THE GROUPE BPCE CLIMATE REPORT OCTOBER 2021

2 - The Chairman of the ManagementBoard and the members of the ExecutiveManagement Committee define andensure the implementation of theenvironmental strategy and oversee themanagement of the Group’s climate risks

The Remuneration Committee ensures that CSR issues form an integral part of the compensation policy.

 

For fiscal year 2021, the compensation awarded to the Chairman and members of the Management Board of BPCE includes an annual variable portion, 40% of which is indexed to qualitative criteria, including 10% tied to the fulfillment of CSR-related criteria. The allocation of this variable portion depends on the implementation of the Group’s strategic ambitions related to environmental matters (including climate change) and the position of Groupe BPCE in the rankings drawn up by non-financial rating agencies.

2 - The Chairman of the Management Board and the members of the Executive Management Committee define and ensure the implementation of the environmental strategy and oversee the management of the Group’s climate risks

Groupe BPCE’s climate policy is implemented both operationally and collaboratively by:

  • The Group CSR Department,
  • The CSR departments within Retail Banking & Insurance, and Natixis, and the CSR function of the Financial Solutions & Expertise division, 
  • The Group Risk Department,
  • The Group’s companies,
  • The Fédération Nationale des Banques Populaires and the Fédération Nationale des Caisses d’Epargne.

2.1 - The CSR Department oversees the development and implementation of the climate strategy

The principal missions of the Group CSR department (which reports directly to the Chairman of the Management Board) are to define and oversee the implementation of the Group’s strategic ambitions related to environmental transition and to coordinate all CSR initiatives undertaken by the Group’s companies via bodies that include representatives of the business lines (Retail Banking & Insurance, Asset Management, Corporate & Investment Banking) as well as representatives of the FNBP and FNCE. The Corporate CSR Department helps to define methodologies for measuring the Group’s carbon footprint and monitoring its alignment with the Paris Agreement. It analyzes the impact on the Group’s businesses of current regulatory changes related to the ecological transition. Finally, it coordinates projects and partnerships in favor of the environmental transition on behalf of Groupe BPCE.

Various committees dedicated to climate change issues and overseen by the Group CSR Department have been created for this purpose. These committees report to the Executive Management Committee and to the Strategic Environmental Transition Committee.

Respective roles of the Risk Committee and Cooperative & CSR Committee

Committee Presidency Frequency of meetings Role & responsibilities Topics addressed and decisions validated related to climate risks
Risk Committee Risk CommitteePresidencyRisk CommitteePresidencyAn independent member of BPCE’s Supervisory Board Risk CommitteeFrequency of meetingsRisk CommitteeFrequency of meetings8 to 9 meetings per year Risk CommitteeRole & responsibilitiesRisk CommitteeRole & responsibilities
  • Support risk management procedures and the Group’s strategic ambitions related to the environmental transition
  • Review the overall exposure of the activities of BPCE and the Group’s entities to both current and future climate risks
 Risk CommitteeTopics addressed and decisions validated related to climate risksRisk CommitteeTopics addressed and decisions validated related to climate risks
  • Annual review of the Group’s risk appetite with the inclusion of a climate risk subcategory
  • Monitoring the implementation of an approach dedicated to climate risk
  • Review of regulatory stress tests with a focus on climate risks
Cooperative & CSR Committee Cooperative & CSR CommitteePresidencyCooperative & CSR CommitteePresidencyThe Chairpersons of the Fédération Nationale des Banques Populaires (FNBP) and of the Fédération Nationale des Caisses d’Epargne (FNCE), acting alternately Cooperative & CSR CommitteeFrequency of meetingsCooperative & CSR CommitteeFrequency of meetingsEvery six months Cooperative & CSR CommitteeRole & responsibilitiesCooperative & CSR CommitteeRole & responsibilities
  • Make proposals and recommendations aimed at promoting cooperative and CSR values, a sense of long-term commitment and professional and interpersonal ethics, and to give tangible expression to these values in the activities pursued by Groupe BPCE and its retail networks
  • Study the work carried out by the Banking industry on climate risks and their impacts on banks
  • Monitor the CSR ambitions and, more particularly, the climate-related aspects of the strategic plan and ensure their implementation
 Cooperative & CSR CommitteeTopics addressed and decisions validated related to climate risksCooperative & CSR CommitteeTopics addressed and decisions validated related to climate risks
  • Review of issues related to energy transition financing, reporting, risk management, and carbon footprint
  • Review of the “BPCE 2024” strategic plan