world

changing a The bank for

Accelerating the transition transition the together SIDE 2020 INTEGRATED REPORT 2020 INTEGRATED

#POSITIVEBANKING BY YOUR — P. 1 Mobilised throughout 2020, MOBILISED LONG-TERM an exceptional year TO SUPPORT YOU COMMITMENTS — P. 2 — P. 30 — P. 66 2020, at our customers’ side 20 years in a changing world Governance that defines and implements the Group’s — P. 5 — P. 34 strategic direction 2020, at our teams’ side A diversified and integrated model, creating value — P. 67 — P. 8 Shareholders and investors MOBILISED 2020, at society’s side — P. 36 Diverse and committed teams, — P. 68 THROUGHOUT 2020, — P. 10 at the service of our customers The Board of Directors is Message from Jean Lemierre guarantor of the Group’s AN EXCEPTIONAL — P. 38 strategic direction — P. 12 Continuing our development YEAR Interview with Jean-Laurent Bonnafé and transformation strategy — P. 70 The Executive Committee ensures — P. 40 the steering of the Group’s LISTENING TO CHANGE Our three operating divisions activity — P. 41 — P. 72 — P. 18 The year 2020 was deeply marked by the Covid-19 pandemic, which brought Retail Banking Indicators and ratings Anticipating and integrating the a large part of the world to a standstill and suddenly disrupted the lifestyles of expectations of our stakeholders — P. 42 — P. 74 Investment & Protection Services BNP Paribas worldwide our societies. To deal with the severity of the crisis, strong and rapid responses were — P. 20 Adapting to a complex economic — P. 43 provided in particular by governments and financial institutions. As a major international Corporate & Institutional Banking and regulatory environment banking player, BNP Paribas immediately mobilised, as closely and as quickly as possible, — P. 44 — P. 22 to meet the funding needs of its customers and massively support the economy. To this Using technology to enhance Anticipate and manage risks customer experience end, our teams, in all of the Group’s business lines and subsidiaries worldwide, made an — P. 24 IN ACTION AT YOUR SIDE exceptional commitment as of the very start of the pandemic to ensure the continuity Accelerating the transition to an of financial flows and support companies and customers affected by the health crisis. inclusive and sustainable economy — P. 48 Optimise customer experience — P. 26 Combining the strength of a global — P. 54 The year 2020 also marked the 20th anniversary of the creation of the BNP Paribas model with regional proximity Guiding our clients toward more Group, with its history of close to two centuries behind it. This symbolic date is also sustainable models an opportunity to put into perspective the progress made by the Group through the prism — P. 60 Committing to society of the major orientations underlying its strategic vision: in addition to the significant extension of BNP Paribas’ international footprint, our ability to accelerate the digitisation of our products and services and make sustainable finance an essential dimension of our future business development, have marked the last few years.

In line with these significant advances and in keeping with our mission, the preparation of our future strategic plan for 2022-2025 will mobilise the Group’s driving forces over the coming months. We will be evermore focused on supporting our customers to help them achieve a sustainable recovery and, beyond that, to serve €44.3bn BNP Paribas has a presence in 68 countries, with more than and advise them in all their projects. We will also be committed to being present alongside Revenues 193,000 employees, including nearly 148,000 in Europe. The Group those in society who need it most, in particular through our solidarity commitments €7.1 bn supports all its customers – individuals, associations, entrepreneurs, and our philanthropic activities. With the conviction that the need to preserve the common Net income Group share SMEs and institutions – in the success of their projects through its good is a call to help build a greener and more inclusive post-Covid-19 world, we have financing, investment, savings and protection solutions. BNP Paribas organised ourselves, along with our customers and partners, to be able to contribute 12.8% (2) to this much needed transition. CET1 (1) ratio holds key positions in its three operating divisions : Retail Banking and Investment & Protection Services for retail-banking networks €432bn Immediately and specialised financial services, and Corporate & Institutional available liquidity reserve Banking for corporate and institutional clients.

(1) Common Equity Tier 1 (CET1). (2) As from 19/05/2021. Figures as at 31/12/2020. Full-Time Equivalent (FTE) workforce.

2020 Integrated Report — 1 Banks are vital players in our economy. At BNL’s headquarters in Milan, dedicated In 2020, BNP Paribas demonstrated this more than teams have continued to advise their clients since the start ever by mobilising all its teams to support of the pandemic its individual, professional, corporate and institutional customers. Keeping in touch

BNP Paribas has stayed in close contact with its customers, keeping them informed and reassured, thanks to dedicated advisors and to digital tools. In Italy, for example, BNL has set up daily updates with customers to share helpful solutions and security measures.

Up to 2020, 99.2% of our branches, as in Belgium for example, remained open during the year. In all our domestic networks, the Group chose to keep at ourour agencies open and make adjustments to ensure that we welcomed customers by appointment, in compliance €396 bn with health measures. of financing raised for customers in syndicated credit, bond and equity markets worldwide (1) and more than 120,000 loans guaranteed cucustomers’stomers’ (2) by governments.

(1) Dealogic on 31/12/20, bookrunner, proportional amount. side (2) Throughout the Group’s retail-banking networks as at 31 December 2020. An unprecedented situation calls for exceptional measures. To protect the health of its employees, BNP Paribas has 300,000 taken emergency measures adapted jobs saved in to each situation and adjusted the United States throughout 2020, depending on the thanks to the efforts of teams developments of health conditions. of Bank of the West to help their business customers benefit from the programme of loans for small businesses, known as the Paycheck Local support Protection Program (PPP). for all our customers Since the beginning of the health crisis, and throughout its duration, our customers have been able to count on the commitment of the teams at BNP Paribas and its subsidiaries. All of the Group’s business lines around the world have mobilised to advise and financially support their customers, simplifying as much as possible the procedures affected by health measures. Outstanding loans within the Group thus represented an increase of 33 billion euros, or 4.4%, compared to the end of 2019. Within this context, BNP Paribas also participated in the issue of the largest social bond of all time for an amount of 17 billion euros. , That transaction issued by the European Union aims 2020 to finance the measures taken by Member States to maintain the income of employees within companies bearing the brunt of the pandemic’s consequences, as well as that of self-employed workers facing difficulties. Supporting our at ourour customers all over Deferral of loan the world Thanks to the One Bank repayments approach, BNP Paribas supports its corporate customers have been granted in their international projects. For example, the English DIY by BNP Paribas company Kingfisher benefited omfr a government-guaranteed loan (Prêt ’ Garanti par l’État) in France and a teteamsams Personal Finance. credit facility in the United Kingdom. Where payments have resumed, case-by-case support has been put in place, with specific solutions such as adjustments.

All through the health crisis, we have adapted to serve our side clients in safety We have continued to adapt throughout the crisis. Across all business lines, a set of measures were quickly implemented to protect employees and allow them to ensure continuity of business. These measures allowed them to provide our clients with essential support while also being protected: home office, new digital tools, adaptation of on-site guidelines, provision of surgical masks and hand A strong commitment around the world sanitiser in all buildings, flu vaccination campaigns and testing, temperature measurement, specific instructions During the crisis, the Rescue for vulnerable employees, etc. & Recover Fund was activated on a global scale. For each donation made by an employee, BNP Paribas matched the amount. Since its creation in 2012, the Fund has already paid more than 5 million euros to the NGOs Doctors without Borders, CARE, the French Red Cross and IFAW.

A specific support system was set up to give As many as each Group employee, worldwide, the opportunity to contact a healthcare professional in complete confidentiality. , Prevent and 140Group employees000 raise awareness have worked remotely while continuing to serve our customers. Within some business lines, remote Prevention and awareness-raising working involved up to 90% of the workforce. In addition activities and programmes were carried to the mobilisation and continued flexibility of all teams, out in almost all of the Group’s entities this was made possible by very close collaboration on the subject of occupational health between Human Resources and IT. The Group maintained and safety. In 61 countries, measures the salaries of all employees in the 68 countries have been taken to improve the working in which it operates, including for those who cannot work environment and prevent occupational or are unable to work remotely.* risks or musculoskeletal disorders. * More detail on page 577 of the Group 2020 Universal Registration Document.

6 — 2020 Integrated Report — 7 The response to the crisis must be collective. The emergency plan has allowed To support those who are taking action on the Group to provide support to the medical sector and hospitals the ground and to help those in need, BNP Paribas has deployed an emergency aid plan in around thirty countries across the world.

Nearly 60 million euros have been given to support numerous Helping the most organisations through the Group’s emergency disadvantaged aid plan, of which Thanks to the 1MillionHours2Help 27 million euros was donated commitment programme for to the medical sector in many employees, numerous organisations countries, including: France, have received assistance around Belgium, Italy, Spain, the United the world. In France, the BNP Paribas Kingdom and the United States. Foundation supported around fifteen major organisations working with elderly, isolated and disabled people, and women and children in danger. Through food donations (including the purchase of 20,000 luncheon vouchers and hygiene products), more than 2020, 5.2 million euros were donated. 3,000 computers at ssociety’society’s were distributed to young people in order for them to follow remote schooling. These actions were carried out through our network of partner associations striving for equal opportunities, including “L’Ascenseur”. (L’Ascenseur is a Parisian collective bringing together 20 organisations dedicated to equal opportunities.)

ssideide 2020 Integrated Report — 9 Message from Jean Lemierre Chairman of the Board of Directors recovery of economies from the summer of 2020 and Towards a more sustainable and resilient of BNP Paribas will contribute to a recovery in the medium term, they business model have also raised government debt level. Even once the It is now important to project ourselves in the post-Covid peak of the health crisis has passed, we may fear that period, despite the persistence of many sources of some economies will be weakened for a while, faced uncertainty, whether in terms of the shape of the recovery with a potentially significant increase in unemployment or the trajectory of interest rates, the ability of and insecurity, particularly among the youngest. governments to repay their debts or trade tensions likely to disrupt the flow of international trade. Faced with the Massive support for the economy need, highlighted by this crisis, to better preserve the to stimulate activity common good, the challenges related to climate change The banking industry intervened from the very first and the ecological transition are becoming even more hours of the pandemic to protect all economic players important. They are at the heart of the issues that from a liquidity crisis and preserve their investment companies must address, by doing their part to promote a capacity. Fully playing its role as an essential operator sustainable economy. Likewise, the economic turmoil that in the service of the economy, BNP Paribas reorganised the health crisis brings in its wake is generating increased “The banking industry

plays an essential role ”At the forefront of sustainable finance, BNP Paribas will play an active role in stimulus plans to support in supporting eco nomies” investment and revive growth.”

In many ways, 2020 will have been an unprecedented slowed down economic activity for many weeks, itself to face the crisis in an extremely responsive social inequalities, and this calls for a more inclusive year. The Covid-19 pandemic, which suddenly appeared disrupted mobility and flows, and forced companies manner. The priority was to ensure the continuity economic model. in our lives, was above all a health shock, sometimes to adapt within very tight deadlines, in particular of financial flows, to advise and support all our Against this background, a European recovery fund of severely affecting our families and loved ones. It also by dematerialising part of their activities. customers and to take care of their requests both 750 billion euros was decided on in the summer of 2020 badly affected social interactions, disrupted working rapidly and in a personalised way. in order to mitigate the effects of the crisis and stimulate methods, and marked a halt to global growth leading The first responses to the crisis, led by governments Building on the Group’s financial strength and the recovery by laying the foundations for a more resilient to a contraction of 3.4% worldwide. With the notable and central banks, were immediate, as well as strong power of its diversified and integrated model to economy. At the forefront of sustainable finance, exception of China, all the major economies were hit by and coordinated, particularly within the European deliver, we have made a significant contribution to this BNP Paribas will play an active role in the implementation this shock wave: -3.5% in the United States, -1.8% in Asia Union. They took the form of a proactive policy aimed at massive support for the economy in all our business of stimulus plans intended to support investment and and -6.8% in the European Union, with substantial combining budgetary leverage - through massive public lines and wherever we are present. Active alongside revive growth. Likewise, we have long held the conviction differences from one country to the next. subsidies, a short-time working scheme and a system of professionals and SMEs as well as large companies, that greater integration of the capital markets of the loans guaranteed by the State, and monetary leverage. to meet their funding needs, the Group has played a Member States would make it possible to direct savings, Strong, immediate and coordinated Public authorities have supported the financing key role in supporting all economic players in Europe. which are substantial in the period we are going through, responses channels of all economic players and designed targeted It is incumbent upon me to underline, on behalf of towards significant investment needs related to the energy Unprecedented in its nature and scope, this crisis is loans to prevent a tightening of credit-related financial the Board of Directors, the exceptional commitment transition or digital innovation, the spearheads of balanced unusual in that it is not the product of macro-economic conditions and a possible upsurge in bankruptcies and of the Group’s teams, supported during these long and sustainable growth. Fully aware of the responsibility or financial dysfunctions. It is the result of the reasoned redundancies. The European Central Bank also months of crisis by the BNP Paribas executives, who incumbent upon it, our Board of Directors will act with choice of states in most regions of the world to protect temporarily bought back, as part of the PEPP scheme*, acted with vision, acuity and discernment in order rigour and constancy to put finance at the service of a more lives by confining their populations in the face of a debt securities for the benefit of governments and large to support our customers on a daily basis in a difficult sustainable future and to support, with the backing massive health crisis. These restrictions, of a nature companies financing themselves on the markets. While situation and to advise them in the face of the of our shareholders, these new ethical, environmental that we had never experienced before, significantly these initiatives succeeded in encouraging the partial complexity of the crisis we are going through. and societal demands.

* Pandemic Emergency Purchase Programme.

