BPCE_REGISTRATION_DOCUMENT_2017

SOCIAL, ENVIRONMENTAL AND SOCIETAL INFORMATION A range of services to meet the challenges facing our customers

Going above and beyond

Populaire banks and Caisses d’Epargne have launched platforms to promote thermal home renovation by aligning local government climate policies with offers put in place by banking institutions,

In addition to special financingproducts, Groupe BPCE also provides retail customerswith mechanismsfor green growth. Several Banque

notably as part of the BPCE-KfW-ELENA program.

Extension ofthe BPCE-KfW-ELENA pilot program 2017 was originally supposed to be the last year of the program launched in 2012, but it was ultimately extended by the European Commissionuntil December 31, 2018. The three Banque Populairebanks, two Caisses d’Epargneand their six partner local authoritiesthus continuedto develop the programaimed at organizingenergy transitionfinancingin the regions. A number of qualitativeand quantitative conclusions can be drawn at this point on the program’s successes and areas for improvement.At December 31, 2017, € 2.8 million in subsidieshad been allocatedto partner local authorities, € 660,000of which has already been committed.Householdsreceived € 3.7 million in loans from participating Banque Populaire banks and Caisses d’Epargne, representing a total final investment of € 40 million and generatingenergy savings of 183 GWh. The initiative supported 1,400 energy efficiency projects. These results testify to the utility of the programand confirmthat a bank’s full involvementis a key success factor. Underscoringthis success,other local authoritieshave called on the Banque Populaire banks and Caisses d’Epargne to extend the program, and initiatives are under way to take it further into the future beyond 2019.

MAKING ENERGY TRANSITION PROJECTS A REALITY

“Going above and beyond” also means relying on the academic community to lay the groundwork for the banking industry of tomorrow. To this end, for the last three years Groupe BPCE has supported and worked with a CIFRE doctoral candidate on energy transition financing, focusing in particular on consumer attitudes to real estate assets (1) by: analyzing the different types of energy expenses undertaken by ● households, and segmenting the microeconomic behaviors of operators and the housing energy transitionmarket; highlightingthe importanceplaced on energy efficiencyin the local ● private housingmarketin France; examining the incorporation of multiple risks associated with ● climate change in the mapping of financial risks (specific, systematic and systemic risks) incurred by financial institutions in the conduct of their business, but also in the assessment of their balance sheet risk profile.

Groupe BPCE: a major creditor of local public authorities and the social and solidarity-based economy The Banque Populaire banks and the Caisse d’Epargne are major sources of funding for local authorities,social housing operators and structuresin the socialand solidarity-based economy. Groupe BPCE is the No. 1 creditor of the social economy (2) : non-profits, foundations, mutual insurers, social entrepreneurs and cooperativegroups. Of the Banque Populairebanks, Crédit Coopératif makes aparticularly substantial contribution to the field. Meanwhile, the Caisse d’Epargne network is: the No. 1 private banker in the social housing sector (2) . And, via the ● Habitat en Région network which manages 244,000 housing units, it is an operator and a committed partner involved in the governance of one out of three organizations in France (public housing offices, social housing companies, cooperatives, non-profits,etc.); a major creditor of the public sector: Caisse d’Epargne is a major ● partner of local authorities and public healthcare institutions, accounting for nearly one-third of their loan outstandings.

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FINANCING FOR THE REGIONAL PUBLIC SECTOR, SOCIAL HOUSING AND THE SOCIAL ECONOMY BY GROUPE BPCE ➡

Change 2016-2017

2017

Indicator (in thousands of euros)

2016

2015

Total annualnew regionalpublic sectorloans Total annualnew social housing loans

4,422,193 2,983,018 2,785,049

5,313,101 2,616,762 2,681,586

4,809,439 2,551,212 2,497,782

(21%)

14%

TOTALANNUAL NEWSOCIAL ECONOMYLOANS

4%

Thesis entitled “Essais sur la transition énergétique : enjeux, valorisation, financement et risques” (Essays on the energy transition: priorities, value enhancement, financing and risks) (1) defended on July 6, 2017 by Déborah Leboullenger at Université Paris Nanterre. Banque de France, 12/31/2015. (2)

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Registration document 2017