we bid farewell to a year of challenges that we had not expected and had not predicted even in pessimistic scenarios. An adverse economic situation and difficulties facing the banking sector were, and continue to be, merely a background for the real drama related to uncertainty about health and life. Thanks to the consistency, hard work and talent of our team, we ensured the safety of our Customers and employees, while striving to achieve our targets. Despite all of the restrictions, the Bank’s Group generated PLN 733 million in net profit in 2020, up by 19.3 percent from the previous year. Given the pandemic and the current macroeconomic situation, I am treating these results as a huge success for us. From the beginning of the pandemic, we actively searched for solutions that could respond to entirely new challenges. First, we took care of elementary safety of our employees and Customers. We introduced split teams, and 95 percent of the workforce was immediately adapted for remote work. At our branches, we deployed appropriate protective measures and paid attention to social distancing. In effect, 99.4 percent of BNP Paribas Bank Polska S.A. branches were and are open to Customers.

We considerably accelerated the digitalisation of our services, going beyond the ordinary and setting completely new standards. From May 2020, everyone can schedule a meeting with an adviser at a branch, to talk about investments or mortgage loans, through the Booksy application, previously associated with beauty and hairdressing services. In collaboration with Autenti, we implemented solutions that make it possible to sign documents without having to exchange paper copies between the bank and the Customer. In combination with the option to open an account using a video verification, we get a modern vision of banking, but one that is no longer out of reach. It became reality thanks to our innovativeness and hard work.

We were not indifferent to the problems of our Customers and the economy as a whole. During the pandemic’s first wave – already in March, even before statutory proposals materialised, as part of the initiative of the Polish banking sector, BNP Paribas Bank Polska S.A. offered the possibility to suspend the repayment of principal and interest. Our Customers were able to submit applications for subsidies from the Polish Development Fund (PFR) through the online banking system and had access to two guarantee programs on preferential terms – the de minimis program and the Liquidity Guarantee Fund – provided by the Polish development bank BGK. I have no doubt that we passed the test of solidarity very well in these difficult times.

Uninterrupted financing of flagship investments in the country was of great importance to us. Instead of freezing it, we expanded our Customer portfolio and completed further projects. I say this with great satisfaction – most of the investments that we finance have a positive economic, social and environmental impact.

The emergence of new challenges did not distract us from other topics of fundamental meaning for our planet. We continue to advocate green initiatives and remain the Bank for a Changing World. To further enhance our actions aimed at implementing the Sustainable Development Goals, we established a special unit – the Sustainability Council. Its aim is to define our ESG strategy and ensure that its objectives are embedded in our competences and in our product and service offering. In 2021, we will emphasise our social engagement even more. We have many objectives ahead – and we can only achieve them by uniting in common action. I deeply believe that in this way we, as a society, will be able to face global challenges and, as a bank, we will be able to deliver new ambitious ventures.

Sincerely,

Przemek Gdański

President of the Management Board, BNP Paribas Bank Polska S.A.

Letter from the Chairman
of the Supervisory Board

GRI 102-14, GRI 102-15

Dear All,

BNP Paribas Bank Polska S.A. entered 2020 with optimism. Nevertheless, the coronavirus pandemic has posed utterly unexpected challenges for all of us. For individual institutions, for the banking sector, for the entire economy and society. Full-fledged mobilisation, responsibility, mutual concern and solidarity were the only possible response to these surprising, extreme conditions.

Thanks to the admirable involvement of our employees, BNP Paribas Bank Polska S.A.was able to very quickly reorganise, while continuing to provide uninterrupted access to services and ensuring the safety of our Customers and the team. We passed the exam as a financial partner by offering individual Customers and businesses a range of support mechanisms, such as moratorium periods on loans or participation in the support system organised by the state. The bank provided guarantees of the Polish development bank BGK to enterprises and very rapidly adapted its IT systems in order to offer access to solutions from the Polish Development Fund’s Financial Shield. We also engaged in a range of social initiatives in support of the medical community, students and other groups in need.

In this difficult time, we did not put aside our on-going investments in modern technological solutions. To the contrary, this work accelerated. We used our creative potential not only to simplify services at our bank but also to ensure that they are safer. This past year saw the most dynamic digitalisation in our history.

The bank is supporting the economy by financing strategic investments and corporate projects, as confirmed by last year’s activity in the Corporate and Institutional Banking Area. Financing the energy transition also has an important place. The value of the so-called ‘green loans’ issued in 2020 by the bank nearly reached PLN 1 billion. This was made possible by, among other things, our expanding relationship with the European Investment Bank.

Sensitivity to environmental problems and the corporate and social responsibility of BNP Paribas Bank Polska S.A. showed through in the appointment in the autumn of last year of the Sustainability Council. Its members – representatives of the bank’s key areas – will oversee the achievement of objectives pertaining to care for the environment, social responsibility and corporate governance. Sustainability also entails the development of a diverse organisation that empowers its employees to develop their potential. This is the theme of the initiative “Women Changing BNP Paribas,” which was inaugurated by our female colleagues last year and is intended to support the development of women in business.

Our efforts last year are reflected in our financial results, which set us apart from the competition and validate the bank’s response to last year’s challenges. While we hope that this year will be better than the previous one, we can be certain that the world will not cease surprising us. With that said, our experience shows that we are ready to convert challenges into success.

Sincerely,

Józef Wancer

Chairman of the Supervisory Board, BNP Paribas Bank Polska S.A.

2. The Capital Group of BNP Paribas Bank Polska S.A.

Tekst tabela

1.1. BNP Paribas Bank Polska S.A. – the Bank for a changing world

GRI 102-1, 102-2, 102-3, 102-4, 102-5, 102-6, 102-7, 103-1, 103-2, 103-3

BNP Paribas Bank Polska S.A. is a strong local Bank with global reach. It belongs to the international BNP Paribas Group. In Poland, it is the parent company in the BNP Paribas Bank Polska S.A. Capital Group.


	It is our mission to offer responsible and innovative financial solutions that will help our clients to change their world and support local economy.

Since May 2011, BNP Paribas Bank Polska S.A. has been listed on the Warsaw Stock Exchange. 88.76 percent of its shares belong directly and indirectly to BNP Paribas.

Since January 5, 2021 the Bank’s headquarters are located at “Petrus” - a modern building in Warsaw at
2 Kasprzaka Street. The address of our previous headquarters was 10/16 Kasprzaka Street.

BNP Paribas Bank Polska S.A. offers:

§ To individual clients: savings and investment products, a wide range of loans, including housing and consumer loans. We also offer a comprehensive range of protection and multiplication services, as well as asset optimisation;

§ To Micro, SME and corporate enterprises: solutions for financing operations on both domestic and international markets.

We offer a particularly wide range of services to enterprises from the agri-food sector. The second important area of focus for the Bank is the financing of regional infrastructure.

2020 AT BNP PARIBAS BANK POLSKA S.A. IN NUMBERS:

3.9 million
Customers of all business lines

743 thousand
retail Customers – users of the GOonline banking platform

669 thousand
users of the GOmobile banking platform

459
branches of retail and corporate banking

462
cash deposit machines (dual-purpose devices) and 140 ATMs

9,210
people employed at BNP Paribas Bank Polska S.A.

9,455
people employed in the Capital Group of BNP Paribas Bank Polska S.A.

8,845
people with a contract of employment at BNP Paribas Bank Polska S.A.

9,019
people with a contract of employment at the BNP Paribas Bank Polska S.A. Capital Group

22,507
hours of work devoted to social issues by employees

3,509
instance of our employees’ social involvement

97
volunteers of the „BAKCYL” program – Bankers for the Financial Education of Youth

60
grants for social organisations (each worth PLN 4 thousand) in the 10th Edition of the Local Grants Program

Over PLN 1.7 million
of support for local social organisations in 10 editions of the Local Grants Program

100
scholarship holders of the “Class” scholarship program in 2020

240
CSR declarations signed by new suppliers

225
CSR analyses carried out

100%
electricity from renewable energy sources

Over 3,500
employees involved in the Bank of Green Changes program from 2019

PLN 993 million
of "green" financing granted in 2020

PLN 2.7 billion
the total value of “green” loans in recent years

History of the Bank

BNP Paribas Bank Polska S.A. was established in 2015, by merging BNP Paribas Polska and Bank Gospodarki Żywnościowej - two entities with a long (nearly 100 year old) history on the Polish banking market. Since then, the Bank has been strengthening its position by successfully combining innovation with tradition. In 2018, BGŻ BNP Paribas took over the core business of Raiffeisen Bank Polska. This way, our organisation joined the group of Polish banks with assets of over PLN 100 billion. On March 29, 2019, after an appropriate change in the National Court Register, Bank BGŻ BNP Paribas S.A. changed its name to BNP Paribas Bank Polska S.A.

For more information about the Bank’s history, visit: https://www.bnpparibas.pl/o-Banku/historia

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1.2.               BNP Paribas Bank Polska S.A. Capital Group

The Bank and its subsidiaries form the BNP Paribas Bank Polska S.A. Group (hereinafter referred to as the “Group” or the “Capital Group”). In terms of the balance sheet total, the Group is sixth in the Polish banking sector. The Group hires 9,500 employees.

We provide services through a nationwide branch network and alternative distribution channels, including online and mobile banking for individual and corporate clients.

As at December 31, 2020, the Capital Group included the parent company, BNP Paribas Bank Polska S.A., and the following subsidiaries:

1.      BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A.

2.      BNP Paribas Leasing Services Sp. z o.o.

3.      BNP Paribas Group Service Center S.A.

4.      BNP Paribas Solutions Sp. z o.o.

5.      Bankowy Fundusz Nieruchomościowy Actus Sp. z o.o.

6.      Campus Leszno Sp. z o.o.

7.      BGZ Poland ABS1 Designated Activity Company

BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A.

BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A. ("BNPP TFI") has been operating in the financial services sector since 1992. Before 1992, BNPP TFI operated on the Polish market as a brokerage house.

BNPP TFI possess the authorisation of the Polish Financial Supervision Authority for the creation and management of investment funds, as well as intermediation in the sale and redemption of foreign and domestic participation units.

BNP Paribas Leasing Services Spółka z o.o.

BNP Paribas Leasing Services Sp. z o.o. („LS”) offers a wide range of products in cooperation with the Bank. LS provides services to customers in the micro enterprise, Personal Finance, SME and corporate segments. From 2018, pursuant to a decision of the bank's Management Board, LS became the only entity in the Group which provides leasing services to the above-mentioned Customer segments. Each year, the company dynamically increases the scale of operations.

BNP Paribas Group Service Center S.A.

The business areas of BNP Paribas Group Service Center S.A. (“BNPP GSC") include:

§ providing financial intermediation services to the Bank, including:

§ providing information on the conditions for obtaining loans,

§ assisting Clients in filling-out loan applications,

§ accepting, verifying the correctness and completeness and forwarding to the Bank of documents required in the loan process,

§ registering documents in the Bank's sales system,

§ providing Clients with information about credit decisions taken by the Bank;

§ providing ancillary services for insurance mediation, consisting in the administration and performance of group insurance contracts concluded by the Bank,

§ providing agency services in the field of insurance services,

§ providing IT services in the field of development of banking, financial applications and systems for entities from the BNP Paribas Group,

§ comprehensive loyalty program services for entities related to the Bank,

§ providing marketing services on behalf of the Bank addressed to employees of the Bank's partners.

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As part of the integration process and due to the similar nature of activity, on December 31, 2019 (date of entry to the National Court Register), BNP Paribas Group Service Center S.A. merged with BNP Paribas Financial Services Sp. z o.o. (BNPP GSC acted as the acquirer).

BNP Paribas Solutions Spółka z o.o.

BNP Paribas Solutions Sp. z o.o. (“BNPP S”) has was established on July 9, 2014 (date of entry to the National Court Register). It became a part of the Capital Group of BNP Paribas Bank Polska S.A. as a result of the division and takeover of the Core Business of Raiffeisen Bank Polska S.A. on October 31, 2018. Until the end of November 2020, BNP PS had the status of a National Payment Institution (based on the Polish Financial Supervision Authority permit of 22 September 2015), which authorised it to keep payment registers and to conduct inter-bank transfers. On December 1, 2020, BNPP S resigned from the status of a National Payment Institution in connection with the termination of the currency exchange and fast transfer platform, Rkantor.com. The operations of BNPP S currently focuses solely on services related to software development, consultancy in the field of IT, data processing and website management (hosting). As an important part of the innovation ecosystem of BNP Paribas Bank Polska S.A., the company implements a number of projects in the field of open banking. Examples of current projects include:

§ development of API compliant with PSD2 requirements,

§ development of CRM applications and syndicated loans (LEAF) applications,

§ development of an internet currency exchange platform (Nowa FX Pl@net).

Bankowy Fundusz Nieruchomościowy Actus Spółka z o.o.

Bankowy Fundusz Nieruchomościowy Actus Sp. z o.o. (“Company”) was established in 1999 to conduct operations related to:

§ the purchase and sale of real estate and limited property rights on real estate,

§ conducting construction investments (with regard to the Company’s as well as external real estate),

§ renting and leasing real estate and renting premises.

In the fourth quarter of 2020, the Company completed a transaction for the sale of the owned real estate.

Campus Leszno Spółka z o.o.

Campus Leszno Sp. z o.o. (“Company") was established on June 28, 2018, under the company's articles of association in the form of a notarial deed and entered into the National Court Register.

The company was established through separation from the Bank's structure which originally managed the Training and Conference Center (CSK Leszno). The Company is still providing training and leisure services as well as hotel and catering facilities to the Bank. The company's operations include: entertainment and recreational activities, activities related to the organisation of trade fairs, exhibitions and congresses, as well as other services.

BGZ Poland ABS1 Designated Activity Company

BGZ Poland ABS1 Designated Activity Company („SPV”, „Company”) is based in Ireland at 3rd Floor Kilmore House, Park Lane, Spencer Dock, Dublin. It is a special purpose entity and the Bank carried out a securitisation transaction for a part of its loan portfolio in December 2017. The Group has no equity involvement in this entity and has no organisational connections with it. The scope of the Company's business is limited as described in art. 92a paragraph 4 of the Banking Act. The sole activity of this entity is the purchase of debts and the issuing of securities.

Detailed information on the activities and financial results of the BNP Paribas Bank Polska S.A. Capital Group companies can be found in the Management Board's 2020 Report on the activities of the BNP Paribas Bank Polska S.A. Capital Group.

1.3.               The global BNP Paribas Group

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BNP Paribas Bank Polska S.A. Capital Group belongs to a leading international banking group, BNP Paribas, which is present in 71 countries and employs approx. 200 thousand people, c. 152 thousand of whom are employed in Europe.

The BNP Paribas Group operates in two primary areas: Domestic Markets and International Financial Services. Its services are provided by Retail Banking and Services as well as Corporate and Institutional Banking.

THE BNP PARIBAS GROUP IN NUMBERS:

71
countries

c. 200 thousand
employees

152 thousand
employees in Europe

The BNP Paribas Group supports its Clients (individual, local government institutions, entrepreneurs, SMEs, corporations and organisations) in the implementation of projects, offering them a wide range of financial, investment and savings products as well as insurance protection. In Europe, it operates on four home markets (Belgium, France, Italy, Luxembourg), and is also a leader in consumer loans (BNP Paribas Personal Finance). The BNP Paribas Group is developing its integrated retail banking model in the Mediterranean, Turkey, Central and Eastern Europe and an extensive network of branches in the western United States. In the area of Corporate & Institutional Banking and International Financial Services, BNP Paribas ranks high in Europe, has a strong position in North and South America, and is also rapidly developing its companies in the Asia-Pacific region.

In Poland, the BNP Paribas Group operates in many areas of financial services, such as banking, investment funds, fiduciary services, factoring, leasing, insurance, real estate and car fleet management.

The BNP Paribas Group is aware of its role in four important areas of influence: economy, employees, society and the environment. In all areas of its operations, the Group is actively involved in the life of local communities.

In addition to the BNP Paribas Bank Polska S.A. Capital Group, to which the present report relates, there are also other BNP Paribas Group companies operating in Poland:

§ BNP Paribas Lease Group Sp. z o.o. (BNP Paribas Leasing Solutions in Poland)

§ Arval Service Lease Polska Sp. z o.o.

§ BNP Paribas Securities Services Poland S.K.A. branch in Poland

§ BNP Paribas Cardif w Polsce

§ BNP Paribas Faktoring Sp. z o.o.

§ BNP Paribas Real Estate Poland Sp. z o.o.

BNP Paribas Lease Group Sp. z o.o. (BNP Paribas Leasing Solutions in Poland)

The company is a branch of BNP Paribas Lease Group S.A., the unquestioned leader on the French market in the field of financing equipment for enterprises and the self-employed. As part of the Equipment & Logistics Solutions business line, it finances agricultural machinery and construction machinery. The company's offer is supplemented by its second business line, Technology Solutions, which deals in financing IT equipment and medical equipment. BNP Paribas Leasing Solutions offers its partners the best financing solutions and sales support for their products. The company's offer includes products such as: leasing, leaseback, loan, European loan, lease, and rental. It offers the financing of fixed assets, both directly - to enterprises and institutional clients - as well as through partners: producers and distributors from various branches of the industry. Since 2010, it has been a leader in financing agricultural machinery. BNP Paribas Lease Group sp.z o.o. provides operational services for BNP Paribas Leasing Services Sp. z o.o. on the basis of relevant service contracts.

Arval Service Lease Polska Sp. z o.o.

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Arval Service Lease Polska was founded in 1999 and is one of the founders of the Polish Vehicle Rental and Leasing Association (PZWLP), which shapes and exerts influence on the development of the vehicle rental and leasing industry as well as vehicle fleet management. The fleet which belongs to Arval Service Lease Polska already exceeds 40,000 cars, which makes Arval Service Lease Polska a leader on the CFM market with the largest fleet on the Polish market. Its position is confirmed by numerous awards received in 2020, including Fleet Derby 2020. Many years of experience and technologically advanced solutions allow Arval to systematically take over most of the processes related to mobility support: from financing, through consulting in the selection of fleet vehicles, technical service, to attractive insurance products. In order to meet the changing expectations of customers, the Company is constantly expanding its offer with innovative solutions. It has also introduced the Arval Car Sharing service, which allows the use of one car by multiple drivers, with a maximally simplified process of renting and returning cars. In addition, it offers the Arval Bike Lease service, which allows Customers to expand their company fleets with traditional and electric bikes. Worldwide, Arval leases a total of 1.4 million vehicles. The company was founded 30 years ago in France. Today, it is present in 30 countries and employs over 7,200 people.

BNP Paribas Securities Services Poland S.K.A. Branch in Poland

The Company is part of the BNP Paribas Group and has been present in Warsaw since March 2008. It specialises in services related to securities and investment funds for institutional investors, financial institutions and major companies. Today, BNP Paribas Securities Services operates as two business lines: the International Operations Center (IOC) - asset and fund management for institutional clients from all over Europe, and Custody & Clearing Services - professional custody services for financial institutions. Its operations include: keeping accounts and handling securities, accounting services for funds, calculation and confirmation of the value of assets as well as settlement of capital and cash. It also verifies the compliance of operations with the investment policy and supports purchase and sale orders of fund units.

BNP Paribas Cardif in Poland

The insurance company, present on the Polish market since 1998, specialises in life insurance and bancassurance. It was the first company in Poland to introduce GAP insurance and unemployment insurance to its offer. It is also a pioneer in the sale of insurance via telemarketing. The Company’s offer includes a wide range of high-quality insurance products and services sold through a network of partners: banks, leasing companies, telecommunications and retail partners. Close cooperation with partners allows it to create insurance solutions which meet the needs of Customers.

BNP Paribas Cardif is represented in Poland by 2 insurance companies: Towarzystwo Ubezpieczeń na Życie Cardif Polska S.A. and Cardif Assurances Risques Divers S.A. Branch in Poland.

BNP Paribas Faktoring Sp. z o.o.

A factoring company which belongs to the BNP Paribas Factoring Group, a leader on the international factoring market, with over 50 years of experience. It has been operating in Poland since 2006 and is one of the fastest growing financial institutions on the market. It is a member of the Polish Factors Association and Factors Chain International, an international association of factoring companies. The services offered by the Company meet all international standards. BNP Paribas Faktoring directs its offer to small, medium and large production and to commercial, service and agro-food companies which conduct deferred payment sales.

BNP Paribas Real Estate Poland Sp. z o.o.

The company's operations are based on six business lines covering the entire “life-cycle” of real estate: construction investments, transactions, consulting, valuations, property management and investment management. Its comprehensive services cover all types of real estate, including office space, commercial space, residential, warehouse and industrial space. In Central and Eastern Europe, BNP Paribas Real Estate provides services in the areas of: capital markets, property management, rental of commercial space, valuations and transactions. All services are supported by the Market Analysis and Consultancy Department, which provides information, making it easier for BNP Paribas Real Estate Clients to reach the best long-term business decisions.

1.4.               Management structure of BNP Paribas Bank Polska S.A.

Management Board

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GRI 102-18

Pursuant to the Articles of Association, the Bank's Management Board consists of four to nine members. Members of the Management Board are appointed for a 3-year joint term of office. The Management Board is composed of the President and Vice Presidents of the Management Board who are appointed, dismissed and suspended by the Supervisory Board. At least two of the members of the Management Board of the Bank, including the President of the Management Board, should have the knowledge and experience ensuring the stable and prudent management of the Bank. At least half of the members of the Bank's Management Board are people who know the Polish banking market well, i.e. permanently reside in Poland, speak Polish and have relevant experience on the Polish market. Detailed information on the education and professional experience of Management Board members is available on the Bank's website, at: https://www.bnpparibas.pl/o-Banku/wladze-Banku.

Composition of the Bank’s Management Board as at 31.12.2020 and the responsibilities of Board members

Full name

Office held in the Management Board of the Bank

Supervised areas

Przemysław Gdański

President of the Management Board

Bank Management, Strategy & Agro Markets Area, including supervising the Internal Audit Line, Compliance Line, Marketing, Communication and Social Involvement Line, Legal Line, Strategy and Market Analysis Line, Agrobusiness Line, HR Area, Transformation Area

Jean-Charles Aranda

Vice-President of the Management Board

Finance Area; including the Financial Accounting Line, the Capital Management Department, the Management Accounting and Investor Relations Line, the Tax Department, the Asset and Liability Management Line and the Data Governance Department

André Boulanger

Vice-President of the Management Board

Corporate and Institutional Banking (CIB) Area; including the Financial Markets Line, the CIB Strategic Clients Department, the CIB Business Support and Development Department and the Custody Services Department

Przemysław Furlepa

Vice-President of the Management Board

Retail and Business Banking; including the Sales Line, the Internet Banking Line, the Retail and Business Products Line, the Credit Decision Department, the Retail Banking and Analyses Office, the Wealth Management Department, the Customer Relations Development Department, the Customer Experience Transformation and Development Department, the Brokerage House

Wojciech Kembłowski

Vice-President of the Management Board

Risk Area; including the SME and Agro Customer Risk Line, System Risk Management Line, Corporate Restructuring and Debt Collection Line, Financial Risk and Contractor Line, Operational Risk Line, Credit Control and Fraud Prevention Line, CIB and Corporate Customer Risk Line, Individual and Micro Enterprises Risk Line

Kazimierz Łabno

Vice-President of the Management Board

Business Operations and Support Area; including the Operations Line, the Real Estate and Administration Department, the Operational Control Department, and the Central Purchasing Department

Jaromir Pelczarski

Vice-President of the Management Board

New Technologies and Cybersecurity Area; including the New Technologies, Architecture and IT Support Line, the IT Line for Central Functions, the Corporate Banking and Capital Markets IT Development Line, the IT Systems Development Line for Retail Customers, the Project Portfolio Management and IT Organisation Department, the Security and Business Continuity Line and the GSC (SPV) Team

Volodymyr Radin

Vice-President of the Management Board

Personal Finance Banking Area; including the Consumer Finance Sales Line, Automotive - Personal Finance Sales Line, B2C Sales Department, PF New Business Models and Innovation Department, PF Product Development and Customer Relations Line, PF Partner Service and Insurance Banking Department, PF Operations Line, Planning and PF Finance Department

Jerzy Śledziewski

Vice-President of the Management Board

SME and Corporate Banking Area; including the Sales Network Line of Corporate Banking and Agro Banking, Division of International Enterprises, the Public Sector and Institutions, Department of Credit Decisions in Corporate Banking, Business and Organisation Development Line, Specialised Finance Line, Cash Management Line, SME Sales Network Management Line, Product Development, SME Credit Strategies and Decisions Line, Leasing Department, Trade Finance Department, Factoring Management Department, Transaction Advisory Department, Large Corporates Office

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The composition of the Bank's Management Board in the period from January 1 to December 31, 2020 did not change. However, on October 12, 2020, Mr. Jaromir Pelczarski resigned from the function of Vice-President of the Bank's Management Board, effective as of December 31, 2020. At the same time, on October 12, 2020, the Supervisory Board of the Bank appointed Ms Magdalena Nowicka to the Management Board of the Bank as the Vice-President of the Management Board from January 1, 2021 (for the current term of office of the Management Board).

