Climate Change Data

Environmental Metrics

ESG Focus Areas

• Client satisfaction and protection
• Climate change
• Responsible employer
• Ethics and governance
• Social trends and innovation
• Contribution to the sustainable development of Africa

Environmental Achievements

• Reduced the Group's internal carbon footprint per occupant by 13% from 2014 levels by 2017.
• Improved the energy efficiency of the Group's buildings by 16% between 2014 and 2017.
• €39bn already allocated to financing the energy transition in green bond issues (lead managed or co-lead managed) in renewable energy financing and advisory
• Stopped financing the development of coal mines, coal-fired plants and associated infrastructure around the world.
• Decided to end the financing of oil sands production and oil drilling in the Arctic.

Social Achievements

• Launched the Culture & Conduct programme to reinforce focus on controls, compliance and a shared culture.
• 25,000 new recruits in 2017, including 13,000 interns, apprentices and VIE programme participants.
• 23,000 internal mobility transfers.
• 68% of staff members feel committed at work.
• 84% of staff members are proud to work at the Group.

Governance Achievements

• Established a more agile organisation.
• Implemented the Culture & Conduct programme to instill a culture of integrity and ethics at all levels of the company.
• Published its Client Data Charter ahead of European regulations on the protection of personal data.

Climate Goals & Targets

Environmental Challenges

• Low interest rates putting pressure on credit margins.
• Changes in customer requirements.
• Regulatory changes following the financial crisis.

Mitigation Strategies

• Deep transformation of French Retail Banking to invent the relationship-focused bank of tomorrow.
• Upgrading branch presence, consolidating and specialising back office centres, and automating processes and the customer experience.
• Investing in upgrading staff’s skills.
• Adapting to regulatory changes by further developing its business model focused on client requirements, with strict cost control and stringent risk management, additional synergies and enhanced distribution capabilities.

Supply Chain Management

Supplier Audits: 100% of Sourcing staff trained on responsible purchasing, covering 70% of the Group's purchases at end-2018

Responsible Procurement

• Responsible Sourcing policy for suppliers and the environment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IIRC

Sustainable Products & Innovation

• YUP mobile money solution

Awards & Recognition

• Client Service of the Year 2018 (Viséo Customer Insights)
• #TwitterAward for its commitment to reply within 30 minutes on Twitter
• No. 2 company in the eCAC40 awards in 2017, and No. 1 bank

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Inclusion
• Responsible Banking
• Energy Transition
• Sustainable Development in Africa

Environmental Achievements

• Achieved target of raising €100bn to promote the energy transition one year ahead of schedule. Set a new commitment of €120bn by 2023 (34% target met in 2019).
• Reduced percentage of coal in the financed energy mix to 16.3% in mid-2019 (target 19% by end of 2020).
• Achieved 25% reduction in carbon emissions per occupant and 25% increase in energy performance per occupant of buildings in 2020 compared with 2014 (one year ahead of schedule).

Social Achievements

• Launched the Pride & Allies France network to promote equal rights for LGBT+ staff members.
• Renewed agreement with UNI Global Union on human rights, including commitments on anti-discrimination, health, safety, and workplace conditions.
• Supported several initiatives aimed at enhancing women's place in the professional world in Africa (Women in Africa Foundation, SmartCodeuses, Africa Women 4 Tech).

Climate Goals & Targets

Environmental Challenges

• Low interest rates and transformation of branch networks in French Retail Banking.
• Intense competition from banks and non-banking rivals.
• Increasing number and sophistication of digital attacks.
• Macroeconomic and geopolitical uncertainties (trade tensions, Brexit, cyclical slowdown, Covid-19).
• Climate change (physical, transition, and liability risks).

Mitigation Strategies

• Refocusing activities on areas of strength, strengthening franchises, allocating capital to most profitable franchises, investing in digitalization and customer experience.
• Leveraging diversified and integrated banking model, digital transformation, and innovation to offer new products and services.
• Investing €650 million in cybersecurity over three years (2018-2020).
• Constant monitoring of macroeconomic and geopolitical environment, strategic guidance review.
• Application of E&S principles and policies, implementation of credit policy based on climate vulnerability indicator, following TCFD recommendations.

