2018 Registration document and annual fi nancial report - BNP PARIBAS554

7 A COMMITTED BANK: INFORMATION CONCERNING THE ECONOMIC, SOCIAL, CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS

7

Our environmental responsibility: combating climate change

A NEW GLOBAL COMMITMENT TO BIODIVERSITY Alongside 64 other international companies, BNP Paribas has supported act4nature, since its creation. Launched by the association EpE (Business for the Environment), this initiative aims to protect and restore biodiversity . BNP Paribas has thus made ten generic commitments to voluntarily integrate biodiversity issues as tangibly as possible in all of its activities, governance and operating strategy. At the same time, the Group also made additional individual commitments: integrate biodiversity into its overall growth strategies, eliminate deforestation businesses from its portfolio by 2020, and participate in the work of CDC Biodiversité to develop biodiversity performance metrics in certain economic sectors, such as agriculture .

INNOVATIVE FINANCING TOOLS TO PROMOTE AGRO-ECOLOGY AND AGRO-FORESTRY IN EMERGING COUNTRIES Rural areas in emerging countries are particularly affected by climate change, deforestation and the loss of biodiversity. BNP Paribas is developing innovative fi nancing solutions to facilitate the implementation of projects that tackle these issues.

Together with the United Nations Environment Programme (UNEP), the World Agro-forestry Centre (WAC) and ADM Capital, BNP Paribas co-founded the Tropical Landscape Finance Facility (TLFF). This unprecedented initiative intends to finance sustainable projects in Indonesia to improve the quality of life of inhabitants and protect biodiversity. The inaugural USD 95 million transaction was fi nalised in February 2018 and fi nances a rubber plantation project for the production of natural rubber. Out of the 88,000 hectares, only 34,000 are intended for the rubber plantation, while the rest of the land is reserved for the preservation of biodiversity, the restoration of the Indonesian forest and the protection of elephants, tigers and orangutans of Sumatra, three species threatened with extinction.

COMMITMENT 11: REDUCE THE ENVIRONMENTAL IMPACT OF OUR OPERATIONS

The reduction of the environmental footprint of the Group s own operations mainly relates to three issues: greenhouse gas emissions (GHG), responsible paper consumption, and waste management. The nature of its activities means that the Group is not a signifi cant source of noise pollution or any other specifi c form of pollution.

To monitor the successful implementation of measures to limit these impacts with specifi c objectives, the Group CSR pilots an environmental reporting system in 20 countries, accounting for 90% of the full-time equivalent staff (FTE) managed by the Group at 31 December 2018. Around forty indicators have been identifi ed including kWh, m3 of gas, km travelled, litres of water, tonnes of paper, tonnes of waste. The results are extrapolated across the entire Group, and are used to calculate the environmental data presented in this section.

In 2018, BNP Paribas launched the Green Company for Employees programme, which aims to step up the reduction in the Company s direct environmental impact, by drawing on employee contributions, particularly concerning two priority issues: the fi ght against plastics and the promotion of sustainable mobility.

In 2018, 23 separate ISO 14001 certifi cates were in effect within the Group. This number establishes BNP Paribas as a world leader in the banking/insurance sector for Environmental Management Systems (EMS). BNP Paribas in the United Kingdom, including Arval and its 15 certifi ed subsidiaries throughout the world, have implemented an ambitious certifi cation programme. Collectively, these entities represent a total of 10,902 employees. In addition, 67,861 employees work in France and Belgium in offi ces covered by an environmental management system. In total, these two scopes represent nearly 39% of Group employees.

A CARBON NEUTRAL BANK ACROSS ITS OPERATIONAL SCOPE As part of its policy to combat climate change, in 2017 BNP Paribas became a carbon neutral bank at all levels of its operations through three complementary actions:

The reduction of its CO2 emissions

The Group s target is to reduce greenhouse gas emissions per employee by 25% by 2020 as compared to 2012: in other words, to go from 3.21 to 2.41 t CO2-e equivalent per employee in 2020. GHG emissions are measured by converting the energy consumed in buildings and employee business travel into tonnes of CO2 equivalent (tCO2-e, including all six greenhouse gases covered by the Kyoto protocol).

In 2018, the Group emitted a total of 496,025 tCO2-e, or 2.45 tCO2-e/ FTE, representing a 23.6% reduction compared to 2012. 71% of these emissions stem from building energy consumption and 29% from business travel. There are three mechanisms to reduce them: energy effi ciency of buildings, energy effi ciency of IT equipment, and business travel optimisation. In order to reach its 2020 target, the Group set up the Carbon Reduction 2020 programme to share best practices, which it extended to Asia in 2018. BNP Paribas s carbon management performance was evaluated by the Carbon Disclosure Project in 2018 resulting in a rating of A- for the transparency and quality of its reporting.