Meetings of the Management Board are convened as needed. They are organised as a simultaneous gathering of members of the Management Board in one space or as a communication of Management Board members via direct remote communication.

In 2020, 63 meetings of the Bank's Management Board were held, 163 resolutions were adopted.

Due to the COVID-19 pandemic, from March 2020, meetings of the Bank's Management Board were organised in a hybrid manner. From October (the 2nd wave of the pandemic) - only electronic communication was employed.

Supervisory Board

GRI 102-18

The Supervisory Board consists of twelve members appointed for a joint five-year term of office by the General Meeting. At least half of the members of the Supervisory Board are people who know the banking market in Poland well.

The Bank's Articles of Association state that at least two members of the Supervisory Board should meet the independence criteria. As at December 31, 2020, four members of the Supervisory Board met the independence criteria (the criteria are described in § 16 section 4 of the Bank's Articles of Association). Independent Supervisory Board members included: Mrs. Lucyna Stańczak-Wuczyńska, Mrs. Magdalena Dziewguć, Mr. Jarosław Bauc and Mr. Mariusz Warych.

Composition of the Supervisory Board as at December 31, 2020 and December 31, 2019 with information on the independence of members

Office held in the Supervisory Board

Composition of the SB as at December 31, 2020

Composition of the SB as at December 31, 2019

Chairman

Józef Wancer

Józef Wancer

Vice-Chairman

Lucyna Stańczak-Wuczyńska*

independent member

Jarosław Bauc

independent member

Vice-Chairman

Jean-Paul Sabet

Jean-Paul Sabet

Member

Francois Benaroya

Francois Benaroya

Member

Stefaan Decraene

Stefaan Decraene

Member

Magdalena Dziewguć

independent member

Magdalena Dziewguć

independent member

Member

Vincent Metz

Michel Falvert

Member

Sofia Merlo

Sofia Merlo

Member

Piotr Mietkowski

Piotr Mietkowski

Member

Jarosław Bauc

independent member

Monika Nachyła

Member

Stéphane Vermeire

Stéphane Vermeire

Member

Mariusz Warych

independent member

Mariusz Warych

independent member

*On December 10, 2020, the Supervisory Board published a written decision pertaining to the appointment of Mrs. Lucyna Stańczak-Wuczyńska as the Vice-President of the Bank's Supervisory Board, and the dismissal of Mr. Jarosław Bauc from the same function.

Changes in the composition of the Supervisory Board in the period between January 1 and December 31, 2020:

§ On March 19, 2020, Mr Michel Falvert submitted a resignation from the position of the Member of the Supervisory Board of the Bank effective as of March 19, 2020;

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§ On June 29, 2020, the Ordinary General Meeting of the Bank appointed Mr Vincent Metz as a Member of the Supervisory Board until the end of the current five-year joint term of the Supervisory Board;

§ On June 29, 2020, the Ordinary General Meeting of the Bank appointed Ms Lucyna Stańczak-Wuczyńska as a Member of the Supervisory Board effective as of December 1, 2020 until the end of the current five-year joint term of the Supervisory Board;

§ On June 29, 2020, Ms Monika Nachyła submitted a resignation from the position of the Member of the Supervisory Board of the Bank effective as of November 30, 2020.

In 2020, the Supervisory Board of BNP Paribas Bank Polska S.A. held 15 meetings (including 8 in writing) and adopted 93 resolutions. The turnout of the Board members was 83.29%.

In 2020, the Supervisory Board fulfilled its legal obligations and obligations pursuant to the Bank's Articles of Association, as stated in the Framework Work Plan of the Supervisory Board for 2020. In addition, the Supervisory Board was informed on an ongoing basis about the most important events and decisions of the Management Board, also in the context of the COVID-19 pandemic. Thus, it had appropriate knowledge about the Bank's position, macroeconomic situation and market environment as well as their impact on the achievement of expected results and the Bank's development plans.

The composition of the Supervisory Board of BNP Paribas Bank Polska S.A. guaranteed a high level of qualifications, competences and extensive professional experience, thus ensuring an appropriate level of collective supervision over all areas of the Bank's operations, as well as comprehensive research and evaluation of the topics presented. It also ensured a broad representation of views regarding the activity of the Management Board and the Bank's operations.

Detailed information on the professional experience of Supervisory Board members is available on the Bank's website: https://www.bnpparibas.pl/o-Banku/rada.

Supervisory Board Committees

The Supervisory Board establishes internal committees consisting of its members. The committees perform consulting and advisory functions for the Supervisory Board. The operations of the committees are aimed at improving the work of the Supervisory Board by preparing opinions, recommendations and proposals for decisions in the scope of applications submitted to the Supervisory Board.

The following Supervisory Board committees operate at BNP Paribas Bank Polska S.A.:

§ Audit Committee

§ Risk Committee

§ Remuneration Committee

§ Nominations Committee

The scope and mode of operation of the above-mentioned committees are defined by regulations established by appropriate resolutions of the Supervisory Board.

Annual reports on the activities of the Supervisory Board and its committees are approved by the Annual General Meeting of BNP Paribas Bank Polska S.A. and published on the Bank's website.

Composition of the Supervisory Board and Supervisory Board Committees as at December 31, 2020

Supervisory Board Committees

Full name

Office held in the Supervisory Board

Audit Committee

Risk Committee

Remuneration Committee

Nominations Committee

Józef Wancer

Chairman

Member

Member

Lucyna Stańczak-Wuczyńska

Vice Chairman,

Independent member

Member

Member

Member

Member

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Jean-Paul Sabet

Vice Chairman

Chairman

Chairman

Jarosław Bauc

Independent member

Member

Francois Benaroya

Member

Member

Chairman

Member

Member

Stefaan Decraene

Member

Magdalena Dziewguć

Independent member

Vincent Metz

Member

Sofia Merlo

Member

Piotr Mietkowski

Member

Stéphane Vermeire

Member

Mariusz Warych

Independent member

Chairman

Member

1.5.               Financial results and main efficiency ratios

GRI 201-1

Selected consolidated financial data

Selected consolidated financial data

PLN ‘000

EUR ‘000

Statement of profit or loss

31.12.2020

31.12.2019

31.12.2020

31.12.2019

(YTD)

(YTD)

(YTD)

(YTD)

Net interest income

3,060,070

3,168,759

683,937

736,619

Net fee and commission income

916,095

819,937

204,751

190,605

Profit before tax

1,110,567

872,955

248,216

202,930

Profit after tax

733,095

614,694

163,849

142,894

Total comprehensive income

863,677

598,767

193,035

139,195

Total net cash flows

(1,127,889)

1,407,756

(252,087)

327,251

Ratios

31.12.2020

31.12.2019

31.12.2020

31.12.2019

Number of shares (items)

147,418,918

147,418,918

147,418,918

147,418,918

Earnings per share

4.97

4.17

1.11

0.97

Statement of financial position

31.12.2020

31.12.2019

31.12.2020

31.12.2019

Total assets

119,577,288

109,954,142

25,911,695

25,819,923

Loans and advances to customers measured at amortised cost

74,097,269

71,836,643

16,056,442

16,869,002

Loans and advances to customers measured at fair value through profit or loss

1,539,848

1,974,396

333,676

463,636

Total liabilities

107,546,761

98,794,759

23,304,750

23,199,427

Liabilities due to customers

90,051,004

86,134,984

19,513,523

20,226,602

Share capital

147,419

147,419

31,945

34,618

Total equity

12,030,527

11,159,383

2,606,944

2,620,496

Capital adequacy

31.12.2020

31.12.2019

31.12.2020

31.12.2019

Total own funds

15,748,450

12,593,377

3,412,596

2,957,233

Total risk exposure

84,447,701

83,692,266

18,299,320

19,652,992

Total capital ratio

18.65%

15.05%

18.65%

15.05%

Tier 1 capital ratio

13.55%

12.80%

13.55%

12.80%

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Key Performance Ratios

NON-FINANCIAL EFFICIENCY RATIO

2020 DATA FOR THE BANK

The number of customers of all business lines (increase / decrease as compared to the previous year)

3,938 thousand
growth

Number of customers active online
(increase / decrease as compared to the previous year)

1,302 thousand
growth

Number of retail and corporate banking branches

459 retail and corporate banking branches,

Including 17 partner branches

Number of ATMs and double-function devices

140 ATMs

462 double-function devices

Number of branches with the "Branch without barriers" certificate
(increase / decrease as compared to the previous year)

51
growth

Number of Bank employees (by number of employees and in terms of the number of full-time posts)

9,210 employees

8,845 full-time posts

Average number of training hours per employee

18.3 hours

% of women in managerial positions

62%
growth

Number of hours devoted to community involvement by employees

22,507 hours

The ratio of electricity from RES consumed by the Bank (increase / decrease as compared to the previous year)

100%
growth

The volume of "green" financing loans
(increase / decrease as compared to the previous year)

PLN 993 million

growth

1.6.               Awards and distinctions

The numerous awards and distinctions for BNP Paribas Bank Polska S.A. in the area of corporate social responsibility and sustainable development, which we received in 2020 are an honour for us, but also a commitment to continue to work for changes in the world around us.

▪       On November 26, BNP Paribas Bank Polska S.A. received 2 statuettes in the Independent Creation Competition Kreatura 2020, organised by the "Media & Marketing Polska” magazine. The "Climate change costs money” project, aimed at increasing environmental awareness, was awarded in the “Campaign” category. In the “Open” category, the jury appreciated the "We will win" campaign, which promoted safety procedures for employees who, due to the nature of their work, came to offices despite the pandemic.

▪       On November 5, BNP Paribas Bank Polska S.A. received the Best Private Bank in Poland title in the international Global Private Banking Award 2020 competition. The event is organised by the prestigious "Professional Wealth Management" and "The Banker” magazines. The jurors analyse the responses provided by Banks in competition surveys and compare the key performance indicators, portfolio management quality indicators as well as indicators related to asset allocation and risk management. The development strategy, service quality, innovation, employment retention and ethics are also taken into account.

▪       On October 28, we were distinguished four times in the rankings of the "Forbes Polska" monthly and the "Newsweek Polska” weekly. BNP Paribas Bank Polska S.A. won third place in the Newsweek Friendly Bank ranking in the “Traditional banking” category and second place in the “Remote banking” category. Forbes Polska recognised our Private Banking services as the most innovative in Poland and awarded us third place in the “Company Friendly Bank” ranking.

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▪       On October 15, BNP Paribas Bank Polska S.A. won second place in the “Banks and Financial Institutions” category of “The Best Annual Report 2019”, organised by the Institute of Accounting and Taxes. We also received a special award of the Warsaw Stock Exchange, as well as the “Best Integrated Report Debut” award for 2019 in the Social Reports Competition, organised by the Responsible Business Forum and Deloitte.

▪       On October 2, the Chapter of the Banking Technology Forum Congress awarded the “Leader of Digitisation in the Banking Sector” title to Jaromir Pelczarski, Vice President of the Management Board of BNP Paribas Bank Polska S.A., who supervises the area of New Technologies and Cybersecurity. Thus he was recognised for exceptional achievements in the field of combining the banking and technology sectors.

▪       On September 25, BNP Paribas Bank Polska S.A. became a laureate of the e-Commerce Polska Awards 2020 competition in the Best e-Banking Implementation category for its pioneering introduction of appointment-booking via the Booksy application.

▪       On June 25, the Bank received golden statuettes in three categories of the Golden Arrow competition: Experiential marketing - event marketing, Artificial Intelligence and BtoC Integrated Campaign. In addition, the jury of the competition awarded the Bank a special prize for long-term, genuine social commitment, visible in many dimensions of its operations. The Bank also received two distinctions: for the "Give a change - let's get out of depression together” campaign and for the "You are the change, and we are the Bank for a changing world” campaign.

▪       On June 23, we took third place in the Golden Banker ranking in the Credit Card category.

▪       On June 9, we received the Silver CSR Leaf of the “Polityka” weekly for the sixth time.

▪       On June 4, BNP Paribas Bank Polska S.A. took 1st place in the general classification and 1st place in the “Banking, financial and insurance sector” category of the 14th Responsible Companies Ranking, for the second year in a row.

▪       On May 29, BNP Paribas Bank Polska S.A. was among the leaders of the 2nd edition of the Diversity & Inclusion ranking, organised by the Responsible Business Forum and Deloitte.

▪       On April 2, our Bank became the leader of the 5th Institution of the Year ranking, conducted by the MojeBankowanie.pl portal. We have been recognised in three categories: Best service in a branch, Best remote account opening process and Socially Responsible Bank.

▪       On March 13, BNP Paribas Bank Polska S.A. was awarded the Service Quality Star in the consumer survey of the Polish Service Quality Program.

▪       On February 27, BNP Paribas Wealth Management received a 5-star rating in the rating of private banking services by the Forbes Polska magazine.

On January 30, the Bank was awarded the Top Employer Polska title for the seventh year in a row. The title was awarded for an HR policy compliant with the best practices on the market.

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1.7.               Business model and value creation model

Business model

GRI 102-15

The BNP Paribas Bank Polska S.A. Capital Group consists of operational segments (the percentage share of a business line in the Group's banking activity, NBI, for 12 months of 2020 is provided):

▪       Retail and Business Banking includes comprehensive services for individual clients, including private banking (Wealth Management) and business clients (micro-entrepreneurs) with the biggest share in NBI which amounts to 47.6 percent;

▪       Corporate Banking offers a broad range of financial services for big and medium-size enterprises, local government units and entities belonging to international capital groups (23.2 percent share in NBI);

▪       SME Banking includes services provided to agro and non-agro clients (9.4 percent share in NBI);

▪       Corporate & Institutional Banking supports the sale of the Group’s products to the largest Polish enterprises and includes services for strategic clients (6.4 percent share in NBI);

§ Other activities encompassing the operations of the Assets & Liability Management Line and the Corporate Center (13.4 percent share in NBI).

Detailed descriptions of the segments can be found in the Management Board's 2020 Report on the activities of the BNP Paribas Bank Polska S.A. Capital Group (including the Management Board Report on the activities of BNP Paribas Bank Polska S.A.)

The pillars of operations for the BNP Paribas Group

A local bank with global reach

We are a Bank with over 100 years of tradition and history on the Polish market. Affiliation to BNP Paribas,
a global financial group, enables us to apply the best international practices to the needs of the local market and expectations of the Bank’s customers.

Completeness and availability of offer

The Group offers its customers a full range of financial products and services, provided by the Bank and the Group’s companies (including investment funds and leasing). We also provide direct access to the offers of BNP Paribas entities functioning in Poland (e.g. factoring, leasing, insurance, etc.).

As a Bank which strives to be close to Customers, we provide services through a network of Bank branches. We are constantly developing and transforming our branches, paying particular attention to accessibility and openness to the needs of various groups of Customers, including the elderly and disabled.

Our loan products are also available through outlets in partner shops and in selected car dealer networks.

Taking technological challenges into account, we continue to develop our products and digital service channels: mobile and online banking and new forms of technology-based communication.

Future outlook and civilisational challenges

In our operations, we constantly analyse and consider regulatory and economic aspects, dynamic digitisation, as well as social and climate changes, which affect both the national and global economy. We react to civilisational challenges by development, adjusting our offer to the changing environment and to the needs of our Customers. We continue our efforts in the area of organisational transformation to strengthen the Bank's market position. We improve the digital competences of our employees and accelerate the digitisation of internal processes so as to respond to the rapidly changing market environment.

Responsible management of risk and environmental impact

Key to providing services of the highest quality to our Customers is a culture of Compliance and careful risk management. The Bank has implemented a risk management system and applies appropriate policies and procedures for risk management and monitoring. One of the key elements of the system is ESG risk management, including climate risk. The group undertakes strategic activities to counteract climate change. To this end, climate risks have been defined and opportunities identified in the short, medium and long term.

tekst

In a changing world, we support our customers’ sustainable development by taking care of their financial needs, providing professional services and innovative solutions. We also encourage professional development and employee involvement and generate shareholder value growth and benefits for the economy and local communities.

tekst

How do we create value?

The Financial capital is the financial value of the Bank and the Capital Group. These are funds obtained from Customers, shareholders and profits generated by the Bank and companies of the BNP Paribas Bank Polska S.A. Capital Group. As a company listed on the Warsaw Stock Exchange, we strive for constant increase in shareholder value while respecting the principles of sustainable development.

The Human and intellectual capital of the Bank and the BNP Paribas Bank Polska S.A. Capital Group are its employees. Thanks to their knowledge, competences and commitment, we provide financial services at the highest level and provide our Clients with professional service based on stable relationships. We create innovative products and services which respond to the current and future needs of Customers and which affect our market position.

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The Operating capital creates value for stakeholders owing to the activities of the BNP Paribas Bank Polska S.A. Capital Group, which includes BNP Paribas Bank Polska S.A. (the parent company) and seven subsidiaries. Operating capital is based on resources and extensive infrastructure. We are constantly working on the development and improvement of service quality within the branch network, Contact Center and digital channels. We focus particularly on increasing the availability of products and services to Customer groups at risk of social exclusion. At the same time, we care for our employees and stakeholders and strive to minimise the negative impact of our operations on the natural environment.

Social capital are the relations with our stakeholders: Customers, employees, business and institutional partners, local communities and social organisations.

As a public trust institution and a part of the socio-economic ecosystem, we are aware of the impact we have on society and the environment. We undertake initiatives for positive changes in local communities - we support the levelling of opportunities and counteract social exclusion. We develop an offer of responsible products and services with a positive impact, guided by the principle of sustainable development.

Environmental capital is our contribution to combating climate change and supporting the energy transformation. As a responsible financial institution, we offer environmentally friendly products and services which support the transition to a low-carbon economy. In our daily activities, we make every effort to reduce the environmental impact of our operations by implementing eco-improvements. We promote responsible and pro-ecological attitudes among our employees and Clients, we also strive to increase awareness of climate change.

1.8.               “Fast Forward” strategy of BNP Paribas Bank Polska S.A.

GRI 102-15, 103-1, 103-2, 103-3

The main assumption of the new Fast Forward strategy for 2018-2021, adopted by the Bank's Management Board and Supervisory Board in May 2018, is focus on the Customer and on the digital transformation of products, services and processes aimed at accelerating development and increasing profitability.

tekst

The Bank’s strategic financial goals within the strategy include: a growth rate of the result on banking activity higher than the market, ROE above 10 percent and the C/I ratio at the level of c. 50 percent.

tekst

Business development is based on five pillars: growth, simplicity, digitisation, quality and enthusiasm.

▪       Growth – The primary motor of development is retail banking. Within this area, the Bank has prepared a new offer for individual customers and a modernisation of digital tools (Internet and mobile banking). The offer of products and services will constantly be adjusted and broadened. New acquisition, on the other hand, will be strengthened by expanding cooperation with B2B customers. The Bank's ambition is to become one of the leaders in corporate and SME banking, to become the first-choice bank for micro-enterprises and to strengthen its position among leaders in private banking.

▪       Simplicity – As regards Customers, the Bank will strive to simplify products and communication methods. We will also improve processes, especially those related to the so-called ‘Customer journey'. Furthermore, the Bank will review its internal structure and optimise the sales network.

▪       Quality – Achieving a high level of satisfaction and thus Customer loyalty will be a priority. On a synthetic level, the Bank aims at doubling the NPS ratio in the horizon of the current strategy. The level of satisfaction is constantly monitored at various levels, enabling improvement of internal processes. Additional support will be provided by systemic promotion of quality parameters in areas related to Customer service.

▪       Enthusiasm – In order to achieve strategic goals, the Bank will ensure high retention of the best employees and support cooperation and information exchange between business units. The priority will also be to run operations in a socially responsible manner, which is also an element of our brand identity.

§ Digitisation – In order to enhance cost efficiency, the Bank introduces process automation by means of artificial intelligence. A great deal of effort is put into cyber security and modernisation of IT architecture. Customers will experience improved and integrated sales and service channels and will receive better-suited offers of products and services.

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1.9.               Execution of the “Fast Forward” strategy

Since the beginning of March 2020, events in the country and across the world have been dominated by the COVID-19 pandemic. The entire economy has been confronted with a completely new reality, where health and safety have become an undisputed priority. For many industries, including the banking sector, this meant a redefinition of business models and processes so that they could continue to function in a world of limited contact between people. Despite this unprecedented challenge, the Bank managed to remain fully operational. Stability and liquidity were maintained. Customers were provided with full sales and service support, and employees were equipped with all available safety measures.

The Bank’s solid foundations for future development were reflected in its relatively high resilience as compared to other entities within the sector. Despite the three-fold cuts in NBP interest rates, which had a negative impact on the net interest income, the Bank maintained its ability to generate income and could focus on the further implementation of improvements for customers. The Bank also focused on implementing new solutions supporting digital sales and services, on developing strategic partnerships in the retail segment and on carrying out significant credit transactions in the corporate segment. The pandemic had a significant impact on the business activity of the Bank's Customers, which was reflected in lower demand for loans from enterprises and lower sales of consumer loans. On the other hand, the Bank achieved record mortgage loan sales and maintained sales of personal accounts at a similar level to 2019. At the same time, the Bank continued to promote ecological solutions, and continued efforts to reduce its carbon footprint.

The passing year proves that the pillars of the Fast Forward strategy, i.e.: intelligent and responsible growth, improvement of efficiency and quality as well as focus on people – supported by digitisation – are still valid in the new reality. Thus, the Bank plans to continue implementing the strategy in the coming year.

Further activity within the strategy is described in the table below:

PILLAR

STRATEGIC ASSUMPTIONS

ACHIEVEMENTS IN 2020

concentration of resources (people, IT and capital) on the most profitable products and segments in order to increase customer acquisition, sales and, as a result, increase financial results

§ Record sales of mortgage loans at PLN 5.6 billion compared to PLN 4.3 billion in 2019

§ 257 thousand personal accounts sold in 2020

§ Dynamic development in the area of e-commerce on the Allegro platform.

§ Establishing cooperation with MediaMarkt store chain from the fourth quarter of 2020.

§ Cooperation with Decathlon store chain

§ The total value of loans granted by the Bank to finance projects that support sustainable development at the year-end 2020 was PLN 2.7 billion, and only in 2020 the Bank granted PLN 993 million of "green" financing.

§ Zielona Hipoteka (“Green Mortgage”) - offer for customers applying for a loan to finance energy efficient properties

§ Launch of the long-term car rental offer together with Arval. Full insurance and service package and a discount for bank customers.

§ First guarantee agreement with the EIB for energy efficiency investments with a target value of PLN 742 million.

§ Concluding contracts for syndicated financing:

− Polimery Police project (The Bank acts as one of the main organizers of financing and coordinator of interest rate risk hedging instruments. This is the largest investment in the history of the Azoty Group and in the chemical industry for many years – it will allow Poland to become independent of polypropylene imports),

− new wind and photovoltaic farms under construction by Qair Polska (consortium with EBRD up to a total of PLN 630 million)

− a multi-annual investment plan for PKP Energetyka (the Bank acts as the Bookrunner and the main organiser).