10 — 2020 Integrated Report — 11 Interview with Jean-Laurent Bonnafé Director and Chief Executive Officer of BNP Paribas

financial position. They also underline the of loan repayments and made equity strength and relevance of our diversified and investments in French SMEs and middle- integrated model, as well as our ability to market companies. We also plan to double quickly adapt to adverse situations. These our investments in French SMEs, bringing two assets have enabled us to better absorb them to 4 billion euros by 2024. Overall, the the shocks related to the health and volume of our outstanding loans increased economic crisis. They put us in a good by 33 billion euros in 2020 and the Group position to prepare for the future and to raised 396 billion euros in financing for its support our customers on the road to customers in the syndicated credit, bond economic recovery in the coming months. and equity markets. Through this massive “We support the transition to asustainableeconomy”

What is your view of BNP Paribas’ commitment and mobilisation of all the How has the Group mobilised support for the economy, we have 2020 results? Group’s employees, who have worked closely to support its customers, the economy, consolidated our position as a preferred Jean-Laurent Bonnafé: At the end of a with our customers to support them, while and meet the most pressing needs partner for companies in Europe. year marked by an exceptional health crisis, constantly adapting, as the months went by, of society? Our support during the crisis also focused the Group stands out for the resilience of its to unprecedented and challenging J.-L. B.: Since the beginning of the health more broadly on society: as part of a vast results. Our net banking income, which stood conditions. crisis, BNP Paribas has supported all aid plan of nearly 60 million euros deployed at 44.3 billion euros, was almost stable By division, at the end of 2020 we saw economic players, to meet their immediate with our non-profit partners in around thirty and net income, Group share, although down a clear increase of 13.9% in the revenues needs and support them over the long term. countries, we have supported the healthcare by 13.5%, nevertheless generated a solid of Corporate & Institutional Banking, which We have thus granted loans to our individual sector in the form of donations to hospitals profit of 7.1 billion euros. These results are reflects the dynamism of our corporate customers, granted the deferral of and various scientific research programmes, first and foremost thanks to the exceptional and investment banking business and its repayment schedules for outstanding loans, and supported our employees who have essential role in supporting the economy set up an offer for customers in vulnerable personally committed to volunteer work. during the crisis. Our Domestic Markets situations and proposed a zero-interest loan Likewise, we have set up philanthropy and division, which includes our retail-banking offer for students and apprentices. solidarity actions for those most vulnerable activities in Europe, sees a decline We have also been very present alongside to the crisis that aim, in particular, to ”Through this massive in revenues of 2.1% against an ongoing our professional and corporate customers, maintain access to education for young support for the economy, backdrop of very low interest rates, but was who very quickly found themselves faced people, support culture and help we have consolidated resilient in terms of its sales momentum. with challenges to keep their business associations specialised in food aid and the our position as a preferred As for our International Financial Services activity sometimes leading to financing provision of healthcare. partner for companies division, which covers, among other things, issues. In this context, we have supported in Europe.” our insurance and consumer credit their cash flow requirements via our loan The Group’s strategic plan for businesses, its revenues contracted by 7.2%. offers and the distribution of more than 2017-2020 has come to an end. At the end of this unprecedented year 120,000 loans guaranteed by the State What conclusions do you draw? marked by a sudden and global shock, these (in particular in France, Italy and the United J.-L. B.: This plan has enabled us to results bear witness to our very strong States); we have also granted the deferral successfully conduct the Group’s digital [...]

12 — 2020 Integrated Report — 13 [...] transformation and accelerate the projects Faced with the major social and In this context, how is BNP Paribas by the UN Environment Programme Finance under way to better meet the new needs environmental challenges of our time, preparing for the future? Initiative (UNEP FI). and uses of our customers and our employees. the desire to accelerate sustainable finance J.-L. B.: In the short term, 2021 is a year Convinced that protecting biodiversity is an Thanks to this momentum, we have been and make it one of the spearheads of the of transition towards the next BNP Paribas absolute necessity, just like the climate, we are able to streamline and optimise customer development of our business activities was strategic plan, which we are in the process going to increase our financing commitments journeys and design new offers that go well also at the heart of our priorities for the of putting together along with all our business with a positive impact on biodiversity to beyond simple banking services. 2017-2020 plan. In addition to the exclusion lines. In this period, we continue to be fully 3 billion euros. More broadly, by the end With this in mind, we have largely mobilised from our financing portfolio of any new committed to serving our customers, working of 2022, our financing in favour of the energy the Group’s energies in all our business lines: company focused on oil and shale gas, and with them to prepare for the economic retail banking offers a seamless digital gradually of those active in thermal coal(1), recovery on a sustainable basis and remain experience and Nickel, which has passed we have integrated Environmental, Social at the forefront of banking innovation. the two million accounts mark in April 2021, and Governance (ESG) criteria into all our Based on an organisation centred around our is as easily accessible online as it is at operational processes. We have also customers, the initial work related to our ”We are very active on tobacconists; our corporate customers also developed financing and investment strategic plan for 2022-2025 focuses on a few sustainable finance issues and, benefit from digital solutions to help them instruments across all our business lines, priority areas: maximising synergies between by contributing significantly to which today place the Group among the all our retail business lines to accelerate the the financing of our customers’ world leaders in sustainable finance. At the deployment of our digital offers; strengthening ecological transition, we are end of 2020, BNP Paribas was positioned our development in the areas of savings, supporting the migration to a as No. 1 worldwide for the issuing of investment and protection; boosting the growth more responsible model.” sustainable bonds, No. 2 worldwide (2) momentum of our corporate and institutional for the issue of green bonds and No. 2 customers by leveraging strong customer in EMEA (3) for the financing of renewable franchises; and lastly, continuing to strengthen energy projects. These significant advances, our industrial structure, with an organisation coupled with the Group’s financial strength, fully adapted to the new working methods. enable us to look to the future with confidence. To best address these new human, technological and commercial challenges, we How do you see the economy recently adjusted the scope of our operating in 2021? Is the global economy ready divisions by creating a Retail Banking group, to recover? which brings together all our retail business transition and directed towards sectors that J.-L. B.: After a challenging year that saw lines, and an Investment & Protection Services contribute directly to the United Nations most countries experience very strong group to achieve our savings and investment Sustainable Development Goals (SDGs) will recessions, the first signs of recovery are goals. At the same time, we also took the amount to 210 billion euros. beginning to emerge in 2021. While the opportunity of changing the Group’s I am convinced that BNP Paribas has very solid Chinese economy has already recovered, management team and, as such, continued to fundamentals to meet the challenges posed the Western economies are working to increase the number of women in our by the current crisis and to continue its do so in particular thanks to the budgetary management bodies. development. We are among the most and monetary support measures that are Looking ahead to the longer term, the crisis we advanced global players in sustainable finance being implemented. Despite the persistence are going through collectively invites us to and we play a driving role in the service of certain restrictions hampering the build a more environment-friendly, more of the economy, as a preferred partner manage their businesses; finally, we rely on proper functioning of the economy, we can inclusive and more sustainable “future world”. for companies. Based on strong customer artificial intelligence for example, in our anticipate a gradual return to growth, We are already very active on sustainable franchises and the varied expertise of our market and retail activities to continue to best against the backdrop of vaccination finance issues and, by contributing significantly teams, our diversified and integrated model serve our clients. These advances illustrate campaigns being ramped up. I am all-the- to the financing of our customers’ ecological has demonstrated its value and its usefulness our desire to bring the best of digital and more confident that companies, which have transition, we are supporting the migration to in the face of the crisis. On the strength human together to offer a comprehensive now adapted to the constraints of the health a more responsible model. We intend to of these assets and in accordance with its range of services and solutions that combine situation, are continuing their digital continue along this path and even accelerate: mission, the Group will fully play its role fluidity and autonomy, as well as personalised transformation at an accelerated pace. we are aligning our loan portfolio with the as a financier of the economy, a responsible advice and support. The proven effectiveness However, we will have to reckon with an trajectory provided for by the Paris Climate investor and an accelerator in the necessary of our digital transformation has also been inevitable rise in unemployment levels Agreement, of a warming limited to two transition to a sustainable economy. a significant asset in ensuring the continuity in the medium term, particularly among the degrees, tending towards 1.5 degrees of our activities from the very first hours youngest people who have been hit hard by and, more recently in April 2021, we joined (1) By 2030 in the OECD and the European Union and 2040 in the rest of the pandemic. the crisis and whom it is up to us to support. the “Net-Zero Banking Alliance” created of the world. (2) Bloomberg. (3) Dealogic.

14 — 2020 Integrated Report — 15 Anticipating and integrating 18 the expectations of our stakeholders

Adapting to a complex economic 20 and regulatory environment

LISTENINGTO Using technology to enhance 22 customer experience

Accelerating the transition 24 to an inclusive and sustainable economy

Combining the strength of a global 26 model with regional proximity

CHANGE THE MAJOR CHALLENGES Anticipating and FACING OUR ENVIRONMENT This table summarizes the challenges facing our Group. They are distributed around four megatrends: adapting to a complex economic and regulatory environment, using technology to enhance customer experience, accelerating the transition to an inclusive and sustainable economy, and combining the strength integrating the of a global model with regional proximity.

expectations of ADAPTING TO USING TECHNOLOGY A COMPLEX ECONOMIC TO ENHANCE AND REGULATORY CUSTOMER ENVIRONMENT EXPERIENCE

Ethics and compliance Data privacy our stakeholders Data privacy Digital transformation BNP Paribas maintains a regular dialogue with all of its stakeholders. Corporate economic value Customer satisfaction This approach is used to better understand their expectations, integrate transformations underway in society and inform the Group’s strategic Governance Talent development Fair competitive practices orientations. Transparent practices Human rights

Business continuity plan BNP Paribas operates in an ecosystem Identify our main challenges Geopolitical risk in which it interacts with various stakeholders. In addition to structuring these exchanges, These so-called contractual stakeholders include the Group has a materiality matrix (to be customers, employees and social partners, 109 found on page 624 of the 2020 BNP Paribas different dialogues shareholders and suppliers. Others, called with NGOs in 2020 Universal Registration Document, available at strategic stakeholders, include companies in around the world invest.bnpparibas.com). This tool maps and ranks which the Group invests, regulatory bodies, the various challenges we must face based on governments and legislators, international the perceptions of our stakeholders. Seven have ACCELERATING COMBINING organisations, local and regional authorities, civil More than emerged as particularly crucial: personal data, THE TRANSITION TO THE STRENGTH OF A GLOBAL society, financial and non-financial rating ethics and compliance, climate change and energy AN INCLUSIVE AND MODEL WITH REGIONAL agencies, SRI* investors, the media, candidates 170 transition, a fair and inclusive working environment, SUSTAINABLE ECONOMY PROXIMITY and local populations. people customer satisfaction, the economic value devote most or all of their time to dealing of the company and digital transformation. BNP Paribas has chosen to interact with all with CSR issues within Climate change and energy transition Customer satisfaction the Group. Their efforts Fair and inclusive workplace of its stakeholders in an open and constructive are backed up by over Both in the long-term and on a daily basis, we act Ethics and compliance dialogue. These interactions take many forms, 400 expert contributors via our strategic plan to provide appropriate Business continuity plan on specific topics. ranging from a dedicated fact-finding processes responses in line with the four major trends that Accessibility for all to products and services to structured dialogues, and include mechanisms structure our environment and the challenges they Operational environmental impact Support for local communities Responsible investments and financing for discussion and monitoring of the relationship. underpin. These various challenges are essential Transparent practices Through these efforts, the Group strives to for the Group. For that reason, they complement Employment practices anticipate changes in its business lines and the listening process put in place with our various Human rights improve its products and services, optimise the stakeholders. These issues were defined in 2018 and management of the risks it faces and identify remain topical in 2021. Their ranking nevertheless Responsible procurement innovative solutions with a positive impact on may have changed in view of the Covid-19 crisis. Protection of biodiversity society. * Socially Responsible Investment.

Crucial issues Major issues Important issues

These challenges are part of the BNP Paribas materiality matrix created in December 2018 that highlight the perception and importance of around a hundred issues for the external and internal stakeholders of the Group. Consult the BNP Paribas materiality matrix on page 624 of the Universal Registration Document, which is available on invest.bnpparibas.com

18 — 2020 Integrated Report — 19 ECONOMIC AND REGULATORY ISSUES ”The global and European prospects for growth in 2021 are positive and the Group intends to contribute.“

projects of our customers and, more broadly, advise them in their financial choices. The global and European prospects Adapting to a for growth in 2021 are positive and the Group intends to contribute.

What are the main risks that you see William De Vijlder, for the year 2021? on the health crisis complex economic and economic W. De V.: The first risk concerns the possible perspectives delay in the economic recovery, particularly in Europe, due to the epidemic’s resurgence in the first quarter. The second concerns the gradual reduction of State aid. How will economic players react? Will the most vulnerable companies halt their activities? What effects could and regulatoryenvironment there be on unemployment trends? There are just so many unknowns that we will With the outbreak of the Covid-19 health necessary solidarity actions. Banks thus greatly Perspectives What is the economic assessment have to deal with. contributed to the rebound in activity of the year 2020? The third risk is the scale of the shock crisis, the global economy suffered a by William De Vijlder, significant shock. Successive lockdowns and to maintaining investment levels. William De Vijlder: From the start of the suffered by businesses, some of which and restrictive measures taken to combat Head of Economic Research crisis, governments and central banks had will certainly not be able to resume their the pandemic have led to a historic fall This mobilisation is taking place within at BNP Paribas to take strong measures to mitigate the pre-Covid level of activity, at least not in in GDP in almost all developed economies, an environment where banking regulations impact of the health crisis on the financial the short-term. At the same time, they will which had a strong impact on all sectors of and associated supervision is growing in situation of households and businesses. also have to reinforce their equity, repay activity despite disparities. Governments, complexity. This leads to relative uncertainty % Like the majority of banking players, their debts and get back on the road to with the support of central banks, reacted very with regard to future changes and compliance -4.3 BNP Paribas immediately joined in these growth. However, I am quite optimistic. This is how quickly. The recovery plans, which were costs, as well as risk from the proper execution much global GDP efforts by granting loans, helping its The end of the crisis is in sight, the United characterised by structural measures to of the various measures. Against this backdrop, contracted in 2020 customers to increase their equity or issue States will recover faster than expected, (The World Bank) support the economy and a very strong the risk associated with non-compliance with debt, while continuing to inform and advise supported by their gigantic recovery plan, injection of liquidity, made possible a slight the laws and regulations in force, in particular them. We also provided in-depth economic with a powerful ripple effect on the global but encouraging recovery of growth. Marked those relating to the protection of customer analyses to our asset management and economy. Progress with vaccination should by economic tensions between China interests and personal data, constitutes investment customers to assess the impact gradually pay off and restrictive measures and the United States, 2020 was also a a significant risk for the banking industry. €750bn of the decisions taken around the world should be reduced, especially from the third period of transition for the European Union, This is the amount by central banks and governments. quarter onwards. That surge in confidence of the economic recovery which resulted in the effective exit Lastly, a growing awareness of the world’s plan approved by the should positively support the recovery. of the United Kingdom. ecological emergency has gone hand in hand 27 members of the How are banks mobilising to support European Union with the health crisis. The increased vigilance in July 2020 the recovery of the global economy? To avoid a significant decline in their activity, of the supervisory authorities in terms W. De V.: The priority now is to provide the companies have had to adapt, transform and of climate risks and the emergence of new best possible support for the recovery plans innovate in order to find drivers of growth. expectations regarding their inclusion in approved by the political authorities. Banks have taken strong measures to support measurement and management systems Our actions as banks are, in fact, in line their customers and society. This has resulted could lead to new capital requirements. with the measures taken since the in varied solutions, such as loan extensions beginning of the crisis to support the cash or loans guaranteed by the State and flow of businesses, finance the investment