Supply Chain Management

Responsible Procurement

• Responsible sourcing policy since 2006
• Positive Sourcing Programme

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Technological breakthroughs
• Changes in consumer preferences

Opportunities

• Development of energy-efficient products and services
• Financing of renewable energy projects

Reporting Standards

Frameworks Used: IIRC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

The Group's Sustainable and Positive Impact Finance (SPIF) and Sustainable and Positive Investment (SPI) products are designed to contribute to these goals.

Sustainable Products & Innovation

• Sustainable and Positive Impact Finance (SPIF) products
• Sustainable and Positive Investment (SPI) products

Awards & Recognition

• Africa’s Best Bank for Corporate Responsibility (Euromoney)
• World’s leading bank in terms of environmental responsibility (RobecoSAM)
• Best House ESG award (Structured Retail Products Europe Awards)
• Integrated Thinking Prize (Awards for Business and Responsible Governance)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Banking
• Operational Efficiency
• Client Centricity

Environmental Achievements

• Achieved 67% of €120bn target for financing the energy transition (2019-2023)
• Reduced the portfolio exposed to oil and gas extraction by 25% (2019-2020)
• Achieved 100% renewable energy in the financed electricity mix
• Reduced carbon emissions per occupant by 25% (2014-2020)

Social Achievements

• Launched a new 100% responsible investment offering in France
• Acquired Shine, a digital banking platform for professionals and SMEs
• Maintained 90% of retail banking branches open in France during the pandemic
• Implemented a Covid-19 global solidarity program with a budget of up to €28m

Governance Achievements

• Strengthened compliance control framework
• Implemented a Culture & Conduct program to raise awareness of ethical standards
• Set a goal of 30% women in senior management positions by 2023
• First French bank included in the Refinitiv Diversity and Inclusion Index

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its economic impacts
• Market dislocations impacting structured finance products
• Cybercrime and IT system security
• Increased competition from fintechs and neobanks
• Climate change related physical and transition risks

Mitigation Strategies

• Implemented cost-cutting measures
• Adjusted the range of structured finance products
• Increased IT security budget to €650m (2021-2023)
• Accelerated digital strategy and innovation
• Developed alternative sourcing strategies
• Updated risk management framework to include climate risks

Supply Chain Management

Responsible Procurement

• Sustainable Sourcing Charter
• Positive Sourcing Programme favoring VSEs/SMEs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in sustainable finance

Reporting Standards

Frameworks Used: IIRC

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

The Group's initiatives in sustainable finance, renewable energy, social inclusion, and responsible business practices contribute to these goals.

Sustainable Products & Innovation

• 100% responsible investment solutions
• Virtual accounts for simplified cash flow management
• Impact lending solution

Awards & Recognition

• Africa’s best bank for CSR (EMEA Finance Magazine)
• Komerčni banka ranked safest bank in Central and Eastern Europe (Global Finance)
• BRD received “Best Bank in Romania” award (The Banker)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Transition risks (regulatory, legal, technological, reputational, market opportunities)
• Physical risks (acute and chronic climate events)
• Social and human rights risks (forced labor, child labor, etc.)
• Governance and ethical risks (embargoes, sanctions, corruption, etc.)

