#POSITIVEBANKING - Accelerating the transition together - BNP Paribas
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#POSITIVEBANKING
BY YOUR
SIDE
Accelerating
the transition
together
2020 INTEGRATED REPORT
The bank for
a changing
world
— 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,
— P. 8
creating value — P. 67
Shareholders and investors
MOBILISED
2020, at society’s side — P. 36
Diverse and committed teams, — P. 68 THROUGHOUT 2020,
— P. 10
Message from Jean Lemierre
at the service of our customers The Board of Directors is
guarantor of the Group’s
AN EXCEPTIONAL
— P. 12
Interview with Jean-Laurent Bonnafé
— P. 38
Continuing our development
strategic direction
YEAR
and transformation strategy — P. 70
The Executive Committee ensures
— P. 40 the steering of the Group’s
Our three operating divisions
LISTENING TO CHANGE activity
— P. 41 — P. 72
— P. 18 Retail Banking The year 2020 was deeply marked by the Covid-19 pandemic, which brought
Indicators and ratings
Anticipating and integrating the
— P. 42 a large part of the world to a standstill and suddenly disrupted the lifestyles of
expectations of our stakeholders — 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
and regulatory environment Corporate & Institutional Banking
banking player, BNP Paribas immediately mobilised, as closely and as quickly as possible,
— P. 22 — P. 44
Using technology to enhance Anticipate and manage risks to meet the funding needs of its customers and massively support the economy. To this
customer experience end, our teams, in all of the Group’s business lines and subsidiaries worldwide, made an
— P. 24 exceptional commitment as of the very start of the pandemic to ensure the continuity
Accelerating the transition to an IN ACTION AT YOUR SIDE
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
€7.1bn 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% to this much needed transition.
CET1 (1) ratio holds key positions in its three operating divisions(2): 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.
2020,
Keeping
in touch
at our
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.
customers’
Up to
99.2%
side
of our branches, as in
Belgium for example,
remained open during
the year.
In all our domestic networks,
the Group chose to keep
agencies open and make
396
adjustments to ensure that
€ bn
we welcomed customers
by appointment, in compliance
with health measures.
of financing raised
for customers in syndicated credit,
bond and equity markets worldwide (1)
and more than 120,000 loans guaranteed
by governments. (2)
(1) Dealogic on 31/12/20, bookrunner, proportional amount.
(2) Throughout the Group’s retail-banking networks as at 31 December 2020.
An unprecedented situation calls for
exceptional measures. To protect the health
300,000 of its employees, BNP Paribas has
2020,
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
of Bank of the West to help their
developments of health conditions.
business customers benefit from
the programme of loans for small
Local support
at our
businesses, known as the Paycheck
Protection Program (PPP).
for all our
customers
teams’
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
side
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
customers all over
Deferral of loan the world
repayments Thanks to the One Bank
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 from
a government-guaranteed loan (Prêt
Personal Finance. Garanti par l’État) in France and a
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
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
As many as was set up to give
140,000
each Group employee,
worldwide, the opportunity
to contact a healthcare professional
in complete confidentiality.
Prevent and
Group employees
have worked remotely while continuing to serve
raise awareness
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.
60
Nearly
2020,
million
euros
have been given to
Helping the most
at society’s
support numerous
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
3,000
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
side
people, and women and children
in danger. Through food donations
(including the purchase of
20,000 luncheon vouchers and
hygiene products), more than
5.2 million euros were donated.
computers
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.)
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
in supporting eco nomies”
”At the forefront
of sustainable finance,
BNP Paribas will play
an active role in stimulus
plans to support
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 a sustainable economy”
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
CHANGE
LISTENING
the expectations of our stakeholders
Adapting to a complex economic 20
and regulatory environment
TO
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 proximityAnticipating and THE MAJOR CHALLENGES
FACING OUR ENVIRONMENT
integrating the
This table summarizes the challenges facing our Group. They are distributed
around four megatrends: adapting to a complex economic and regulatory environment,
expectations of
using technology to enhance customer experience, accelerating the transition
to an inclusive and sustainable economy, and combining the strength
of a global model with regional proximity.
our stakeholders
ADAPTING TO USING TECHNOLOGY
A COMPLEX ECONOMIC TO ENHANCE
AND REGULATORY CUSTOMER
ENVIRONMENT EXPERIENCE
Ethics and compliance Data privacy
Data privacy Digital transformation
Corporate economic value Customer satisfaction
BNP Paribas maintains a regular dialogue with all of its stakeholders.
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
customers, employees and social partners,
109
different dialogues
the Group has a materiality matrix (to be
found on page 624 of the 2020 BNP Paribas
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
170
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 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
400 expert contributors Ethics and compliance
dialogue. These interactions take many forms, on specific topics.
via our strategic plan to provide appropriate Business continuity plan
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 — 19ECONOMIC AND
REGULATORY ISSUES
”The global and
European prospects
for growth in 2021
are positive and
the Group intends
to contribute.“
Adapting to a projects of our customers and, more
broadly, advise them in their financial
choices. The global and European prospects
complex economic
for growth in 2021 are positive and the
Group intends to contribute.