▪        Concluding contracts with CIECH Group entities for reverse factoring. As a result of the cooperation, the CIECH Group received a total limit of PLN 200 million at its disposal.

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simpler product offer - especially in the area of Retail Banking, as well as simplified and interactive communication with Customers, simplified processes and focus on Customer service, optimisation of traditional distribution channels and migration of clients to digital channels, simplification of organisation to increase its effectiveness

▪        First on the market use of open banking for identity verification (KYC) for remote cash loan application.

▪        Enabling the remote activation of loan moratoria. Suspension of capital and interest instalments for individual and corporate customers.

▪        The Financial Shield (Tarcza Finansowe): enabling applications for a Polish Development Fund (PFR) subsidy in the electronic banking system.

▪        Opening a bank account without having to leave home using the GOmobile application. Identity is verified on the based on a video of the customer’s face.

▪        Offering customers the possibility to apply for a mortgage product without visiting a branch for applicants who are already the Bank's customers.

▪        Offering customers the possibility to pay for purchases in installments through a payment terminal in the store (or online). The service, created in cooperation with Mastercard and Polskie ePłatności company, will make the "Pay in installments" service available.

▪        Cooperation with booking application Booksy via which customers can arrange a meeting with an advisor on investment, savings or mortgage products in all of Bank’s branches.

▪        Investment (together with PKO BP and Alior Bank) in Autenti start-up – the initiative to create a Polish standard for remote signing and digital document circulation. E-signature is systematically implemented in various areas, e.g. available in the sale of current / savings accounts, instalment loans and leasing). Bank is the first on the market offering corporate clients access both to e-signature and qualified e-signature.

▪        Increasing the transparency and clarity of communication directed to customers in cooperation with Pracownia Prostej Polszczyzny

significant improvement in the quality of customer service and satisfaction by introducing organisational changes and streamlining service processes as well as focusing on the relationship with the Client, recognition and appreciation of the loyalty of current Customers and change of approach to Customer satisfaction analyses

§ An IBM Trusteer Rapport application (protecting from stealing electronically transferred data) made available to all customers free of charge

§ 124 of the Bank’s branches in non-cash format, including 2 partner branches

§ 51 of the Banl’s branches with “Obiekt bez barrier” ("Facility without Barriers") certificate, meeting the accessibility requirements for people with disabilities

§ Implementing a free calculator on the agronomist.pl website for optimising nitrogen fertilisation of crops – minimisation of negative environmental impact

§ Founding Customer Lab – an internal “knowledge about customers centre” – for researching customer preferences and needs.

§ Free assistance of a sign language interpreter - in the branches and on the Bank's hotline - deaf people may use their own phone or a special tablet to connect with a professional interpreter who will introduce the Bank's offer using Polish sign language.

§ Launching the Centre of Competence regarding the Anti-Crisis Shield (Tarcza Antykryzysowa) offering free consultations for Wealth Management segment clients-entrepreneurs.

§ Implementation of campaigns supporting Polish entrepreneurs, e.g. joint action with OLX Get Poland started with transactions and We support local business.

§ A number of awards:

− World’s Best Bank for Financial Inclusion 2020 – an award granted to the BNP Paribas Group by Euromoney magazine for its social commitment and increased accessibility in the implementation of products and services.

− „Newsweek's Friendly Bank” 3rd place in the Traditional Banking category and 2nd place in the Remote Banking category

− A 5-star, top rating in Forbes magazine's private banking services rating for BNP Paribas Wealth Management

− 3rd place in the Golden Banker (Złoty Bankier) ranking in the Credit Card category.

− 1st place in the ranking of premium accounts of the Bankier.pl website for My PREMIUM Account

− Service Quality Star (Gwiazda Jakości Obsługi) in a consumer study by the Polish Service Quality Program

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increased employee involvement through participation in projects and increased cooperation, revitalisation of organisational culture through a reward system, focus on talents, attracting the best on the market and care for the best employees

§ Ranking of Responsible Firms: 1st place for the second consecutive year in the general classification and 1st place in the banking and financial & insurance sector category.

§ The Silver CSR Leaf award of the Polityka weekly magazine (Srebrny Listek CSR Tygodnika Polityka)

§ The Bank joined the WIG-ESG stock exchange index of companies meeting environmental, social and corporate governance criteria.

§ Creation of the function of the Chief Sustainability Officer and the Sustainability Council which supervises strategic management of the ESG and Sustainable Development aspects.

§ 100% of “green electricity”, in 2020 - thanks to guarantees of the electricity renewable sources origin; since 2021 - “green” energy bought directly by the Bank thanks to the Respect Energy agreement.

§ Signing of an agreement with Respect Energy. 100% of the electricity purchased directly by the Bank will come from hydroelectric power plants.

§ Top Employer 2020 Certificate – achieved for the seventh consecutive year, for the personnel policy compliant with best practices

§ „Women changing BNP Paribas” – launching of an initiative promoting the development and support for women in the Bank”

§ Support for employees in times of the pandemic: remote working, safety measures in branches, psychological assistance, SARS-CoV-2 tests. The Bank's activities undertaken during the pandemic were assessed by representatives of bank trade unions as a role model.

§ Corporate wellness: „Well” Program – promoting a healthy lifestyle – 3.5 thousand employees/

§ 22.5 thousand hours worked by employees as a part of social commitment

§ Class scholarship program - 100 participants in 2020, PLN 24 million for the program over 18 years.

§ Good Kilometres action - 70 thousand kilometers travelled by employees

§ Planting 60 thousand trees. 25 thousand through participation in the Carbon Dioxide Unit Auction, 14 thousand through the Reforest Action campaign, and 21 thousand oxygen trees (with an additional 29 thousand planned).

§ 20 thousand protective masks and 2 thousand SARS-CoV-2 tests, purchased by the Bank for medical facilities.

§ Providing 750 laptops for students and organisations in need of support in education and online work.

§ Joining the Cool Farm Alliance (CFA), an international industry consortium of stakeholders working to develop sustainable agriculture.

§ Bank's support for the Itaka Foundation Anti-Depression Trust Line. This will allow the on-duty shift to be extended from 4 to 15 hours per week for 12 months. This is an important help in the fight against depression, especially in times of pandemic.

concentration of resources (people, IT and capital) on the most profitable products and segments in order to increase acquisitions, sales and, as a result, financial results

§ 1.3 million customers actively using remote channels of communication with the Bank.

§ GOonline - finalisation of the migration of retail customers to the new platform and thus switching off the old Pl@net system in May 2020. Number of GOonline users – 743 thousand

§ GOmobile - extension of the application's functionality - customers without a visit in the branch will, among other things, repay their credit card debt in instalments, prepay a loan or get access to the FX Pl@net currency exchange platform; it will also enable payments for parking and public transport tickets in GOmobile. Number of GOmobile users – 669 thousand.

§ GOmobile Business - new features in the mobile application, including: the use of biometrics to start the application, realising instant payments and handling split payments.

§ New Premium Banking offer along with the "Cyber" package, which takes care of the user's online safety (darknet monitoring and BIK Alerts service).

§ Elimination of paper forms when opening an account at a branch and making cash deposits and withdrawals.

§ Implementation of EVA chatbot to support the operations of the Central Purchasing Department awarded in the Purchasing Leader 2020 competition.

1.10.           CSR and Sustainable Development Strategy

GRI 103-1, 103-2, 103-3, 102-12

We believe that a holistic approach is a prerequisite for achieving results in the area of responsibility. Therefore, we implement the BNP Paribas Bank Polska S.A. CSR (Corporate Social Responsibility) and Sustainable Development strategy. Its four pillars are:

§ financing the economy in an ethical manner,

§ responsible approach to the development of our employees,

§ being an agent of positive social change,

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§ supporting energy transformation and counteracting climate change.

The CSR and Sustainable Development Strategy is consistent with the Strategy of the BNP Paribas Group. It is also a crucial part of the "Fast Forward" strategy.

The BNP Paribas Bank Polska S.A. CSR and Sustainable Development strategy consists of 12 commitments under 4 pillars of responsibility: economic, workplace, social and environmental.

Economic responsibility

A key dimension of our Bank's responsibility is long-term support for economic development achieved by financing the projects of individual Clients and enterprises - so as to support their growth. At the same time, we monitor CSR risks in sensitive sectors, and financing decisions are made after analyses of a project’s social, economic and environmental impact. A balanced approach in terms of economic responsibility is understood as long-term financing of the economy and building lasting relationships with Clients and other stakeholders, in accordance with ethical principles. Thus, it is possible to balance the quality of transactions with the expected profit in the short and long term.

Responsibility in the workplace

Our aim is to create a positive environment which supports the professional development of employees and their commitment. We promote openness, respect for diversity and readiness for professional mobility. The basis of our Bank's organisational culture is a focus on cooperation and relationship building, care for a good workplace atmosphere, mutual support within the organisation and providing feedback. We care for our employees and invest in the development of their careers through a wide range of development programs. Our goal is to create a friendly workplace - one where respect, tolerance and trust are valued. We regularly measure the level of our employees’ satisfaction in opinion surveys.

Social responsibility

Social responsibility means active involvement within the Bank’s social environment. It is a focus on areas where the Bank can contribute to a positive social change in the most adequate way, i.e. combating social exclusion, supporting education and culture, especially in small communities. It also entails increasing the availability of products and services, openness to the Clients' needs and undertaking initiatives for local communities. We focus on initiatives which support positive social change, including: counteracting social exclusion, supporting education

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and culture. We are proud of the social commitment of our employees and of the numerous BNP Paribas Foundation programs which offer educational support, and thus - strengthen social capital.

Environmental responsibility

BNP Paribas Bank Polska S.A. implements its environmental responsibility in three dimensions: sustainable financing of the economy and our Customers by supporting the energy transformation, reducing the negative impact of operating activities and promoting eco-attitudes among employees and Customers, as well as involvement in cross-sectoral initiatives.

ENGAGEMENT IDEA

In 2018, the BNP Paribas Group introduced a global, inter-area “Engagement Idea”, which is based on four pillars of involvement:

§ energy transformation,

§ support for young people,

§ entrepreneurship,

§ local communities.

The Idea is based on our CSR Strategy and is a development of our economic responsibility commitment: “the positive impact of investments and financing”. The goal of the BNP Paribas Group is to implement the Engagement Idea (with regard to local conditions) through the development of products and added-value services that will respond to current social and environmental challenges. It is particularly important for Engagement Idea to support the implementation of our Sustainable Development Goals through, i.a, financing the energy transformation, offering eco-friendly products and services, supporting entrepreneurship of youth and women, as well as other initiatives. In October 2019, a group of the Bank's Management Board members and 100 key managers, participated in a workshop. The goal was to develop new products and services which are consistent with the Engagement Idea and which support our Clients’ sustainable development. The results of the workshop were gradually implemented by business areas throughout 2020 (in cooperation with the CSR Bureau) through the development of the Bank's offer and initiatives in the area of transformation.

“Engagement Idea" projects implemented at BNP Paribas Bank Polska S.A. in 2020 include:

§ „myImpact”,

§ „Nitrogen Limitation”,

§ „Build New Planet – Energy Efficiency Platform”,

§ „Household Green Revolution”,

§ „Green FTP”,

§ New features on the Agronomist.pl. platform.

Existing and new “Engagement Idea" initiatives will be developed in 2021.

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1.11.       The Bank’s contribution to the implementation of the UN’s Sustainable Development Goals

In 2015, the Sustainable Development Summit was held in New York. The international community - UN member states - adopted a new world development plan: the 2030 Agenda for Sustainable Development. It is a vision of building a better world for the benefit of all - a recovery plan for the world.

The 2030 Agenda lists 17 Sustainable Development Goals (SDGs) and 169 accompanying tasks to be realised worldwide by 2030. They concern actions in 5 key areas (the so-called 5×P): people, planet, prosperity, peace and partnership.

The Sustainable Development Goals are to be achieved by governments, international organisations, NGOs, the science sector, business and individual citizens.

The CSR and Sustainable Development Strategy of BNP Paribas Bank Polska S.A. supports the implementation of SDGs. Within the 4 pillars of responsibility, we have identified our most important Goals. We believe that the achievement of Goal 17 is essential for the success of the 2030 Agenda, therefore we actively undertake cross-sector cooperation for sustainable development.

The contribution of BNP Paribas Bank Polska S.A. to the implementation of the Sustainable Development Goals is consistent with the policy of the BNP Paribas Group. The latter includes the pursuit of Sustainable Development

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Goals, as they are the only path to economic growth which takes social and environmental issues into account. The responsibility of the BNP Paribas Group includes primarily: long-term financing of the economy and building lasting relationships with Customers in accordance with ethical principles, a responsible approach to employee development and involvement, increasing the availability of products and services, openness to customer needs and initiatives for local communities, limiting the negative impact of operations on the environment, pro-ecological products and services, and popularisation of eco-attitudes.

We encourage you to read more about the SDG initiatives of the BNP Paribas Group.

Examples of the Bank’s SDG initiatives:

§ “Noble Gift”

§ The Local Grants Program

§ Social projects

§ Support for Food Banks

§ BEneFIT

§ “Well” program

§ “Good Kilometres” program

§ “Class” scholarship program

§ “Bakcyl” competence volunteering program

§ “Mission: Education”

§ “Women Changing BNP Paribas” program

§ Partnership with the “Share The Care” Foundation

§ The "Water? Yes! Plastic? No!” program

§ Promoting eco-attitudes

§ Financing of renewable energy sources (RES)

§ Financing the development of the Polish economy

§ Supporting the development of strategic Clients

§ Technological loans

§ Accessibility of products and services

§ Initiatives for Diversity

§ Financing thermo-modernisation

§ The “Eco-City” Initiative

§ Support for the sustainable development of the Food & Agro sector

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§ The “Bank of Green Changes” program

§ Eco-fleet

§ Withdrawal from the coal sector

§ CSR policies

§ Agro Academy

§ Campaign for optimal nitrogen-based fertilisation

§ The Bank’s "Apiary under the stars"

§ Support for afforestation

§ "Paperless" project

§ Partnership in the "Ethics in Finance" competition

§ Declaration of Responsible Sales

§ Partnership with: the Responsible Business Forum, the Polish Bank Association, UN Global Compact Network Poland, the French-Polish Chamber of Commerce

More information on the Bank's efforts to achieve the Sustainable Development Goals can be found at: https://www.bnpparibas.pl/razemzmieniamy/

1.12.     Promoting CSR and Sustainable Development

CSR Days

At BNP Paribas Bank Polska S.A., we believe that big changes start with the small ones that we introduce ourselves. Therefore, in our daily activities, we support the implementation of the Sustainable Development Goals (SDGs) - a global plan to fix the world. In the European Week of Sustainable Development, we organise CSR Days. During the whole week, employees learn about the 4 pillars of the Bank's responsibility and about ways to change their environment for the better. In 2020, CSR Days were held in June, and for the first time, they were fully remote. During virtual meetings under the slogan "Responsibility unites us", the Bank's employees had the opportunity to learn more about acting for the benefit of local communities, preventive healthcare, ways to improve health, environmental protection and life in accordance with the "zero waste" philosophy.

WE ENGAGE

The ambition of the BNP Paribas Group is to be a leader in the field of sustainable development and a positive impact on our environment. We strive to give our employees the relevant knowledge. Therefore, we launched the WE ENGAGE training program in 2020. It is a 6-episode mini-series, each episode includes putting the acquired knowledge to the test. In order to encourage employee commitment to sustainable development, the BNP Paribas Group has decided to donate 1 Euro to the global Help2Help program for each employee who participates in WE ENGAGE.

The Bank of Green Changes

Care for the natural environment is one of the key commitments of BNP Paribas Bank Polska S.A. We believe that great changes begin with ourselves, which is why we pay great attention to everyday initiatives which help our planet. In April 2019, after many years of intense efforts for the protection of the natural environment, we inaugurated the Bank of Green Changes Program. It aggregates all the organisation's previous pro-climate initiatives.

The Bank of Green Changes program consists of an internal educational campaign targeted at employees of all areas of the Bank, substantial organisational changes (so-called ‘eco-improvements’) and a constantly developing offer of pro-ecological products and services. Establishing partnerships and promoting climate justice is also an important part of our initiatives and industry events. We include both our employees and the Bank's Clients in

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initiatives to combat climate change. Thanks to our joint involvement in eco-initiatives, we are the Bank of Green Changes.

For more information about the Bank of Green Changes Program, see the Environmental Responsibility chapter.

The Responsible Business League

As part of our partnership with the Responsible Business Forum, we have been co-creating the Responsible Business League for many years. It is a free educational program about CSR for students. The CSR Ambassadors of the League train under the guidance of experts and promote corporate social responsibility and sustainable development at universities and in local communities. The Responsible Business League contributes to the emergence of new managers, entrepreneurs, social animators and change leaders. In the 16th edition of the League, we were the patron of the "Management and CSR" path.

Experts of BNP Paribas Bank Polska S.A. also share their experience and good practices in the field of CSR and Sustainable Development during industry events and conferences. For more information, see the Economic Events section.

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2020 Ranking of Responsible Companies

Our corporate responsibility initiatives are regularly appreciated in the Ranking of Responsible Companies. In 2020, the Bank took first place in the general classification for the second time. We were also placed first in the banking, financial and insurance sector categories.

The position of a leader in such a prestigious ranking is an honour. It shows appreciation for the commitment and hard work of all employees who care about strengthening the responsibility of our organisation, and are involved in important social and environmental initiatives. It is also an obligation to work further and to promote good practices.

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2.      Management foundation

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2.1. Corporate governance

Legal and regulatory basis for corporate governance

The corporate governance binding at BNP Paribas Bank Polska S.A. results from the provisions of law (in particular, the Code of Commercial Companies and Partnerships, the Banking Law and the regulations related to the functioning of the capital market) and recommendations included in the documents: “Good practices of companies listed on the WSE” and “Corporate governance rules for supervised institutions”.

The Bank's Management Board declares that in 2020 the Bank and its bodies complied with the corporate governance principles set out in the "Corporate governance rules for supervised institutions" and "Good practices of companies listed on the WSE" to the extent adopted by the Bank. In the period covered by the present report, no cases of breach of corporate governance rules adopted by the Bank were identified.

The BNP Paribas Group, in all its activities, is guided by the values defined in The BNP Paribas Way and The BNP Paribas Group Code of Conduct.

For more information on the organisation's values and diversity management, please refer to the Responsibility in the Workplace chapter.

For information on ethical issues, anti-corruption, respect for human rights and risk management, please refer to the following sections of the present chapter.

2.2.             ESG aspects management

GRI 103-1, 103-2, 103-3

The current Strategy for the functioning of BNP Paribas Bank Polska S.A. is the ‘Fast Forward’ Strategy for 2018 – 2021 adopted by the Management Board and Supervisory Board in May 2018. The assumption of the ‘Fast Forward’ Strategy is focus on customer and digital transformation of products, services and processes, aimed at accelerating growth and increasing profitability.

Five key pillars of the „Fast Forward” Strategy are the following:

1.      Growth

2.      Simplicity

3.      Quality

4.      Digitalisation

5.      Enthusiasm

The implementation of the Strategy of BNP Paribas Bank Polska S.A. is supervised by the Management Board, headed by the President of the Management Board. Preparatory work on the Bank's Strategy for 2022-2024 is currently under way on. The sustainable development aspect will constitute one of the key dimensions of the new Strategy.

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An integral part of all the pillars of the current Business Strategy is the CSR and Sustainable Development Strategy, which consists of 12 commitments under 4 pillars of responsibility: economic, in the workplace, social and environmental. The CSR and Sustainable Development Strategy is consistent with the BNP Paribas Group CSR Strategy and takes into account local conditions. Activities performed under the Strategy are the Bank's contribution to the implementation of the UN Sustainable Development Goals, recognised as a global plan to fix the world.

For more information on the implementation of the “Fast Forward” Strategy, please refer to Strategy and Business Model.

Focusing on environmental, social and governance aspects (ESG, E - environmental, S - social, G - governance) and aiming to implement the mission of sustainable development more effectively, in October 2020, following the Management Board’s decision, BNP Paribas Bank Polska S.A. appointed a new function in the organisation - Chief Sustainability Officer. The role of CSO was assumed by Jarosław Rot, Managing Director, responsible for the Asset and Liability Management and Treasury areas. His role is to manage and coordinate the organisation's activities in the field of ESG issues, sustainable development and climate change mitigation. The Chief Sustainability Officer reports directly to the CEO, who supervises the implementation of the strategic integration of ESG aspects into the organisation's activities.

Appointed in October 2020, Chief Sustainability Officer has been given responsibility related to the formation and establishment of the Sustainability Council. The task of the Sustainability Council, established in November 2020, is to combine various competences and undertakings alongside the structures already in place. The Council is responsible for ensuring that the strategic objectives related to the implementation of the 2030 Agenda are understood and shared across all areas of the Bank's business and among customers, including the development of the Bank’s products and services. Its main responsibilities include defining and monitoring the strategy concerning ESG aspects (which will be an integral part of the new Strategy of BNP Paribas Bank Polska S.A. for the years 2022-2024), supervising the development of sustainable Bank products and services and linking initiatives undertaken in different business areas. It is also very important that the Council is composed of key areas for the purpose achievement, is interdisciplinary and permeates our entire organisation. It comprises 16 representatives of the Bank's key areas and business lines. The Sustainability Council and the Chief Sustainability Officer report quarterly to the Management Board of BNP Paribas Bank Polska S.A. At its first meeting in December 2020, the members of the Sustainability Council decided to establish a group of Sustainability Officers who will coordinate and implement the activities comprising the implementation of the ESG Strategy in the respective areas of the Bank. This will create a Sustainability Community composed of CSOs, Sustainability Council and Sustainability Officers, responsible for active implementation of the Bank's sustainability commitments, including, in particular, the fight against climate change.

Within the organisational structures of BNP Paribas Bank Polska S.A. there are units responsible for sustainable development and ESG activities.

CSR and Sustainable Development Bureau is responsible for the coordination of the overall CSR and Sustainability Strategy. The office also supervises the following areas:

§ the Bank of Green Change programme, which aggregates all the organisation's activities to support pro-climate actions;

§ partnership cooperation with external expert organisations working for CSR and sustainable development;

§ implementation and coordination of CSR Policies in sectors deemed sensitive, and monitoring of clients in social, environmental and corporate governance areas;

§ non-financial reporting on the local market and to the BNP Paribas Group;

§ supervision over the implementation of projects under “Idea Enagement”;

§ supporting the implementation of Sustainable Development Goals (SDGs) across the organisation.

The Sustainable Development Programmes Bureau analyses and develops programmes that will optimally support investments made by the Bank's customers from various market segments, particularly in the areas of energy efficiency, use of renewable energy sources, electromobility and environmental protection. The Bureau is the internal competence centre for sustainable financing and consolidates all of the Bank's projects in this area. It is responsible for obtaining financing for pro-environmental projects in the form of credit lines, grants or guarantees, as well as providing technical assistance to clients and promoting environmentally friendly attitudes.

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The programmes implemented by the Bureau are addressed to all market segments: Individual clients, individual farmers, housing communities, micro, small and medium and large companies. The Bureau cooperates with the European Investment Bank and Bank Gospodarstwa Krajowego as well as other national and European public institutions.

ESG risk management

GRI 102-15

BNP Paribas Bank Polska S.A. has developed a risk identification and assessment framework in response to the requirements of the supervisory review and evaluation process. Considering regulatory requirements, best practices and the use of the Bank's proven existing risk management processes, the framework aims to identify and assess all risks to which the Bank is or may be exposed, and enables the maintenance of an up-to-date list of risks present in the Bank's activities. The principles are common to all of the risks.

In 2020, the Bank reviewed its risk identification process to include risk events and risk factors with regard to climate. As a result of these activities, ESG risks were assessed as material for the Bank.