20 — 2020 Integrated Report — 21 DIGITAL CHALLENGE Perspectives What is the impact of the crisis What are the major digital challenges on customer usages and how has for BNP Paribas? by Sophie Heller, BNP Paribas adapted? P. M.: They continue to revolve around three Chief Operating Officer, Sophie Heller: The crisis has accelerated pillars. Our guiding principle is above all to BNP Paribas Retail Banking the transformation of usages, whether it continuously improve the value delivered & Services, and Philippe concerns online assistance tools or to our customers, with a more local focus, Maillard, Chief Operating contactless payment, as in Belgium, where by capitalising on our electronic platforms Officer, BNP Paribas Corporate these now represent one in three payments. and their related services. At the same We have implemented 100% digital or time, we are also automating our processes & Institutional Banking simplified processes – e-signature for to absorb the strong growth in business companies at BNP Paribas Leasing Solutions volumes. Lastly, we are improving Using technology and French Retail Banking (FRB), for the quality and ease of our teams’ work, example – while equipping our advisors thanks to remote collaborative tools. to manage customer relations remotely. S. H.: In the short-term, our main challenge Philippe Maillard: We have further increased is to improve the accessibility, reliability to enhance the the use of digital channels to distribute our and fluidity of digital journeys. At the same products. Online tools, such as those time, we are launching foundational allowing customers to view and carry out projects to position ourselves as the their transactions, have also seen significant trusted partner of our customers. growth, such as the Centric portal. To do so, we are improving our offers by working with an ecosystem of partners. We combine the best of digital and human customer aspects to deepen our relationship with each customer. To support them in a personalised and proactive way over the long-term, we rely on the safe and reasonable use of data.

The volume of customer data is experience increasing. What is the Group’s approach to the use of data? S. H.: We are developing specific expertise. For example, our credit scores for Due to health constraints, entire sectors in a secure environment in accordance with companies are now based on their of the economy have had to profoundly the standards and regulations in force, banks transactions and not just their balance reinvent themselves in a very short timeframe. +4.8% seek to support new uses by customers, sheet in order to have an up-to-date Companies, which for the most part had annual growth combining the best of the personal (for and reliable view of their activity. already embarked on digital transformations, in computer sales personalised support and advice) and the digital in 2020 worldwide, have greatly accelerated this momentum the strongest in (for self-care and accelerated processing P. M.: Data is a competitive advantage. to guarantee service continuity. ten years, due to the of certain requests). We need to maximise the potential widespread use Like all business sectors, the banking industry of remote work New ecosystems have emerged in recent years, of the data while working to protect it. has had to react quickly to support all its (Gartner) based on internal innovation and increased Our priority is therefore to consolidate customers in the face of a sudden and brutal cooperation with startups and fintechs, resulting our achievements in terms of quality crisis. The banks’ advisory role was particularly in the development of innovative solutions and availability while further essential in providing customers with that go beyond banking services. In line with strengthening data security and More than the expertise they needed. At the same time, society’s increasingly high expectations, confidentiality thanks, in particular, information systems have had to adapt around 65% technological advances also make it possible to innovative encryption solutions. the world to cope with new ways of life, work the share of contactless to offer innovative services that have a positive payments for all and consumption, following the massive use card transactions within impact, thus encouraging inclusive and more of teleworking and the development of ten member countries environmentally friendly growth. of the Bank for e-commerce and remote payments. International Settlements The digital transformation of the banking sector, (BIS) in June 2020, compared to 30% which was already well underway, has in September 2019 (BIS) intensified to develop solutions adapted Philippe Maillard to various uses and types of customers. and Sophie Heller, on digital topics and By ensuring that data is always processed client experience

22 — 2020 Integrated Report — 23 Laurence Pessez and Frédéric Janbon, SOCIETAL AND ENVIRONMENTAL on the Group’s CHALLENGE engagements and sustainable products in response to the climate emergency

first signatories of the “Net-Zero Banking Alliance”, which commits us to a “net zero” objective by 2050. We also strongly support the energy transformation by financing renewable energy, which Accelerating the increased from 7 billion euros in 2015 to 17.8 billion euros in 2020. Lastly, we offer our customers, individuals or companies, various financing tools dedicated to the energy transition: green transition to an inclusive and socially responsible investment funds, green bonds or sustainable loans focused on the energy transition.

Frédéric Janbon: It should be noted that with 1.165 trillion euros invested, our investment and insurance businesses and sustainable are already making a significant contribution to financing the transition to an environmentally friendly, low- carbon and inclusive economy. At BNP Paribas Asset Management, we already incorporate Environmental, economy Social and Governance (ESG) criteria Perspectives What are the Group’s priorities within all of our investments. This allows by Laurence Pessez, in 2021 in view of the environmental us to select and include in our SRI- emergency? certified funds and/or our thematic funds Global Head of Corporate Laurence Pessez: Our aim is to become the companies focused on the climate Social Responsibility leader in sustainable finance. Our first transition and to support them in their at BNP Paribas, and Frédéric priority is therefore to align our loan climate strategy, through our shareholder Janbon, Chief Executive portfolio with the carbon emissions engagement. At a time when health, environmental transition to a sustainable economy is essential. Officer of BNP Paribas trajectory set out in the Paris Agreement and social crises are piling up, it is urgent BNP Paribas showed exceptional mobilisation of 2015. In the power generation sector, How does the Group provide concrete Today Asset Management to accelerate our advancement towards for its clients and for society by granting our portfolio is already in line with a support to its customers and help them a society that is both more united more than 250 billion euros in financing and One million trajectory of less than 2 °C. We will also accelerate their ecological transition? animal and plant species and more respectful of the environment. more than 60 million euros through emergency are threatened with extinction include responsible product sales targets F. J.: We respond to the aspirations With social inequalities exacerbated by the donations throughout the world. (IPBES, Intergovernmental in our next strategic plan for 2022-2025. of savers by giving their investments Platform for Biodiversity Covid-19 pandemic, the significance of these BNP Paribas’ Corporate Social Responsibility and Ecosystem Services) The Group also intends to contribute meaning through offering them issues has only increased. As young people strategy makes solid contributions to to the protection of biodiversity. responsible products. With 20 billion have been particularly affected, they should the achievement of the UN’s 17 Sustainable Our position has been published and euros in assets under management be made a priority in the same way as diversity, Development Goals (SDGs), which target strong commitments have been made, in thematic funds, BNP Paribas inclusion, and actions to protect the environment. eliminating poverty, strengthening our actions % such as zero deforestation criteria Asset Management is number one in And for this priority, companies must play for the climate and ensuring a prosperous 64 in the Amazon and Cerrado. Europe, and in 2020, 75% of its new the increase

their part. future for all. Each year since 2016, the Group in global CO2 emissions assets under management were in funds By directing financing and investment measures its contributions to achieving between 1990 and 2017 Concretely, how does BNP Paribas with the SRI label or equivalent. (General Commission flows towards more inclusive and the SDGs and sets new ambitious goals: for Sustainable Development, meet those commitments? This is a great step forward! France, 2020) environmentally friendly, and therefore more by the end of 2020, these contributions L. P.: Our policy is firmly based on the resilient models, banks play a fundamental role had reached 188 billion euros. Paris Agreement. We have announced in this transformation of our businesses. They that we will stop funding the coal sector assert themselves as drivers of both economic by the year 2030 in the OECD and development and of social ties. Their contribution the European Union, and by 2040 in to financing the innovations that support the the rest of the world. We are one of the

24 — 2020 Integrated Report — 25 Perspectives How is BNP Paribas contributing What actions has the Group taken LOCAL CHALLENGE to the establishment of a more sustainable to combat social exclusion, promote by Nandita Bakhshi, model within regions? professional integration and development President & Chief Executive Paul Yang: Through its activities and high within regions? Officer of Bank of the West, levels of commitment, the Group acts Nandita Bakhshi: As a mission-driven bank, and co-CEO of BNP Paribas USA, in all of the regions where it operates we understand that it will take global Valérie Tamagny-Ferrier, Head to promote a more inclusive and shared efforts and cooperation to address the most of Région Grand Ouest, French economy that respects the environment. pressing issues, such as diversity and In Asia-Pacific, we are leading a large climate change. In the United States, Retail Banking, and Paul Yang, number of energy transition initiatives. we launched the ‘1% for the Planet Checking Chief Executive Officer, In 2020, for example, we financed several Account’, which allows our customers

BNP Paribas in Asia-Pacific. solar projects in India and Malaysia, to track CO2 emissions and donate 1% as well as a wind farm project in Taiwan. of their revenues from that account to environmental causes. We have also Valérie Tamagny-Ferrier: One example partnered with the non-profit organisation of BNP Paribas’ commitment locally would Grameen America, which provides micro Combining be in France, in the Grand Ouest region, loans and promotes entrepreneurship the Group acts for the sustainable among women living in poverty. development of regions by supporting entrepreneurship in all its forms, in close P. Y.: In APAC, in response to the pandemic, the strength of collaboration with local ecosystems. we injected 4 million euros into various We also support around twenty associations philanthropic programmes. These funds committed to equal opportunities, digital were used to provide food aid to families inclusion and regional development. in need and to provide underprivileged children with computer equipment. We have also established a long-term partnership with ‘Room to Read’ in India and Vietnam, focused on literacy and a global model education for young girls.

What are your priorities in 2021? V. T.-F.: One of our priorities is to support the ecological transition, by increasing awareness among other actors so we with regional proximity can all work together and through promoting a wider range of offers related The Covid-19 crisis has highlighted BNP Paribas has the opportunity to have a to environmental issues. Increasing skills, how heavily companies rely on logistics significant positive impact on regional economic, promoting talents and ensuring that supply chains. The sudden collapse of industrial urban, social and cultural development. women hold positions of responsibility are production and the sharp fall in Chinese The Group is helping to drive that transformation also part of our main areas of mobilisation. exports brought many production lines to by supporting individuals, professionals, a standstill in Europe and the United States. companies and associations established N. B.: Our first priority is sustainable This unprecedented situation clearly shows regionally through its financing and investments. % recovery, which will lift everyone up, the need for companies to partially rethink These activities are reinforced by solidarity 48 including those most affected by the of Europeans say their value chain, diversify their supplies actions to promote, in particular, the professional they consumed more local pandemic – women, people of color, small products in 2020 than geographically and refocus as soon as possible integration of young people and the inclusion three years ago, and 43% business owners, and entrepreneurs. on short circuits. While this approach of favouring of refugees. believe that encouraging To do that, we are focusing on the United the purchase of locally local production is not new, the possibility made products is Nations Sustainable Development Goals of (re)creating jobs locally, fighting against social ”a high priority”, compared (SDGs), particularly those addressing to 39% in 2019. exclusion and promoting professional integration Cetelem Consumer energy transition, entrepreneurship makes it important for the long-term. Observatory 2020. Survey and diversity. We are also continuing conducted in 15 European By supporting companies, associations and countries, with 14,200 people our work on gender equality and economic institutions whenever they build their projects surveyed online. mobility by supporting the inclusion and overcome their difficulties, banks of women and minority entrepreneurs. have a major role to play in the sustainable Our diversity is one of the reasons development of regions. that we are a fundamentally different Thanks to its highly diversified activities bank and the leading sustainable bank and its extensive geographical network, in the U.S. Paul Yang, Valérie Tamagny-Ferrier and Nandita Bakhshi, on the Group’s regional activities

26 — 2020 Integrated Report — 27 20 years 30 in a changing world

A diversified and integrated 34 model, creating value

Diverse and committed 36 teams, at the service of our customers

Continuing our development 38 and transformation strategy

MOBILISEDTO Our three operating divisions 40

Retail Banking 41

Investment & Protection Services 42

Corporate & Institutional Banking 43

Anticipate and manage risks 44 SUPPORT YOU 2005

2006 One Bank is created. Acquisition of BNL (Banca The approach promotes Nazionale del Lavoro), the sixth- collaboration between largest bank in Italy. In Italy, all Corporate Banking as in France, all the Group’s business lines to support business lines can rely on a corporate clients in all national banking network their international to deploy its activities. development projects. European debt crisis, years following the Greek debt crisis. Projet Banlieues is launched 20 to help young people France’s ‘Urban Policy’ priority areas.

2005 in a changing International development accelerates: joint venture with TEB (Turkey), acquisition of Cofinoga (France) and UKRSIBBANK (Ukraine), partnership with Bank The Group signs of Nanjing (China). the Principles for world Responsible Investment. 2008 Beginning of the so-called 2011 “subprime” crisis, which Development of Trade Finance Since its creation in 2000, and with a 200-year- caused a global liquidity activities in particular long history, the BNP Paribas Group has been built and solvency crisis. in America and in Europe. to best serve its customers while heeding 2009 The My Accounts application evolutions in society. During these twenty years, Acquisition of Fortis Bank makes BNP Paribas the first (Belgium) and BGL (Luxembourg), bank in France available the Group has continued to grow by expanding its marking the deployment of the in the App Store. 2000 The Diversity charter, diversified and integrated presence in Europe and the rest of the world as BNP Paribas Group is created and company agreement banking model in Europe. from the merger between BNP well as developing its expertise. It has built a on gender equality are signed. and Paribas. Unveiling of the new diversified and integrated model to meet several brand during the French Open tennis tournament, of which 2004 key priorities: innovate to optimise customer BNP is a partner. The Compliance function is created. experience and support them in their projects The Sustainable development and growth over the long term; contribute to the 2001 function is created. BancWest (United States) emergence and acceleration of a more becomes a wholly owned sustainable economy; and act in an ethical, subsidiary of BNP Paribas. 2003 bnpparibas.net is launched: the inclusive and responsible way on a daily basis. website represents a significant 2010 2002 These commitments are what make the Group step in the deployment of the Arval, a specialist in long-term The euro is introduced Bank’s multi-channel banking automotive company leasing, strong and resilient in today’s unprecedented in 12 European Union countries. approach. opens a test centre for electric environment. BNP Paribas is now a leading and hybrid vehicles. European bank that is international in its reach.

