BNP PARIBAS

CSR STRATEGY

LAURENCE PESSEZ
GLOBAL HEAD OF CSR

2024
September 2024 2
 Nov. 2010 Nov. 2015 Oct. 2017 May 2020 May 2021 Oct. 2021 May 2022 Jan. 2023

First coal related ▪ Doubled renewable The first of the world's ▪ Commitment to cease ▪ Commitment to net Creation of the Low- ▪ Restriction of support to ▪ New commitment to reduce
policy with energy commitment 35 largest banks to financing the zero by 2050 and Carbon Transition energy companies financing to oil exploration
restrictive financing from EUR 7bn in 2015 cease dealings with thermal coal sector signature of the Group bringing together significantly involved in and production by 80%
and investment to EUR 15bn in 2020 shale oil & gas (O&G) value chain by 2030 in Net-Zero Banking over 250 professionals the Arctic & Amazon compared to financing in
criteria ▪ Commitment to invest and tar sands the EU & OECD Alliance worldwide to support & regions, in shale O&G and Sept. 2022, reaching less
EUR 100m in companies countries, and by ▪ Initial interim advise Corporate & tar sands than EUR 1bn in 2030, and
transition start-ups 2040 in the rest of the commitment to Institutional clients on ▪ Publication of 1st to decrease its financing to
world reduce financing to their transition to a Alignment report on 3 gas by 30% in 2030
▪ No further financing sustainable & low-carbon
of coal-fired power ▪ Publication of the 1st O&G exploration & sectors ▪ Commitment to achieve a
TCFD report production economy target of EUR 40 bn in
plants in high income ▪ Commitment to reduce
countries activities by 10% financing to Upstream financing for the production
between 2020 & O&G production activities of low-carbon energies by
2025 by 12% between 2020 & 2030
2025

May 2023 Feb 2024 May 2024

Strong leading positions in sustainable finance

▪ Publication of the ▪ Acceleration in ▪ Publication of the
first Climate Report, low carbon- Climate Report,
including net zero financing: the including net zero
commitments for three target of 40bn in commitments for three ▪ #1 in the world in Sustainable Finance (bond and loans) with $62.5bn in 2023*
new sectors (steel, low-carbon energy new sectors (Shipping,
aluminium, cement) financing is moved aviation and Commercial ▪ #1 in the world in Green Bond issuance with $25,6bn*
▪ Update of the Oil & forward to 2028, Real Estate)
Gas policy including representing at ▪ Update of the Oil &
more detail on its plans least 80% of the Gas policy including
to withdraw from new energy financing, financed emission
oil and gas field and 90% by 2030. reduction by 70%
financing, and to oil between Q3 2022 and
and gas activity 2030
* . Dealogic, 2023: total ESG bonds (sustainable, green, social and sustainability-linked / SLBs) and ESG loans (green, social, ESG-linked loans / SLLs);

September 2024 3
▪ LATEST EXTRA-FINANCIAL RATINGS ▪ LATEST AWARDS

*
EUROMONEY – 2024 “World’s Best
Bank for financial inclusion”
*

CORPORATE KNIGHTS – 2024

“Global 100 Most Sustainable
Corporations” for the 10th consecutive
year

IFR – 2023 “ESG Financing House”

* Performance rankings included in the assessment of the Group’s CSR policy, impacting the annual variable compensation applicable to the CEO and the Chief Operating Officers
September 2024 4
 Mobilising BNP Paribas’ distinctive model with 5 priority areas

Bring innovative & seamless solutions

to answer clients’ Sustainable needs & leverage cross-divisional strengths
to reach UN SDGs1

Sustainable savings, investments and

financing Transitioning towards carbon neutrality
Foster sustainable savings development and Foster our client’s transition towards low-carbon and more efficient
steering clients’ investment decisions towards energy systems and addressing their massive financing needs in this
positive environmental and social impacts area in particular through the access to capital markets

Circular economy
Encourage clients’ transition to circular models by Natural capital & biodiversity
financing adaptation of supply chain & production Orchestrate & promote development of solutions contributing
models to terrestrial & marine biodiversity conservation