BNP Paribas Bank Polska S.A. distinguishes nine sectors that are particularly sensitive in terms of environmental, social and corporate governance risks. To become a client of the Bank or obtain financing, an entity must fulfil a number of requirements described in the Policy for a given sector. In addition to the cyclical analysis of risks in particularly sensitive sectors, the Bank assesses ESG risk as part of the credit process for all corporate clients.

More information on the ESG risk management system are presented in ESG risk management.

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Since September 2020, BNP Paribas Bank Polska S.A. is a included in the WIG-ESG index

The index has been developed by the Warsaw Stock Exchange (WSE) in order to draw attention of companies and potential investors to ESG (E - environmental, S - social, G - governance) criteria in the investment decision-making process.

WIG-ESG includes the biggest companies listed on the Warsaw Stock Exchange from the indices WIG20 and mWIG40, which are verified for compliance with environmental, social and corporate governance rules based on the ESG Ranking (ESG coefficient) and for compliance with the Good practices of companies listed on the WSE (KDP coefficient).

2.3.             Stakeholders and relations with environment

GRI 102-40, 102-42

The stakeholders of BNP Paribas Bank Polska S.A. are all those we influence and who affect our organisation. In our activity we consider their needs and embody their opinions in our actions. We focus on a continuous and open dialogue as the opinions of our stakeholders enable us to take into account the changing socio-economic conditions in the Bank's plans.

Stakeholdersof the Bank:

§ Individual and institutional customers: Retail Banking, Wealth Management, Corporate banking, Micro banking, SME banking, Agro segment.

§ Our people.

§ Companies within BNP Paribas Bank Polska S.A. Capital Group.

§ Entities within BNP Paribas Group in Poland and abroad.

§ Market environment: business partners, suppliers, Polish Bank Association, consumer and industry organizations, competitive environment, administration, nationwide media.

§ Supervisory authorities: Polish Financial Supervision Authority, National Bank of Poland.

§ Capital market: institutional and individual investors, Warsaw Stock Exchange, rating agencies, analysts.

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§ Local communities: social partners, local government administration, institutions supporting cultural and educational events and sports, universities, schools, residents of local communities, local media, NGOs, the BNP Paribas Foundation.

§ Environment: regulatory and non-governmental organizations dealing with environmental issues.

GRI 102-43, 102-44

Main forms and tools of communication with stakeholders

§ Direct meetings and telephone conversations with our clients. Analysis of customer reviews about the quality of service and the services we offer. Websites, social media profiles: Facebook, Instagram and LinkedIn.

§ Cyclical employee satisfaction surveys, internal communication tools, direct meetings and conversations.

§ Ongoing contact with social partners as part of the CSR projects of the Bank and the BNP Paribas Foundation.

§ Ongoing contact with business partners and suppliers.

§ Stakeholder surveys conducted in preparation for reporting of the non-financial data.

§ Information materials and reports dedicated to the investor environment.

§ Ongoing contact with representatives of capital market institutions.

GRI 102-13

Key partnerships

BNP Paribas Bank is guided by the conviction that in order to achieve a state of social and climate justice, it is necessary to achieve the 17th Sustainable Development Goal, i.e. to establish cross-sectoral partnerships. To effectively change the world around us, promote good practices in business, and in particular in the financial services sector - regarding the availability of products, services and facilities, as well as responsible sales, to counteract climate change, and to strengthen social impact, we undertake cross-sectoral cooperation with numerous partners.

New key partnerships of BNP Paribas Bank Polska S.A. established in 2020:

§ Joining the group of signatories of the Declaration of Responsible Selling

§ Strengthening the cooperation with the UN Global Compact by joining the Standard Ethics Programme

§ Strengthening the cooperation with the UNEP/GRID-Warszawa Centre by joining the Climate Leadership Programme

§ Joining the Bio Food Market Development Coalition

§ Joining the international industry consortium Cool Farm Alliance (CFA), which brings together entities working for the development of sustainable agriculture

§ Strengthening cooperation with social partners of the "Share the Help" action

For more information on BNP Paribas Bank Polska S.A. partnerships, please visit: https://www.bnpparibas.pl/csr/partnerstwa

New key partnerships of BNP Paribas Foundation established in 2020:

§ Cooperation with the Good Network Foundation in developing a tool for evaluation of scholarship programmes and participation in pilot studies

§ Partnership with the Friends of Integration Association – publication of a series of articles on financial security for people with disabilities in cooperation with the Bank's experts

§ Cooperation with Our Home Association and participation in the work of the committee of the scholarship programme My Future, addressed to children and young people in foster care

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§ Partnership with the Actively Against Depression Association and the SYNAPSIS Foundation in the Bank's individual philanthropy programme "I support all year-long"

§ Strengthening cooperation with the Pro Bono Leaders Coalition by working on the "Employee Volunteer Charter"

§ Strengthening cooperation with the WIOSNA Association by working on employee volunteering as part of the Noble Gift (Szlachetna Paczka) project

For more information on BNP Paribas Foundation, please visit: https://www.bnpparibas.pl/fundacja/partnerzy.

2.4.             Sustainable supply chain

GRI 102-9, 102-10, 204-1, 308-1

CSR declaration

The activities of the Centralised Procurement Department are based on the Principles of Procurement Regulation at BNP Paribas Bank Polska S.A., which include, among others, the Department's commitment to comply with the CSR Policy.

In order to implement a responsible procurement policy at BNP Paribas Bank Polska S.A., a CSR Declaration for suppliers has been developed. The document describes the rules of cooperation with suppliers. The Bank undertakes to select suppliers responsibly, treat suppliers equally in financial matters and promote suppliers supporting CSR initiatives. Suppliers confirm compliance with ethical principles, working and safety conditions, regulations regarding the employment of young people, combating forced labour, discrimination and environmental issues. Acceptance of the Supplier Code of Conduct by bidders and suppliers is a formal condition that needs to be fulfilled in order to participate in procurement procedures. The CSR Declaration for Suppliers aims to promote social responsibility among stakeholders and encourage the implementation of responsible practices among suppliers.

Suppliers, by signing the CSR Declaration, confirm their compliance with ethical principles, working and safety conditions, regulations regarding the employment of young people, combating forced labour, discrimination and environmental issues. Each new supplier is assessed for compliance with these criteria.

GRI 412-3, 414-1

§ In 2020, 240 of our new suppliers (representing 93% of all new suppliers) signed the CSR Declaration.

§ In our organisation's supplier selection process, signing the CSR Declaration accounted for 5% of the supplier assessment.

§ In 2020, approximately 85% of the Bank's total expenditure on products and services was purchases from local Polish suppliers.

Our purchasing activities are focused on a strategy of rational purchasing and environmental responsibility. We do not want to buy more than is necessary. We want the products we buy to be of high quality and high durability. We always take these criteria into account when performing purchases. In 2020, there were no complaints against the organisation relating to the environmental impact of its purchasing policy.

Our plans in the area of purchasing policy are to continually reduce the amount of materials we use (e.g. paper, or eliminating plastic) and to increase environmentally friendly activities, such as purchasing eco-friendly paper. For more information on our green procurement activities, please refer to Environmental Responsibility chapter.

2.5.             Ethics

GRI 102-16

Code of ethics

The norms of behaviour and ethical standards accepted in the BNP Paribas Group are set out in the BNP Paribas Code of Conduct. It specifies principles consistent with the Group's values. This document expresses what we are striving towards, to be a respected European bank with global reach, and what should be remembered by every employee of the BNP Paribas Group. Together we focus on building the Bank on the foundations of professionalism and integrity. In order to achieve this, our employees - in accordance with the provisions of the Code of Conduct - must comply with laws and regulations relating in particular to: protecting the interests of clients, preventing money laundering and terrorist financing, counteracting corruption, avoiding and managing conflicts of interest, preventing market abuse, preventing all forms of discrimination, protecting the environment and counteracting climate change, and acting responsibly in public life.

Important documents regulating ethical issues at BNP Paribas Bank include:

§ Regulations on conflict of interest management at BNP Paribas Bank Polska S.A.,

§ Policy on reporting violations of law as well as procedures and ethical standards applicable at BNP Paribas Bank Polska S.A., including anonymous reporting (Whistleblowing),

§ Rules of accepting and giving presents by Employees of BNP Paribas Bank Polska S.A.,

§ Regulations for the protection of the flow of confidential information at BNP Paribas Bank Polska S.A.,

§ Regulations for investing by related persons and executing transactions by managers.

Every employee receives mandatory training in the principles of the Code of Conduct. Training helps employees to familiarise themselves with the document and to understand the priorities discussed in the Code of Conduct. The employees' awareness of the binding attitudes is also systematically increased through ongoing internal communication.

BNP Paribas Bank Polska S.A. actively engages in industry initiatives for business ethics. For more information on this topic, please refer to Economic responsibility chapter.

Mechanisms of reporting irregularities

GRI 102-17

The Anti-Fraud Policy describes in detail the division and principles of responsibility in this sphere.

The Bank has adopted a zero-tolerance policy for any type of fraud or attempted fraud by employees, customers, counterparties and third parties.

The Bank has established and designated the units to provide advice on ethical and legal issues and matters relating to the integrity of the organisation to all employees. These units are in particular the Compliance Monitoring Division and the Legal Division.

All employees are expected to familiarise themselves with international standards and comply with relevant laws, rules and regulations in all areas, as well as with professional standards that apply to their activities. The Code of Conduct clearly sets out the expectations for each employee. The detailed rules of conduct that all Bank employees are expected to understand and comply with are in the following regulations accompanying the Code of Conduct:

§ Regulations on Conflict of Interest,

§ Policy on reporting violations of law as well as procedures and ethical standards applicable at BNP Paribas Bank Polska S.A., including anonymous reporting (Whistleblowing),

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§ Anti-Corruption Policy,

§ Anti-Fraud Policy.

An important element of the implementation of the policy of reporting compliances and requests is the Whistleblowing process. The system launched at the Bank is an expression of concern for employees and monitoring of compliance with the law. It defines communication channels, dedicated tools through which potential violations can be reported to members of the Management Board and other employees. It has been communicated to all employees.

The Bank is particularly concerned about the anonymity of reports and to this end provides:

§ absolute protection of the identity of the reporting person and the reported person; their details may not be disclosed to third parties unless there is a legal obligation to do so;

§ treating reports with the utmost seriousness, fairness and discretion;

§ verification of the reports by authorised personnel so that concerns can be resolved fairly and impartially.

In addition to the standard communication channels, direct communication with the dedicated Compliance unit (Group Financial Security US) can be used for incident reports regarding sanctions and embargoes.

2.6.             Anti-corruption

GRI 205-1, 205-3

In September 2018, the Bank implemented the Anti-Corruption Policy. The policy regulates the issues related to identification and limiting the risk of corruption and defines the main principles of conduct and scope of responsibility in this area. Due to the adoption of the aforementioned regulation, all events of even a potential corrupt nature are monitored.

We have zero tolerance for all forms of corruption, including accepting, offering, requesting, giving or agreeing to additional benefits, items or advantages.

The Bank's anti-corruption system is based on:

§ internal regulations specifying the method of operation and reporting corruption incidents to the appropriate organizational units of the Bank,

§ training employees to increase their awareness and show paths of action in specific situations,

§ operational control as part of the implemented internal control system.

The Bank continuously evaluates the management and control system (procedures, reporting, controls, training) implemented in order to counteract corruption. Appropriate internal regulations in this respect are implemented and updated on an ongoing basis, risk mapping and analysis of information on corruption from reporting are centrally supervised. The Managing Director of the Compliance Division appoints a person acting as Corruption Prevention Correspondent, whose tasks include coordinating anti-corruption activities.

Within the anti-corruption activities, the Bank monitors, among others: indicators concerning reported cases of fraud, identified conflicts of interest, accepted/transmitted gifts and invitations, due diligence in establishing relations with clients/contractors/intermediaries, level of employee awareness.

We expect our business partners (suppliers, contractors, subcontractors working with the Bank and its clients on behalf of the Bank) to act in accordance with the principles set out in the Anti-Corruption Policy. An anti-corruption clause is an integral part of each agreement concluded by the Bank with its business partners.

The Anti-Corruption Policy, similarly to all other policies and procedures in force at the Bank, is available in the Intralex internal system. Every employee of our Bank has the opportunity to read the document.

Other binding policies on anti-corruption:

§ Polityka powiadamiania o incydencie braku zgodności w BNP Paribas Bank Polska S.A., która daje Policy on notification of a non-compliance incident at BNP Paribas Bank Polska S.A. gives employees the

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§ opportunity to submit a notification of the occurrence or possibility of a non-compliance incident, including an act of corruption, in a manner independent of all other methods described in other banking regulations.

§ Rules of accepting and giving presents by employees of Bank BNP Paribas S.A. describe in detail the process of accepting and giving gifts. According to them, employees may under no circumstances make the scope of services provided by the Bank or the products offered dependent on potential personal benefits obtained from customers. In particular, it is forbidden to solicit a gift from the customer. It is unacceptable to accept or give presents that may affect the impartiality and independence of decisions. The rules describe the process of giving presents to persons performing public functions.

§ Code of good practice for employees of BNP Paribas Bank Polska S.A. in commercial relations with contractors. According to the document, employees commit to guarantee fair competition;

§ Regulations on conflict of interest management at BNP Paribas Bank Polska S.A.,

In 2020, no incident of corruption in BNP Paribas Bank Polska S.A. was identified.

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The anti-corruption process must be known and understood by all employees of the Bank. To this end, we conduct relevant training on the subject, which lasts 1 hour and is available to all employees of the Bank. A separate training course has been prepared for employees particularly exposed to the risk of corruption, showing, among other things, practical ways to counteract the risk. The Corruption Prevention Correspondent additionally implements training dedicated to individual units of the Bank.

In 2020, 2,118 employees participated in the training on counteracting corruption and in a test concerning knowledge in this area. This represents 94.98% of all those to whom this training was assigned as mandatory in 2020. In addition, all members of the management bodies attended the anti-corruption training.

In 2020, the Bank developed and implemented additional training tailored to those particularly exposed to the risk of corruption. In addition, the Corruption Prevention Correspondent prepared anti-corruption workshops for selected units of the Bank. IT solutions are also being prepared to enable more effective monitoring of key corruption indicators.

2.7.             Human rights

Anti-discrimination and respect for human rights

GRI 103-1 103-2 103-3, 406-1

Our priority is to treat all employees and external partners fairly, with respect and without regard to age, gender, position, religion, nationality or belief.

In 2012, BNP Paribas Group signed the BNP Paribas Declaration on Human Rights, thus committing to ensure respect for human rights in the area of its influence and covering employees, suppliers, customers and communities. In addition, the BNP Paribas Group Code of Conduct describes the importance of treating all employees with respect. The Code sets out the expected behaviour and attitudes of employees inside and outside the organisation. In addition, by signing a document entitled BNP Paribas Agreement on Fundamental Rights and Global Social Solutions, the BNP Paribas Group confirmed its compliance with international standards on human rights and their promotion, as well as its support for the UN Guiding Principles on Business and Human Rights.

The BNP Paribas Group observes a number of principles and standards that guide its business activities. These include in particular:

§ UN sustainable development agenda

§ 10 UN Global Compact Principles

§ UN Guidelines on Business and Human Rights

§ OECD Guidelines for Internationally Recognised Business Enterprises

§ Internationally recognised human rights standards as defined by the International Bill of Human Rights

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§ Core labour standards defined by the International Labour Organisation

§ BNP Paribas Group Code of Conduct

§ BNP Paribas Human Rights Declaration

§ CSR Declaration for BNP Paribas Suppliers

margines

In 2020, BNP Paribas Group has prepared a special e-learning module entitled ‘Understanding and implementing human rights in the company’. This module is mandatory for employees who are involved in identifying potential risks regarding human rights violations. These include employees in areas such as CSR, risk, purchasing and sales managers. The assignment and execution of this training by employees from the aforementioned areas is monitored from a global level. The training is also made available to all interested employees. The training was assigned to 103 people and 86 of them completed it in 2020.

In addition, the Bank's Human Resources Management Department regularly provides training on discrimination and bullying. In 2020, two webinars were organised, attended by nearly 900 employees. They were conducted by legal adviser, president of the Polish Society of Anti-discrimination, Karolina Kędziora.

GRI 406-1, 412-1, 412-2

The Bank's human rights management includes, inter alia: monitoring the rate of reports on mobbing, discrimination, harassment and violations of employee rights.

BNP Paribas Bank Polska S.A. does not tolerate any signs of mobbing in the organisation. The rules of counteracting mobbing are regulated by the Anti-Mobbing Policy implemented in the Bank. It enables the employer to prevent mobbing and to react immediately if it occurs.

The Anti-Mobbing Commission deals with the examination of employee reports in this respect.

The Bank has implemented Principles for dealing with reports of harassment and sexual harassment in professional relations. These enable the safe reporting of reasonable suspicions without fear of retaliation against those who report such incidents. This document regulates the protection of human rights. It implements solutions adopted in the BNP Paribas Group Policy Treatment of harassment notifications.

The Diversity Management Policy contains rules regarding behaviour in the area of managing the risk of discrimination. It aims to create and promote a diverse work environment that uses the potential of all employees. The policy commits to comply with the adopted principles in all human resources management processes.

2.8.             Compliance with law and regulations

GRI 206-1, 307-1, 417-3, 418-1, 419-1

In 2020:

§ There were no pending court or administrative proceedings against BNP Paribas Bank Polska S.A. or BNP Paribas Bank Polska S.A. Capital Group concerning behaviour that infringes freedom of competition or antitrust rules.

§ A total of 44 cases of leakage, theft or other forms of customer data loss were identified.

§ There was 1 case of non-compliance with regulations and/or voluntary codes on marketing communications and 1 concerning non-compliance with laws or regulations in the social and economic field. The OCCP concluded the first case above with a warning, and the Bank appealed against the second case in the social and economic area. In the second case, the authority imposed a financial penalty.

§ The Bank did not record any case of judicial and administrative proceedings concerning behaviour that violates the freedom of competition or antitrust legislation, and there were no complaints, penalties or sanctions in the area of environmental impact within the administrative activities of the organisation.

2.9.             Risk management

Risk management system

GRI 102-11, 102-15

The risk management system is an integrated set of rules, mechanisms and tools (including, inter alia, policies and procedures) relating to risk processes. Risk management is part of the Bank's overall management system. The role of the risk management system is to continuously identify, measure or estimate and monitor the level of risk incurred by the Bank.

The Bank has developed comprehensive rules of risk identification and assessment in response to the requirements of the review and supervisory assessment process. The rules are aimed at identification and assessment of all risks to which the Bank is or may be exposed, taking into account regulatory requirements, best practices and use of existing risk management processes tested by the Bank. The Bank takes into account the specific nature, scale and degree of complexity of business activity and related risk, ensuring that all significant risks in the Bank's activity are measured and mitigated. The Bank strives to identify and assess risks resulting from the internal and external environment that could have a significant impact on the Bank's financial stability. The risk identification process is carried out at the Bank on an annual basis and is an element of the internal capital adequacy assessment process.

The Bank distinguishes the following types of risks in its business activity, which were assessed as material:

§ credit risk (including country risk, residual risk, settlement risk and concentration risk),

§ counterparty risk,

§ market risk,

§ interest rate risk and the Bank’s portfolio risk,

§ liquidity and financing risk,

§ operational risk (including legal risk, compliance risk, business continuity risk and IT risk),

§ business risk (including financial result risk and strategic risk),

§ reputation risk,

§ model risk,

§ insolvency risk (including leverage risk).

§ CSR/ESG risk.

For the identified risk types, the Bank defines the level of risk appetite. The risk appetite, within the limits set by risk tolerance, defines the way the Bank uses its capacity to take risk by defining for each risk type the degree of risk exposure that a given area may take. All methods and procedures are subject to periodical reviews for their adequacy and reliability. The Bank applies validation tests, stress tests, as well as scenario and historical (back testing) analysis, based on both theoretical changes in market, business parameters and customer behaviour, as well as changes that actually took place in the market in the past.

The Bank monitors specific types of risks by means of a formal system of limits and reports, implemented as part of, among others, dedicated risk management policies, accepted at the level of the Management Board. The system of limits is set in such a way as to ensure that:

§ the Bank satisfies supervisory standards,

§ the desired risk profile defined in the Bank's strategy is maintained,

§ the limits do not exceed the risk level acceptable to the BNP Paribas Group.

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If a limit is exceeded, the unit responsible for maintaining the reported values below the limit is obliged to employ measures enabling reduction of the risk value in accordance with the procedures in place at the Bank. The information system used for purposes of risk management ensures collection of data concerning operations and transactions, along with their effect on the Bank’s risk profile.

The risk management policy of the Bank is aimed at ensuring that the employees in charge of risk management process supervision and handling have extensive practical experience and theoretical knowledge about the tasks performed, in addition to high morale. The procedures in place at the Bank enable control over correctness of realisation of their tasks.

The Bank’s policy is based on the principle that the functions of business (direct entry into transactions), operations (transaction booking and clearing) and control functions (risk measurement and monitoring) forming part of the currency, interest rate and liquidity risk management process are fulfilled by separate, organisationally independent units. The scope of their responsibilities is clearly defined to determine their role and accountability in the risk management process. This enabled separation of business, control, risk reporting and operational functions in order to guarantee appropriate quality of risk control and operational processes in addition to ensuring that the results of control indicating that the risk level is too high generate appropriate response of the Bank’s management.

The Bank has adopted risk control and management policies that determine the measures to be employed in crisis situations. The principles of crisis identification, the scope of measures to be employed as well as responsibilities necessary to mitigate the related risk and to implement corrective actions, were also defined.

The risk management system of the Bank comprises mainly the Supervisory Board, the Management Board, dedicated committees (Audit Committee and Risk Committee at the level of the Supervisory Board, ALCO, Risk Management Committee, Retail Banking Risk Committee, Personal Finance Risk Committee, Credit Committee, Problematic Loan Committee, Products Approval, Services, Transaction and Businesses Committee, as well as Internal Control Coordination Committee), Risk Area department, Compliance Division as well as Security and Continuity of Business Management Department.

The key role in the risk management system at the Bank is fulfilled by the Management Board, which defines the risk management strategy, risk appetite, and adopts the risk management policies as well as defines material risk limit policy and risk control procedures. The risk management principles are derived from the document Risk Management Strategy in BNP Paribas Bank Polska S.A. defined by the Management Board and approved by the Supervisory Board.

For more information on risk management in BNP Paribas Bank Polska S.A., please refer to the Management Board Report of BNP Paribas Bank Polska S.A. Capital Group in 2020 (including the Management Board Report of BNP Paribas Bank Polska S.A.).

2.10.         ESG risk management

GRI 102-15

TCFD: Describe the organization’s processes for managing climate-related risks

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management

BNP Paribas Bank Polska S.A. has developed a risk identification and assessment framework in response to the requirements of the supervisory review and evaluation process. Considering the regulatory requirements, best practices and the use of the Bank's proven existing risk management processes, the framework aims to identify and assess all risks to which the Bank is or may be exposed, and allows the Bank to maintain an up-to-date list of risks in its operations. The principles developed are common to all risks.

The Bank has risk- related units that:

§ address the ESG aspects and climate risks included into the Bank's risk appetite,

§ pay particular attention to possible ESG risks in the business of existing and potential corporate clients, integrating this aspect into the overall risk analysis of the client's business or prospectus.

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Both the Management Board and the Supervisory Board, as well as the entire management team, are engaged in a risk management system aimed at identifying and reducing all risks relating to the Bank's activities, including risks and opportunities related to climate change.

The identification of risks is performed at least once a year. Risks are characterised and assessed using a quantitative method, considering three parameters: risk type, risk factors that constitute direct causes of risk and type of impact of a risk event (financial impact or qualitative assessment), using a common risk identification tool for all risk types. BNP Paribas Bank Polska S.A. has developed an internal taxonomy of risks covering all types of risks it may experience in the course of its business. The purpose of building the risk taxonomy is to address all typical risks to which the Bank is or may be exposed, taking into account its business model, activities and environment. Identification consists of recognizing, defining and describing the types of risk that may threaten the achievement of the Bank's objectives. The Bank identifies risk events that correspond to scenarios of how a given risk type may materialise. The internal risk taxonomy covers all potential risks and is not limited to significant risks for the Bank. The taxonomy is not static and may evolve in line with methodological developments, the emergence of new risks or regulatory requirements.