2003 2009

30 — 2020 Integrated Report — 31 2015 2018

2012 2015 2016 2018 “Best bank in the world First contactless payment (1) “Best Private Bank in Europe” The Group issues its first Financing of shale gas for sustainable finance” offering in France. awarded for the fourth green bond in euros and ranks and oil and tar sands award (Euromoney). consecutive year (Private Banker among the world’s first 3 players activities stopped. International). in green bonds. UNI Global Union agreement signed guaranteeing all BNP Paribas employees Acquisition of BGŻ in a common social framework Poland - which will become to improve quality of life BNP Paribas Bank Polska and working conditions within in 2019 - and DAB Bank AG the Group. It therefore contributes in Germany. to more equality and inclusive growth.

The Global RISK function Covid-19: BNP Paribas is integrated independently mobilises to support customers of commercial activity. BNP Paribas signs the at the onset of the crisis BNP Paribas acquires Nickel, International Labour Organisation (sustainable bonds, PGEs (4), Business Charter on disability which offers banking solutions accessible to all, directly advice, etc.), and deploys 2013 inclusion. an international aid plan BNP Paribas, Société Générale online or at tobacconists, without income conditions. of nearly €60m for the medical and La Banque Postale launch The Group strengthens its sector and for the vulnerable Paylib, a simple and secure sectoral policy on coal. and underprivileged. online payment solution. 25% women among the Top 500 Executives. “Best bank in the world” award Extra-financial criteria are €9.4bn in Sustainability-Linked The Group’s compliance (Euromoney). The Company Engagement included in the variable Loans signed by the Group and control systems department is created and compensation of 5,000 managers. strengthening is developed represented at the Group The BNP Paribas company with the aim of exceeding Executive Committee. purpose (3) is published. BNP Paribas launches regulatory expectations 2019 Hello bank!, its digital bank following sanctions 13.6m digital customers in (2) Participation in the first blue by the US authorities. the Group’s retail-banking networks and over 21m electronic orders bond issued by a company in processed for customers at Global Asia (see page 59). 2014 Markets (CIB). Environmental, Social and Governance (ESG) criteria are included in the Group’s 2020 credit policy. Agreement with Deutsche Bank 2017 for the resumption of its prime A digital transformation plan brokerage activity. of €2.7bn, to be invested between 2017 and 2020, is launched. Lyf Pay (now Lyf), a universal, multi-service, secure mobile solution, is launched. years 20in a changing 2013 2017 2020 world

(1) NFC: Near Field Communication technology. (2) Customers with at least one connection to the mobile app per month (on average in 4Q20) - scope: individual, small business and private banking customers of Domestic Markets networks or digital banks (including Germany, Austria and Nickel). (3) Summarising the following documents created with the input of numerous employees: Our Vision and Mission (2015), Code of Conduct (2016) and Engagement Manifesto (2018). (4) Loans Guaranteed by the States (Prêts garantis par les États).

32 — 2020 Integrated Report — 33 A diversified and integrated model, creating value Serving our customers and the world in which we operate, we support transitions in society by providing expertise and by contributing to financing the economy. We create value through our diversified and integrated model, based on the diversification of risks and cooperation between our business lines. In the unprecedented context of the health crisis, our business model has enabled us to support our customers. In all phases of this crisis, BNP Paribas has proven its ability to adapt and mobilise quickly, while demonstrating its proximity to all ECONOMIC AND DIGITAL SOCIETAL AND LOCAL REGULATORY ISSUES CHALLENGE ENVIRONMENTAL CHALLENGE CHALLENGE of its customers.

Our strengths Our diversified and integrated Our solutions Our value creation model at the end of 2020 for all stakeholders: customers, shareholders and investors, employees, partners and suppliers, local government, European Group with regions and civil society. global reach operating in Domestic Markets (DM) 68 countries and regions 62,461 employees Support Promoting useful By promoting By developing innovation sustainable growth our contribution Committed employees Revenues of €15.5bn for customers for the economy to society 193,319 people worldwide (individuals, entrepreneurs, SMEs, Advice large companies, institutional clients, community organisations) €809bn in customer loans Over 120,000 State A solid financial Guaranteed Loans granted >6.1m active customers €1,165bn in assets under structure with €117.3bn to companies impacted Financing on mobile apps (1) (+20.1% management by BNP Paribas in shareholders’ equity by Covid-19 International vs. 4Q19) Asset Management, BNP Paribas Wealth Management, BNP Paribas Emergency plan raised Financial +78% of active mobile Broad diversification Cardif and BNP Paribas close to €60m to face Investments customers (1) between end 2016 Services (IFS) Real Estate Services the health crisis of which of risks by business, and end 2020. almost €27m in donation geographical area 75,439 employees €396bn in financing raised Nickel, over 2m accounts to the medical sector and sector for clients on syndicated credit, Revenues of €15.9bn Savings opened (2), up four-fold since bond and equity markets €5.9bn in taxes paid 2016 by the Group worldwide Cooperation between €44.3bn revenues Nearly 20% growth, Businesses, at the heart Corporate & Institutional No. 1 worldwide (5) Protection compared to 2019, in electronic €7.1bn in net income with €14.5bn in obligations of the Group’s momentum Banking (CIB) orders processed for clients Group share related to the pandemic at Global Markets (CIB) Dividend of €1.11 per share at the end of 2020 A culture of technological 33,703 employees paid in cash (3) innovation at the service Revenues of €13.8bn (4) of our clients No. 1 worldwide with €24.2bn in sustainable bonds at the end of 2020

(1) Customers with at least one connection to the mobile app per month (on average over Q4 2020) - scope: individual, small business and private banking customers of DM networks or digital banks (including Germany, Austria and Nickel). (2) Since inception and as at 07/04/2021. (3) Excluding additional amount planned as soon as the ECB repeals its restriction recommendation expected by the end of September 2021 “in the absence of sharply unfavourable developments”. (4) Bloomberg. (5) Bloomberg, Global Pandemic Bonds. Figures as at 31/12/2020. Full-Time Equivalent (FTE) workforce.

34 — 2020 Integrated Report — 35 The Group’s employees at the front line since the onset of the crisis Since March 2020, we have had to cope objectives. The first aims to develop prospects by building a dynamic of with the Covid-19 pandemic, and its effects the commitment and employability continuous skills development (upskilling) have disrupted our ways of living and of our employees. We support them and cross-functional career paths working. Forced to rethink our organisation in updating and developing their skills (reskilling). We also offer them an and our ways of working due to health in order to adapt to the expectations attractive working environment constraints, we mobilised very quickly of our customers and anticipate and help them achieve a work-life to ensure continuity of service in order the Group’s future strategic needs. balance and protect their health. to support our customers, play our role In a context where the required functions The measures immediately taken in in supporting the economy and contribute and skillsets are changing dramatically, the context of Covid-19 to protect our to maintaining financial flows. In this our ability to develop agile working employees are a clear demonstration unprecedented context, which has seen methods and encourage intrapreneurship of this (see pages 5 to 7). remote working adopted on an exceptional are also an integral part of the Group’s scale, we have capitalised on our dynamic transformation. The second, Be a responsible employer successful teleworking experience, based on the conviction that the quality with a positive impact on society combining a high level of employee of the customer relationship has a We fight against all forms of discrimination autonomy and the availability of everyday correlation with the quality of the and spread our vision of an inclusive working tools. The keys to success lie relationship we have with our employees, culture, in which everyone has their place in mutual trust between managers and aims to constantly improve the experience and where only skills count. We support employees, an essential principle of of the latter. We therefore offer our the HeForShe movement in favour of positive management deployed as part employees real career development gender equality, or the Women’s Forum of the HR 2020 plan. Our human resources Global Meeting, which aims to give voice teams have invested in managing, with to women on global issues. We have also the support of all Group executives and “Because signed the #JamaisSansElles commitment managers, this multi-faceted human the expertise charter to promote gender equality and and organisational crisis. From day one, and diversity we are working to increase gender HR has been at the forefront of crisis of our teams equality at all levels of the company, management, in line with their essential are our while combating harassment. daily role of supporting the Group’s Group’s main assets, Finally, we take action to protect business. we are constantly the environment and we are committed striving to improve to civil society through solidarity and Together, committed to being the employee experience volunteering programmes, such as that Diverse and a leader in sustainable finance offered to them.” of 1MillionHours2Help, thanks to which The pillars of our employer promise reflect our employees can contribute, during BNP Paribas’ ambition to become a global their working hours, to the efforts made leader in sustainable finance. With this Sofia Merlo, by associations for a more inclusive committed teams, in mind, the HR roadmap has two main Head of Human Resources and ecological world. at the service

90% of Group employees of our customers attended at least two training courses in 2020 BNP Paribas’ 193,000 employees are a key asset of the company. Their expertise and commitment enable us to best meet the needs and expectations of our customers in all our business lines and in all our regions. As part of the Group’s transformation, Objective by 2025: we have adopted an attractive and responsible human resources policy, based on skills at least development and improving the employee experience. It is also recognised for its provisions in favour of diversity and inclusion, and for the level of employee engagement it generates. 40% women on the Executive Committee and the Group’s G100

36 — 2020 Integrated Report — 37 Continuing our development

Our 2017-2020 strategic plan, in line with the expectations of our customers and all our stakeholders, steered us to reinvent our customers’ experience, affirm our leadership in sustainable finance and strengthen our position as a leading European bank. In 2021, we are pursuing these commitments and preparing our next strategic plan for 2022-2025. and transformation strategy

Our 2017-2020 plan: multiple advances Preparing our 2022-2025 strategic plan The continuation and acceleration of BNP Paribas’ and solutions that place us among the world leaders Through close attention to new human, technological and digital transformation of was at the heart of our in sustainable finance. At the same time, we commercial challenges, we have identified several areas strategic plan for 2017-2020. Driven by this strong strengthened our internal control and compliance of development that enable us to better meet the expectations momentum, we have reinvented our customer systems while improving our operational efficiency. of our customers and employees and handle societal challenges. experience and designed new services, thus Faced with the unprecedented health crisis of 2020, positioning our Group as a major digital player, and thanks to the commitment of our 193,000 alongside benchmark leaders with whom we employees, we have identified and deployed all the cooperate more frequently. During the three years resources needed to continue to serve our customers ng and e aged e ed mp itt lo of the plan, we also strengthened our international and society. We have used our advances in digital MAXIMISE m y ACCELERATE ee om s customer franchises, optimised our platforms and industrial transformation to mobilise the synergies and efficiency C our development and developed, in all of our business lines, products execution and adaptation capacities required. of retail businesses and in the areas of financial accelerate the deployment Improved customer savings and investment, of digital services for our experience in line with the expectations customers. Leadership in sustainable and increased needs finance of our customers.

A

s s e t Reinforcement of customer v r i u t c franchises and market c t e u share gains j CONTINUE r b BOOST e o STRATEGIC PRIORITIES FOR 2017-2020 BALANCE SHEET AT 31/12/2020 t t to strengthen our industrial h n business development at e structure to strengthen i m momentum for corporate s a lop IMPROVING Established relations that combine the best Number of Domestic Markets customers active on mobile our operational efficiency da eve and institutional customers pted to new d CUSTOMER of personal and digital service. devices: +78% between end of 2016 and end of 2020. and enhance all our business and support their transition EXPERIENCE Accelerated the digitalisation of uses. Number of users of BNP Paribas CIB’s international digital lines. to sustainable models. Provided close support to all our customers services platform (Centric): x2 between end of 2016 and developed self-care and new services. and end of 2020.

ACCELERATING Strengthened and acknowledged leadership Amount of financing to companies to support energy transition To that end, we have decided to adapt our brings together Global Markets, Corporate Banking THE TRANSITION in sustainable finance. and sectors considered to contribute directly to the Sustainable organisational structure to better focus on and Securities Services. TO A SUSTAINABLE Accelerated integration of Environmental, Development Goals (SDGs) in 2020: €188bn. our customers and our major priorities. These provisions take effect the day after the Annual ECONOMY Social and Governance (ESG) criteria in our activities As a result, the Retail Banking division brings General Meeting of 18 May 2021. For Jean-Laurent and launched innovative incentive products for our customers. together all of the Group’s retail activities: Bonnafé, Director and Chief Executive Officer of Deployed ambitious sectoral policies to protect retail-banking networks in Europe and internationally, BNP Paribas: “This adaptation of our structure will the environment. BNP Paribas Personal Finance and the specialised enable BNP Paribas to face the challenges of the business lines: Nickel, Arval, BNP Paribas Leasing coming years with greater operational efficiency COMMITTING Provided support for companies and start-ups In 2020, faced with the health crisis: Solutions, BNP Paribas Personal Investors. A new and capacity for innovation. It will help our teams TO SOCIETY with a social impact. implemented an emergency plan of almost €60m. Investment & Protection Services division includes to reaffirm our performance in terms of customer co-managed sustainable bonds (pandemic bonds) Support for vulnerable and disadvantaged populations. BNP Paribas Asset Management, BNP Paribas Cardif, service and ability to create value and to take Promoted diversity and inclusion in the workplace. with a total value of €14.5bn. BNP Paribas Wealth Management and BNP Paribas the environmental and social issues that affect us all Initiated actions that support younger generations. Participated in regional development. Real Estate Services. Corporate & Institutional Banking into greater account.”

38 — 2020 Integrated Report — 39 Retail Banking

Our Retail Banking division is constantly innovating to better serve our customers, anticipate changes in their uses and reinvent their experience. It brings together the Group’s retail-banking networks and several specialised businesses. Each one proposes products and services tailored to customer needs in order to support them each day and help them realise their projects.

