BPCE_REGISTRATION_DOCUMENT_2017

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

real estate portfolio(**), - property, plantand equipment(IT equipmentand vehicles)(*), - business travel (**), - use of suppliers and sub-contractors (*), - waste management(*). - The analysis did not show any major shortcomings in high-impact products, services and activities that would call into questionGroupe BPCE’s existing priorities and initiatives. Integration of climate change in stress tests The Group took part in an industry-wideproject to prepare scenarios for climate change stress tests overseen by the French Treasury and the ACPR (French prudential supervisory authority for the banking and insurance sector), further to paragraph V of Article 173 of the French Act of August 17, 2015 on the energy transition for green growth. This project provided the opportunity to review the Group’s exposure to business sectors incurring climate change risk from two different perspectives: physical risk and transition risk. The group’s work on physicalrisks uncoveredthat Frenchbanks have a low degree of exposure to geographic regions with high vulnerabilityto climate change. The group is continuing the analysis of its local exposure. A more detailedrisk map will give it a better picture of the levels of risk incurred and help it adapt its risk policies accordingly. Mandatory disclosures for institutional investors on their management of climate change risks Relevant Groupe BPCE institutions disclose this information in their own publications, two of which are presented below. Mirova: innovative measurement of a portfolio’s carbon footprint Mirova has developeda methodto assess a portfolio’scoherencewith climate scenarios using: a database on carbon emissions generated and avoided during the ● product life cycle at the corporate level. This database was developed after several years of collaborationbetweenMirova and Carbone 4 (1) ; the climate scenarios produced by the IPCC (Intergovernmental ● Panel on Climate Change): the IPCC now offers several global emissions scenarios resulting in different consequencesin terms of temperature increase by 2100 relative to preindustrial averages (+2°C, +4°C, +6°C); global energy investment projections produced by the IEA ● (International Energy Agency), which provides data on annual investors by sub-sector as well as projections on investment amountsin the 2°C and 4°C scenarios.

four working groups combining experts from the Risk, Compliance ● and Permanent Control division (DRCCP) and CSR experts from various Group institutions were formed to develop an action plan on the following issues: extreme weather events: a questionnaire is currently being - drafted with the aim of identifying the upstream and downstream consequences of such events, incorporationof ESG risks in the credit monitoringprocess using - criteria specific to the different sectors financed, identification and monitoring of green assets in the risk - monitoringinformation system, global governance of climate risk throughgroup institutions, - in the interest of rallying employees around the cause, BPCE’s - Risk division organized a training day for the Risk and Compliance functions on climate change issues. These efforts will expand on the risk analysis centered around the duty of vigilance,the Sapin 2 Act and the Europeanon non-financial reporting. In addition, pursuant to Article 173 of the French Energy Transition Act, BPCE has begun to ramp up its efforts to reduce its impact on climate change. Impact of the Group’s business activity and the use of products and services on climate change In 2016, Groupe BPCE performed a gap analysis to identify and weight its direct and indirect impacts on climate change and to ensure it takes appropriate actionto mitigate thisimpact, with: the mappingof its main goods and servicesand activitiesthat have ● a positive or negative impact on climate change, i.e. those generating greenhouse gas emissions; an inventory of theactionstaken or that remainto be taken. ● The analysis was performed by an external organizationand covered five main products and services and six activities (their weighting based on their impact on climate change is shown in parentheses), rangingfrom a limitedimpact (*)to a strong impact (***): products and services: ● distribution of financial products to retail customers (**), - project financing(***), - real estate project financing (***), - insurance (*), - funding, investment and asset management (**); - activities: ● energy consumption (***), -

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See Mirova’s publication entitled “Estimating Portfolio Coherence with Climate Scenario”. (1)

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Registration document 2017