The Bank has also developed a taxonomy of risk factors to detail the causes/factors underlying the materialisation of risk events. Risk factors are understood as the direct causes to the increase of the risks. The taxonomy divides risk factors into four groups according to the area of their origin:

§ financial markets,

§ macroeconomic environment,

§ business environment,

§ external processes.

The types of risks identified as potentially material are analysed in terms of their materiality - the result is a list of material risks.

To assess the materiality of the risks, BNP Paribas Bank Polska S.A. performs the following actions:

§ defines the concept of risk materiality,

§ defines the factors determining the risk materiality,

§ assesses the risk materiality,

§ prepares a report on the assessment of the risk materiality.

The materiality assessment process is common to all risks.

In 2020, BNP Paribas Bank Polska S.A. reviewed its risk identification process as regards inclusion of risk events and climate-related risk factors in the process. As a result of this, ESG risks were assessed as material for the Bank and were introduced into the Risk Management Strategy. As a next step, in order to mitigate and control the risk, the Bank developed principles for measuring ESG risk in the process of determining the Bank's internal capital (ICAAP). The capital plan of BNP Paribas Bank Polska S.A. for 2021-2023 was supplemented with limits for ESG risk determined based on the risk measurement performed.

ESG risk include:

1.      environmental risk - associated with conducting operations in an environtmentally harmful manner, causing the effects of environmental damage and disasters, as well as risks associated with the challenges and adaptation to ongoing climate change

2.      social risks - associated with operating in a manner harmful to employees, local communities and society (human rights, labour rights, respect for health and safety)

3.      corporate governance risks - related to unethical and unfair business practices and non-compliance with corporate governance standards (code of ethics, grievance and whistleblowing mechanisms, transparency of information, prevention of fraud and corrupt practices, CSR/ESG risk control system, supply chain requirements).

Sectoral CSR policies

margines

BNP Paribas Bank Polska S.A. has identified nine sensitive sectors based on environmental, social or corporate governance risk:

§ coal energy
(coal exit 2030)

§ nuclear

§ mining
(coal exit 2030)

§ agri-food

§ defence and security

§ fuel – unconventional oil and gas resources

§ forest
– wood pulp

§ tobacco

§ forest
– palm oil

margines

In each of these sectors, the Bank implements CSR Policies towards the relevant clients. In order to become a client of the Bank or obtain financing, an entity must comply with a number of requirements regulated by the Policy for a given sector. With regard to sectors that are particularly harmful in terms of sustainable development, the Bank takes strategic decisions to exit from serving clients belonging to these sectors. Such sectors include the tobacco sector, in case of which the BNP Paribas Group announced its exit from financing in 2017.

Another is the coal energy sector. Since 2015, the Bank is in the process of exiting the financing of the coal energy sector and is not providing new financing to coal energy groups, continuously tightening regulations in this area.

In 2019, BNP Paribas Group adopted final deadlines (2030 for the European Union and OECD and 2040 for the rest of the world) after which BNP Paribas clients involved in coal energy, mining or coal infrastructure wishing to remain in a relationship with the Bank will no longer be able to use coal. BNP Paribas has committed that it will not engage with new clients if coal-related activities generate more than 25% of their revenues. In addition, the BNP Paribas Group maintains its commitment to terminate cooperation with any Customer that builds new coal-based generation capacity.

All current and potential clients of the Bank operating in the listed industries are informed about the CSR Policies and receive an explanation of the analysis process.

For more information on the CSR Policies, please refer to the Responsible Financing chapter.

In addition to the cyclical analysis of risks in particularly sensitive sectors, the Bank assesses ESG risks as part of the lending process to all corporate clients. In 2019, a second line of CSR control was established in the CIB and Corporate Risk Division, which integrates the assessment of the occurrence of ESG risks in existing and potential Clients into the overall risk analysis of the Client's business. If a high level of ESG risk is identified, the Client's rating may be downgraded.

Regulatory risk, resulting from changes in the legal environment related to ESG strategy is also an important aspect for BNP Paribas Bank Polska S.A. The Bank monitors the work of supervisory authorities and legislative proposals in the financial sector on an on-going basis to ensure adequate risk management and control. The Bank recognises changes in the ESG area and accepts that they will have a significant impact on its operations.

BNP Paribas Bank Polska S.A. is aware that the European Union and the whole world are increasingly confronted with the disastrous and unpredictable consequences of climate change, depletion of natural resources and other issues related to sustainable development. This will mean that radical action will have to be taken also through the entities in the financial services sector. In the Bank's opinion, sustainable development is the foundation for building a low-carbon economy, and the role of financial institutions in this process is of special importance.

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BNP Paribas Bank Polska S.A. analyses the possible impact of climate change trends by identifying opportunities and threats to its business and development prospects. To this end, it has distinguished climate-related risks and opportunities in the short, medium and long term.

For more information, please refer to Environmental responsibility management.

The Bank has implemented effective systems of functional control, risk management, compliance supervision, as well as audit and internal control. The simultaneous functioning of all the above-mentioned elements enables the Bank to exercise constant and effective supervision in the area of anti-corruption. Since 2018, the Bank has had an Anti-Corruption Policy in place. As part of the anti-corruption process, the Bank monitors, inter alia: indicators on reported cases of fraud, identified conflicts of interest, accepted/transmitted gifts and invitations, due diligence in establishing relations with clients/contractors/intermediaries, level of employee awareness. The Bank's anti-corruption system is based on:

§ internal regulations specifying how to act and how to report corruption incidents to the relevant organisational units of the Bank,

§ trainings for employees which increase their awareness and indicate how to act in specific situations,

§ operational control within the implemented system of internal control.

2.11.           Due diligence policies and procedures

GRI 102-11

Main policies, procedures and other regulations at the level of BNP Paribas Bank Polska S.A. Capital Group and BNP Paribas Bank Polska S.A.

Employee issues

At the level of BNP Paribas Bank Polska S.A. Capital Group:

§ Code of Conduct of the BNP Paribas Group

§ The principles of responsible business of the BNP Paribas Group

§ Whistleblowing Policy

At the level of BNP Paribas Bank Polska S.A.:

§ CSR Policy

§ Diversity Management Policy

§ Remuneration Policy

§ Anti-mobbing Policy

§ Principles for dealing with reports of harassment and sexual harassment in professional relations

§ Policy on reporting violations of law as well as procedures and ethical standards applicable at BNP Paribas Bank Polska S.A., including anonymous reporting (Whistleblowing),

§ Labour Relations Management Policy

§ Workplace rules and regulations

§ Principles of Recruitment

§ The Collective Labour Agreement

§ Principles of granting premiums

§ Remuneration policy for employees who have a significant impact on the BNP Paribas Bank’s risk profile

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Social issues

At the level of BNP Paribas Bank Polska S.A. Capital Group:

§ Code of Conduct of the BNP Paribas Group

§ The principles of responsible business of the BNP Paribas Group

§ Statute of the BNP Paribas Foundation

At the level of BNP Paribas Bank Polska S.A.:

§ CSR Policy

§ Employee volunteering regulations

§ Regulation of the Local Grants Programme

Environmental issues

At the level of BNP Paribas Bank Polska S.A. Capital Group:

§ Code of Conduct of the BNP Paribas Group

§ The principles of responsible business of the BNP Paribas Group

§ Sectoral policies of the BNP Paribas Group

At the level of BNP Paribas Bank Polska S.A.:

§ CSR Policy

§ Sectoral policies and the pricnciples of CSR financing

Human rights issues

At the level of BNP Paribas Bank Polska S.A. Capital Group:

§ Code of Conduct of the BNP Paribas Group

§ The principles of responsible business of the BNP Paribas Group

§ BNP Paribas Declaration on human rights

§ Whistleblowing Policy

At the level of BNP Paribas Bank Polska S.A.:

§ CSR Policy

§ Diversity Management Policy

§ Anti-mobbing Policy

§ Principles for dealing with reports of harassment and sexual harassment in professional relations

Corruption prevention

At the level of BNP Paribas Bank Polska S.A. Capital Group:

§ Code of Conduct of the BNP Paribas Group

§ The principles of responsible business of the BNP Paribas Group

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§ Whistleblowing Policy

§ Anti-corruptuon policy

At the level of BNP Paribas Bank Polska S.A.:

§ CSR Policy

§ Policy on notification of a non-compliance incident at BNP Paribas Bank Polska S.A.

§ Rules of accepting and giving presents by employees of Bank BNP Paribas S.A.

§ Regulations on conflict of interest management at BNP Paribas Bank Polska S.A.

§ Regulations for the protection of the flow of confidential information at BNP Paribas Bank Polska S.A.

§ Regulations for investing by related persons and executing transactions by managers

§ Remuneration policy for employees who have a significant impact on the BNP Paribas Bank’s risk profile

Management

At the level of BNP Paribas Bank Polska S.A.:

§ Credit policy

§ Concentraction risk management policy

§ Interest rate risk management policy

§ Interest rate of the trading portfolio risk management policy

§ Operational risk management policy

§ Internal control policy

§ Accounting policy, including the principles of assets and liabilities measurement

§ Policy for assessing the suitability of the members of the Supervisory Board, members of the Bank's Management Board and persons performing the most important functions

§ CSR Policy

§ Information policy on capital adequacy

§ Information policy

§ Audit firm selection policy

§ CSR Declaration for suppliers of BNP Paribas

§ Policy on the provision of permitted non-audit services by the audit firm, by affiliates of the audit firm and by members of the audit firm's network

Clients

At the level of BNP Paribas Bank Polska S.A. Capital Group:

§ Code of Conduct of the BNP Paribas Group

§ The principles of responsible business of the BNP Paribas Group

At the level of BNP Paribas Bank Polska S.A.:

§ Complaints handling policy

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3.    Economic
responsibility

Tekst tabela

Tekst tabela

Tekst tabela

Tekst tabela

3.1. Responsible financing

GRI 103-1, 103-2, 103-3

TCFD: Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management proces.

BNP Paribas Bank Polska S.A. understands economic responsibility as responsible long-term financing of the economy as well as maintaining ethical and lasting relationships with Clients and stakeholders.

The Bank’s commitments regarding economic responsibility – one of the four cornerstones of our CSR and Sustainability Strategy

§ Investments and financing with a positive impact.

§ Ethics of the highest standard.

§ Integrated management and monitoring of ESG risks (environmental, social and governance risks).

We have identified a number of Sustainable Development Goals which include: supporting economic development, innovation and industry, supporting the development of sustainable cities and communities and cross-sectoral partnerships for sustainable development.

margines

The Bank’s Sustainable Development Goals in the field of economic responsibility

Goal 8.
Decent work and economic growth

Goal 9.
Industry, innovation and infrastructure

Goal 11.
Sustainable cities and communities

Goal 16.
Peace, justice and strong institutions

Goal 17.

Partnerships for the Goals

margines

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Economic responsibility is an important topic for all companies of the BNP Paribas Capital Group. They con-duct operations in accordance with the highest standards and guidelines of the BNP Paribas Group.

A key dimension of the Bank’s responsibility is its support for the development of the economy, achieved through responsible financing. We understand ‘responsible financing’ as dedication to the highest ethical standards, monitoring the social, economic and environmental aspects of transactions concluded by all our Clients, as well as offering products and services which respond to global challenges and local market condi-tions (and thus respond to the changing needs of our Clients).

Our balanced approach is based on lasting and ethical relationships with Clients and stakeholders. We want to have an impact on our area of business, we are therefore involved in initiatives which promote responsi-bility in the financial industry and in business.

We are now facing unprecedented economic changes. As the Bank for a changing world, we want to keep up with them, to understand the challenges and needs of our Clients, to support their development plans and inspire them to choose new and ambitious goals. BNP Paribas Bank Polska S.A. aims to responsibly support and stimulate the development of innovation in Poland, as well as the expansion of domestic en-terprises to foreign markets.

Financing based on ESG criteria

The economic responsibility of BNP Paribas Bank Polska S.A. entails long-term support for the development of the economy through financial support for individual and corporate projects. At the same time, we aim to monitor the CSR risks faced by our Clients. The Bank focuses especially on financing ESG sensitive sec-tors. Financing decisions are preceded with analyses of the social, economic and environmental impact of a given company and project. We offer products which meet today's challenges in the field of sustainable development. More information about our responsible products can be found in further sections of the present chapter.

margines

BNP Paribas Bank Polska S.A. has identified nine sensitive sectors based on environmental, social and cor-porate governance risk:

§ coal-based energy

§ nuclear energy

§ mining

§ agriculture

§ defence and security

§ fuel – unconventional oil and gas

§ forests – wood pulp

§ tobacco

§ forests – palm oil

margines

In each of these sectors, the Bank implements The CSR Policy and Guidelines with respect to the relevant Clients. In order to become our Client or obtain financing, an entity needs to meet a number of require-ments set out in the Policy for a given sector. In addition, all current and potential Clients of the Bank who operate in the above-mentioned industries are informed about our CSR policy and about the analytical processes.

As regards the most harmful sectors, the Bank has made strategic decisions to withdraw services. Such sectors include the tobacco sector, which the BNP Paribas Group left in 2017. Another is the coal-based energy sector. In 2020, the BNP Paribas Group announced its gradual departure from financing the coal energy sector and entities significantly involved in coal infrastructure. Financing will stop completely in 2030. The first restrictions on cooperation with Clients operating in the coal sector were introduced as early as 2015. The Bank gradually withdrew from financing entities which did not plan an energy transformation to renewable sources.

In addition, continuing the restrictions introduced since 2017, the Bank completely seized financing for the fur industry from 2020.

Our Clients undergo detailed analyses carried out by the Bank's experts to ensure their compliance with the principles of sustainable development. In 2020, BNP Paribas Bank Polska S.A. conducted 225 CSR analyses.

In addition to cyclical risk analyses for particularly sensitive sectors, ESG risk is also assessed in credit pro-cesses for corporate Clients. In 2019, we established the so-called “second line of CSR control” in the Cor-porate Credit Risk Department. It focuses on possible ESG risks in the operations of current and potential Clients. This aspect

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is later included in the overall risk assessment of a Client. If a high level of ESG risk is detected, the Client's rating can be lowered.

margines

Commitments of the BNP Paribas Group regarding its withdrawal form the coal sector:

§ The BNP Paribas Group has committed to withdrawing from cooperation with Customers involved in coal-based electricity production, coal mining and coal infrastructure in the EU and OECD countries by the end of 2030.

§ The Group also maintains its commitment to terminate cooperation with Clients who invest in coal energy.

§ BNP Paribas has committed not to commence cooperation with new Clients if their coal-related activity generates over 25% of revenues.

margines

CSR sector policies

As a responsible financial institution, BNP Paribas Bank Polska S.A. monitors the level of environmental, social and corporate governance risk (ESG) for all of its Clients. In addition, as part of the BNP Paribas Group, the Bank pays particular attention to the financing of ESG sensitive sectors.

To this end, the Bank has identified nine sectors and has accordingly introduced CSR Policies – with specific requirements for Clients operating within them.

Coal energy sector

Coal-based energy greatly contributes to carbon dioxide (CO₂) emissions and is one of the main causes of climate change. Therefore, a balance should be struck between the growing demand for electricity, eco-nomic development and the need to reduce CO₂ emissions. Such a balance is critical to limiting climate change. Restrictions on cooperation with Customers operating in the coal sector have been introduced since 2015. In 2017, BNP Paribas Bank Polska S.A. decided to discontinue the financing of projects related to coal mining, the construction of coal-fired power plants and CHP plants, as well as new power units. We chose to support only those companies from the coal energy sector which are actively involved in the tran-sition to other types of energy (in accordance with the "below 2°C scenario" of the International Energy Agency - IEA). In addition, BNP Paribas believes it is equally important that all companies in the coal energy sector meet the necessary requirements in the field of health protection, safety and environmental protec-tion for the sake of future generations.

In 2019, the BNP Paribas Group set deadlines (2030 for the European Union and OECD and 2040 for the rest of the world) for cooperation with Customers form the coal industry, including coal-based energy, mining and infrastructure. Those wishing to continue cooperation with the Bank will need to resign from coal.

Mining sector

The mining sector supplies resources which have a major impact on the development of most economic sectors. The world's population is increasing. It as a key factor in the growing demand for resources, espe-cially combined with the growing expectations of developing countries as to advanced infrastructure as well as the high quality of products and services. Resources are being depleted and it is becoming increasingly difficult to extract them. A balanced approach to the mining sector needs to give careful consideration to the environmental, social and governance risks associated with the sector. The CSR policy towards the mining sector defines the requirements for mining companies and mining projects which wish to cooper-ate with the Bank. The Policy states additional criteria for mining enterprises and mining projects. In 2020, the BNP Paribas Group has committed to ending cooperation with Customers involved in the extraction of coal for the energy industry by the end of 2030 in the EU and OECD countries.



Defence and security sector

As a significant financial institution, Bank BNP Paribas recognizes the validity of the five major challenges and threats to the security of the EU as defined by the European Council: terrorism, the migration crisis, the proliferation of weapons of mass destruction, conflicts in regions and organised crime. Illegal arms trafficking,

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especially the illegal sale of small arms, is a key factor in four out of the five threats. While the Bank recognises the right of states to defend themselves and to protect their own national security, it is also conscious of the particular risks connected with the Defence and Security Sector.

The defence and security provisions listed in our Policy apply to weapons (including controversial weap-ons), military equipment, dual-use goods, internal repression, and internal security and police. The Policy defines a set of principles and guidelines regarding the Defence and Security Sector which must be fol-lowed by all organisational units of the Bank.

Forest sector – wood pulp

The demand for paper products will increase in the coming decade, which will affect global development. In connection with the wood pulp production process, the Bank has noted that heavy industry has a great impact on the environment (including water, soil and air pollution), but also on the health and safety of those employed by the industry and surrounding communities. Based on the paper production chain, shareholders believe that the greatest impact can be exerted at the level of forest management and wood pulp production. The Bank’s CSR Policy focuses on these two stages.

Forest sector – palm oil

The development of palm oil plantations may adversely affect local communities, climate change and the ecosystem. As a financial institution, the Bank wants to support responsible producers who apply sustain-able development practices in the palm oil production sector. Therefore, we refrain from financing or in-vesting in enterprises which activity contribute to deforestation or in enterprises which violate the rights of local communities.

Nuclear sector

As a financial institution, the Bank offers its products and financial services to government units which sup-port the development of non-military nuclear energy. The Bank believes that the international community and countries which plan to develop nuclear power or build new power plants need to act in accordance with the requirements of safety and population protection, as well as environmental protection. The Bank’s CSR Policy aims to ensure that the projects financed by the Bank in the nuclear energy sector are properly monitored in terms of mitigating social and environmental impact.

Agri-food sector

Agriculture is a key sector in terms of employment opportunities and GDP. It provides livelihoods for mil-lions of people, both in developed and developing countries. Investing in agriculture is one of the most effective strategies to reduce hunger and promote sustainable development. However, without proper management, the development of agriculture could have adverse effects on local communities, ecosystems or climate change. Therefore, the Bank monitors Customers who represent this sector by verifying compli-ance with the requirements of the CSR Sector Policy.

BNP Paribas Bank Polska S.A. supports the agri-food sector and therefore provides a wide range of financial products and services for entities in this industry. Our services and products are addressed to highly re-sponsible farms and processing companies, whose goal is to provide consumers with healthy and safe products while ensuring that production adheres to the principles of sustainable farming.

Fuel sector – unconventional oil and gas

BNP Paribas Bank Polska S.A. is highly involved in the energy transformation. Our goal is to contribute to the reduction of carbon dioxide emissions. This aim is reflected in the Bank’s loan portfolio and steps taken to reduce the environmental impact of its operations.

Therefore, the Bank has developed a coherent policy on financial products and services for the oil and gas industry in the field of unconventional oil and gas. Thus we have committed to refrain from financing ex-ploration and production projects in the field of unconventional gas and oil, as well as from financing enti-ties whose operations rely on unconventional oil and gas resources (including trade, transport, transmis-sion). Oil production from unconventional resources currently accounts for c. 10% of global oil and gas production. This percentage is expected to increase.

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The negative impact of unconventional production can be mitigated by implementing the best possible practices. BNP Paribas assesses resources and projects related to various unconventional sources of oil and gas in line with the best practices of the industry. Thus, we determine the specific environmental impact of the aforementioned projects.

Withdrawal from the tobacco sector

In 2017, the BNP Paribas Group made a global decision to discontinue financing and investing in the tobac-co industry, including manufacturers, planters and wholesalers whose main operations are tobacco-related. Since 2018, in line with the decision of the Group, the Bank has been implementing the withdrawal process from financing the tobacco sector.

Our new financing and investing regulations result from the BNP Paribas Group's commitment to financing the economy while maintaining a positive impact on all stakeholders.

Withdrawal from the fur industry

Since 2020, Bank BNP Paribas has ceased funding for the fur farming sector, thus implementing restrictions which had been gradually introduced since 2017.

In addition, the bank adheres to the following Policies of the BNP Paribas Group:

§ The Ocean protection policy defines criteria for the funding of enterprises which might affect the environment and ocean biodiversity. At the same time, we actively support initiatives based on sustainable economy, which respect marine ecosystems and human beings.

§ Human Rights Policy. The BNP Paribas Group is committed to the protection and respect for internationally recognised human rights. We strive to ensures that these rights are respected in all areas of the Bank’s activities and in all countries where we operate. BNP Paribas maintains the highest ethical standards in all relationships: with its employees, enterprises which constitute a part of its supply chain, Customers and local communities.

To find out more about the Sector Policies of the BNP Paribas Group, visit: https://group.bnpparibas/en/financing-investment-policies

3.2.             Responsible products and services

Responsible products and services should meet the needs of Customers, be available to vulnerable groups and have a positive impact on the environment. BNP Paribas Bank Polska S.A. wants to counteract exclu-sion and support entrepreneurship and energy transformation by offering responsible and sustainable products.

More information about eco-friendly products and services can be found in the Environmental Responsibility chapter.

Little Mr/Ms Independent Account and “Mission: Independence”

Children are interested in all aspects of the adult world from an early age. Payment cards and bank ac-counts are no exception. We are convinced that we should build on that interest to teach children respon-sibility in money management, and to get them acquainted with the financial products and services that they will inevitably be using in the future. Therefore, in 2020, we launched an offer addressed to parents and children: the “Independence Account”. The launch was accompanied by an educational campaign enti-tled “Mission: Independence", which supported parents in building their children’s financial awareness and helping them to gain independence.

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For children under 13, we prepared the "Little Mr/Ms Independent Account" which can only be used for accumulating savings. For older children, the accounts have (almost) the same functionality as they do for adults. Likewise, depending on age, the offer of cards varies. Children under 13 can receive a traditional "Little Mr/Ms Independent Card” or an innovative "Little Mr/Ms Independent Microcard” which can be placed in a convenient green armband (provided by the bank along with the Microcard). Older children can receive the “Adulthood Card”. We also offer a special deposit of PLN 100 to PLN 5,000 at an interest rate of 0.5 percent (3-month deposit).

Independence, however, is not just about access to banking. We therefore launched “Mission: Independ-ence”. Its aim is to help parents build their children's independence and financial awareness. “Mission: In-dependence” includes educational support on the misjasamdzielnosc.pl platform, where we gradually in-troduce children to the world of finance through entertaining educational games.

To find out more about “Mission: Independence”, visit: https://www.bnpparibas.pl/misjasamodzielnosc/

“Mission: Independence" is a part of the “Mission: Education" program. The initiative encompasses various educational projects addressed to both children and adults. More about the “Mission: Education" program can be found in the Social Responsibility chapter.

Non-Profit Business Account

The Bank offers an account for NGOs (addressed to social organisations and micro non-profit institutions) with basic services included free of charge. By signing a single agreement with the Bank, an organisation receives: a current settlement account in PLN, a deposit account, term deposit accounts, access to mobile and online banking systems, the comprehensive support of a banking adviser and preferential conditions for additional services.