Social inclusion
Develop accessible financial services, promote
female entrepreneurship, a positive-impact
economy, and equal job opportunities for young
1. Sustainable Development Goals; people

September 2024 5
 Board of Directors
▪ to review the CSR strategy and the annual reporting
▪ CGEN, Corporate Governance & Nominations Committee, extended its responsibilities to Ethics, Conduct and CSR in 2016

Executive Committee to validate the ESG strategy and Group commitments Governing bodies covering
risk-related topics
Sustainable Finance Strategic Committee
Sponsored by CEO Jean-Laurent Bonnafé, meets bi-monthly
Attendees: majority of Executive Committee's members + representatives of Clients CCDG
Coverage + head of CSR (General Management Credit
• to approve the overall strategy in terms of sustainable finance, Committee)
• to decide on the overall commitments made by the Group and the Sustainable Finance ▪ procedure specifies CCDG will
commercial policies, review all issues surrounding
the acceptability of risks
• to monitor operational implementation
including ethics and CSR

Sustainable Finance Infrastructure Committee

Chaired by the Group COO GSCC
Attendees: key contributors from different business lines and functions. (Group Supervisory and Control
• to industrialise ESG processes, data and reporting Committee)
▪ to validate financing and
ESG Regulatory Committee investment policies
• to assess the operational consequences of the main new regulations

September 2024 6
Pillar
Our economic No. Indicator 2023 2025 Objective
responsibility
1 Amount of sustainable loans EUR 117 billion EUR 150 billion

2 Amount of sustainable bonds EUR 67 billion EUR 200 billion

3 Amount of assets under management at the end of 2022 in open-ended funds distributed in EUR 254 billion EUR 300 billion
Europe under articles 8 and 9 according to the SFDR.
responsibility

4 Share of women among the SMP population (Senior Management Position) 37.1% 40%
Our social

5 Number of solidarity hours performed by employees (#1MillionHours2Help) 1 268 515 hours 1 million hours
(in 2022 & 2023) (over two rolling years)
6 Proportion of employees who completed at least four training courses during the previous
twelve months 98.2% 90%
responsibility
Our civic

7 Number of beneficiaries of products and services supporting financial inclusion 3.9 million beneficiaries 6 million beneficiaries
Our environmental

8 Amount of support for our clients in the transition to a low-carbon economy EUR 104 billion EUR 200 billion
responsibility

9 Amount of financing to companies contributing to protect terrestrial and marine biodiversity EUR 4.3 billion EUR 4 billion

10 Greenhouse gas emissions in tons of CO2 equivalent (tCO2e) / full-time employees 1.56 tCO2e/FTE 1.85 tCO2e/FTE

Group Sustainability and Incentive Scheme:

20% of more than 8,200 key employees’ deferred variable compensation relies on the performance of the 10 CSR performance indicators

See Dashboard definitions in the URD 2022 page 626

September 2024 7
 75% 15% 10%
Group’s Group’s CSR Qualitative
Financial Performance
Criteria
Performance

Assessment of CSR policy

1/3 1/3 1/3

By the Board By the market Alignment with key staff

Annual assessment by the BNP Paribas positioned in the Achievement of the CSR
Board of achievements top quartile of the banking objectives set for the
and key developments sector in the extra-financial Group’s key employees in
around a line of action performance rankings of the retention plan that
focused on climate and FTSE, S&P Global CSA and expired during the year
social challenges Moody’s ESG Solutions
.

September 2024 8
➢ to identify, assess and monitor the performance and ESG risks of corporate clients by sector
➢ a common and systematic approach within the Group for clients within the credit process and KYC1 process
➢ to exercise greater control over the ESG dimensions during credit committees

ESG Assessment is rolled out to all large corporate clients by the end of 2023 (3.000 analysis performed by end-2023)
It has been adapted for medium-sized corporate customers and financial institutions, with a target of covering customers in these segments by the end of 2024.

