In line with its commitments, the Group continues to expand its offers to help households to improve the energy effi ciency of their dwelling, via dedicated products or partnerships with industrial players.

The Group has undertaken several initiatives to help its customers fi nance work to improve the energy effi ciency of their homes.

The joint subsidiary of EDF and BNP Paribas Personal Finance, Domofinance, specialised in the financing of energy efficiency in customers homes, granted over 44,400 loans in 2018. Outstanding Domofi nance credits amount to nearly EUR 1. 2 billion.

Elsewhere in Europe, BNP Paribas Personal Finance developed similar new partnerships in 2018, as, for example, with Innogy in Poland.

In Belgium, BNP Paribas Fortis offers green retail mortgages to facilitate work to reduce home energy consumption for both new constructions and renovations. At the end of 2018, these green retail mortgages totalled EUR 3.3 billion.

In the United States in September 2018, Bank of the West launched a low-rate offer for some real estate loans to promote energy renovation work. At the end of 2018, over 40 loans had been approved for a total amount of USD 6.1 million.

THIRD PARTY ASSET MANAGEMENT SUPPORTING THE ENERGY TRANSITION In addition to its carbon risk management system (see Systematic integration and management of Environmental, Social and governance risks, Commitment 3), BNP Paribas Asset Management offers a diversifi ed range of green funds invested, in particular, in alternative energies and energy effi ciency. At 31 December 2018, they represented EUR 6.6 billion in outstandings, including:

■ BNP Paribas Green Business: a new fund launched in 2018 that allows French savers to direct their savings towards energy and environmental transition players. The assets of this fund at the end of December 2018 stood at EUR 75 million;

■ Parvest Green Bonds: an SRI fund, invested in the green bonds of European companies fi nancing projects to combat global warming (EUR 230 million in assets under management at the end of December 2018);

■ Parvest Global Environment and Parvest Climate Impact: SRI equity funds invested in companies working in renewable energies, energy effi ciency, water treatment, or waste management and environmental services (EUR 821 million and EUR 612 million, respectively, in assets under management at the end of December 2018).

SUPPORTING THE CIRCULAR ECONOMY In 2018, BNP Paribas committed to support the circular economy by activating three levers: fi nancing circular economy players (particularly innovators), developing the functional economy through leasing , and committing its own operations (see Commitment 11: Reduce the environmental impacts of our operations).

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

In order to move forward and innovate with regard to the circular economy, Leasing Solutions joined the Circular Economy 100 programme (CE100) of the Ellen MacArthur Foundation. This initiative mobilises companies, public institutions, researchers and innovators to go beyond the issues raised by this new economy.