Mitigation Strategies

• Exclusion of companies with worst ESG rating or severe ESG controversies
• Exclusion of companies with high thermal coal turnover or coal-based electricity production
• Exclusion of companies linked to controversial arms or tobacco
• ESG integration based on MSCI extra-financial research
• Exclusion of companies with ESG rating below 'CCC'

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and climate events (fires, floods)

Transition Risks

• Regulatory and legal risks, technological risks, reputational risks, market opportunities

Reporting Standards

Frameworks Used: SFDR, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Environmental transition
• Positive local impact
• Culture of responsibility
• Responsible employer

Environmental Achievements

• Reduced the Group’s carbon footprint by 35% (target of -50% in 2030 vs. 2019)
• Exceeding the target of a 20% increase in financial commitments for structured finance in Africa 2018 to 2021: +43% at the end of 2021 (€12.1bn)
• Over €150bn dedicated to the energy transition between 2019 and 2021
• New commitment of €300bn in sustainable finance for 2022 to 2025
• 100% of our French branches will be supplied with renewable energy

Social Achievements

• Launched the Environment & Social Loan offering (French Retail Banking)
• Supporting large corporates and investors with their ecological transition across the entire value chain
• 27% of the total number of vehicles delivered to ALD Automotive in 2021 were electric
• €5.9bn in social and societal financing (origination in 2021)
• SME Centers serving client needs in eight African countries, offering financial, legal and accounting advice, training, mentoring programmes and a co-working space

Governance Achievements

• New ESG governance for the Group
• Reinforced environmental commitments to achieve carbon neutrality in our business portfolios by 2050
• Progress in the achievement of objectives in terms of diversity and gender parity
• Definitive dismissal of the two legal proceedings initiated by the US authorities
• 92% of staff successfully completed the Code of Conduct training module in 2021

Climate Goals & Targets

Environmental Challenges

• Geopolitical uncertainty (war in Ukraine and Russia)
• Supply chain disruptions
• Climate change risks (physical and transition)
• Cybercrime risks
• ESG risks

Mitigation Strategies

• Strategic decision to cease operations in Russia
• Implementing development plans for subsidiaries in Europe and Africa
• Updated risk management framework to include climate risks
• Investing in cybersecurity solutions (OPPENS)
• Integrating ESG issues into strategy and business model

Supply Chain Management

Responsible Procurement

• Responsible sourcing policy
• Positive Sourcing Program favouring VSEs/SMEs and the Social and Solidarity Economy

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Sustainable finance, renewable energy

Reporting Standards

Frameworks Used: Value Reporting Foundation

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)

Supporting clients in achieving SDGs through financing and investment solutions

Sustainable Products & Innovation

• Environmental and social loan
• 100% SRI investment offering
• Tesla electric vehicle leasing offer

Awards & Recognition

• Best Bank of the Year for Sustainability 2021 (International Financing Review)
• Best Bank for Sustainable Finance 2021 (Global Finance and The Banker)
• Best Investment Bank in Africa 2021 (The Banker)
• Outstanding Leadership in Sustainable Finance in Africa 2021 (Global Finance)

Environmental Metrics

ESG Focus Areas

• Environmental Transition
• Positive Local Impact
• Responsible Employer
• Culture of Responsibility

Environmental Achievements

• Reduced direct carbon footprint by 35% compared to 2019 (target of 50% reduction between 2019 and 2030)
• Achieved more than €100 billion of the €300 billion Sustainable Finance 2022-2025 target
• Increased target for reducing exposure to oil and gas production to 20% by 2025 (compared to 2019)
• Set a new target for CO2 emissions intensity in power generation to 125g CO2 per kWh by 2030

Social Achievements

• Launched SG, a new French retail bank, combining proximity, expertise, and digital tools
• Boursorama achieved record customer growth with over 1.4 million new customers in 2022
• ALD Automotive generated a net result well above one billion euros for the first time
• Supported various initiatives to help young people find jobs and prepare for their future

Governance Achievements

• Implemented a robust risk management policy with a cost of risk contained at 28 basis points
• Aligned executive compensation with CSR issues, incorporating corporate social responsibility alongside financial performance
• Strengthened the Culture & Conduct programme to ensure compliance with the highest standards of integrity
• Set ambitious diversity targets, aiming for at least 30% women in senior management by 2023

Climate Goals & Targets

Environmental Challenges

• Complex macroeconomic environment with high inflation and monetary policy tightening
• Geopolitical uncertainty, including the war in Ukraine and its impact on energy markets
• Need to adapt to changing customer habits and expectations
• Challenges in aligning portfolios with pathways compatible with 1.5°C temperature increase scenarios