The ESG assessment Tool can be illustrated as follow

ESG training to favor

Method for ranking and classifying
Integration of existing setups ESG risk Profile appropriation and
clients in relation to their ESG profile
cultural change

Business ethics

ESG ASSESSMENT TOOL

Sectorial questionnaires
to support the evaluation
of key ESG dimensions Human rights – Health & Safety

Climate
(transition, physical and liability risks)
Sector policies

Pollution & biodiversity RISK as second Line of

Controversies analysis defense for ESG risks
Human rights – Local Communities
& consumers
1 Know Your Customer

September 2024 9
 1 2 3

LfC: The Leaders for Change population is composed of the members of the main Group-level cross-functional Executive Committees considered as making a major contribution to its operations and its development
LfT: The Leaders for Tomorrow programme includes women and men who have a unique combination of skills, experiences, motivations and personal attributes (“Leadership Profile”), which the Group considers necessary to
drive transformation in the future
September 2024 10
September 2024 11
September 2024 12
 Mobilising BNP Paribas’ distinctive model with 5 priority areas

Bring innovative & seamless solutions

to answer clients’ Sustainable needs & leverage cross-divisional strengths
to reach UN SDGs1

Sustainable savings, investments and Transitioning towards carbon neutrality

financing Foster our client’s transition towards low-carbon and more
Foster sustainable savings development and efficient energy systems and addressing their massive
steering clients’ investment decisions towards financing needs in this area in particular through the access
positive environmental and social impacts
to capital markets

Circular economy
Encourage clients’ transition to circular models by Natural capital & biodiversity
financing adaptation of supply chain & production Orchestrate & promote development of solutions contributing
models to terrestrial & marine biodiversity conservation

Social inclusion
Develop accessible financial services, promote
female entrepreneurship, a positive-impact
economy, and equal job opportunities for young
1. Sustainable Development Goals; people

September 2024 13
 Engaging with clients to
Aligning our portfolios with our accompany them in the transition
carbon neutrality commitment towards a sustainable &
low-carbon economy
▪ Trajectory for a reduction in CO2 ▪ Mobilisation of the integrated model
emissions corresponding to financing and all business lines in support of
of the sectors with the highest levels of clients
emissions (NZBA)

▪ Low Carbon Transition Group, an

▪ Aligning the objectives of Group’s organisation of 200 specialised bankers
business lines with shared objectives by dedicated to supporting clients in
sectors taking into account client transition accelerating their transition
➔Publication of Climate Report (May
2023 and May 2024) ▪ Pooling and promoting the Group’s
technical expertise via NEST, the in-
house network of experts

➔ Priorities that are deeply embedded in the specific objectives of each of the Group’s businesses

September 2024 14
 Financed emissions (MtCO2e) -70% In 2030 compared to Q3 2022 Energy mix : Automotive mix :

(Power generation)
2022 (3Q) >66% share of < 5% share of

(car manufacturers)
27.3
(Upstream + Refining)

2023 (4Q) 15.9

by 2025 >25% share of electrified vehicles by 2025
renewables coal

Automotive
Oil & Gas

2030 8.2

Power
Emission intensity (gCO2/kWh) Emission intensity (gCO2/km WLTP)
Exposure to upstream activities (in billions of euros)
In 2030 2020 208 2020 183
compared to
-80% for oil -30% for gas Q3 2022 2023 148 -30% 2023 151
OIL GAS -25%
2022 (3Q) 5 5.3
2023 (4Q) 2025 ≤146 2025 <137
3 3.5 332
2030 <1 121
<3.7

Emission intensity (tCO2/ton of steel) Emission intensity (tCO2e/ton of Aluminium)

(Iron & Steel making)

Emission intensity (tCO2/ton of cement product)

(Cement production)
Aluminum
2022 1.6

(Smelting)
6.2 0,67

Cement
2022 2021
Steel

2023 1.5 -25% 2023 5.8 -10% 2022 0.64 -24%

2030 ≤1.2 2030 ≤5.6 2030 ≤0.51

8.9
1.2 0.47

Emission intensity (gCO2e/RTK) Emission intensity (kgCO2e/m2)

Emission intensity (gCO2e/dwt.nm)