”In this period Our retail-banking networks of health crisis, it is essential French Retail Banking to guarantee 7.6 million customers our customers BNP Paribas Fortis in Belgium the most complete digital 3.4 million customers offering possible, as well BNL in Italy as services that respond 2.9 million customers to changes in consumer BGL BNP Paribas in Luxembourg habits.“ 182,000 customers International Retail Banking 15 million customers (Bank of the West: nearly Thierry Laborde, 1.8 million customers; Europe-Mediterranean: Chief Operating Officer, Retail Banking 13.4 million customers)

Through its four domestic markets in the eurozone (France, Belgium, Italy and Luxembourg), BNP Paribas has a large network of experts and offers BNP Paribas Leasing Solutions its customers a wide range of services and products BNP Paribas Leasing Solutions offers businesses such as financing or savings solutions. An ecosystem and industry professionals leasing and finance of partners strengthens these offers beyond banking solutions for their equipment. Through a variety services. In addition, our networks place innovation of commercial channels (industrial partners and security at the centre of their business model like manufacturers and distributors, companies to adapt their products and services to customers’ directly, retail-banking networks), BNP Paribas Our three operating new needs and deliver the best of the digital and Leasing Solutions specialises in logistics human resources. and technological equipment. The company International Retail Banking (IRB) brings together has integrated the Circular Economy in its retail- and commercial-banking businesses outside business activities. the eurozone, in: the United States, China, Central 310,000 contracts in 2020 (€12.8bn) and Eastern Europe, Turkey and Africa. Through its and €34bn in assets under management divisions services spanning retail banking, wealth management and corporate banking, IRB offers a wide range BNP Paribas Personal Finance In 2021, BNP Paribas will change its organisational structure with two new operating of financial and non-financial services. BNP Paribas Personal Finance is the leading divisions: Retail Banking (RB) and Investment & Protection Services (IPS). consumer credit specialist in Europe. Its commercial Along with Corporate & Institutional Banking (CIB), the third operating division Our specialised business lines brands offer a full range of consumer loans through of BNP Paribas’ diversified and integrated model, they are working to prepare a variety of distribution channels. BNP Paribas the future 2022-2025 strategic plan. The three operating divisions are organised in such Arval Personal Finance is developing an active partnership Arval provides companies, their employees and strategy with large retailers, car manufacturers a way as to intensify cooperation between the business lines and thus meet the changing individuals with an ecosystem of digital solutions, and distributors, e-merchants and other financial expectations of our customers, employees, investors and all our stakeholders. A global services and tools to optimise their mobility in line institutions. The company is also involved and joint approach enriches the expertise offered to our customers in order to provide with current societal stakes, including energy in financial education and e-inclusion. them with continuous, long-term support in all their projects. We will continue to offer transition and growth of the user economy. Best securitisation issuer in Europe (GlobalCapital them the best of technology, personalised local support, and sustainable and incentivising A fleet of 1.4 million vehicles rented European Securitization Awards) [...] solutions as part of a long-term relationship of trust.

40 — 2020 Integrated Report — 41 [...] BNP Paribas Personal Investors BNP Paribas Wealth Management “Our duty is In addition to its traditional online brokerage BNP Paribas Wealth Management supports the wealth to continue to business, BNP Paribas Personal Investors offers and financial needs of wealthy individual customers, offer long-term its individual customers a wide range of banking, shareholder families or entrepreneurs. BNP Paribas products that credit and savings services. This business also Wealth Management offers new solutions to support are innovative, provides independent financial advisors and asset its clients build their investment strategy, notably responsible and value- managers with innovative digital services. by facilitating access to sustainable investments BNP Paribas Personal Investors is covering Germany, and investments in unlisted companies. creating.” India, and Austria. In Germany it offers services Elected “Best private bank for High-Net-Worth to 1.7 million clients and operates under three brand clients worldwide” (The Digital Banker) names amongst which Consorsbank, for individuals. €390bn of assets under management Renaud Dumora, Deputy Chief Operating Officer, Very strong increase in revenues in 2020 Investment & Protection Services (Narrow-Based Index) (+36%) BNP Paribas Asset Management Nickel BNP Paribas Asset Management offers investment First bankless account launched in France, Nickel solutions to individuals, companies and institutions offers a current account available in five minutes and offers them management expertise in line BNP Paribas Real Estate Services at a tobacconist or Point Nickel. Nickel is accessible with their long-term sustainable performance Through its local offices in Europe, its network of to all with no income conditions. Over two million expectations: active strategies with high conviction, alliances and its platforms, and taking into account accounts were opened in France (April 2021). emerging markets, multi-asset investments, private environmental considerations, BNP Paribas Real +27% accounts opened in 1 year debt and liquidity solutions. BNP Paribas Asset Estate Services, a European leader in real estate Management’s priority is to achieve long-term services, provides clients (institutional investors, sustainable investment returns for its clients corporates, local authorities, individuals, etc.) by placing sustainability at the heart of its strategy with services ranging from property development and investment decisions. to property management, transactions (sales, Second-largest asset manager worldwide for investment, leasing), consultancy, valuation its sustainable investments (ShareAction ranking and investment management. Investment & Protection Services March 2020) Operating in 30 countries

Our Investment & Protection Services (IPS) division brings together four specialised business lines offering a wide range of savings, investment and protection solutions. They design innovative and sustainable financial products for individual, professional, corporate and institutional clients, to support them in all their projects, and in their drive to make a positive impact. By integrating environmental, social and governance criteria into all its operational processes, IPS helps to place the Group among the world Corporate & Institutional Banking leaders in sustainable finance.

Our Corporate & Institutional Banking (CIB) division offers tailored financial solutions for corporate and institutional clients, The three Corporate & Institutional including capital markets issuance, financing, Banking (CIB) businesses are present Leading wealth and asset risk management and hedging. By matching in three main regions: EMEA (Europe, management business lines the financing needs of companies with Middle East, Africa), the Americas the investment opportunities sought and APAC (Asia-Pacific). BNP Paribas Cardif by institutional investors, its financial Thanks to a unique partnership-based business solutions create value while contributing Corporate Banking model, BNP Paribas Cardif is the world leader to the financing of the economy. Thanks to its worldwide presence, Corporate Banking in creditor protection insurance and a major actor provides companies with sophisticated and in financing the economy. It plays a key role in diversified expertise in financing, cash management the daily lives of its individual and professional and financial advisory services. To better anticipate policyholders, helping them to realise their projects the needs of its clients, the business combines while protecting them against hazards. As a socially global expertise and local presence. engaged company, BNP Paribas Cardif strives No. 1 in Europe for Corporate Banking, to make insurance more accessible. Cash Management and Trade Finance for large Pre-tax income: €1.4bn in 2020 companies (Greenwich Share Leaders) [...]

42 — 2020 Integrated Report — 43 [...] Global Markets “Climate change A specialist in capital-markets investment is a risk factor and financing, Global Markets offers a broad that is becoming range of hedging, financing and market-intelligence increasingly products and services across all asset classes important both to a wide range of institutional and corporate in the BNP Paribas clients operating in international markets. Very strong increase in revenues in 2020 (+22.4%) risk analysis and in the In order to assess and manage the various risks to concerns, and therefore which BNP Paribas may be exposed, and to protect the expectations, of our Securities Services ourselves against them, we have set up an internal various stakeholders: BNP Paribas Securities Services is the world’s control system to identify them and anticipate major fifth-largest securities custodian. It holds and emerging risks. customers, investors, and administers the assets of banks, investment Group supervisors and managers, insurance companies, pension funds The major risks include risks that are likely to arise civil society.” and sovereign wealth funds around the world in the short term and have a significant impact on and ensures the smooth handling of their the Group’s financial results, reputation or transactions. As such, the business helps clients sustainability. They include risks related to Frank Roncey, to expand their investment opportunities, macroeconomic conditions (such as the Chief Risk Officer manage risk and improve operating efficiency. medium-term consequences of the current health “By working Over 6,000 institutional clients on Neolink, crisis or systemic risks related to the increase in alongside our clients an internet portal that allows customers debt, for example); risks of trade regionalisation, to access all of its service offerings in one click to promote a more associated with in particular possible re-localisation This system goes hand in hand with an environmentally of productions lines in mature countries; laws and ever-stronger culture of compliance. friendly and inclusive regulations applicable to financial institutions; The objective? Further improve our operational economy, we are making political risk in emerging countries; cybersecurity model to fight money laundering, terrorism and technological risk. financing and corruption. Likewise, we are sustainable finance the Emerging risks are new or evolving. While their constantly stepping up procedures for complying foundation of our long-term impact may be significant in the future, they are now with international financial sanctions and growth.” difficult to quantify and assess with precision. e-learning programs for all our employees. These are technological innovations, changing regulatory environments, health risks (linked to a This risk management policy, combined with Yann Gérardin, new bacteriological or viral infection, for example), the strategy of diversifying our loan portfolios, Chief Operating Officer, Corporate & Institutional Banking and demographic and societal challenges. contributes directly to the Group’s solidity.

Continue to strengthen our internal control system To keep growing while maintaining the trust of our customers and partners, our internal control system was bolstered in 2020 and is being deployed at all Anticipate and levels of the company. It is based on six 66 pb* cross-departmental functions (LEGAL, Compliance, This is the cost of risk in 2020, RISK, Tax, Finance, Inspection Générale) and is up by 27 points supported by strict policies and procedures. compared to 2019 * Cost of risk reported on outstanding manage risks client loans at the beginning of the year (in basis points). In an environment disrupted by the health crisis, the Group has been able to cope with the economic tensions that marked 2020 thanks to significant risk management in all its activities and to its culture of compliance. A RISK CONTROL SYSTEM, PRESENT AT ALL LEVELS OF THE COMPANY We have thus been able to support our clients

and the financing of their investments while PERMANENT CONTROL PERIODIC CONTROL protecting them against associated risks.

1st line of defence 2nd line of defence 3rd line of defence Operational entities: business Functions: LEGAL, Compliance, Inspection Générale lines and functions RISK, Tax, and Finance

44 — 2020 Integrated Report — 45 IN ACTION AT

Optimise customer experience 48

Guiding our clients toward 54 more sustainable models

Committing to society 60 YOUR SIDE Make life easier for entrepreneurs and business creators

BNP Paribas continues to actual results and forecasts. strengthen its presence with Another support measure: in 2020, Optimise entrepreneurs. French Retail BNP Paribas Factor rolled out a Banking (FRB) BNP Paribas simplified digital factoring offer. continues to strengthen its Other initiatives within the Group presence with entrepreneurs. are part of the dynamic to support FRB has designed Mon Business entrepreneurs. In Belgium, for Assistant to help them manage example, BNP Paribas Fortis offers their business. Integrated business creators one year of free of charge into the free-of-charge banking services customer “mabanquepro.bnpparibas” and preferential factoring customer area, it allows solutions. entrepreneurs to have a categorised statement of transactions and a dedicated experience invoicing tool to visualise their

Support the younger generation To get started on building with their the bank of tomorrow, projects The Group offers several we are focusing and products and services to continuing our investments support young people in their everyday lives, and as they in digital technologies, plan for their future. It pays particular attention to the and strengthening our ties inclusion of younger generations with startups and fintechs in society. For example, to help young people finance in order to be at the forefront their studies, BNL has launched Futuriamo. This ten-year loan of technological innovation. can now reach €70,000 and Our goal? Offer our customers it promotes students’ access Quality and speed of service: to Italian and international a smooth and personalised Masters and MBAs. In 2020, at the heart of our support 540 young people received In 2020, French Retail Banking (FRB) launched a new journey that meets their needs support to finance their plans, Customer Service Department to respond quickly and uses, while ensuring representing a total of more than 12.4 million euros in loans. and efficiently to customer requests as of the first call. a high level of security. Besides, in early 2021, French To better identify and qualify each request in order to Above all, optimising customer Retail Banking (FRB) launched direct the customer to the right service at the right time, a new loan to help scholarship the service also relies on artificial intelligence. Already experience means listening students in their studies in top-ranking universities deployed at BNP Paribas Fortis, the initiative is also being to clients’ aspirations and (grandes écoles). considered at BGL BNP Paribas and BNL. This approach regularly proposing new Also, in Ukraine, UKRSIBBANK is part of the Group’s long-term strategy focused on has integrated access optimising customer experience and streamlining offers and services with high to the Dreams platform into its digital banking offer, customer journey. Since 2013, BNP Paribas has been added value. thanks to which millennials* developing the Advocacy programme, to ensure that can benefit from services that customer and employee voices are heard throughout their enable them to better manage relationship. The programme is now active in France, their money. Belgium, Italy, Luxembourg and Germany, covering *Generation born between 1984 and 1996 (Harvard). all customer segments.

48 — 2020 Integrated Report — 49 “Thanks to our strategic partnership Innovative payment with Allfunds, one of the largest fund distribution platforms in the world, solutions for Patrick Colle, we are optimising and enriching the experience provided Chief Executive to our customers who invest in this type of asset. Officer of BNP Paribas Securities Services We give them privileged access to a wide variety of investment all our customers funds via our integrated distribution platform Fund@ccess, which is based on an operational and technological engine shared Optimising customer experience means improving their with Allfunds. As a result, institutional investors also benefit journey from end-to-end and, as such, rethinking payment from increased operational efficiency and next-generation solutions. Through innovative electronic payment data analysis services.” technologies or the emergence of a future, unified European system, payments are being reinvented to make everyday life easier for consumers and retailers.