At the end of 2020, the Bank had opened 32,401 Non-Profit Business Accounts. The product is very popu-lar. We have received many awards for its implementation, including Leader of Responsible and Sustainable Development in the SMART CSR Project category, awarded by the “Rzeczpospolita” daily newspaper.

Offer for social economy enterprises

In 2018, BNP Paribas Bank Polska S.A. was the first financial institution in Poland to launch a banking offer addressed specifically to social economy enterprises. Thus, we support entities that, in addition to generat-ing profit, set social and/or environmental goals for themselves and reinvest profit in the implementation of their social mission.

Offer for Ukrainian citizens

BNP Paribas Bank Polska S.A. analyses the needs of various social groups, including foreign citizens. In re-sponse to the growing number of Ukrainian citizens living in Poland, we have taken steps to make our offer more accessible to them.

At BNP Paribas Bank Polska S.A., citizens of Ukraine can easily open the "Account Open to You”. It has been created for Clients who value transparent and simple solutions in banking. Only one document is needed to open the account – a passport or a residence card. The Bank has also created a website and advertising materials in Ukrainian.

Socially responsible investing

In 2020, the offer of our Bank's Brokerage Office included products supporting Socially Responsible invest-ing (SRI):

§ Fidelity Funds Sustainable Water & Waste Fund,

§ BlackRock GF Sustainable Energy,

§ Templeton Global Climate Change Fund,

§ NN (L) Globalny Odpowiedzialnego Inwestowania,

§ Fidelity Funds Sustainable Strategic Bond,

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§ BNP Paribas Sustainable Multi-Asset Balanced,

§ BNP Paribas Sustainable Multi-Asset Growth,

§ BNP Paribas Sustainable Multi-Asset Stability,

§ NN Polski Odpowiedzialnego Inwestowania,

§ BNP Paribas Energy Transition.

The Funds invested directly or indirectly in the bonds or shares of issuers who met the sustainability criteria (whose products and services contribute to solving environmental and social development problems), as well as in derivatives of these assets.

BNP Paribas Bank Polska S.A. took part in the “Reforest'Action” campaign. Its aim was to plant one tree for every EUR 1,000 of socially responsible investments. The initiative was connected with the issue of struc-tured certificates: Eco-Friendly Companies, Eco-Friendly Companies II, Climate Investements, IClimate In-vestments II. In October 2020, thanks to the Bank's Customers, over 14,000 trees were planted in Lipusz (Pomeranian Voivodeship), where a large portion of the forest was destroyed by a storm in 2017.

Investments based on ESG criteria – myImpact

In 2020, in order to face new global challenges, BNP Paribas Wealth Management started a pilot project called “myImpact”. The aim is to bring an innovative approach to our Clients' investments. We want to raise awareness when it comes to sustainable investments, we also wish to spread knowledge about ESG criteria and promote investments which contribute to the implementation of the Sustainable Development Goals under the 2030 Agenda. The "myImpact" questionnaire enabled BNP Paribas Wealth Management Clients to define their values and priorities, thus encouraging them to consciously plan investments and financial decisions which exert a positive impact on the natural and social environment.

In December 2020, in order to build our Clients’ awareness of ESG factors in investment decisions, analysts from the Investment Advisory Team of our Brokerage Office organised an investment webinar for our Cli-ents, entitled: "ESG (environment, social responsibility, corporate governance) - a new trend in investments or an irreversible change ”. The webinar was devoted to the issue of ESG trends and standards. It explained how to make investment decisions based on ESG criteria.

Products and services supporting the energy transformation and combating climate change

For more information on green products and services, see the Environmental Responsibility chapter.

3.3.              Initiatives for responsibility in the financial industry

We actively promote good practices in the Polish financial industry. In addition to internal initiatives and the implementation of relevant policies, we bring issues of social responsibility (which are important to us and our Clients) to the attention of the entire industry. We are among the initiators of a self-regulation project for entities from the financial industry: the Declaration of Responsible Sales. The project was launched by a number of financial institutions, including: BNP Paribas Bank Polska S.A. and ANG Spółdzielnia. The project leader is the Polish Consumer Federation. For more information, see the Transparency and communica-tion with Clients chapter.

“Ethics in Finance”: competition

The idea behind the "Ethics in Finance" competition, organised by the Banking Ethics Committee, is to pro-mote ethical attitudes in the world of finance and to raise awareness of the important role of ethics in building the financial sector. By involving young people who are passionate about the financial sector, we have a chance to streamline and improve the system. The basic requirement for competition essays is to present innovative proposals for changes aimed at protecting and implementing ethical values in the world of finance. The competition is organised in cooperation with the Financial Observatory in Geneva, the or-ganiser of the

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international edition of the competition. In 2020, BNP Paribas Bank Polska S.A. was among the six sponsors of the competition.

"BNP Paribas Bank Polska S.A. has been actively involved in the process of promoting ethical financial management for many years. The best example is its support for the “Ethics in Fi-nance” Competition. In 2020, the Banking Ethics Committee organised the 8th edition of the Competition and the Bank is one of the sponsors. In cooperation with the Bank, we promote responsible approaches to the world of finance and encourage bank employees to reflect on possible ethical dilemmas which they could face. We also stress the importance of the pres-ence of ethical standards in laws and regulations. Shaping the ethical culture in banks is a continuous process. To ensure its success, it is necessary to involve bank employees in the dis-cussion on of ethics within the sector."

Agnieszka Wicha
Secretary of the Banking Ethics Committee at the Polish Bank Association (ZBP)

Cooperation with the Banking Ethics Committee of the Polish Bank Association

The Bank's experts are involved in industry initiatives aimed at raising the level of ethical standards within the sector. They actively participate in the Banking Ethics Committee of the Polish Bank Association. In 2020, as in previous years, Marta Jedlińska, Director of the Compliance Monitoring Department, repre-sented the Bank in the Committee. She was also nominated to be its member for the 2020-2023 term and to serve as the Vice-President of the Presidium. In 2020, the Committee worked on an annual report on the compliance of banks with ethical standards, the organisation of another edition of the "Ethics in Finance" competition, the analysis of complaints within the sector from an ethical perspective and the popularisa-tion of the “Recommendations of the Banking Ethics Committee on Shaping Ethical Culture”. During the new term of office, the Commission will focus on the following aspects: the revision of the Code of Banking Ethics, ethical challenges in the area of digitisation and new technologies, the 2019 report on relations be-tween banks and their stakeholders, and on other initiatives shaping the ethical culture in banks.

“Not-Irresponsible“ Conference

Since 2016, we have been supporting all editions of the “Not-irresponsible" conference, dedicated to responsibility in the financial industry. “Not-irresponsible” is a project which arose from the need to promote financial responsibility. The conference was first proposed by the ANG Group (former ANG Cooperative) and the Not-Irresponsible Foundation (established by ANG) which deals with the topics of business ethics, responsible sales, financial education and support of entrepreneurship among youth. The ANG Group is an organisation of financial intermediation. Its organisational and legal structure is unique on the market, as it is an employee-owned joint-stock company which unites over 900 financial experts from all over Poland. ANG's business partners are major financial institutions in the country. The ANG Group makes every effort to be a socially responsible company and to operate in accordance with the principles of sustainable development.

The subject of the online conference on October 20-29, 2020 was ‘jealousy’ in (not)irresponsible life and business. The participants considered whether jealousy destroys relationships and whether the pandemic will aggravate such processes or become a turning point towards a better world. One of the panels, entitled "Ambition, competition and cooperation”, was attended by the President of the Management Board of BNP Paribas Bank Polska S.A., Przemek Gdański. He explained the importance of cooperation in today's competitive world and the negative effects of unjustified competition. His talk is available at: https://www.youtube.com/watch?v=92waLUl1mW4

“The subject of this year's conference was 'jealousy', one of the deadly sins which we have been using as a point of departure in discussions about important business challenges for several years. Regardless of our religious views, the metaphorical power of the deadly sins allows us to discuss what is good and what is bad in business (especially in the financial in-dustry) from both a philosophical and a practical perspective. BNP Paribas Bank Polska S.A. has been our partner for many years. Our cooperation is close, not only because of the support we receive, but - above all - because of the Bank’s understanding of key values in business. This year, the participation of the President of the Bank, Przemek Gdański, stressed the im-portance of cooperation between leaders in today's world as opposed to individual ambitions.

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Such actions lead to positive changes in the world. It is important that business, while striving for economic success, remember about the need to work towards the common good. The fi-nancial industry, due to its unique social role, has enormous influence. This was clear during the pandemic, when industry leaders, including BNP Paribas Bank Polska S.A., supported Cli-ents, especially entrepreneurs, in this difficult period. None of us are perfect but it is im-portant to focus on self-betterment for our own benefit and for the benefit of others. The Bank and Przemek Gdański are clear examples that it is worth the effort.”

Artur Nowak-Gocławski
Chairman of the Board, ANG Group

3.4.              Support for Customers during the COVID-19 pandemic

As a public trust institution, we make every effort to ensure the continuity of our organisation’s activity and the maximum security of its employees and Customers. This is why, during the COVID-19 pandemic, the Bank has undertaken a variety of measures to improve the functioning of the organisation. We also sup-port the health service and other entities involved in the fight against coronavirus and minimising its nega-tive effects. For more information on the Bank's commitment to combating the effects of the pandemic, see the Social Responsibility chapter.

Work organisation - protecting employees and customers

§   enabling remote working on a mass scale (both for employees of the headquarters and branches), if the nature of the work allows it; Over the course of 2020, since mid-March, a basic and recommended form of work organisation in the Bank was remote working; in organisational units, in which such form of work was not possible for whole teams, work organisation was based on an interchangeable system (split-team), where teams were divided to separate people executing the same duties; at the end of 2020 about 90 percent of the headquarters’ employees worked remotely. On average 85% of the headquarters’ employees worked remotely since the beginning of the pandemic.

§   providing tools for remote work, among others replacement of desktops and terminals in branches with laptops, increase of the Internet limit in company mobile phones

§   equipping the Bank’s branches with protective plexiglass, masks, gloves, disinfectants;

§   In order to ensure the safety of employees and customers, in the period from 18 March to 8 May, the number of people in the branches was reduced, opening hours were shortened, a dedicated service hour for seniors was introduced, and selected branches, including the cashiers, were temporarily excluded from service due to employees' child care responsibilities. As of 11th May this year, standard customer service hours were restored in the branches. At the end of 2020, 7 branches were excluded from service. Since the outbreak of the pandemic, an average of 99% of the branches were accessible to customers with appropriate safety rules;

§   enabling employees to carry out PCR test in ALAB diagnostic laboratories, at the Bank's expense tests - if there is a reasonable suspicion that the employee may have had contact with another employee or customer who was diagnosed with COVID-19 infection;

§   preparation of online educational materials for employees' children to support them in organising children's time;

§   remote recruitment of new employees, virtual welcome training #NiceToSeeYou for new employees;

§   providing telephone psychological support and mental health materials on the Worksmile Wellbeing Platform (formerly Fitqbe);

§   all educational and pro-employee initiatives have been transferred to an online platform, i.e. organisation of CSR Days, Children's Day, training offers, webinars (including remote work organisation, COVID-19 pandemic);

§   a special section in the internal Echonet network dedicated to information about the coronavirus;

§   marketing campaigns of #stayhome - promoting the Bank's personal account, without leaving home.

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Business activity, supporting customers

From the beginning of April 2020, the Bank has provided its customers with the possibility of deferring the repayment of principal and interest or principal only repayments (the so-called "loan moratoria", “non-statutory/private moratoria”) in a convenient remote process. Since 1 October 2020 only statutory moratoria have been available. As at the end of 2020, the number of loans and advances subject to moratoria was 43.3 thousand with the Group’s total gross balance sheet exposure value of PLN 7,251,102 thousand, of which PLN 3,374,952 thousand related to individual customers, PLN 3,095,593 thousand to business entities and PLN 780,557 thousand to leasing and other receivables. Total gross value of loans and advances subject to statutory moratoria was PLN 135,935 thousand. The balance of expired moratoria at the end of 2020 amounted to PLN 6,949,777 thousand, and the balance of active moratoria - PLN 301,325 thousand.

Detailed information on moratoria provided by the Bank and the Group in 2020 were presented in Credit Risk Note in the Stand-alone and Consolidated Financial Statements for the year ended 31 December 2020.

In the middle of January 2021 non-statutory moratoria were reintroduced. Moratorium assistance facilities will be provided to customers until March 31, 2021.

In addition, the Bank actively joined the Polish Development Fund's (PFR’s) fundraising program for the execution of the PFR Financial Shield Program for micro, small and medium-sized enterprises in relation to the effects of the COVID-19 epidemic in Poland as part of the government's anti-crisis shield. Under the program the Bank purchased on 27 April the PFR0324 bonds for PLN 1 billion, on 8 May the PFR0325 bonds for PLN 1 billion, on 25 May the PFR0925 bonds for PLN 1 billion and on 5 June the PFR0627 bonds for PLN 1 billion. Thus, the Bank's total exposure to the Polish Development Fund (PFR) bonds amounted to PLN 4 billion. Additionally, the Bank acquired PLN 6.38 billion of bonds issued by Bank Gospodarstwa Krajowego (BGK) for the COVID-19 Counteraction Fund.

In the GOonline and BiznesPl@net internet banking systems, the Bank enabled entrepreneurs to submit applications under the anti-crisis shield and the financial shield of the Polish Development Fund (PFR). The Bank’s clients, who benefitted from the PFR Financial Shield 1.0 for micro, small and medium-sized enterprises received support in the form of financial subsidies for the total amount of PLN 5.05 billion. The total amount paid out by the PFR to enterprises under Shield 1.0 was PLN 60.5 billion.

In the middle of January, the Bank’s clients were provded with the possibility of benefit from Financial Shield 2.0 through the Bank.

Other activities for customers are described below:

Retail Banking

§ possibility of remote document processing for customers,

§ creating a GOmobile account remotely with video verification technology to confirm customer’s identity,

§ honouring documents submitted by registered mail or courier service as well as by scans,

§ possibility of remote disbursement of a loan tranche,

§ remote cash loan disbursement process - from the moment of application to the agreement signing and disbursement of funds,

§ remote handling of dispositions for cash loans, credit cards and the Allegro limit,

§ encouraging payments with cards, BLIK, Apple Pay and Google Pay,

§ increasing the limit for contactless payments (up to PLN 100) without the need to provide a PIN number for Mastercard and Visa cards,

§ enabling to open a bank account without leaving home by video-verification (using the GOmobile application and a mobile phone equipped with a camera),

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§ a series of webinars, addressed to microentrepreneurs, on how to run and promote small business on the Internet,

§ enabling the arranging of visits to all branches of the Bank via the Booksy booking application, and from November 2020 the possibility of making appointments also through the Bank's website. The new possibility can be used by both individual customers and micro companies, as well as people who are not yet customers of the bank but would like to take advantage of its offer,

§ implementation of the Autenti e-signature service in Wealth Management,

§ facilitating safe parking and travel with the GOmobile application (possibility of remote purchase of city card and parking fee).

§ possibility to deposit cash outside the bank branches in Planet Cash and Euronet cash machines all over the country,

§ under the Bank's Misja Edukacja (Mission: Education) program, the Bank prepared a series of educational webinars, offering tips on how to easily and safely manage your finances without leaving home. The first workshop was held in October 2020.

Corporate Banking

§ Total limit of loan repayment guarantees under the BGK: PLN 12 billion, including: de minimis guarantee scheme (since the beginning of April): PLN 4 billion (of which PLN 2.1 billion available), liquidity guarantees (since the beginning of May): PLN 8 billion (of which PLN 6.8 billion available) and the Agricultural Guarantee Fund guarantees (since the end of July): PLN 0.12 billion (of which PLN 0.06 billion available),

§ customer support within the framework of the anti-crisis shield and the financial shield of the Polish Development Fund (PFR),

§ a personalised approach to the renewal of credit lines for micro-enterprises,

§ possibility of remote submission of applications and orders through the Business Service Centre and Business Service Zone,

§ possibility of remote processing of documents for customers, including honouring documents submitted by registered mail or courier service, as well as scans,

§ possibility of remote disbursement of a loan tranche,

§ organisation of webinars in the field of labour law (including subsidies to employees' salaries) and regarding the financial subsidy program for companies, and in cooperation with the SPCG Law Firm also a series of webinars on legal aspects of other support solutions proposed by the government during the epidemic

§ enabling entrepreneurs to sign documents electronically on the Autenti platform, as well as to conclude a lease agreement in a car dealership by using an e-signature,

§ supporting entrepreneurs by co-financing their advertisements on OLX.

§ declaration of participation in the PFR 2.0 Financial Shield. By providing access to electronic banking systems, the Bank helps clients quickly and securely access financial subsidies offered to companies in nearly 40 industries that have had to curtail or suspend operations in response to the COVID-19 outbreak. Applications for subsidies under the Shield 2.0 will be accepted by the Bank starting January 15, 2021, and from January 18, 2021 the Bank will be accepting applications for the possibility of deferring loan repayments for up to 3 or 6 months.

For more information about the Bank's support for Customers from all segments during the pandemic, visit: https://www.bnpparibas.pl/koronawirus-aktualnosci

3.5.              Partnership initiatives supporting the development of our Customers

Our Customers can rely on us not only in matters directly related to our products and services. We strive to be an active partner for them, to support their development plans and inspire them to set ambitious goals for themselves.

Foreign Trade Program

The Foreign Trade Program (FTP) is a series of conferences which support domestic entrepreneurs in for-eign expansion and are a platform for sharing expert knowledge. During the events, entrepreneurs ex-change experiences and establish cooperation with experts who specialise in specific export markets. All corporate and SME entities are invited: both experienced exporters and those who are at the beginning of their foreign expansion. The initiative is a cooperation between BNP Paribas Bank Polska S.A., Korporacja Ubezpieczeń Kredytów Eksportowych (KUKE), Bisnode Consumer Intelligence Agency and the Polish In-vestment and Trade Agency (PITA). In 2020, representatives of PITA's Foreign Trade Offices in Frankfurt and Shanghai participated in FTP events.

In 2020, the Foreign Trade Program organised online meetings devoted to the German and Asian markets. The autumn events were devoted to the Polish food exports. At the end of the year, a BREXIT conference was organised.

Germany is Poland's main trading partner, and the impact of coronavirus on bilateral economic relations was key to the results of Polish exports in 2020 and to the functioning of domestic entrepreneurs. Our choice of the conference topic was dictated by our willingness to strengthen relations between entrepreneurs and the German community in Poland. For many years, our goal has been to remain the bank of first choice for corporate Clients with German roots and for Polish Clients who own German companies. The conference talk of our Chief Economist, Michał Dybuła, on changes in supply chains, predicting their impact on Clients, and the inflow of new investment capital to Poland was received particularly well.

Two subsequent meetings concerned the Chinese market and posed the question of how the pandemic changed trade in that part of the world. During the meeting, experienced experts described how the pandemic influenced the behaviour of local consumers and how to effectively develop online relations with contractors. Participants discussed how to sell products directly to consumers in China and how to effectively and safely operate on the demanding Chinese market.

The autumn conferences were devoted to Polish food exports. Their goal was to support Polish entrepreneurs’ relations with foreign partners in view of the difficult situation on the market of Polish food exports. The state of Polish food exports was discussed, as was the question of whether Polish entrepreneurs could enter foreign markets during the period when most countries were recovering after the first economic lockdown.

The “BREXIT-related challenges and opportunities for Polish entrepreneurs” conference was devoted to the British market, and it was organised in partnership with the British-Polish Chamber of Commerce. Brexit had huge consequences for Polish entrepreneurs, as Great Britain is among the three leading directions of our exports. During the conference, participants discussed the main effects of Brexit on Polish companies which are already on the British market as well as on those which are planning to enter it. Potential opportunities were also considered. Polish importers and exporters received expert advice on topics such as: taxes, customs, attestation and certification and new regulations regarding the labelling of products.

“The Foreign Trade Program is one of the most interesting initiatives on the market. It increases the potential of the Polish economy by encouraging entrepreneurs to commence and increase exports as well as to invest in foreign markets. The competences of the program’s partners complement each other perfectly and they are eager to share practical knowledge on how to be successful in foreign expansion. In the past years, Polish exports have shown their strength regardless of the global economic situation.

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Therefore, more and more companies are interested in going beyond the domestic market. FTP has become an important signpost for many of them.”

Janusz Władyczak
President of the Management Board, KUKE S.A.

Cooperation with international Customers

BNP Paribas Bank Polska S.A. actively participates in the life of the French, Belgian, German, Italian and Brit-ish communities through participation in chambers of commerce. The Bank also supports the organisation of events addressed to international companies.

“Family Business Initiative”

In 2019, BNP Paribas Bank Polska S.A. joined the Strategic Partners of the Family Business Initiative (IFR). The cooperation aims to promote Polish family businesses, support their education and thus also contrib-ute to the development of the Polish economy. The partnership of both institutions emphasises the role and values of family businesses in Poland.

In 2020, in cooperation with IFR, we organised a webinar on employee safety during the pandemic and on preparing office space for the return of employees. The webinar was hosted by Małgorzata Fibakiewicz - Managing Director for the office class sector and strategic projects at BNP Paribas Real Estate Poland. The meeting was moderated by Tomasz Budziak - Vice President of the IFR Management Board. During the live meeting, participants had the opportunity obtain expert advice.

3.6.             Initiatives supporting the development of the Food & Agro sector

GRI 203-1

The BNP Paribas Group has extensive international experience in providing services within this sector and is the European leader in financing the leasing of agricultural machinery. In Turkey and the USA, banks of the BNP Paribas Group are among the leaders when it comes to financing companies from Food & Agro sector. We are also a leader in financing the Polish Agri-food sector. We support the sustainable development of Clients from this sector through various initiatives.

Agronomist. Natural business.

Agronomist is a comprehensive and innovative portal created in cooperation with farmers and manufac-turers. Entities from all segments of the agri-food value chain are represented on the platform. It is a unique tool for the agri-food industry which provides a knowledge base and a wide set of professional tools for farmers and processing companies. Every day, several thousand registered users visit the website to find information from Poland and the world.

The Agronomist pursues the following long-term goals which are a part the BNP Paribas Group Strategy:

§ It supports the advancement towards responsible and sustainable production through education and by providing innovative tools,

§ It integrates entities from all segments of the agri-food value chain, with particular emphasis on local communities and on the role of women in the sector,

§ It supports digitisation and digital transformation among entities from the agri-food sector.

In 2020, new features and sections were introduced:

§ We launched the "Green Changes" section, which discusses good practices and innovative solutions for the transformation of the agri-food sector towards sustainable production.

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§ We introduced an organic fertiliser production and consumption calculator - a tool for the management of nitrogen fertilisers.

§ The "Agro on Heels" section recognises active businesswomen from rural areas. We post their bios as well as information about local communities and ideas for free-time activities.

§ In addition to daily reports on grain prices and analytical reports devoted to agricultural markets, we have introduced a section with data regarding the prices of agricultural products at local purchasing centres and marketplaces. The data is provided by the Ministry of Agriculture and Rural Development and is of great interest to users.

§ We have also launched the first real estate search engine on the market dedicated exclusively to the agri-food sector.

We have joined the Cool Farm Alliance, an international business and science consortium devoted to developing software which supports sustainable agriculture. Therefore, we will soon be able to give our Clients access to a greenhouse gas emissions calculator.

Agro Academy

In 2020, we organised the 5th edition of the Agro Academy - a free meeting for farmers, during which ex-perts from various fields share their knowledge on current topics related to Polish agriculture. The meetings were devoted to current topics of interest to the industry and changes awaiting Polish agriculture in the near future. Invitations are extended to farmers/entrepreneurs who wish to broaden their knowledge about farm development and apply it in running their own business.

This year’s the motto of the Agro Academy was "Sustainable business". Due to the pandemic, meetings were held online, which made it possible to reach a wider group of Customers. The discussed topics were closely related to the protection of natural resources and counteracting climate change.