Commercial Real
Shipping
Aviation

Estate
956 2022 8.3 28.4
2022 2022
-32 to -23%
-18% -41 to -31%

2030 5.6-6.4 16.7-19.5

≤785 2030
2030
5.4 13.5
785
In red: IEA, IAI net-zero scenario (Aluminium), MPP PRU (Aviation), DNV 1.6° ( shipping),CRREM V2.02 (Commercial Real Estate)

September 2024 15
 Sharp acceleration
in financing low-carbon energies and exiting fossil fuels

Target of 80% of energy financing in low-

carbon energies moved forward to 2028 from
the initial trajectory

A new target of 90% for 2030

BNP Paribas’ 2023

“Financing flows ratio”2
1 / 11
Oil & gas exploration & production to Renewable energies

Best bank4 Low Carbon Transition Group :

N°1 worldwide3 worldwide 200 specialist bankers dedicated to supporting large
ESG bonds and loans at $62.5bn in 2023 in sustainable finance in 2023 companies

1. Source: internal figures – credit exposure in €bn as of 30.09.23 vs. 30.09.22; low-carbon (€32bn as of 30.09.23): renewables (€28.8bn), biofuels (€0.2bn), and nuclear (€3bn); fossil fuels (€17.3bn as at 30.09.23): refining (€9bn), gas exploration & production (€4.3bn), oil exploration
& production (€3.6bn), and coal (€0.4bn); 2012-2022 illustrative trajectory; The scope of low-carbon energies could evolve as technologies mature;
2. Source: internal figures; ratio calculated by comparing financing flows granted by BNP Paribas to oil & gas extraction/production companies and to renewable energies projects.
3. Dealogic, 2023: total ESG bonds (sustainable, green, social and sustainability-linked / SLBs) and ESG loans (green, social, ESG-linked loans / SLLs); 4. Source: Euromoney 2023

September 2024 16
Weight of fossil fuels and low-carbon energies in BNP Paribas energy production financing 1

The end of financing purely dedicated to the

development of new oil & gas fields regardless of
the financing methods

Coal exit already well underway, completed by 2030 in

EU and OECD countries and by 2040 in the rest of
the world

Target to reach at least 40 billion euros

in credit exposure for low-carbon energy
production by 2030

1. Definition: BNP Paribas makes the following distinction: ■ renewable energy, including wind and marine energy, photovoltaic solar energy, concentrated solar energy, hydroelectricity, geothermal energy,
bioenergy (including biofuels except for first generation(1)); ■ low-carbon energy, including renewable and nuclear energy sources. The scope of low-carbon energy could evolve according to technological
progress to gradually go beyond the production of energy and include other steps in the value chain such as transport, storage or distribution of low-carbon energy September 2024 17
Change in BNP Paribas’ market share in syndicated loans to Oil & Gas companies, 2014 to 2023 (source: Dealogic)

• BNP Paribas’ market share1 in syndicated

loans to oil & gas companies has fallen
significantly and steadily since 2020.

• According to Dealogic, of the USD 256

billion granted by the global banking
sector to the oil and gas sector, BNP
Paribas' market share is now 0.3%.
Previously, and until 2020, it had fluctuated
between 2% and 3%.

Source: Dealogic 2014 – 2023, excl. green loans and Sustainability-linked Loans (SLLs), excl. Oil & Gas pipelines and field equipment & services :

September 2024 18
BNP Paribas is the world leader in green bond issues and …. and is out of the table for fossil fuel sector bond issues.
ranks #77 by end February….
BNP
End 2023 Paribas

#41

BNP Paribas
1st January to 29
February 2024 period
#77

BNP
Paribas
BNP Paribas BNP

#1 Paribas is
now out of
End 2023 the Table

September 2024 19
Renewables projects in Europe

Renewables projects in the Americas

1. Internal sources and external publications

September 2024 20
September 2024 21
 Mobilising BNP Paribas’ distinctive model with 5 priority areas

Bring innovative & seamless solutions

to answer clients’ Sustainable needs & leverage cross-divisional strengths
to reach UN SDGs1