1.3 million No. 1 Number of instant in Cash Management payments issued at the in Europe for end of 2020 (x 3.6 / 2019) by Domestic Markets’ retail large companies and digital banks

4 billion euros of equity investments to support SMEs and middle- security, while having access to real-time market companies reports of the transactions that are in France made. Lastly, Paytweak makes it possible to collect customer payments via a secure BNP Paribas has decided to double its equity investments in the capital of SMEs* and middle-market link sent by email, SMS or secure companies in France, bringing them to 4 billion euros messaging. by 2024. This funding aims to support their development while contributing to economic recovery. The Group Towards a unified payment solution supports their long-term strategies such as international in Europe growth or their digital or energy transformation. *Small and medium-sized companies. In 2020, French Retail Banking (FRB) now benefit from a virtual pocket wallet, In addition to these electronic payment launched in France the biometric card, Smart Flouss! innovations, BNP Paribas has joined New products beyond which already allows individual forces with 15 other major banks in five banking services customers to make contactless payments Ease, fluidity and visibility for retailers countries (Belgium, France, Germany, the with their fingerprint, in excess of €50. Payment innovations proved to be crucial Netherlands and Spain), with the support Thanks to the signature of a partnership with This innovation completes the Paylib in 2020, particularly for retailers. of the European Central Bank (ECB), for Papernest in October 2020, the advisors of French offer, which makes it possible to pay Since the start of the Covid-19 crisis, the implementation of a new 100% Retail Banking (FRB) enrich their offer of solutions friends and retailers via mobile or online. several solutions have helped them European payment system, which is with a new free and exclusive service to help individual This year, Hello bank! has introduced a maintain, develop, adapt and even expected to be launched in 2022. The customers optimise their home daily expenses or virtual card, included in the Hello Prime reinvent their business by offering remote European Payment Initiative (EPI) project relocate. With Papernest, customers can compare, take offer. It simplifies online purchases, is payment. Among them, the Click & Collect is set to become a new digital payment out and/or cancel their subscriptions in order to always available in the app if you forget application by Lyf (formerly Lyf Pay), standard that can be used across Europe. optimise their contracts for electricity, gas, Internet your wallet and is available as soon as which offers an alternative to in-store The EPI will offer European retailers and boxes, mobile phones or mail forwarding. The benefit? you open an account. In addition, in purchases with take-away sales. As for consumers an effective alternative to Papernest takes over the management of all related Morocco, to deposit, withdraw or transfer retailers who already have their own current international payment systems administrative procedures. Convinced, 40% of customers money securely using their smartphone, e-commerce site, with Axepta (formerly for all their transactions: in-store and contacted have signed at least one contract with the customers of the Banque marocaine Mercanet), they have the possibility of online payments, payments between our partner. On average, Papernest saves our customers pour le Commerce et l’Industrie (BMCI) collecting payments remotely, in complete individuals, etc. 480 euros per year.

50 — 2020 Integrated Report — 51 Continue to digitalise customer journeys

In order to adapt to the changing needs and practices of our individual, business and institutional customers, we are accelerating the development of digital functionalities. With the aim of offering everyone an experience combining the best of people and digital technology.

Digital transformation was the spearhead of BNP Paribas Asset Management, in partnership BNP Paribas’ strategic plan for 2017-2020. In BBB+ with the fintech Gambit Financial Solutions, Facilitate the line with a growing expectation of self-care on This is the rating obtained by created the investor robot Lucy in 2020. The BNP Paribas at the end of the part of customers, the Group’s business the 3rd assessment module result of two years of work, this fully online management lines have undergone their transformation and of the “Digital performance service ensures the professional and of retail banks in France” of customer data are now continuing the development of online, study conducted by automated management of their assets. From mobile and tablet functionalities. In addition, D-Rating. BNP Paribas is the a minimum of €1,000, all customers need to and documents only banking group in France French Retail Banking (FRB) was ranked to have obtained this rating do is complete an online questionnaire to Thanks to the strategic partnership number one traditional bank for the fourth determine their risk profile and investment between BGL BNP Paribas and consecutive year by D-Rating for its digital objectives. Lucy then invests the assets, and the startup i-Hub, we will soon offering. The independent rating agency for the rebalances each portfolio according to market have a centralised and innovative digital performance of companies has also 130,000 trends. A solution already offered by solution for the management and recognised Hello bank! second-largest online BNP Paribas Fortis to its customers. new clients for Hello bank! digital storage of identification bank in France. in 2020 Innovative savings products data and documents for our Another example of the Group’s digital and a total of 600,000 clients in France Innovate with Brio customers in Luxembourg. Meeting acceleration: BNP Paribas Personal Finance In 2020, BNP Paribas Global Markets launched The year 2020, marked by considerable service combining autonomy and regulatory requirements in terms offers individual customers digitalised customer Brio: a platform dedicated to cross-asset uncertainty and a significant decline the personalisation of investment of data protection, this highly journeys at all stages of the relationship. In equity and index investment solutions that in consumption, saw individual savings preferences, risk profile and objectives. secure solution has been shared 2020, 71% of signatures were carried out gives institutional customers the opportunity increase significantly. At BNP Paribas The second application, GO Invest, enables Personal Investors in Germany, the advisors in charge of the premium with other banking institutions. electronically (compared to 10% in 2016). For +28,000 to conceptualise and test their investment users in 2020. number of securities account openings segment of the network and those In this context, each customer its part, BNP Paribas Wealth Management saw At the end of 2020, the online strategies before finalising their transactions. increased by 573%. In 2020, innovative dedicated to BNP Paribas Bank Polska will have free access to a the use of its digital services platform banking platform Centric This solution complements the offer already solutions were also introduced Private Banking to better support had more than 100,000 users “Centralised KYC Repository” for the Group’s private banking customers. their high net worth customers, thanks myWealth increase significantly. in 45 countries. It hosts available with Centric, the online banking which will allow them not only 42 applications platform for companies and institutions. The first, myMand@te, was developed to a 360° view of the customer profile by BNP Paribas Asset Management that they can share with each of them. to file or update their identification An ideal interface, it allows our customers Making stock market investment and the fintech Gambit Financial Solutions In 2020, the Polish bank was voted documents, but also to share more widely accessible with Lucy to streamline their information exchanges in collaboration with BNP Paribas Wealth “most innovative private bank.”* and update their file in one go with To help individuals invest with complete with the bank. With more than 100,000 users Management. It offers customers *Forbes. all financial institutions. autonomy, the Group is innovating with in 45 countries, Centric already hosts in France a discretionary management advanced investment functionalities offered to 42 applications and continues to add new its clients. services. For our customers who need to make payments, we offer the Inquiro app by BNP Paribas. Co-created with our customers, it helps them transmit more information emanating from Compliance and online payments, including proactively, in a completely secure form. For our customers who execute foreign exchange transactions, A welfare offer for companies we have developed the online confirmation and their employees solution, Confirmation Matching, an BNL launched the WellMAKERS offer at the end of 2020 to enable application that allows them to confirm companies to offer their employees a comprehensive range any transaction involving foreign exchange of banking, financial, insurance and sustainable mobility products - and, more recently, commodities - instantly and services at a preferential rate. Focused on sustainable growth and employee well-being, this positive impact initiative is the result and securely. of a fruitful cooperation between several BNP Paribas entities (Arval, BNL, BNP Paribas Cardif, Cargeas and Findomestic) and their business partners such as Booking, Volvo, Samsung, Edison and Feltrinelli.

52 — 2020 Integrated Report — 53 €17.8bn in support for renewable energies, at the end of 2020 Guiding our clients (number two in EMEA for the financing of renewable energy projects at the end of 2020) (Dealogic) toward more ESG criteria included in our investment activities €10.8bn of green bonds as joint BNP Paribas Asset Management continues to place bookrunner for our Environmental, Social and Governance (ESG) criteria customers in 2020 and 1st at the heart of its sustainable investment strategy. in the global sustainable sustainable models These criteria also guide its voting policy at Annual General bonds market Meetings of companies in which it is a shareholder, particularly (Bloomberg) with regard to the energy transition. Thus, in 2020, the Asset Management supported more than 90% of shareholder proposals to combat climate change. BNP Paribas Asset Management also launched an innovative long/short thematic equity fund investing in companies providing environmental solutions: BNP Paribas Environmental Absolute Return Thematic Fund (“EARTH”). Convinced that economic growth must be responsible, BNP Paribas aligns its actions and commitments with the UN’s 17 Sustainable Development Goals (SDGs). In order to act in favour of more Acceleration inclusive and environmentally of the timetable friendly growth, in line with for exiting coal the expectations of its BNP Paribas accelerated stakeholders, the Group its timetable in 2020 in order to completely exit the thermal is continuing its transition coal value chain by the year 2030 in the European Union and in OECD and supporting that of its countries, and by 2040 in the rest customers by offering them of the world. In keeping with this timetable, like all of the Group’s incentives and positive business lines, BNP Paribas Cardif will complete its full exit from Promote the the level of sustainability of their impact solutions. Accelerating any mining, exploration or electricity investments, whatever the asset class. production company related positive impact the transition to a sustainable Investors can easily select, compare to thermal coal by these dates. of our individual and align their investment choices Since 2018, BNP Paribas Cardif economy means making with their sustainability goals. no longer finances any electricity customers Several offers are also being developed finance a lever for transforming generating company where To better support our Private within the Group for individual more than 30% of its production our societies. Banking clients in their desire to customers. comes from coal, nor mining make a positive impact, BNP Paribas In Italy, for example, BNL offers “green” companies where more than 10% Wealth Management has introduced personal loans to finance home of revenue comes from thermal coal. a new rating, called the “Trèfle” renovation and, since 2020, dedicated (clover) methodology. It makes “green” home loans. it possible for clients to identify

54 — 2020 Integrated Report — 55 The green hedge to strengthen corporate commitment CIB: an essential partner

BNP Paribas Fortis now offers corporate customers who wish to strengthen their commitment to greater sustainability to hedge for corporate and institutional clients their interest rate risk by moving from a variable interest rate to a fixed interest rate with “green” conditions. The idea is to motivate Our Corporate & Institutional Banking (CIB) customers to respect their environmental commitment, failing which they are required to pay an additional premium that is then devoted division recorded a significant level to a sustainable project. A first green hedge was carried out of activity in 2020 in response to an in Belgium in 2020 with a Corporate Banking customer. increased need to support our clients.

Proximity and attentiveness have enabled us to offer them tailor-made support, advise them in the face of the uncertainty and complexity of the crisis, and to successfully complete large transactions with credit “Awareness of environmental and social issues is driving volumes of up to five times higher than our usual level, while also reinforcing our the company to make a profound transformation. commitment to sustainable finance. In this perspective, we are progressively aligning the entirety of our loan portfolio The result? Thanks to increased cooperation with the objectives of the Paris agreement. We are using the Paris Agreement Capital between all of the Group’s business lines Transition Assessment (PACTA) methodology, developed conjointly with four other and different regions, which promotes the Antoine Sire, pooling of our expertise on a larger scale, Head of Company international banks. We are also supporting and applying the recommendations Engagement of the Task Force on Climate Finance-related Disclosures (TCFD), in order to increase we have gained market share and transparency around the management of climate risks. In 2020, BNP Paribas issued strengthened our positions in Scandinavia, (1) the United Kingdom, Germany, Spain and its first reporting with the Poseidon Principals , which evaluate CO2 emissions generated by loans granted to maritime transportation. These advancements have the Netherlands. We have also consolidated been recognized by extra-financial ratings agencies, who have ranked us among our position as number 1 for corporate the world leaders in terms of CSR with scores well above the average for banks (2). banking in Europe. At the end of 2020, of the first green bond placed by an These rankings commend not only how we measure our own impacts, but also BNP Paribas allocated the commitments we have made to limit them and to accelerate the transition The resilience of our results, combined with insurance company in the United States. of our society towards more sustainable models.” our commercial dynamism, have helped to €9.4bn (1) Launched in June 2019, the Poseidon Principles constitute a new global framework for the responsible financing of vessels: they aim to reduce establish the Group’s position as one of the In 2020, Corporate & Institutional Banking to the financing of the carbon emissions generated by shipping by 50% by 2050. main financiers of the European economy Sustainability-Linked was also recognised as “Investment Bank (2) See more details on non-financial ratings on pages 72-73. and a key player in a responsible recovery. Loans (SLL). of the Year” in the category Sustainability- BNP Paribas is Number 1 bank for the financing of Linked Loans (2). SLLs in Europe, the Middle Partner for major bond issuances East and Africa (EMEA). (1) This distinction underlines BNP Paribas’ In 2020, our ability to mobilise for our long-term commitment to supporting clients was illustrated by the issuance the economy, society and its customers, Concrete sustainable of exceptional bonds. On behalf of CAF in order to build a sustainable future. (Corporación Andina de Fomento), the Latin (1) Dealogic. mobility solutions for all (2) In the 2020 Investment Banking Awards given American development bank, we issued the €3.4bn by the magazine The Banker. In order to become the European leader first social impact bond related to Covid-19 for an amount of €700m over five years. raised by the Asian in sustainable mobility, Arval, an expert Infrastructure Investment This amount is dedicated to financing Bank (AIIB) in 2020, to in long-term vehicle leasing and new mobility support recovery efforts solutions, has set itself ambitious CSR targets. healthcare and providing economic support in China and throughout the world With a fleet of 500,000 electrified vehicles in connection with the health crisis. We also issued the first sovereign bond by 2025, a reduction of the CO2 emissions of its global fleet by 30% and a carbon neutral in the world linked to the United Nations balance sheet, Arval intends to support Sustainable Development Goals (SDGs) customers in their energy transition by offering for an amount of €750m over seven years. alternative and responsible means of mobility Issued by Mexico, it will fund various €750m wherever it operates. programmes aimed at making a concrete over seven years is the contribution to the achievement of the SDGs amount of the bond issued by Mexico that will be in the country. Lastly, on behalf of entirely devoted to financing Prudential, we were involved, for a total the SDGs of €500m over six years, in the issue

56 — 2020 Integrated Report — 57 Launch of the first An increasingly European institutional significant model: real estate fund the Usage Economy in line with the Paris Two breakthroughs in the sustainable Agreement economy marked 2020 and the beginning of 2021. The alternative BNP Paribas Real Estate Investment real estate operation Now Connected, Management successfully launched created by BNP Paribas Real Estate the European Impact Property Fund (EIPF), Services and Now Coworking, enables the first European Core real estate companies with vacant square meters fund aligned with the Paris Agreement. to offer them to small businesses. In concrete terms, it intends to reduce The latter can then, under a non- greenhouse gas emissions by 40% over binding rental agreement, set the next ten years across its entire themselves up in these spaces Supporting and encouraging European portfolio. This investment specifically designed for their use. strategy with a positive and measurable More than ten Now Connected a sustainable “blue” economy impact on the climate is unprecedented in spaces are expected to be created Committed to a sustainable “blue” in Asia, launched by the Bank the European real estate market. in 2021, right across France. economy through quantified targets, of China against ocean pollution and In addition, like three other Group BNP Paribas promotes a production intensive fishing. solutions, BNP Paribas 3 Step IT and consumption system based In addition, in 2020 BNP Paribas was awarded the “Solar Impulse - on a sustainable maritime economy, Asset Management launched able to support the economic health the first Exchange Traded Fund (ETF) Efficient Solutions” label for the quality of the population while ensuring focusing on the blue economy. It aims of its Circular Economy based the preservation of the marine to invest in companies able to take solutions, which enables it to give a ecosystem. In this context, advantage of the opportunities second life to 97% of the technological Corporate & Institutional Banking (CIB) offered by the sustainable use contributed to the very first blue bond of ocean resources. equipment recovered at the end of the leasing contract.