The 5th edition of Agro Academy encompassed four meetings:

§ Fruit, an exports hit?

§ Challenges facing the meat industry

§ Water and soil in the context of climate change

§ The future of Common Agricultural Policy (CAP) - innovations and challenges

Find out more at: www.agroakademia.com.pl

Agro Kurier

In 2020, the Bank published the eighth issue of its magazine for farmers. The magazine has a circulation of 30 thousand and copies are available free of charge at Bank branches. In 2020, an electronic version was also published. The magazine contains informative articles, Banks analyst commentary, a calendar of future trade fairs and events for farmers, reports, curiosities and entertainment columns. The Agro Kurier is pub-lished by the Bank, but is edited in cooperation with journalists.

The eighth issue focuses on the EU’s "Green Deal" and the "Farm to Fork" strategy. Other topics discussed in the 2020 issue included:

§ Principles of sustainable farming,

§ Optimisation of nitrogen fertilisation on farms,

§ Organic farms,

§ Outlook for poultry and onion markets.

The Agro Kurier is available at: https://e.issuu.com/embed.html?d=agro_kurier&u=aude_content_marketing

Food & Agro Conference

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The Agro-conference, developed by Bank BNP Paribas, is the first conference addressed to the agri-food sector. It gathers representatives of the Food & Agro sector and gives them the opportunity to discuss key topics from the sector’s perspective. The event, organised since 2006, has become an important annual meeting of the Bank with Clients and institutions from this industry. The Food & Agro Conference extends the formula of the previous Agro-conferences. The event was ad-dressed was attended by an international audience. It is available in English and Polish, and international experts are invited. In 2020, the event took place online and its slogan was: ”Dominant trends. New solu-tions”.

Agro Hub

The Agro Hub of the BNP Paribas Group began operations in April 2018. Its goal is to create a Food & Agro competence center for Banks and Customers from the BNP Paribas Group in Central and Eastern Europe as well as Africa. The Agro Hub of the BNP Paribas Group is a platform for international cooperation, a source of inspiration for our competition, and a responsible stimulator of development, expansion of production and gaining new markets for the agri-food industry. The Agro Hub's activity includes defining a sectoral strategy, proposing comprehensive products and optimal solutions, cooperation with Food & Agro entities in Central and Eastern Europe as well as Africa, and education.

Food & Agro banking development in the SME segment: consultancy for the Central Bank of Egypt

Due to a growing population and as a result of economic reforms, the Egyptian authorities have taken steps to intensify the development of the agricultural and SME sectors. The offer of the BNP Paribas Group Agro Hub Competence Center in Warsaw won an international competition and was therefore chosen to sup-port the Central Bank of Egypt in the development of banking within the agri-food and SME sectors.

Two projects were implemented in 2019 and work on another project continued in 2020. The cooperation was fully remote, due to the COVID-19 pandemic. BNP Pariba’s support for the Client included, i.a.: product development, implementation planning, marketing, financial modelling, sales management and organisa-tion.

Cooperation with Metabolic

BNP Paribas Bank Polska S.A. wishes to contribute to the process of transformation towards sustainable development and strengthen the resilience of the Polish agri-food sector. In cooperation with Metabolic - and advisory company - BNP Paribas has launched an international cooperation project which ensures a comprehensive approach to the problem. The main goal of the project, launched in 2020, is to understand the strategic role of the Polish agri-food sector in terms of key areas of impact and the role of BNP Paribas Bank Polska S.A. in shaping this sector. Individual stages of the project will be devoted to the development of an overall vision of sustainable development which will contribute to strengthening the Polish agri-food sector. Another goal is to develop a detailed plan of how the Bank can support the vision.

Nitrogen Limitation

In 2020, we launched the "Nitrogen limitation" project. Its aim is to contribute to the minimisation of nitro-gen consumption in agriculture and food production.

Excessive nitrogen fertilisation harms the soil, plants and animals, both in the fields and around them. Excess nitrogen which is not absorbed by plants is washed away by rainfall and irretrievably lost. It pollutes surface- and groundwater and poisons the environment, including streams, rivers, and wells. Effects include not only environmental damage, but also financial losses for farms. The key to maintaining standards and achieving efficiency is the precise application of fertilisers.

Work on the "Nitrogen Limitation" project was twofold. The main goal was to draw attention to the problem of nitrogen and optimisation methods. We carried out an educational campaign for consumers (in traditional media and online) with the slogan "Less nitrogen - more benefits”. A twin campaign was addressed to farmers under the slogan "Optimal nitrogen fertilisation benefits everyone". For more information on the educational campaign, see the Environmental Responsibility chapter. Additionally, a nitrogen calculator for animal fertilisers has been placed on the Agronomist platform. The calculator, originally developed by the Agricultural Advisory Center in Brwinów, gained a more user-friendly interface, so that farmers do not need to fill out a complicated spreadsheet.

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Agricultural biogas plants were another area analysed by the Bank's experts. The social and environmental goals of agricultural biogas plants are primarily: the reduction of methane emissions, waste treatment and biogas production. From an economic point of view, the primary goal is the production of electricity, heat/cold and a fertiliser called ‘digestate’. A Report on biogas plants was published as part of the “Nitrogen Limitation” initiative. We predict that in the coming years there will be increased interest in biogas plant investments. The report will provide the Bank’s employees with knowledge on the subject.

Educational and information initiative addressed to Customers of the Food & Agro sector

BNP Paribas Bank Polska S.A. has been financing the Agro market for years. Our experts are constantly analysing the market and monitoring changes. Recently, we have noticed a deterioration in the economic situation of farmers, which results in an increased interest in the loan offer. Financial institutions frequently offer loans which are not well suited to the specific needs of the sector, thus contributing to the growing debt of farmers.

As a banking leader in the Agro sector, we know how to ensure that external financing is as safe as possible and serves the development of agribusiness. In 2020, we continued to educate and inform and developed an adequate product offer.

§ Key rules for safe financing in Agribusiness: https://www.bnpparibas.pl/bezpieczne-finansowanie

§ Financing irrigation in agriculture: https://www.bnpparibas.pl/rolnicy/oferta-specjalna/nawadnianie-oferta-specjalna-dla-rolnikow

§ Photovoltaics - become independent from changing electricity prices: https://www.bnpparibas.pl/rolnicy/oferta-specjalna/oferta-specjalna-fotowoltaika

Competition for the best BA/MA thesis on the Agro sector

BNP Paribas Bank Polska S.A. has been supporting agribusiness for years. We are hopeful about the devel-opment of agricultural science and we believe that innovation is the key to the evolution of sustainable food systems. This is why the Bank organised the 2nd edition of a competition for the best thesis devoted to the agro sector. Both BA and MA thesis can be submitted if the defence took place between 2019 and 2020. The subject of the theses must be related to the development of broadly understood agribusiness, i.e. the progress, innovativeness and development of farms and rural areas; other initiatives of value to the rural society, natural environment, farms and the agri-food industry. The 3 best theses received financial awards, a special award for a thesis devoted to agriculture and organic food was also presented. The total value of the awards was PLN 8 thousand. In 2020, 45 thesis were submitted. The jury, appreciating the high level of submissions, presented 4 awards and 3 distinctions.

To find out more about the Competition, visit: https://www.bnpparibas.pl/agroabsolwent/

Partnerships for sustainable development in the agri-food sector

For many years, BNP Paribas Bank Polska S.A. has been making every effort to support the development of Polish agriculture. Therefore, in addition to offering a wide selection of products, we support Polish farm-ers through various initiatives, both internal and external.

Cool Farm Alliance

In 2020, the Bank joined the international Cool Farm Alliance (CFA). An industry consortium of entities working on the development of sustainable agriculture. We were the first financial institution to join the group of 60 entities (retail chains, food producers and suppliers, non-governmental organisations, scientific units and advisory entities). The main goal of the CFA is the exchange of experiences and international cooperation to develop and promote a comprehensive set of analytical tools for sustainable agriculture. Membership in the CFA will give the Bank's Customers from the Food & Agro sector access to the innovative Cool Farm Tool via the Agronomist banking portal. The tool will be available in the first half of 2021. It is an online calculator for greenhouse gas emissions in agricultural production, farm biodiversity and crop irrigation requirements.

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Coalition for the Development of the BIO Food Market

In 2020, BNP Paribas Bank Polska S.A. joined the Coalition for the Development of the BIO Food Market. It is a program initiated by institutions united around the idea of developing the bio market in Poland and it has the patronage of the Ministry of Agriculture and Rural Development. The goal is to strengthen the po-tential of Polish agriculture and processing, as well as to develop an organic market in Poland. The Coali-tions’ activity focuses on education, creating a system of logistic solutions for suppliers of bio products and systemic support for organic farming in Poland. As part of the cooperation, this year we took part in the Bioexpo Congress.

“ASAP” Polish Association of Sustainable Agriculture

In 2020, we continued our cooperation with the "ASAP" Association. The cooperation includes the popular-isation of the principles of sustainable agriculture. The Association's experts supported the Bank’s initia-tives, such as the educational campaign on nitrogen and Agro Academy meetings.

For more information on the Bank's sustainable development partnerships, please visit: https://www.bnpparibas.pl/csr/partnerstwa

3.7.              Initiatives for innovation

BNP Paribas Bank Polska S.A. supports innovation. In 2020, we expanded the Innovation Ecosystem Strat-egy, which we will continue in 2021. We develop and adapt innovative solutions for the commercialisation of open banking and API. We also focus on finding new solutions for our Customers based on the idea of platformisation and creating innovative products and services which support sustainable development. The new Innovation Ecosystem is in close cooperation with the Council for Sustainable Development and its Chief Sustainability Officer. The goal is to devise new products and services that support sustainable devel-opment, and which have a positive impact on the environment and on Customer habits.

Code of cooperation with startups

In 2018, BNP Paribas Bank Polska S.A. was the first Bank in Poland to publish a Code of Cooperation with Startups – a set of changes facilitating the Bank's cooperation with new companies. Startups which wish to implement their solutions can do it much faster and more efficiently in cooperation with experts from the Bank and under the care of an expert-mentor. The Code simplifies the purchase process for new technolog-ical solutions and proposes new document templates for testing. The Code of Cooperation with Startups develops the Bank’s business relationships with innovative, young companies.

To find out more, visit: https://www.bnpparibas.pl/startupy/kodeks-wspolpracy

Office Hours – meetings with startups

Office Hours are meetings of the Bank’s representatives with startups. Their goal is the search for innova-tive ideas and solutions that can enrich the Bank's offer. Office Hours are a part of the Code of Cooperation with Startups, which simplifies our internal procedures in order to facilitate the acquisition of modern tech-nological solutions. Office Hours provide an opportunity for the Bank to cooperate with an increasing number of startups, build a strong network of contacts and find innovative solutions which can be useful to our Clients.

So far, 17 editions of Office Hours have taken place, and the Bank's experts have analysed over 800 solu-tions, 17 of which have been implemented (e.g. the EVA chatbot in cooperation with SentiOne). Four framework agreements have also been signed.

At the end of 2020, we announced the 18th edition of Office Hours. The bank is looking for a startup, an experienced company or an enterprise product that will help with the safe and simple collection, pro-cessing and use of data on the behaviour of the users of our mobile application. Thus, the Bank will be able to select appropriate and valuable products and services.

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Startup implementation at BNP Paribas Bank Polska S.A. in 2020

Migam

In 2020, we implemented the Migam system to support deaf and hard of hearing Customers in bank branches and on our hotline. In each branch, there are tablets with the Migam application. By clicking on an appropriate icon on the desktop, an advisor is automatically connected with a sign language interpreter. Thus, the Customer can learn about the details of the Bank's offer and ask questions. The service can also be launched on the Client's private phone by scanning a QR code on the door to the branch. If problems arise, a Bank adviser is always available to help. The implementation was supported by the DEAF RESPECT Foundation, which carried out an audit of the Migam technology from the perspective of the needs of people with hearing disabilities. Customers with a hearing disability can also use the Booksy application to arrange a meeting at the Bank: they simply need to choose a sign language meeting (such an option was added to the application) and indicate the branch they want to visit. Such a solution reduces the stress resulting from the need to initiate interactions at the branch. The application has added a ‘hands’ icon next to the photos of branches which are adapted to the needs sign language users. In May 2020, the Bank was the first in the world to introduce the option. From November 2020, appointments for meetings with our advisers can be made not only by phone or in the Booksy app, but also via the Bank's website.

EVA Chatbot

The EVA chatbot is a tool based on the latest technologies. Its purpose is to streamline purchases and internal orders. The EVA Chatbot is the first self-learning program implemented at the bank. It was developed in cooperation with the SentiOne company and launched in the form of a simple and intuitive application. Thanks to the use of artificial intelligence, the program learns quickly and the number of questions asked translates into the quality and speed of answers. The goal is for EVA to become the first choice for employees who have questions regarding internal purchases. With the chatbot, employees can quickly and easily ask for orders, submit appropriate applications and order office supplies. The Bank is considering the introduction of further AI solutions in other areas of its activity.

BNP Paribas Bank Polska S.A. won the 6th edition of the Purchase Leader competition in the ‘technological innovation’ category. The jury recognised the Eva chatbot. The Purchase Leader competition is organised by Polish Supply Management Leaders, an NGO which represents the interests of Polish supply chain, logistics and purchase managers. It promotes good business practices and supports the development of compe-tences and human resources.

“As a Polish AI-development company, we are very happy that more and more companies are using the latest solutions to improve their business processes. BNP Paribas Bank Polska S.A. is certainly one of them - it promotes and implements innovative technologies and has extensive experience in cooperation with startups. As a result, the cooperation between SentiOne and BNP Paribas Bank Polska S.A. on the development of the EVA virtual assistant was smooth and efficient. The goal was to create a tool that will help employees with internal purchases, but will also be pleasant and convenient to use. I am glad that we have succeeded and that the Bank uses state-of-the-art AI in its operations.”

Bartosz Baziński
Founder and CEO, SentiOne

Autenti

In cooperation with Alior Bank and PKO Bank Polski (jointly representing approx. 30% of the Polish banking sector’s assets), we invested in Autenti - a Polish fintech which has developed a platform for electronic signatures and digital document circulation. This joint initiative of multiple banks was the first of its kind in the Central and Eastern European region. The closed round of financing amounted to PLN 17 million. Autenti investors are open to cooperation with the banking community, which could support the creation of a Polish standard for the remote signing of documents and digital document circulation, and thus to the development of environmentally friendly solutions.

As the Bank of Green Changes, we care about the environment in every part of our operations. Therefore, in cooperation with Autenti, we have implemented e-signatures on a self-service platform. The platform can be employed by Bank Customers, but also by employees in internal procedures. The bank can send documents

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electronically and Customers can sign them online, using a smartphone, tablet or computer (an account on the platform is not required).

For details about the implementation of the Autenti e-signature at our bank, see the Environmental Responsibility chapter.

“A bank signs numerous documents every day. They are always created electronically and printing them only complicates and extends processes. We introduced the e-signature for convenience, cost-effectiveness and ecology. For many clients, remote access to services and electronic banking on mobile devices is not just an innovation, but - above all - a convenience.”

Grzegorz Wójcik
Founder and President of the Management Board, Autenti

More information on the implementation of startups at BNP Paribas Bank Polska S.A. can be found at: https://www.bnpparibas.pl/startupy/nasze-wdrozenia

Promoting innovations

The Ecosystem of Positive Impact

BNP Paribas Bank Polska S.A. is a member the Ecosystem of Positive Impact at the Kozminski Business Hub. In 2019, the first "Positive Impact Startups Report” was published and was received with great interest. In 2020, the second edition of the Report was published: "Startups of Positive Impact. Radical Social Innova-tion”. As in the previous year, the Bank supported its publication.

The Report included:

§ 140 descriptions of startups with a positive impact on 10 Polish industries, accompanied by an analysis of trends

§ 16 detailed case studies of the most interesting startups and their social challenges, with a description of the business model and social impact

§ statements of 36 experts

§ the list of 6 winners in the "Scaleup of Positive Impact" category in 2020

§ list of 14 winners in the "Startup of Positive Impact" category in 2020

The report is accompanied by a database of about 400 Polish startups with a positive impact. For more information, visit: http://raportspw.kozminskihub.com/

A startup of positive impact is an innovative form of entrepreneurship. Its aim is to solve significant social challenges. The people behind such endeavours are passionate about acting for the common good, are able to increase the value of their organisation, improve the quality of people's lives and contribute to the protection of the natural environment within their sphere of influence. Startups of positive impact create valuable technological innovations witch contribute to sustainable development. Simultaneously, they display a high level of organisational reliability and guarantee the effectiveness and usefulness of their products or services.

Info Share 2020

BNP Paribas Bank Polska S.A. became a platinum partner of the largest technology conference in Central Europe - Info Share 2020. The Bank shared its experiences of a digital transformation in the times of the pandemic. Its representatives talked about the Bank’s cooperation with the Autenti and Booksy startups which resulted in

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the creation of innovative solutions. In addition, they explained the new stage in the development of mobile applications, including applications supported by Artificial Intelligence.

Fintech studies

We are a partner of fintech postgraduate studies at the Faculty of Management of the University of Warsaw. The 12-month postgraduate studies are addressed to those who want to broaden their knowledge about modern technologies and about the impact of fintechs on the financial sector, as well as to those who are starting their own fintech projects. The lecturers include many respected experts and practitioners of the financial market, including Paulina Skrzypińska, coordinator of the Innovation Lab Team at our Bank. PwC Legal is a content-related partner of the initiative. Other partners include: Alior Bank, IBM, S&P Global Ratings, Forum, FinAi, AsiaKredit, AsiaCollect, Trust and CredoLab. Bank employees can enrol at a special price.

New Business Models and Innovation Department

In 2020, BNP Paribas Bank Polska S.A. established the New Business Models and Innovations Department. The Department’s goal is to create a supportive environment for the development of products, innovations and technical advancements in the Personal Finance Area. Its responsibilities include:

§ identifying new business models,

§ assessment of their potential and possibility of implementation,

§ taking initiative in projects devoted to the development of new products,

§ incubation and development of new products.

The Department also cooperates with the Bank's Transformation and Integration Department and the BNP Paribas Personal Finance central units. The cooperation encompasses new products, promoting PF innovation and related positioning. The Department looks for interesting solutions, tracks market trends and proposes processes and Personal Finance products that are interesting from the Bank's perspective. Key areas of interest:

§ Open banking

§ New products

§ Sharing economy

§ Mobility

§ Circular economy

§ Energy transition

§ Ecology

§ Consumption trends

3.8.             Customer Experience

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Availability of products and services

Increasing the availability of products and services is one of the twelve commitments set out in the CSR Strategy of the Bank. We therefore strive to adapt our products and services to the needs of the disabled, the elderly and groups at risk of exclusion.

GRI 103-1, 103-2, 103-3

As a responsible financial institution, we value diversity. We employ people with disabilities and invite them to cooperate with our Bank as Clients.

Our goal is to provide easy and equal access to banking for all Clients and to facilitate the work of employees with disabilities. We therefore introduce various adjustments to our product offer and to our branches. The goal is to make them fully accessible to people with disabilities, the elderly, representatives of vulnerable groups and those at risk of exclusion.

Introduced improvements:

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§ The services of a Polish sign language interpreter - available free of charge in every branch and on the hotline.

§ Access to document templates in the form of audio recordings, enlarged printouts and Braille translations.

§ Each branch is equipped with a magnifying glass for the visually impaired and a frame which facilitates signing.

§ ATMs adapted to the needs of the visually impaired.

§ Branches are architecturally adapted to the needs of people with mobility issues (51 verified with a "Facility without barriers" certificate).

§ The Bank’s Local Ambassadors provide remote financial education to the elderly at Third Age Universities (in cooperation with the National Institute of Silver Economy).

We meet the requirements of the Act of July 19, 2019 on ensuring accessibility for people with special needs.

Network of branches and business centres

As at December 31, 2020, the Bank had 459 retail and business banking branches (including 17 partner branches). The branch network is supported by 15 Wealth Management Centres. Banking products and services dedicated to corporate Customers were sold by 50 SME Business Centres, operating within 8 SME Banking Regional Branches. In the largest Polish centres of industry and services, the Bank has 25 Corporate Business Centres operating within 9 Regional Corporate Business Centres. At the end of De-cember 2020, the Bank had a network of 462 cash deposit machines (supporting cash deposits, depos-its and withdrawals with proximity cards and BLIK codes, cash withdrawals with Google Pay and Apple Pay) and 140 ATMs (only for standard withdrawals and transactions supported by the VISA and Mas-terCard systems).

Alternative distribution channels

In 2020, we continued the transformation of the Bank’s branches which began in 2017. The aims were to adapt the facilities to the needs of Customers as well as to continue the digital transformation of our prod-ucts, services and processes. As a result, 22 branches of the Bank were digitised and redesigned in 2020. Since the beginning of the transformation, 161 branches have been modernised. In total, as at December 31, 2020, the Bank had 179 branches which adhere to the new standards (including 161 branches after transformation and 18 branches which did not need redesigning). In 122 branches (including 2 partner branches), cash services were provided only through self-service devices.

The redesigned branches feature a number of solutions which improve service, including:

§ modern recyclers which allow contactless deposits and withdrawals as well as BLIK operations and thus provide 24-hour access to cash transactions;

§ instant issuing allows Customers to receive a card for their account right away in selected branches;

§ free WiFi allows Customers to use the GOmobile banking application;

§ tablets are provided at branches, allowing Customers to log-in to the GOonline electronic banking system.

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Selected digitised branches have a comfortable area for meetings with a consultant, as well as coworking zones, where you can work undisturbed and have access to a printer. Our Clients can also use conference rooms for business meetings.

Branches are child-friendly, which allows adults to use the Bank's services comfortably. The branches are an open, modern and ecological space. Their main motif is a tree.

E-banking and mobile banking

In 2020 the Bank continued an intensive development of remote channels, implementing a number of functionalities to strengthen its competitive position, reduce service costs and improve the quality of customer service while ensuring the highest security standards.

In addition, due to the coronavirus pandemic, the Bank's focus in the Internet banking system was also on providing customer support in remote access to banking services and products.

BNP Paribas Bank Polska has consistently introduced, into its e-banking offer, new self-service processes, which allow customers to fulfill their most important needs on a daily basis without the need to visit a branch - starting from the application for additional products, through after-sales service - from any device and at a time convenient for them.

In October 2020. Bank won second place in the Remote Banking category in the "Newsweek's Friendly Bank" ranking.

Facilities for the deaf and hearing impaired – we use sign language

In November 2019, to provide people with special needs with full access to our services, we introduced templates of our documents in the form of sign language videos. In 2020, we introduced the services of online sign language interpreters via the “Migam” application. Hearing impaired Customers can connect to an interpreter using tablets which are available in branches. They can also access the application on their own phone: through a web browser or by scanning a QR code on the branch door. In addition, to further facilitate services, sign language appointments can be arranged through the “Booksy” application. More information about Booksy is available at: https://www.bnpparibas.pl/kontakt/booksy. From November 2020, meetings with the Bank’s advisers can also be booked via the Bank’s website (in addition to the possibility of arranging them by phone or in the Booksy app).

Customers can use the services of a sign language interpreter on our Helpline and can order sign language videos with the content of our documents. To connect to a “Migam” interpreter on our Helpline, visit: https://tlumacz.migam.org/bnpparibas

Facilities for the blind and visually impaired

In order to ensure the full access to our services for persons with visual disabilities, in January 2019 we introduced audio templates of our documents, enlarged printouts and Braille translations.

Each branch is equipped with a magnifying glass for the visually impaired and a frame that facilitates sign-ing. ATMs adapted to the needs of the visually impaired were also introduced. They are equipped with headphone sockets and a numeric keypad with Braille markings. At branches, transparent glass elements are covered with information and patterns, which ensures high visibility for the visually impaired.