Sustainable savings, investments and

financing Transitioning towards carbon neutrality
Foster sustainable savings development and Foster our client’s transition towards low-carbon and more efficient
steering clients’ investment decisions towards energy systems and addressing their massive financing needs in this
positive environmental and social impacts area in particular through the access to capital markets

Circular economy
Encourage clients’ transition to circular models by Natural capital & biodiversity
financing adaptation of supply chain & production Orchestrate & promote development of solutions contributing
models to terrestrial & marine biodiversity conservation

Social inclusion
Develop accessible financial services, promote
female entrepreneurship, a positive-impact
economy, and equal job opportunities for young
1. Sustainable Development Goals; people

September 2024 22
 Natural Capital &
Biodiversity Circular Economy Social Inclusion

Support solutions contributing

to terrestrial and marine Encourage clients’ transition Develop products and services that are
biodiversity to circular models widely accessible
▪ Financing to companies protecting ▪ An objective of 6 million beneficiaries from
▪ Financing of EUR 3.3 million allowing
terrestrial and marine biodiversity, already products and services supporting financial
Ardennaise, major player in the foundry
exceeds the 2025 target with EUR 4.3 billion inclusion in 2025
industry, to recycle 90% of black moulding
▪ BNP Paribas Asset Management is sand
▪ Continue to support Social Enterprises: at
expanding its sustainable investment with end 2023, it the Bank supports over 3,450
▪ Logistics sector pioneer Brambles issued
the acquisition of a majority stake in the impact enterprises through financing,
EUR 500 million green bond in 2023 with
International Woodland Company (IWC), banking services and investments.
BNP Paribas as joint bookrunner, the first by
specialisng in investment and advisory
an Australian company dedicated to the
services for sustainable forestry
circular economy ▪ Increase corporate philanthropic
commitments to EUR 200 million by 2025,
▪ At the end of 2023, a partnership with the ▪ “Arval car sharing” offers digital solution for including support to youth, refugees, etc.
Naturalis Biodiversity Center was reservation and pooled use of service
launched, one of the world’s leading centres vehicles within a company, maximising fleet
of biodiversity knowledge and research usage rate, and optimising vehicle
numbers

September 2024 23
Circular economy
Governement
Europe Batteries Agriculture
Uruguay Uruguay added $700
$5 billion for expansion of France million to its 2034 Denmark
Europe's first circular sustainability-linked bonds
Financing the DLG Group, a cooperative
gigafactory
construction of a new owned by 25,000 Danish
greenfield 9 GWh battery farmers, has secured a
Exclusive Senior Debt Joint Bookrunner
gigafactory in Douai €1.1 billion sustainability-
Advisor
linked loan.
Tier 1 Senior Mandated Lead Proceeds:
Arranger Mandated Lead Arranger,
Technical and E&S Bank, Co-Sustainability
• achieving a reduction in
Account Bank Coordinator, Bookrunner
Sustainability arguments: aggregate greenhouse
Hedging Bank and Mandated Lead
gas emissions intensity
Arranger
• Recovering of battery- • maintaining or
grade metals with a carbon The gigafactory will equip increasing the native
Renault’s next generation Sustainability Performance
footprint that is 70% lower forest area covering
flagship electric vehicles Targets:
than mined raw materials, Uruguay’s territory.
• a fully integrated, circular models ECHO and 4Ever
and support Renault’s • Reduction of GHG
battery production setup
ambition to reach 100% EV Scope 1, Scope 2 and
that has not previously
sales in Europe by 2030 Scope 3 emissions;
existed outside of Asia.
• Share of imported
deforestation-free soy.

September 2024 24
Proprietary investment Impact Bonds Financing Impact Nickel : Financial
Entrepreneurship Inclusion
EUR 450 million are allocated to In 2023, 9 new contracts were In 2023, total support (loans, At the end of 2023, nearly 3.7
proprietary investments. signed for a total amount of EUR investments for the own account million Nickel accounts had
Impact investment 28 million in which the BNP of the Group or on behalf of third been opened with the following
• EUR 145M social and local Paribas European Impact Bonds parties, impact bonds) to impact profiles: income of less than EUR
impacts Fund invested EUR 13 million enterprises, including 1,500 per month (77%);
• EUR 55M protection and Microfinance Institutions, unemployed, with no regular
restoration of natural capital At end-2023, 24 impact bonds amounted to EUR 2 billion. income or living on benefits
supported by BNP Paribas (as (30%); without a personal
Innovation The Bank supports over 3,450
arranger or investor, sometimes address (30%).
• EUR 250M to start-ups involved impact enterprises through
both) had been signed French Nickel’s inclusive offer
in the environmental transition. financing, banking services and
representing more than EUR 82 launched in Spain (2021),
million in total. investments. Belgium, Portugal (2022) and
Germany (2023).