Focus on large mixed-use Supporting tobacco growers in urban projects their professional retraining With the support of in twenty years. BNP Paribas Citallios* BNP Paribas Real Real Estate Services has Following a call for tenders, BNP Paribas was Estate Services will also merged its business selected to design a Development Impact transform the four-hectare property development, Bond (DIB) for a United Nations Development site on which the head office residential and large-scale Programme (UNDP) project in Zambia. of BIC was located in projects to promote This innovative and first-of-its-kind DIB Clichy-la-Garenne (Greater cross-functional expertise. aims to encourage local tobacco growers’ Paris region) into a mainly *Paris region land-use and development conversion to crops fighting malnutrition residential area. This large company. and deforestation, and to improve their mixed-use urban project is working conditions. the Group’s largest property development project

58 — 2020 Integrated Report — 59 Solidarity in line with local needs From the start of the health crisis, the Group and all of its subsidiaries have been proactive Committing in directly supporting health care systems, medical research and institutions working with the most vulnerable people and disadvantaged youth. The mobilisation of the BNP Paribas Rescue and Recover Fund (RRF) through partners such as CARE, the French Red Cross “In Lebanon, CARE has been working and Doctors without Borders has been decisive to society in the deployment of these actions (see pages with the most vulnerable since 2006. 7 to 9). 2020 was also marked by the explosion in Beirut for which the RRF collected donations Following the double explosion in the port of Beirut in August to provide food, psychosocial support and 2020, our teams were able to quickly deploy to support housing rehabilitation. In France, the the populations most affected by the disaster, in particular BNP Paribas Foundation has been involved thanks to the quick response of the BNP Paribas Rescue and with 14 very active associations and with Recovery Fund: distribution of hot meals and food parcels, artists affected by the crisis. In total, the corporate sponsorship budget in 2020 psychosocial support, rehabilitation of housing (repairs amounted to €104m worldwide. of windows, doors, etc.).” Philippe Lévêque, CEO of CARE France To increase its positive impact on society and the environment, BNP Paribas capitalises “Tilia”: on its position as a European a human and bank with international digital system reach and relies on its to support CSR strategy. Its objective? caregivers Contribute to more inclusive Created by a Group employee and shared sustainable as part of the “Bivwak!” growth through its intrapreneurship programme, consulting, service and Tilia offers an application coupled with personal assistants who financing activities, as well can be reached 24 hours a day, as through a proactive 7 days a week, to support approach in favour of caregivers of family members who are losing their ability to live diversity. Committing independently. As BNP Paribas to society means, above Personal Finance’s leading social Financing a food assistance all, promoting a model business, it already has 20,000 beneficiaries through programme of economic growth that agreements with the Group is fully respectful of the and other companies. The Banque Internationale This falls within UN Women’s In 2020, Tilia joined forces with pour le Commerce et l’Industrie AgriFed programme the Group environment and mobilising au Sénégal (BICIS) and UN-Women and BICIS support to financially “Responsage”, the leader in social have launched a new programme to empower 15,000 women in for meaningful causes. support for caregivers, to provide buy stocks of rice from women climate-resilient rice agriculture companies with an farmers in Senegal and distribute in northern Senegal. In 2020, unprecedented, turnkey offer them to 10,000 families 1,500 women of these women experiencing food insecurity were able to access a funding line to facilitate the care of their following the Covid-19 pandemic. of €500,000. caregivers.

60 — 2020 Integrated Report — 61 Acting in favour Committed to the of biodiversity In line with our commitment to promote investments that contribute to the protection of financial inclusion of biodiversity, we are partners in the MEbA* project. This project gives financial services providers in Latin America and Sub-Saharan Africa the vulnerable people and people opportunity to access, free of charge and via an online tool, an improved credit analysis measuring the impact of climate and biodiversity risks on with disabilities decisions related to agricultural loans. Reliable indicators that help them qualify for new sources of financing, such as green lines of credit. For its In 2020, BNP Paribas was acknowledged part, the BNP Paribas Foundation supported a to be the “World’s best bank for training programme for the restoration of coral reefs financial inclusion” by the magazine as part of a partnership with Coral Guardian. Euromoney. In 2020, the BNP Paribas Rescue and Recover Fund also opened up to the protection of biodiversity This distinction underlines the commitment by welcoming the International Fund for Animal of BNP Paribas for financial inclusion, which, Welfare (IFAW) as a new partner. * Microfinance for Ecosystem-based Adaptation. for several years now and in line with the Group’s strategy, has been ensuring access for all, particularly the most vulnerable and disadvantaged. It also acknowledges our thirty-year-long commitment and actions in microfinance. In 2020, we continued to support microfinance institutions (MFIs) through financing Financial support for social and investments totalling 376 million euros. enterprises Our commitments to financial inclusion are In Belgium, BNP Paribas signed its first social impact contract (SIC) also reflected in new innovative banking in March 2020, a tool designed to finance innovative social projects. models such as Nickel. Nickel is a financial This SIC aims, as part of a social and professional reintegration solution allowing clients to open a current programme, to provide access to long-term housing for young people between the ages of 17 and 25 in very precarious situations. account online or at a newsagent’s, with The Group is financing 50% of this programme, with a total amount no income conditions. Since its creation, of €1.7m. This SIC is the tenth to be structured and financed by the two million accounts have been opened. Group worldwide. In 2020, BNP Paribas’ support for social After its launch in the Spanish market in one hand, of an anticipatory predictive score enterprises exceeded €2bn. December 2020, where it is expected to reach intended to identify customers’ difficulties 700,000 3,000 points of sale and 700,000 customers as early as possible and, on the other hand, customers by 2024, represents Nickel’s by 2024, Nickel will export its innovative model of an active support unit. This system has objective moving into to Portugal and Belgium in 2022. been put in place in a dozen countries. the Spanish market The Axelle platform created by French Retail The Group’s actions to encourage inclusion Banking (FRB) is another illustration of are also deployed in favour of people with our commitment to financially vulnerable disabilities. In Italy, for example, BNL has Improving social and customers. Axelle’s ambition is to give our created teams to meet the needs of people 2.4 million customers a helping hand in order to get with hearing loss in order to make our banking people have benefited from educational inclusion them back on track: it informs them of the services more accessible. BNP Paribas Bank the Group’s support thanks to the financing of 84 MFIs BNP Paribas is supporting a to provide free in-school aids or solutions that can help them manage Polska offers access throughout Poland to a in 33 countries new research project led by training to foreign language- their budget, and provides them with offers sign language interpreter at all its branches. the Social Inclusion in Europe speaking immigrant parents and services from partners to provide food, Initiative of the Abdul Latif to promote their social housing, work and travel, thereby promoting Jameel Poverty Action Lab integration and give them Europe (J-PAL Europe), a the means to contribute to their economic inclusion. research centre co-founded the success of their children This desire to be there for the most vulnerable by Esther Duflo. This research within the French education can also be seen within BNP Paribas Personal aims to measure the impact system. Finance, which has built an original system of OEPRE, a programme Other Group business lines also implemented in France by the work for inclusive education. for detecting customers who might potentially Ministry of National Education (see page 27). be in difficulty, in order to provide them with and the Ministry of the Interior the best possible support. It consists, on the

62 — 2020 Integrated Report — 63 LONG-TERM

Governance that defines 66 and implements the Group’s strategic direction

Shareholders and investors 67

The Board of Directors 68 is guarantor of the Group’s strategic direction

The Executive Committee ensures 70 the steering of the Group’s activity

Indicators and ratings 72

BNP Paribas worldwide 74 COMMITMENTS Governance that Shareholders and investors defines and implements the Group’s strategic

Stable and loyal ownership Communication with shareholders direction BNP Paribas endeavours to provide all BNP Paribas shareholding structure shareholders with clear, consistent, The Board of Directors and Executive Management are the main governing At 31 December 2020 (in % of voting rights) high-quality information at regular intervals, bodies of BNP Paribas. In a profoundly changing environment, they direct the in accordance with best market practice and Group’s strategy towards a goal of sustainable growth. They act together in the recommendations of stock market the interests of the Group and its stakeholders, in particular shareholders authorities. The Investor Relations team informs and investors. Under the leadership of its Chairman, the Board of Directors defines EUROPEAN EMPLOYEES institutional investors and financial analysts INSTITUTIONAL BNP Paribas’ strategy. It supports Executive Management, which is assisted INVESTORS 4.4% about the Group’s strategy, major events by its Executive Committee and which implements strategy and guides 43.5% concerning the Group’s business and the the Group’s activity on a day-to-day basis. RETAIL SHAREHOLDERS Group’s quarterly results. NON-EUROPEAN INSTITUTIONAL 4.2% INVESTORS Drawing on the expertise of the shareholder

30.1% OTHER AND liaison committee UNIDENTIFIED Since 2000 BNP Paribas has had a Shareholder SFPI * 3.1% Liaison Committee to assist with 7.7% communications with individual shareholders. GRAND DUCHY OF LUXEMBOURG It meets several times a year and is made up of BLACKROCK INC. Shareholders and investors The Board of Directors Executive Management 1.0% ten shareholders chosen for their geographical Elect Directors (other than Directors Separates the functions of Chairman assisted by its Executive 6.0% and socio-professional representativeness, elected by BNP Paribas employees). and Chief Executive Officer. Committee plus two current or former employees. Vote on resolutions. Represents all shareholders and Informs and reports to the Board Membership of the committee is for three years. Engage, participate and enrich ensures the quality of the relationship of Directors. * Société Fédérale de Participations et d’Investissements: a public limited discussions. The Investor Relations team with them. Implements strategy, oversees company (“société anonyme”) acting on behalf of the Belgian State. Animating the shareholder community informs them about the Group’s strategy, Determines the Group’s strategic the Group’s development and guides The members of the Cercle des actionnaires de significant developments, and results. choices based on proposals from its day-to-day activity. BNP Paribas (BNP Paribas Shareholders’ Group), • The Shareholder Relations team Executive Management to create long- Meets at least weekly. set up in 1995, are the 43,200 retail answers questions from the bank’s term value. At the end of 2020, it consisted of shareholders holding at least 200 shares. 345,000 individual shareholders. Monitors the quality of information a Director and Chief Executive Officer, KEY SHAREHOLDER DATA They receive the financial newsletters each • The Cercle des actionnaires de provided to shareholders and the a Chief Operating Officer and four half-year and the minutes of the Annual General In euros 2016 2017 2018 2019 2020 BNP Paribas brings together some markets. Deputy Chief Operating Officers. Meeting. They are also sent two printed editions (1) 43,200 individual shareholders who Examines and closes the financial As of 19 May 2021, the day following Earnings per share 6.00 6.05 5.73 6.21 5.31 of the magazine, La Vie du Cercle, in addition own at least 200 BNP Paribas shares. statements, ensuring their accuracy the General Assembly, it consists Net book value per share (2) 73.90 75.1 74.7 (*) 79.0 82.3 to two emails outlining forthcoming events.

• The Shareholder Liaison Committee met Plays a determining role in risk- of a Director and Chief Executive Net dividend per share 2.70 3.02 3.02 0.0 (3) 1.11 (4) They are invited to attend artistic, sporting twice in 2020 to discuss, among other prevention and management. Officer, two Chief Operating Officers, and cultural events with which BNP Paribas Pay-out ratio (in %) (5) 45.0 50.0 52.72 0.0 (3) 20.9 (4) topics, the capital structure and changes Ensures compliance with the and two Deputy Chief Operating is associated, as well as online training sessions. to it, quarterly results, economic outlook, obligations for which it is responsible Officers. Share price These include share trading (technical and in particular following the health crisis, in terms of internal control. The Executive Committee brings Highest (6) 62.00 68.89 68.66 53.81 54.22 financial analysis, portfolio diversification etc.), Brexit and various political events such as Appoints the Chairman, the Chief together Executive Management and economic updates sessions in partnership Lowest(7) 35.27 54.68 38.18 38.14 24.51 the US presidential election. Executive Officer and the Chief and the heads of BNP Paribas’ main with the relevant BNP Paribas teams. In 2020, Apply the principle of equality among Operating Officers. businesses and functions. Year-end 60.55 62.25 39.475 52.83 43.105 due to the health crisis, the Cercle expanded shareholders: no double-voting rights, no Periodically reviews the selection, CAC 40 index on 31 December 4,862.31 5,312.56 4,730.69 5,978.06 5,551.41 its range of regular newsletters with articles on limitations on the exercise of voting rights, appointment and succession the history of BNP Paribas, cinema, tennis, etc. (1) Based on the average number of shares outstanding during the fiscal year. no right to increased dividends on share of executive corporate officers. (2) Before distribution. Revaluated net book value based on the number of shares outstanding at year-end. and launched the Cercle’s podcasts, interviews (3) Following ECB/2020/19 recommendation of the European Central Bank of 27 March 2020 on dividend distribution policies equivalents. Brings together the expertise during the Covid-19 pandemic, the distribution of EUR 3.10 per share initially proposed to the Annual General Meeting of 19 with historians, speakers, artists, etc. of 14 Directors (see page 68). May 2020, was appropriated to “Other reserves”. (4) Subject to approval at the Annual General Meeting of 18 May 2021, taking into account only the distribution of the 2020 Is assisted by four specialised dividend. (5) Dividend distribution recommended at the Annual General Meeting expressed as a percentage of net income attributable to committees (see page 69). shareholders. (6) Recorded during the meeting. * Impact of the first-time application of IFRS 9 on shareholders’ equity at 1 January 2018: - EUR 2.5 billion, i.e. EUR 2 per share.

