REPORT ON ENVIRONMENTAL AND SOCIAL RESPONSIBILITY A REPORT ON CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY CONTENTS MESSAGE FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER / 2 GrOUP PRESENTATION / 3-10 HISTORY / 4 PRESENTATION OF OUR ACTIVITIES AND BUSINESS LINES / 5-9 KEY FIGURES / 10 THE GROUP’S APPROACH TO CORPORATE SOCIAL RESPONSIBILITY / 11-19 RESPONSIBILITY BASED ON CORE VALUES AND GUIDING PRINCIPLES / 12 BNP PARIBAS, A STRONG COMMITMENT TO SUSTAINABLE DEVELOPMENT / 13 COMBINING CSR AND ECONOMIC PERFORMANCE / 14-19 BNP ParIBAS AND ITS SHarEHOLDERS / 20-32 ShARE CAPITAL / 21 ChANGES IN SHARE OWNERSHIP / 22 LISTING INFORMATION / 23-24 CREATING VALUE FOR SHAREHOLDERS / 25-26 COMMUNICATION WITH SHAREHOLDERS / 27 ShAREHOLDER LIAISON COMMITTEE / 28 DIVIDEND / 29 BNP PARIBAS REGISTERED SHARES / 29 ANNUAL GENERAL MEETING / 30-32 DISCLOSURE THRESHOLDS / 32 HUMAN RESOURCES / 33-54 GROUP VALUES UNDERPINNING HR MANAGEMENT / 34 HUMAN RESOURCES POLICY FRAMEWORK / 35-36 KEY CHALLENGES OF HUMAN RESOURCES MANAGEMENT / 37-54 RELATIONS WITH CLIENTS AND SUPPLIERS / 55-70 CLOSELY-ATTUNED RELATIONSHIPS / 56-64 SOCIALLY RESPONSIBLE INVESTMENT (SRI) / 64-68 RELATIONSHIPS WITH SUppLIERS / 69-70 IMPACT ON THE NATUraL ENVIRONMENT / 71-81 AREAS FOR ACTION / 72-75 DRIVER / 75-78 KEY SUCCESS FACTORS / 78-81 A ParTNER IN SOCIETY / 82-94 BNP PARIBAS AND ITS INVOLVEMENT IN MICROFINANCE / 83-85 BNP PARIBAS’ sUBURBS PROJECT: COMMITMENT TO SUBURBAN RENEWAL / 85-86 BNP PARIBAS FOUNDATION: IMAGINATIVE AND ACTIVE SUppORT / 87-88 OUTREACH / 89-90 CULTURE / 91-92 COMMUNITY INITIATIVES TO PROMOTE SOCIAL INTEGRATION AND SOLIDARITY / 93-94 CORPOraTE GOVERNANCE / 95-129 ThE BOARD OF DIRECTORS / 96-98 REPORT OF THE ChAIRMAN OF THE BOARD OF DIRECTORS ON THE CONDITIONS FOR THE PREPARATION AND ORGANISATION OF THE WORK OF THE BOARD AND ON INTERNAL CONTROL PROCEDURES IMPLEMENTED BY BNP PARIBAS / 99-128 EXECUTIVE COMMITTEE / 129 COMPLIANCE / 130-133 DEDICATED TEAMS / 131-132 PROFESSIONAL ETHICS DEPARTMENT / 132 FINANCIAL SECURITY / 132-133 BUSINESS CONTINUITY / 133 NRE AppENDICEs – SOCIAL / 134-139 ANNEXES NRE – ENVIRONNEMENTAL / 140-145 REVIEW REPORT FROM ONE OF THE STATUTORY AUDITORS / 146-147 TABLE OF CONCORDANCE / 148 GLOSSARY / 149-154 MEssAGE FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER During the crisis, BNP Paribas’ efforts to continue financing the economy were exemplary. We fully complied with our commitments to the French government in 2009 and we put our capital, resources and staff to work in financing the real economy. We also set an example by complying strictly with the new recommendations ad- opted by the G20 as regards tax ha- vens and the remuneration of capital market operators. While learning the lessons of the cri- sis, we maintained our long-standing commitment to social and environ- mental responsibility. More than ever, we believe that this responsibility, in all of its aspects, is crucial in main- taining our reputation, our attractive- ness and the trust placed in us over the long term. We have therefore in- creased the resources dedicated to implementing our policies in this area. This report sets out our approach to BNP Paribas’ social and environmen- survey in 2009 confirmed. Several of corporate social responsibility and tal responsibility has always been our initiatives have been certified by the main initiatives we undertook in based on our economic responsibil- independent organisations. On social 2009 in favour of a more sustainable ity. The importance of this connection issues, we have obtained the French development. was demonstrated more clearly than diversity label, and on our environ- ever during the recent crisis, which has mental commitments our “Accueil & given rise to a strong expectation that Services” branch programme has re- banks should act in a socially useful, ceived ISO 14001 certification. compliant and ethical manner. Despite serious pressure on the bank- In these demanding circumstances, ing sector as a whole, BNP Paribas’ ro- BNP Paribas was able to maintain its bust model and values have resulted socially and environmentally respon- in positive ratings from the main CSR sible approach, which is one of the agencies, as well as our inclusion in key factors behind our employees’ all leading CSR indexes. commitment to the group, as the latest 2 REPORT ON CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY GROUP PRESEntation 3 REPORT ON CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY History 1966 1968 1982 1987 1993 Creation of BNP Creation of Compagnie Nationalisation Privatisation Privatisation of BNP The merger of BNCI Financière de Paris of BNP and Compagnie of Compagnie BNP’s return and CNEP to form BNP et des Pays-Bas Financière de Paris Financière de Paribas to the private sector