Mitigation Strategies

• Delivered record underlying commercial and financial results
• Responsibly managed exit from Russia
• Continued to implement major value-creating projects
• Accelerated digital transformation and CSR approach
• Set new decarbonisation targets and increased contribution to sustainable finance

Supply Chain Management

Responsible Procurement

• Positive Sourcing Program
• Sustainable sourcing policy

Climate-Related Risks & Opportunities

Physical Risks

• Financial risks relating to deterioration of the environment, especially climate change

Transition Risks

• Financial losses relating to the process of adjusting to a low-carbon and more sustainable economy

Opportunities

• Development of innovative finance products and energy advisory services

Reporting Standards

Frameworks Used: Value Reporting Foundation

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 1 (No poverty)
• Goal 5 (Gender equality)
• Goal 16 (Peace, justice and strong institutions)

Initiatives contribute to these goals through sustainable finance, environmental transition, positive local impact, responsible employer practices, and a culture of responsibility.

Sustainable Products & Innovation

• Green, social, and sustainable loans
• Impact-based finance
• Social impact solutions
• Nature-based solutions
• ESG research
• Electric vehicle leasing and fleet management solutions
• Mobility-as-a-service solutions

Awards & Recognition

• Global Winner for Outstanding Leadership in Sustainable Finance
• Global Best Bank Transition Strategy
• Best Bank in Africa for Sustainable Finance
• Best Bank for CSR Sustainability Award
• Best Investment Bank for Sustainable Finance
• Customer Service of the Year (France)

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Sustainable Finance
• Environmental Transition
• UN Sustainable Development Goals
• Diversity, Equity, and Inclusion
• Responsible Employer
• Culture of Responsibility
• ESG Risk Management
• Biodiversity

Environmental Achievements

• 80% reduction in upstream Oil & Gas exposure by 2030 (vs 2019), with 50% reduction by 2025
• Launch of a €1 billion transition investment fund
• 34% reduction in Group's carbon footprint between 2019 and 2023 (on track for 50% by 2030)
• Over €250 billion in sustainable finance by end-2023

Social Achievements

• Creation of Ayvens, a global leader in sustainable mobility
• BoursoBank growth to over 6 million clients by early 2024
• €100 million allocated to reduce the gender pay gap
• Target of >35% women in senior leadership roles by 2026
• New partnership with The Ocean Cleanup

Governance Achievements

• Appointment of a new Chief Executive Officer and Deputy Chief Executive Officers
• Implementation of the AFEP-MEDEF corporate governance code
• Establishment of a new Group’s Scientific Advisory Council
• Received IFR’s prestigious Bank for Sustainability award

Climate Goals & Targets

Environmental Challenges

• Pressure in the interest rate margin in French Retail Banking
• Higher than expected integration costs for LeasePlan
• Less supportive economic and financial environment
• Climate transition risks
• Competitiveness crisis in the euro area

Mitigation Strategies

• Disciplined management of costs, risks, and capital
• Focus on rigorously executing the roadmap and achieving financial targets
• Improved operational efficiency
• Portfolio review to focus on core businesses
• Development of an asset-light and advisory-driven model
• Strategic partnerships (AllianceBernstein, Brookfield)

Supply Chain Management

Responsible Procurement

• Positive Sourcing Programme supporting VSEs/SMEs and the social and solidarity economy

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Investment in green technologies

Reporting Standards

Frameworks Used: IFRS Foundation guidelines, CSRD, TCFD, NZBA, Equator Principles, UN Principles for Responsible Banking, Act4nature

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives supporting energy transition, decarbonization, and nature-based solutions

Sustainable Products & Innovation

• Solar Pack
• End-to-end assistance for home energy refits

Awards & Recognition

• IFR Bank for Sustainability award
• Euromoney prize for World’s Best Bank Transition Strategy