66 — 2020 Integrated Report — 67 The Board Duties of Directors of the Board of Directors is guarantor and of its committees

The Board of Directors is a collegial Internal Control, Risk Management of the Group’s body and exercises the following and Compliance Committee three general powers: examining The Committee is tasked with reviewing the company’s strategic choices, the global strategy concerning contributing to good governance risks, monitoring the remuneration strategic throughout the company, and monitoring principles in relation to risks, reviewing and assessing all transactions related issues relating to Internal Control JEAN LEMIERRE JEAN-LAURENT BONNAFÉ to the Group’s businesses. It is also and compliance, and the prices Chairman of the Board of Directors Director and Chief Executive Officer tasked with CSR promotion, supervision of products and services in relation direction of BNP Paribas of BNP Paribas of risk management as well as to the risk strategy. financial communication. 5 MEMBERS The BNP Paribas Board of Directors plans the Group’s strategic direction and oversees Financial Statements Committee its implementation by Executive Management. The Committee is tasked with monitoring Corporate Governance, Ethics, Appointments and CSR Committee It seeks to promote long-term value creation the preparation of the financial information, The Committee is tasked with, mainly, the efficiency of the Internal Control by BNP Paribas within the framework of oversight and monitoring of the systems and of risk management systems social and environmental challenges that compliance of governance principles regarding accounting and financial matters, with changes in regulations and best the Group faces. the statutory auditing of the annual practice in the area of corporate financial statements and of the governance, identification of, selection consolidated financial statements by At the end of 2020, the Board of Directors is of, and succession plan for directors JACQUES ASCHENBROICH PIERRE-ANDRÉ MONIQUE COHEN WOUTER DE PLOEY the Statutory Auditors as well as the composed of 14 directors, 12 of which are Chairman and Chief Executive DE CHALENDAR Partner at Apax Partners Chief Executive Officer of ZNA and committee members, assessment independence of the Statutory Auditors. Officer of the Valeo Group Chairman and Chief Executive Officer (hospital group in Antwerp, Belgium) of the Board of directors, appraising appointed by shareholders, and two are of Compagnie de Saint-Gobain the independence of the directors, elected by employees. Due to the Covid-19 5 MEMBERS monitoring CSR issues. pandemic, the rules covering meetings and

discussions at annual meetings and governing 4 MEMBERS bodies of private law entities, have been adapted. Consequently, in accordance with the publication of Order No. 2020-321 of 25 March Compensation Committee 2020, the Annual General Meeting in 2020 The Committee is tasked with annual review of the principles that underpin was held without the physical presence the Group’s remuneration policy, of the shareholders. of the remuneration, allowances and benefits in kind granted to the directors and corporate officers of the Company HUGUES EPAILLARD RAJNA GIBSON BRANDON MARION GUILLOU DENIS KESSLER and of the Group’s major French Real estate Business Manager, Professor of Finance Independent director Chairman and Chief Executive subsidiaries, of the remuneration Director elected by BNP Paribas at the University of Geneva of companies Officer of SCOR SE of the Group’s regulated staff categories, employees control of the remuneration of the Head of the Risk Management Function 14 and Head of Compliance. elected directors, 4 MEMBERS including 2 by employees

> 50% Degree of independence with regard to the criteria DANIELA SCHWARZER MICHEL TILMANT SANDRINE VERRIER FIELDS WICKER-MIURIN set by the AFEP-MEDEF Director of think tank, DGAP Director of companies Production and Sales Support Director of companies Code (Deutsche Gesellschaft für Auswärtige assistant, Director elected Politik - German Council on Foreign by BNP Paribas employees Relations)

68 — 2020 Integrated Report — 69 JEAN-LAURENT BONNAFÉ THIERRY LABORDE Director and Chief Chief Operating Officer, The Executive Committee Executive Officer Retail Banking ensures the steering

New composition YANN GÉRARDIN Chief Operating of the Group’s activity of the Executive Committee Officer, Corporate as of May 19, 2021 & Institutional Banking As at 19 may 2021, the Executive accelerating its development in the area Committee is made up of five members of savings, stepping up the pace of business LAURENT DAVID SOFIA MERLO FRANK RONCEY of the Executive Management team development with corporate and Deputy Chief Head of Human Resources Chief Risk Officer and 14 members in charge of a business institutional clients, and continuing Operating Officer line or central function. They bring their to strengthen its industrial set-up. expertise to raise the level of collective With women representing one third of the knowledge and ensure the operational Executive Committee, BNP Paribas has also management of the Group. BNP Paribas made the commitment to increase this is preparing its 2022-2025 strategic plan proportion to at least 40% by 2025. Beyond RENAUD DUMORA Deputy Chief at a time when the expectations of its appointments to the Executive Committee, Operating Officer, customers, employees, investors and civil nine new members, including five women Investment & Protection Services society are evolving at a faster pace. and four men, have been appointed to the The Group is adjusting its management G100 (which consists of the 100 top

team to better meet new human, managers) in order to raise its proportion MARGUERITE BÉRARD STEFAAN DECRAENE CHARLOTTE DENNERY MAX JADOT technological and commercial challenges of female members to one third as well. Head of French Head of International Director and Chief Chief Executive Officer Retail Banking Retail Banking Executive Officer and Chairman of through an organisation centered on clients The objective of parity among Group of BNP Paribas the Executive Board and major priorities: maximising synergies Talents, a programme for future Personal Finance of BNP Paribas Fortis and efficiency in retail activities, management, has already been met.

Members of the Executive Committee as of December 31, 2020

JEAN-LAURENT BONNAFÉ NATHALIE HARTMANN Director and Chief Executive Officer Head of Compliance PAULINE LECLERC-GLORIEUX OLIVIER OSTY ELENA GOITINI YANNICK JUNG PHILIPPE BORDENAVE MAX JADOT Director and Chief Head of Corporate Chief Executive Head of Corporate Chief Operating Officer Chief Executive Officer and Executive Officer & Institutional Officer of BNL & Institutional Banking JACQUES D’ESTAIS Chairman of the Executive Board of BNP Paribas Cardif Banking Global Global Banking EMEA Markets Deputy Chief Operating Officer, of BNP Paribas Fortis International Financial Services SOFIA MERLO YANN GÉRARDIN Head of Human Resources Deputy Chief Operating Officer, ANDREA MUNARI Corporate & Institutional Banking Chief Executive Officer MICHEL KONCZATY and General Manager of BNL Deputy Chief Operating Officer ALAIN PAPIASSE THIERRY LABORDE Chairman of Corporate Deputy Chief Operating Officer, & Institutional Banking Domestic Markets FRANK RONCEY MARGUERITE BÉRARD Chief Risk Officer Head of French Retail Banking ANTOINE SIRE LARS MACHENIL BERNARD GAVGANI NATHALIE HARTMANN ANTOINE SIRE LAURENT DAVID Head of Company Chief Financial Officer Chief Information Head of Compliance Head of Company Director and Chief Executive Officer Engagement Officer Engagement of BNP Paribas Personal Finance THIERRY VARÈNE STEFAAN DECRAENE Large clients Head of International Retail Banking RENAUD DUMORA Director and Chief Executive Officer of BNP Paribas Cardif

70 — 2020 Integrated Report — 71 OUR KEY INDICATORS

FINANCIAL INDICATORS 2018 2019 2020 ECONOMIC AND ENVIRONMENTAL INDICATORS 2018 2019 2020 Amount of corporate financing contributing to the energy transition and to sectors considered as Group revenues €42,516m €44,597m €44,275m €168bn €180bn €188bn contributing directly to the achievement of the 17 United Nations Sustainable Development Goals

Domestic Markets revenues €15,683m €15,814m €15,477m Total amount of Sustainability-Linked Loans (SLL) signed €3bn €6.2bn €9.4bn

International Financial Services revenues €16,076m €17,183m €15,938m Total assets managed by BNP Paribas Cardif, BNP Paribas Wealth Management €1,028bn €1,123bn €1,165bn and BNP Paribas Asset Management * Corporate & Institutional Banking revenues €10,829m €12,080m €13,763m Amount of SRI-certified funds managed by BNP Paribas Asset Management €36.8bn €63bn €85bn Net income Group share €7,526m €8,173m €7,067m Financing for renewable energies €15.4bn €15.9bn €17.8bn CET1 Ratio: Common Equity Tier 1 ratio (1) 11.80% 12.1% 12.8% Reduction of total greenhouse-gas emissions related to the proper functioning –23.6% –27.7% –43.9% of BNP Paribas per FTE (compared with 2012) Group’s outstanding loans +3.9% +5% +4.4% Total amount of green bonds placed by BNP Paribas €6.3bn €9.8bn €10.8bn Domestic Markets outstanding loans €397bn €414bn €434bn * Including distributed assets. International Financial Services outstanding loans €178bn €186bn €184bn

Corporate & Institutional Banking outstanding loans €146bn €161bn

Net earnings per share (2) 5.73 6.21 5.31 (3) Net dividend per share 3.02 0.0 (4) 1.1 (5) LONG-TERM AND SHORT-TERM RATINGS Liquidity reserve (6) €308bn €309bn €432bn

(1) Common Equity Tier 1 (CET1), fully loaded Basel 3. Solvency ratio. Capital Requirements Directive (CRD4). (2) Based on the average number of shares outstanding during the fiscal year. (3) Based on net income Group share adjusted for interest on Undated Super Subordinated Notes deemed equivalent to preferred shares issued by BNP Paribas SA and treated as a dividend for accounting purposes. Aa3/ AA (LOW)/ (4) Following ECB/2020/19 recommendation of the European Central Bank of 27 March 2020 on dividend distribution policies during the Covid-19 pandemic, the distribution of EUR 3.10 per share initially A+/A-1 AA-/F1+ proposed to the Annual General Meeting of 19 May 2020, was appropriated to “Other reserves”. R-1 (MIDDLE) (5) Subject to approval at the Annual General Meeting of 18 May 2021, taking into account only the distribution of the 2020 dividend. Prime-1 (6) Liquid market assets or eligible to central banks taking into account prudential standards, notably US standards, minus intra-day payment systems needs.

Standard & Poor’s Fitch Moody’s DBRS Negative outlook Negative outlook Stable outlook Stable outlook 23 April 2020 12 October 2020 4 December 2020 10 July 2020

On 23 April 2020, Standard & Poor’s affirmed the long-term rating of BNP Paribas at A+ with a negative outlook. SOCIAL INDICATORS 2018 2019 2020 On 12 October 2020, following its review, Fitch affirmed the long-term rating of BNP Paribas at AA-, removing it from its Rating Watch Negative and assigned a negative outlook. Changes in workforce (Full-Time Equivalent) 202,624 198,816 193,319 On 4 December 2020, Moody’s affirmed the long-term rating of BNP Paribas at Aa3 with a stable outlook. Number of permanent contracts 96% 96% 96% On 10 July 2020, DBRS confirmed the long-term rating of BNP Paribas at AA (low) with a stable outlook. Proportion of open positions filled by internal candidates 28% 38% 48% Percentage of employees trained on an ethics and conduct-related issue 96.2% 95.4% 97% Percentage of employees with disabilities compared to the total workforce 2% 2.17% 3.05% Percentage of women in the population in key SMP positions (Senior Management Position) 28% 29% 31% Share of women in the Group’s total workforce 52% 52% 52% BNP Paribas SA gender-equality index, based on five criteria set by the French government EXTRA-FINANCIAL 87 87 (gender pay gap, annual pay rises and promotions, increases in maternity leave, presence 87 points / 100 points / 100 points / 100 of women among the highest-paid employees of the company. RATINGS AND DISTINCTIONS

Number of collective agreements signed 287 310 355 In 2020 the Group maintained or improved its performance in almost all of the ratings of the main extra-financial rating agencies. These ratings, which take

into account stakeholders’ expectations in terms of CSR commitments and responsible practices, recognise BNP Paribas’ progress in this area and are useful in defining its social and environmental objectives.

Main extra-financial ratings Inclusion in sustainable indices Other CSR distinctions Top bank in Europe in the Diversified Banks BNP Paribas is listed in the Dow Jones and engagements category in the V.E 2020 rankings (requested European and World ethical indices. BNP Paribas was recognised as the world’s best SOCIAL AND CIVIC INDICATORS 2018 2019 2020 rating: A1+). BNP Paribas is listed in the Euronext-Vigeo Eiris bank for financial inclusion by Euromoney. Support (financing, investments on behalf of the bank and third parties) to associations BNP Paribas received an AA rating in the 2020 indexes World 120, Europe 120, Eurozone 120 BNP Paribas is included in Corporate Knights €5.6bn €6.2bn €6.3bn and Social and Solidarity Economy enterprises MSCI ESG Ratings. and France 20. magazine’s 2021 ranking of the 100 most BNP Paribas received an A- rating in the 2018 sustainable companies (top French bank BNP Paribas’ annual philanthropy budget €41.6m €44.5m €104.1m* Carbon Disclosure Project rankings. and 2nd European). Top French bank in Equileap’s international Social inclusion: number of Nickel accounts opened 1.1m 1.5m 1.9m gender equality ranking.

* This exceptional increase is due to the commitment of all BNP Paribas entities around the world since the start of the international health crisis.

72 — 2020 Integrated Report — 73 BNP PARIBAS: THE EUROPEAN UNION’S LEADING BANK(1) AND KEY PLAYER IN INTERNATIONAL BANKING 13,059 3,582 57,729 employees employees employees in Europe in Belgium in Luxembourg (excluding the four domestic markets: France, Belgium, Italy and Luxembourg)

13,576 55,567 employees employees in North America in France 18,680 employees 17,743 in Asia-Pacific employees In Italy

8,974 employees in Africa 3,896 513 employees employees in South America in the Middle East

BNP Paribas has a presence in 68 countries, with more than 193,000 employees, . bn . % including nearly 148,000 in Europe. The Group supports all its customers €443 12 (2)8 193,319 Revenues CET1 ratio – individuals, associations, entrepreneurs, SMEs and institutions – in the success employees of their projects through its financing, investment, savings and protection solutions. in BNP Paribas holds key positions in its three operating divisions (3): Retail Banking €7.1bn €432bn and Investment & Protection Services for retail-banking networks and specialised Net income Immediately available financial services, and Corporate & Institutional Banking for corporate 68 Group share liquidity reserve countries and territories and institutional clients.

(1) In revenues. (2) Common Equity Tier 1 (CET1). (3) As from 19/05/2021. Figures as at 31/12/2020. Full-Time Equivalent (FTE) workforce.

74 — 2020 Integrated Report — 75 We wish to thank all employees and partners who contributed to the production of this report. Design and publishing: Graphic Design, lay out and production: Content: Consultancy:

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76 — BNP Paribas Head office: 16, boulevard des Italiens 75009 Paris (France) Tel: +33 (0)1 40 14 45 46 Public Limited Company (Société Anonyme) with a capital of 2,499,597,122 euros RCS Paris 662 042 449 Réf. A_2020_EN_RIRéf.

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