Integrated Report 2020-2021

OUR AMBITION

1. INCORPORATE SOCIAL RESPONSIBILITY INTO OUR VALUE CREATION MODEL

• A Group project, a Medium-Term Plan, 3 pillars including a societal pillar.
• Social governance at the Group’s highest level.
• An ESG strategy deployed in all business lines.

2. MAKE OUR STRATEGY A GROWTH LEVER FOR THE GROUP

• A Group climate strategy, in line with the Paris Agreement and SDGs; its implementation will be certified by an independent body and published based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
• Crédit Agricole Group has set up a Scientific Committee composed of independent experts.
• Commitment in the financing of the energy transition: divestment to fully exit the financing of the thermal coal industry by 2030, in the European Union and OECD countries, and the rest of the world in 2040.

3. SUPPORT THE REINFORCEMENT OF SOCIAL COHESION

• Favour access to financial and insurance services for all our customers, from the most modest to the most wealthy.
• Favour economic development in all regions.
• Support players that contribute to the reinforcement of social links: companies of the social and solidarity economy, associations with a social impact, companies favouring access to housing,

OUR ACHIEVEMENTS

GOVERNANCE OF NON-FINANCIAL PERFORMANCE

The Group has set up global Governance to drive its non-financial performance, reinforced by a Scientific Committee made up of high-level experts. An ESG platform was developed in 2020. Unique in its kind, it allows external and internal non-financial data to be collected in order to calculate the main social impact indices for all Group entities. Based on public data, it generates a climate transition score for listed companies. To track the non-financial performance of unlisted companies, the Group has put in place a standardised ESG questionnaire that is being deployed at LCL, in the Regional Banks and some international entities.

GREEN FINANCE: OUR POSITION AS LEADER CONFIRMED BY OUR CUSTOMERS’ TRUST

The Federal Republic of Germany entrusted the issue of its first green bond, of an amount of €6.5bn, to Crédit Agricole Group. This issue represents around 10% of the outstanding volume of green sovereign bonds and will used to finance Germany’s climate and environmental strategy. Crédit Agricole CIB participated as bookrunner in this historical transaction, and also acted as the exclusive advisor to Germany for the structuring of its Green bonds pro-gramme published in August 2020.

Amundi was selected to manage an equity index fund aligned with the Paris Agreement on behalf of 12 institutional investors of the Paris marketplace who launched an unprecedented initiative in favour of the environment.

It is the first investment solution that is fully eligible for the future European Paris Aligned Benchmark label.

Crédit Agricole Assurances and Amundi launched “Energies Vertes”, the first energy transition fund eligible for life-insurance policies.

LCL has a new green investment offer directed at its wealth custom-ers, LCL Select Impact Green Vie 2020, a debt security that rounds out the LCL Impact Climat range. LCL’s goal is to be a link between those who want to take action and an energy transition in search of financing.

INCLUSIVE FINANCE: A STRONG AND INNOVATIVE COMMITMENT TO FOSTER SOCIAL COHESION

Crédit Agricole Group successfully issued its first social bond. Of an amount of €1bn and subscribed at 2.5x, this bond is intended to finance companies in areas affected by an unemployment rate above the national average, the digital equipment of the national territories, the development of the healthcare sector and the strengthen-ing of social cohesion.

CPR AM (Amundi) launched CPR Invest Social Impact, the first international equity fund to place the reduction of inequality at the core of its investment process. It groups together the equities of the most virtuous companies in terms of participation in the effort to reduce inequality.

* Sustainable Development Goals.