September 2024 25
 ETHIC AND INCLUSION EMPLOYEE EXPERIENCE HUMAN CAPITAL

Mixity management Number of solidarity hours % of employees who followed

37% by employees 1 268 515 h at least 4 training courses
% women (in senior management) 98,2%
2025 target : 1 million (2022 + 2023)
2025 target : 40%
hours over two rolling years 2025 target: 90%

Conduct & Inclusion survey re-run in 2023 Average number of hours of

Favorable opinion on the Inclusion % of employees benefiting from Training per employee 24,2 h
83%
Component of Employee Assistance 83% in 2023
Program3 (We Care) Of which excluding mendatory
Inclusion Days 2023 19,8 h
training
Number of participants Number of employees
30 countries
17k trained in Agile since 2021 >11k Number of employees trained by
Sustainability Academy in 2023 >86k
Overall engagement score % of employees who
Consolidation surveys 2023 remoteworking in Europe
covering 86% of the workforce 2 days per week on average 75% Number of views on employee posts
85/100 14,7M
(Participation rate : 69%) on LinkedIn

First and only bank in France to hold the The only bank in the Top 10 employers in
1st bank in the sector in the London
AFNOR "Alliance" label France to be awarded the Top Employer
Stock Exchange ESG 2023 ranking
bringing together the "Diversity" and Europe 2023+2024 label for the 10th and
96 / 100 on the social aspect
"Professional Equality" labels 11th consecutive years

September 2024 26
 GLOBAL PHILANTHROPY EXCEPTIONAL ENVELOPES TO ACT QUICKLY AND GLOBALLY
AT GLANCE The Group entities are acting as a coalition to respond to the social and humanitarian
emergencies internationally
€111.6M in 2023*
€69.5M €14M €7.6M €20M Donations issued from share buybacks focused on major causes
Solidarity Environment Culture identified by the Group local entities worldwide
• BNP Paribas is the first bank to have accompanied its share buyback with a
+ €20.5M : Skills-based philanthropy in France
solidarity tranche
• Emergencies situations : food insecurity, housing, reception of women and refugees
• 1% on average of the • Major social issues: climate, biodiversity, access to water, equal opportunities
net group net income
over the past 5 years
+ €15M Emergency philanthropy in Severe Crises: Earthquakes in
Turkey/Syria and Morocco
• Nearly Half a billion
euros in 5 years • Local envelopes deployed and relayed by additional Group's actions

• +70% of Group
Philanthropy is
European A network of 12 foundations and endowment funds working alongside
the Group's businesses to implement our philanthropic action
+18.3% Vs 2022
*declarative

September 2024 27
Jean-Laurent Bonnafé Laurence Pessez Jane Ambachtsheer Sébastien Soleille
Group CEO Global Head of CSR Global Head of Sustainability of Global Head of Energy
BNP Paribas Asset Management Transition and Environment
sits on the Leadership Council sits on the Banking Board of the
of the UNEP FI UNEP-FI Principles for is a member of the Task Force is a member of the Task
Responsible Banking (PRB) on Climate-related Financial Force for Nature-related
Disclosure (TCFD) Financial Disclosure (TNFD)
Vice-chair of the European think
tank Institute for Sustainable
Development and
International Relations (IDDRI)

Our advocacy activities are in line with our climate engagement *

* https://group.bnpparibas/en/charter-responsible-representation-respect-public-authorities

September 2024 28
THANK YOU

− Last Climate Report

− 2023 URD
− Visite our Publications’ page

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