represented the largest et des Pays-Bas With 3.8 million individual represented a new restructuring operation at the time of the shareholders, start. During the 1990s, in the French banking nationalisation Compagnie Financière new banking products sector since the end of all French banks de Paribas had more and services of the Second In the 1980s, deregulation shareholders than were launched World War. of the banking sector any other company and financial market and the growing in the world. Compagnie activities were tendency of borrowers Financière de Paribas developed. to raise funds directly owned 48% of the capital At the same time, on the financial market of Compagnie Bancaire. the Bank expanded transformed the banking its presence in France business in France and internationally, and worldwide. and prepared to reap the full benefits of the introduction of the euro. Privatisation also significantly boosted the Bank’s profitability – in 1998, it led the French banking industry in terms of return on equity. 1998 19 9 9 2000 2006 2009 Creation of Paribas A momentous year Creation of BNP Paribas Acquisition Merger with On 12 May 1998, for the Group BNP and Paribas merged of BNL in Italy the Fortis group the merger between Following an on 23 May 2000. BNP Paribas acquired BNP Paribas took control Compagnie Financière unprecedented double Drawing on its strong BNL, Italy’s 6th-largest of Fortis Bank and BGL de Paribas, Banque tender offer and a stock banking and financial bank. This acquisition (Banque Générale du Paribas and Compagnie market battle waged services heritage, the transformed BNP Paribas, Luxembourg), thereby Bancaire was approved. over six months, BNP was new Group’s objectives providing it with access creating a European in position to carry out are to create value to a second domestic leader in retail banking, a merger of equals for shareholders, clients market in Europe. with four domestic with Paribas. For both and employees In both Italy and France, markets. groups, this was the most by building the bank all of the Group’s important event since of the future and businesses can now their privatisation. It gave becoming a leading develop their activities rise to a new Group with global player. by leveraging a tremendous prospects. nationwide banking At a time of economic network. globalisation, the merger created a leading player in the European banking sector, poised to compete on a global scale. 4 REPORT ON CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY Presentation of our activities and business lines BNP Paribas, Europe’s leading provider of banking and financial services, has four domestic retail banking markets in Europe, namely in Belgium, France, Italy and Luxembourg. It is present in over 80 countries and has more than 200,000 employees, includ- ing 160,000 in Europe. BNP Paribas holds key positions in its three activities: • retail banking, which includes the following operating entities: — French Retail Banking (FRB); — BNL banca commerciale (BNL bc), Italian Retail Banking; — BNP Paribas Fortis; — BGL BNP Paribas; — BancWest; — Europe Mediterranean; — Personal Finance; — Equipment Solutions; • Corporate and investment banking (CIB) • investment solutions The acquisition of Fortis Bank and BGL has strengthened the Retail Banking businesses in Belgium and Luxembourg, as well as Investment Solutions and Corporate and Investment Banking. BNP Paribas SA is the parent company of the BNP Paribas Group. 5 REPORT ON CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY — Experts linked through a global — 52 corporate and local Trade Centre network government centres — 7 Regional Trading Rooms — 20 Regional Business Centres — Structured Finance — 5 Trade Centres — Corporate Finance — Cash Management Specialised subsidiaries — Corporate Support Service — Ifitalia — Artigiancassa RETAIL Specialised subsidiaries — BNL Finance — Banque de Bretagne banking — BNP Paribas Factor Awards — BNP Paribas Développement — Italy’s 6th-largest bank by total assets — Protection 24 — Global Italian bank with 5 Trade Centres in Italy and 11 “Italian Awards offices” abroad — 2009 Best Services Award — L eading Bookrunner and Mandated (le Revenu) Lead Arranger for mid-caps — Excellence Award (Dossiers Over branches including 7,000 de l’Épargne 2010) for the Bank’s 5,000 outside France, to Bienvenue and Esprit Libre products serve the real economy/ — 15% market share in the Île-de- A powerful growth driver for the France region (BNP Paribas French Group/21 million individual Retail Banking marketing research) BNP Paribas clients/200,000 corporate — Strong presence in the individual client segment (IPSOS) clients/ Business Centres and Fortis 271 — A top-tier bank in the corporate 90 Trade Centres market — 1st private bank for