What are the main risks that you see
and regulatoryenvironment
William De Vijlder, for the year 2021?
on the health crisis
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
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.
crisis, the global economy suffered a contributed to the rebound in activity of the year 2020? The third risk is the scale of the shock
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,
with the support of central banks, reacted very
complexity. This leads to relative uncertainty
with regard to future changes and compliance
-4.3%
This is how
Like the majority of banking players,
BNP Paribas immediately joined in these
their debts and get back on the road to
growth. However, I am quite optimistic.
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
contracted in 2020
characterised by structural measures to of the various measures. Against this backdrop, 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
€750bn
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. 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 — 21Perspectives
DIGITAL CHALLENGE
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,
Using technology
Maillard, Chief Operating contactless payment, as in Belgium, where by capitalising on our electronic platforms
these now represent one in three payments. and their related services. At the same
Officer, BNP Paribas Corporate
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
to enhance the
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
customer
Philippe Maillard: We have further increased is to improve the accessibility, reliability
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
experience
by working with an ecosystem of partners.
We combine the best of digital and human
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
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.
Companies, which for the most part had
+4.8%
annual growth
seek to support new uses by customers,
combining the best of the personal (for
sheet in order to have an up-to-date
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
65%
the expertise they needed. At the same time, society’s increasingly high expectations, confidentiality thanks, in particular,
information systems have had to adapt around 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
and Sophie Heller,
to various uses and types of customers. on digital topics and
By ensuring that data is always processed client experience
22 — 2020 Integrated Report — 23Laurence Pessez
and Frédéric Janbon,
SOCIETAL AND ENVIRONMENTAL on the Group’s
engagements and
CHALLENGE
sustainable products
in response to
the climate emergency
Accelerating the
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
transition to an inclusive
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
and sustainable
dedicated to the energy transition: green
and socially responsible investment
funds, green bonds or sustainable loans
focused on the energy transition.
Frédéric Janbon: It should be noted that
economy
with 1.165 trillion euros invested, our
investment and insurance businesses
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,
Social and Governance (ESG) criteria
Perspectives What are the Group’s priorities within all of our investments. This allows
in 2021 in view of the environmental us to select and include in our SRI-
by Laurence Pessez,
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.
And for this priority, companies must play
eliminating poverty, strengthening our actions
for the climate and ensuring a prosperous
64%
the increase
such as zero deforestation criteria
in the Amazon and Cerrado.
Asset Management is number one in
Europe, and in 2020, 75% of its new
their part. future for all. Each year since 2016, the Group in global CO2 emissions assets under management were in funds
between 1990 and 2017
By directing financing and investment measures its contributions to achieving (General Commission
Concretely, how does BNP Paribas with the SRI label or equivalent.
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 — 25Perspectives 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
economy that respects the environment. pressing issues, such as diversity and
of Région Grand Ouest, French
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,
Combining
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
the strength of
of BNP Paribas’ commitment locally would Grameen America, which provides micro
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,
a global model
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
with regional proximity
partnership with ‘Room to Read’ in India
and Vietnam, focused on literacy and
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
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
the need for companies to partially rethink
regionally through its financing and investments.
These activities are reinforced by solidarity
48%
of Europeans say
recovery, which will lift everyone up,
including those most affected by the
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 — 2720 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
SUPPORT YOU
MOBILISED
Continuing our development 38
and transformation strategy
Our three operating divisions 40
TO
Retail Banking 41
Investment & Protection Services 42
Corporate & Institutional Banking 43
Anticipate and manage risks 4420
2005
years
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
development projects.
in a changing
to deploy its activities.
European debt crisis,
following the Greek
debt crisis.
Projet Banlieues is launched
to help young people France’s
‘Urban Policy’ priority areas.
world
2005
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
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
and solvency crisis. in America and in Europe.
long history, the BNP Paribas Group has been built
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.
presence in Europe and the rest of the world as 2000 The Diversity charter, diversified and integrated
BNP Paribas Group is created banking model in Europe.
and company agreement
well as developing its expertise. It has built a from the merger between BNP
on gender equality are signed.
and Paribas. Unveiling of the new
diversified and integrated model to meet several brand during the French Open
2004
key priorities: innovate to optimise customer tennis tournament, of which
BNP is a partner. The Compliance function is created.
experience and support them in their projects
and growth over the long term; contribute to the 2001 The Sustainable development
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 The euro is introduced
step in the deployment of the
Bank’s multi-channel banking
Arval, a specialist in long-term
automotive company leasing,
strong and resilient in today’s unprecedented in 12 European Union countries. approach. opens a test centre for electric
and hybrid vehicles.
environment. BNP Paribas is now a leading
European bank that is international in its reach.
2003 2009
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