Branches accessible to customers with impaired mobility

We adapt branches to the needs of Customers and employees with reduced mobility. The architectural solutions introduced in branches address the needs of people in wheelchairs and those with mobility issues, as well as the needs of the blind, visually impaired and deaf. The facilities are also adapted to the needs of the elderly and parents with small children.

In each branch with the "Facility without barriers" certificate, a wheelchair can access all the functions of the facility. Each type of service point has at least one version fully adapted to the needs of people with disabilities.

All doors and partitions in the branches meet the width requirements for people with reduced mobility.

Branches certified as “Facility without barriers” by the Foundation Integracja

At the end of 2020, 51 branches of the Bank had the "Facility without barriers” certificates, which attest that they are accessible to people with disabilities. More branches are in the process of audit and certification. The

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certificate is awarded by the Integration Foundation to institutions that have implemented facilities for people in wheelchairs, with mobility issues, the blind, the visually impaired, the deaf. The institutions also need to be adapted to the needs of the elderly and parents/guardians of young children. A person moving in a wheelchair needs to be able to access all the services available to other Customers. Further solutions introduced in our branches include, i.a. the high visibility of transparent elements for the visually impaired people, width of doors and partitions adapted to the needs of people with mobility issues, the accessibility of ATMs.

Senior-friendly branches

GRI 102-12, 102-13, 203-1

We are a partner of the National Institute of Silver Economy, and we were the first financial institution in Poland to receive the OK SENIOR® certificate of quality. It attests that senior (60+) Clients are served with the following principles in mind:

§ SAFE - facilities meet the highest safety standards,

§ INTELLIGIBLE - advisers verify whether the Client can hear them well, use accessible language, offer pen and paper for note-taking, offer large-font printed materials,

§ ACCESSIBLE - facilities are easily accessible,

§ meeting the NEEDS - we respond to the real needs of seniors and protect them against abuse.

The certificate attests that seniors (60+) are an important group of Customers and the Bank is constantly adapting its services to their needs. The certificates are issued by OK SENIOR Polska sp.z o.o. sp. k. in partnership with the National Institute of Silver Economy. Prior to certification, the Bank’s branches were visited by Senior-citizen Auditors who verified that the standards of Customer service adhere to the guidelines of the OK SENIOR^® Certification Program. The main areas of the audit are infrastructure, branch design, Customer service, queue management and the bank's internal quality standards.

Accessibility through all channels

We regularly analyse all access channels to our offer in terms of their functionality and user-friendliness. In 2017, we adapted the bank's website to some of the WCAG 2.0. accessibility standards for people with disabilities. In 2020, we commissioned an accessibility audit of our website www.bnpparibas.pl.

In December 2019, we introduced a solution that allows blind people to access the content on our social media. Images published on our Facebook page are accompanied by special descriptions, so that they are accessible to the visually impaired.

In addition to traditional channels, the Bank has significantly developed its remote channels. Customers can now access our new online (GOonline) and mobile (GOmobile) banking platforms, which are constantly being improved. In 2020, we launched a new version of GOonline Biznes, which was designed with convenience and self-service in mind. Users can easily authorise and monitor their activities. The employed technological solutions are in line with the latest market trends. They allow users to introduce changes in a continuous mode, without the so-called “technical downtime”. During periods of higher traffic (holidays, sales, etc.), we can increase the computing power in order to meet Customer requirements.

Partnerships for accessibility

Accessibility Plus

In 2018, we joined the Partnership for Accessibility program developed by the Ministry of Investment and Economic Development, as part of the Accessibility Plus initiative. The signatories of the document commit to the idea of accessibility and equal treatment, and aim to level opportunities and access for all citizens to the physical, social, and cultural environment, as well as to recreation, leisure, sports, healthcare, education, work, transport,

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information and communication. Our goal is to adapt our products and services to the needs of people with disabilities and special needs, as well as to the needs of the elderly and those at risk of exclusion.

Integration Foundation

The Integration Foundation is one of the largest organisations in Poland which actively support people with disabilities. For 25 years, it has been educating, raising awareness, helping people with disabilities to find employment, and supporting the elimination of social, architectural and digital barriers.

The Bank is a long-term partner of the Foundation. The Foundation supports the Bank with regard to increasing the availability and user-friendliness of its services. As part of the cooperation, the Bank transforms, audits and certifies branches to ensure their accessibility for people with disabilities. Digital channels are also adapted to current standards. We have been supporting the Integration Foundation for many years. We are in constant cooperation and we are a sponsor of the annual Grand Gala of Integration, the largest event for people with disabilities in Poland. The BNP Paribas Foundation is also a partner of the “Finance and Insurance” section on the nie-pełnosprawni.pl portal created by the Integration Foundation.

In 2020, BNP Paribas Bank Polska S.A. received the Friend of Integration Medal for its consistent policy of improving accessibility to all Customers.

“We are glad that more and more companies think about the disabled at the investment planning stage and adapt their facilities to serve the needs of this group of Customers. Our mindset is the key: our sensitivity and openness to others, our willingness to prevent exclusion. We found this approach at BNP Paribas Bank Polska S.A. I am glad that the Integration Foundation can support the Bank in its consistent pursuit of full accessibility of its services and branches.”

Ewa Pawłowska
President of the Management Board, Integration Foundation

Accessible ATM

We are a partner of the Accessible ATM project, whose aim is to counteract social and digital exclusion by eliminating restrictions and increasing access to financial services. The Accessible ATM project includes a freely accessible online platform with a database of ATMs adapted to the needs of people with various dis-abilities. The information related to ATMs - their location and types of adaptations - enables people with disabilities to be active and independent. The project is implemented by the Polish Bank Association, in co-operation with Polish banks and the “Widzialni” Foundation, with the support and under the patronage of the National Bank of Poland and the Ministry of Entrepreneurship and Technology.

The National Institute of Silver Economy

We are a partner of the National Institute of Silver Economy. Representatives of the Institute conduct men-toring workshops for the Bank’s employees on how to effectively support seniors. As part of the partner-ship, the Bank's Local Ambassadors gave out over 10,000 Senior Passports. The document allows seniors to list emergency contacts and provide emergency medical information. It also contains a list of age-based public benefits and reliefs, and a list of useful contacts. The passport is part of the “Senior Means Respect “campaign.

Our Bank was the first financial institution on the Polish market to receive the OK SENIOR^® quality certifi-cate for adapting the Bank's branches to the needs of people over 60.

Migam

Migam.org was established in 2011 and its main focus is sign language, Deaf Clients and improving com-munication between Deaf Clients and Customer-service employees. The first endeavour of the company was to develop a free dictionary for learning sign language. The dic-tionary is accessible to this day. Currently, Migam.org offers sign language training, publishes sign language textbooks, translates texts and videos into sign language, and provides the services of an online sign lan-guage interpreter, the “Migam Translator”. Migam’s cooperation with the Bank is focused on increasing the availability and user-friendliness of ser-vices for people with a hearing disability.

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DEAF RESPECT

DEAF RESPECT is a foundation which cooperates with companies and institutions to increase their accessibility to the deaf community, thus supporting the social and professional activity of the hearing impaired. The Foundation undertakes initiatives which raise the awareness of employees and Customers regarding the linguistic and cultural minority of the Deaf. In 2020, the DEAF RESPECT Foundation supported the introduction sign language interpreter services at The Bank, i.a. by carrying out an audit of the quality of Migam services addressed to deaf Customers.

"We are glad that we can cooperate with BNP Paribas Bank Polska S.A. on introducing a free sign language interpreter service in all branches of the Bank, thus ensuring the best quality of service to deaf Customers. The Bank's comprehensive approach to services for the deaf - in the spirit of partnership and respect for their cultural and linguistic background - will certainly contribute to the social and economic inclusion of this group. We hope that other companies from various industries will follow suit.”

Agnieszka Osytek
Founder of the DEAF RESPECT Foundation

3.9.             Transparency and dialogue with Clients

GRI 102-12, 205-1, 205-2

Simple Communication

Our goal is the farthest possible simplification of language which we use to communicate with our Clients in Bank documents, letters, promotional materials, etc. Simple language should allow everyone to understand specialised communication, e.g. e-mails with details about products, and even complicated legal provisions, such as the Bank’s regulations. The rules of simple language ensure that Customers - who are not banking specialists - will not have any doubts about the meaning of documents, even after reading them for the first time. Therefore, in 2019, we started working on a simplified language for use in communication with Clients. We have established cooperation with linguists from the Simple Polish Workshop at the University of Wroclaw. The project began with training sessions for employees who are responsible for communication with Clients. In 2019, we held 5 workshops during which we trained almost 100 employees from the complaint, marketing and Customer Experience departments. In 2020, we continued initiatives aimed at simplifying the language of communication with Clients. We conducted further training and provided training materials (including e-learning) to employees. We also prepared an internal textbook with simple-language rules, guidelines for preparing documents (such as regulations, contracts, etc.) and sample letters. All employees of the Bank follow the newly developed Simple Language Principles.

Declaration of Responsible Sales

We actively promote good practices in the Polish financial industry. This applies to our internal policy, but we also aim to focus the attention of the entire financial industry on issues of social responsibility which are important to us and our Clients. We are among the founders of a self-regulation project for financial entities - the Declaration of Responsible Sales - which was launched in 2019. The co-founders of the projects are financial institutions, including BNP Paribas Bank Polska S.A., ANG Spółdzielnia, and its host is the Polish Consumer Federation. The project was created to improve and promote ethical standards in Customer relations, to educate business and consumers, to build trust in the financial industry and counteract unfair practices.

In 2020, we successfully passed an audit carried out by the KPMG company. Its aim was to verify the Bank’s compliance with standards set by the Declaration. An important criterion for auditors was whether an organisation follows internal regulations which specify the principles and methods for verifying product simplicity and ease of use. The number of new products introduced in the last 12 months was also assessed. The signatories of the Declaration also needed to demonstrate that they had developed guidelines for simple communication with Clients and that they regularly analyse external documents in terms of clarity and simplicity.

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Customer Experience

GRI 102-42, 102-43, 102-44

"We listen, we understand, we act" – this is the motto for our operations aimed at developing a Customer experience management strategy. Our goal is to offer simple and fast services. We provide our Customers with professional, friendly service which is open to their needs.

In 2020, due to the pandemic, we had to adapt quickly to a changing environment and the new needs of our Clients. We developed new virtual services and improved existing ones. All to ensure the safety of our Customers and employees.

Listening to our Clients

§ We analyse Customer opinions expressed in internal and external surveys.

§ We conduct analyses of operational data and observe market trends (not only in the field of banking), which gives us the opportunity for continuous development.

Our Customer opinion analyses are supported by the entire BNP Paribas Group as part of the international Advocacy Program. The latter ensures that the customer-oriented profile of our organisation is maintained, through both Client- and employee-oriented initiatives. In addition, we ask for the opinions of our Customers every day, through the #KLIENT platform. It provides employees with easy access to research results. Currently, over 10,000 employees (of the Bank and partner companies) use the tool, and the data is updated on a regular basis with the results of research surveys. The platform is not only a source of knowledge, we also use it to conduct dialogue. We contact Clients via the platform after the survey and we clarify any issues. In 2020, we opened the platform to more Customer segments (e.g. corporate).

2020 NPS Satisfaction Survey

For several years, we have been carrying out the Net Promoter Score Survey. It gives us feedback as to Customers’ willingness to recommend our Bank and services to their relatives. Additionally, the survey contains a space for Customers’ comments and recommendations regarding our services and product offer. The NPS survey is part of the Customer Advocacy program which helps us to promote Customer opinions in the organisation. We involve employees in pro-Customer campaigns, teach them about NPS and work together to improve Customer satisfaction.

In 2020, we launched a new survey. Clients were asked about specific processes and emotions. Currently, NPS research is carried out at various intervals in over 10 of the Bank’s departments. We conduct c. 7,000 surveys per month, thus acquiring Customer opinions about our products and services. We also conduct the “Secretive Customer” surveys devoted the quality of service in individual service channels. We analyse Customer opinions in retail banking (including Premium and Wealth Management), in the segment of microenterprises, SMEs and in corporate banking.

The Customer Excellence Board (CEB) provides an opportunity to regularly discuss the needs and problems of our Clients at all points of contact with the bank. The meetings are attended by representatives of selected departments, who represent sales channels, products, the communication department as well as compliance monitoring, risk, operations, and IT.

The Customer Room is another form of client-oriented dialogue within our organisation. At the meetings, we work on the most complex issues, in accordance with the Design Thinking methodology. During the workshops, we discuss the stories of our clients – positive and negative – striving to create the best experience. Participants represent all the structures which are part of a given process. A verity of specialists provide multiple perspectives on a given issue and gradually develop optimal solutions: both long-term and "quick wins”.

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Responding to Customer needs

In the age of the pandemic, Customers were increasingly forced to move to the digital world. Therefore, in 2020, we were constantly working on new solutions to develop self-service functionality in our mobile and internet banking as well as our website. We introduced, i.a. a feature for booking appointments at branches via the Booksy application and the Bank's website. In cooperation with Autenti, we have successively implemented paperless processes. Our Customers can open accounts and sign contracts electronically, both at branches and via our website or the GOmobile application. We have also introduced a number of new GOmobile features, including: ‘Click2call' which allows verified-Customer connections with the Bank, and a feature which allows Customers to view and generate personal account statements.

Customer Days

In 2020, BNP Paribas Bank Polska S.A. organised "Customer Days". It is a celebration of Customers, but also of our employees who create unique experiences. During the event, employees had the opportunity to learn about developing lasting relationships with Clients, about focusing on the emotions, experiences and needs of Clients, and about acting in the best interest of Customers, in accordance with the principles of Compliance.

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CUSTOMER DAYS IN NUMBERS:

3
days of meetings

11
lectures

26
speakers

c.a. 2,300
participants

over 10
hours of recordings of inspiring lectures

Customer Ombudsman

In addition to standard complaint structures, Bank BNP Paribas has a Customer Ombudsman. The function is within the area of responsibility of the Director of the Customer Experience Management. It creates an internal possibility of appeal for Customers who have doubts about the decision regarding their complaint. The Customer Ombudsman also considers matters reported to him directly by the Bank's Management Board, the Supervisory Board, the Bank’s Spokesperson, as well as important matters raised in social media. The Customer Ombudsman ensures Customer satisfaction and open dialogue. He represents clients' interests in dealing with the Bank and acts as an intermediary in the resolution of problems.

§ 4,600 cases were revised by the Customer Ombudsman in 2020. 669 were addressed directly to members of the Bank's Management Board.

§ 88% of complaints were submitted by individual Clients and 12% by companies.

Complaint management

The complaint process is based on two pillars: qualitative and operational. In 2020, a new unit of the Customer Experience Transformation and Development Department was established for the processing of complaints: the Complaint Processing Management Office. The goal is to increase efficiency and effectively gather valuable information from all contact channels. Thus, we are able to improve our understanding of Customer needs. We intend to use the obtained information to improve the products and services provid-ed to Clients in line with their

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expectations and suggestions. Another goal is to reduce the number of Cus-tomers’ complaints and objections. To increase the number of complaints which are resolved in the Cus-tomers’ first contact with the Bank, we decided to increase the competences of our front units with regard to simple complaints which do not require in-depth analysis. Thus, we build positive Customer experiences and relationships with the Bank.

Handling and processing complaints

The standards for handling and responding to complaints are set out in the Complaints Policy.

Customers can submit complaints in a way which is most convenient to them:

§ via the online banking system (chat),

§ via a form on the website,

§ via telephone

§ in writing,

§ in person – at any Bank branch.

In 2020, there was a significant change in the organisation of the complaint handling process. The processes and resources related to complaint analysis were taken over by the Customer Experience Transformation and Development Department. The goal was to increase the quality of complaint-handling. The units dedicated to the process were combined, and organisational changes in the complaint management process were introduced.

Teams dedicated to specific types of complaints were created:

§ Regulator complaints

§ Transaction complaints

§ Product complaints

The division of complaints by type and the assignment of dedicated resources to each type contributed to improving the quality of services. Closer cooperation was also established with front channel units as well as with owners of products and services. It was achieved through regular meetings, joint activities and progress monitoring.

The analysis of the process led to the conclusion that the competences of first-line contact with Customers should include the handling of simple complaints, such as fees and commissions. This was achieved with the aid of “Commercial Gesture”, a tool which refunds fees automatically and swiftly in justified cases. The solution is conducive to building relationships and educating Customers. It also improves the Bank's image.

In 2020, the Bank recorded 64 thousand complaints regarding our operations, 3.5 thousand complaints related to the COVID-19 pandemic, 11 thousand complaints related to the CJEU ruling and 50 thousand complaints related to errors after data migration.

In 2020, Customers complained primarily about issues related to changes in fees and commissions, as well as to changes in the product offer after the operational merger of November 2019. Due to the ruling of the CJEU, the bank also recorded an increase in complaints related to loans (mainly cash), as well as complaints after the interpretation of the ruling changed and banks were obliged to adjust their operations in a very short time.

2020 was also the first year of the pandemic which had a significant impact on complaints related to credit holidays and statutory holidays. Some of the complaints were related to the Bank’s role in corporate Cli-ents’ applications for subsidies of the Polish Development Fund (Anti-Crisis Shield).

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KEY FIGURES:

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48%
number of complaints reduced by 48%

8%
increase in the operational ratio of First Contact Resolution (cases resolved during a Customer’s first contact with the Bank)

19%
increase in the use of frontal competences by 19%

11 points
NPS result improved by 11 points, which means that our Clients are increasingly will-ing to recommend our Bank to their family and friends

Customer Lab

In 2020, the Bank established the Customer Lab, an internal „Customer information centre”. The Lab employs modern technologies as well as expertise in the fields of psychology, sociology and statistics to constantly analyse whether the Bank’s offer and communication processes meet the expectations of recipients.

The Lab’s specialised team supports all of the Bank’s organisational units in the field of research. The Lab’s modern space is located at the Bank's headquarters (ul. Grzybowska in Warsaw).

Research at Customer Lab is conducted on a continuous basis. The scope of research covers all areas of Customers’ contacts with the Bank. The Lab focuses not only on the end result (a product or service), but also on UX/GUI tests and the refinement of the planned and present functionalities of e-banking, mobile application and the Bank's website. Constant monitoring of Customer expectations facilitates the design of products and services, and in-depth surveys adapt communication processes to Customer expectations.

The work of the Customer Lab is coordinated by the Customer Relations Development Department. It supports all departments and divisions of the Bank which require knowledge about the nature and opinions of Customers in their daily operations.

Your Observations

Every one of us is a Customer and everyone has Customers of their own (external or internal). Everyone also has their own observations. To encourage employees to share their insights, we created the Your Observations project. It is an innovative initiative addressed to employees who wish to improve Customer service. We encouraged employees to provide their Customer service observations via an internet platform. We asked what is important to them, what they expect, etc. Employees can enter any number of 2-3 sentence observations. The employees of our branches are especially active in sharing their observations about the Customer-Bank relationship from their perspective.

Protection of Customer privacy

We value security and trust in all banking processes. We use the latest technological solutions to protect the sensitive data of our Clients.

Safety at BNP Paribas Bank Polska S.A.:

§ Safe user – we inform our Clients about the basic security requirements for the protection of their identity.

§ Safe Bank – we care about the security of the Bank's systems and of applications used by our Clients. At the same time, we provide (i.a. through audits) the highest level of online banking security. Electronic banking is regularly audited by external, independent organisations.

§ Secure card – the Bank makes every effort to secure Customers' payment cards and operations. We promote knowledge about safe behaviours which minimise the risk of unauthorised card transactions.

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§ Secure phone – we show Clients how to ensure the security of mobile devices.

For more information, visit: https://www.bnpparibas.pl/bezpieczenstwo

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4.    Responsibility
in the workplace

Tekst tabela

Tekst tabela

Tekst tabela

Tekst tabela

Tekst tabela

4.1.        Workplace Management

GRI 103-1,103-2, 103-3

At BNP Paribas Bank Polska S.A. we understand the responsibility in the workplace as creating an environment that supports professional development and involvement of employees. We are convinced that responsible management of the employee area is a key to business success.

Responsibility in the workplace commitments of BNP Paribas Bank Polska S.A. - one of the four pillars of a CSR and Sustainable Development Strategy

§ Promotion of diversity and inclusion in workplace

§ Creating a good place to work and responsible employment management

§ Being a learning company supporting dynamic professional path.

Key Sustainable Development Goals for BNP Paribas Bank Polska S.A. from the perspective of creating a responsible and friendly workplace, are the activities aimed at ensuring decent work and inspiring the market to apply the best business practices, create conditions for good health and quality of life and promote equality.

margines

The Bank’s Sustainable Development Goals in the field of economic responsibility

Goal 3.

Good health and well-being

Goal 5.
Gender equality

Goal 8.

Decent work and economic growth

Goal 10.

Reduced inequality

Goal 17.

Partnerships for the Goals

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KEY FIGURES:

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9,210
people employed at BNP Paribas Bank Polska S.A.

9,455
people employed in BNP Paribas Bank Polska S.A. Capital Group

8,845
full time jobs at BNP Paribas Bank Polska S.A.

9,019
full-time jobs in the BNP Paribas Bank Polska S.A. Capital Group

62%
women in managerial positions at BNP Paribas Bank Polska S.A.

61%
women in managerial positions in the BNP Paribas Bank Polska S.A. Capital Group

39.2

Average age of BNP Paribas Bank Polska S.A. employees

39.17

the longest employment period at BNP Paribas Bank Polska S.A.

18.3

average number of training hours per one employee of the BNP Paribas Bank Polska S.A. Capital Group

Our ambition is to build an innovative workplace that will attract the best candidates from the labor market. Only committed and effective employees, managed by exceptional leaders and acting in the Agile spirit, will allow us to ensure market success in these difficult times. We want to achieve this through the continuous development of leadership competencies and the competencies of the future among our employees, allowing for their constant development in the present digital and changing times. The high standard of leadership and qualified employees focused around the key competencies and values of the organization are the basis for creation of a unique workplace. All this, supported by effective and digitized HR processes, attractive employee offer and development opportunities, gives a full picture of the organization we are building through activities in the area of human resources management.

HR Transformation

As a part of the HR Transformation, we carry out projects that support digitization and build transparent and consistent HR processes. Our goal is to streamline and simplify processes, build the best workplace and be a reliable partner for all bank units.

margines

We achieve this through the following activities:

§ Implementation of the competency model and competency profiles.

§ Optimization of the recruitment process (e.g. thanks to the ServiceNow tool).

§ Implementation of the Taleo system.

§ Ongoing updates of HR Standards, responding to the current challenges of the employment market.

§ Digitization of HR processes (implementation of the TETA ME application and electronic personal files.

§ Continuous improvement of HR Processes.

§ Developing a development offer in response to business challenges.

§ Promoting Employee Value Proposition (EVP) and activities in the area of Employer Branding.

§ Development of Leadership (including through the "Well-Leading" development program).

§ Talent Development (amongst others through the "Leaders of the Future" program).

§ Supporting and encouraging knowledge sharing in the organization.

§ Improving the process of boarding new employees.

§ Building the position of HR Business Partners as strategic business partners.

§ Transition to virtual learning and transfer of all development activities to the online sphere.

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Petrus - new headquarters in Warsaw

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Our employees are our primary asset. We take care of their everyday work comfort and well-being. In 2020, we started the move of the main headquarters to the newly built office space in the modern LIXA office building complex. "Petrus" is a building located in Warsaw's Wola district, next to the key communication junction for the capital - the Rondo Daszyński metro station.

The idea behind the move to a new office, implemented at the turn of 2020 and 2021, is to change the habits and style of work, which fits in with the concept of BNP Paribas as a bank of a changing world that not only keeps up with changes, but also creates them. The changes in the way of working and the move show the bank's modern approach to changing market trends and the needs of employees in terms of comfort and the way they work. In the new "Petrus" office building, the employee will have access to quiet, creative and team zones within one space. The building has been adapted to the needs of people with disabilities.

Impact of the pandemic on the management of the employment area

The first quarter of 2020 surprised everyone. The development of the COVID-19 pandemic caused by the SARS-CoV-2 virus has created particular challenges for the financial industry. Responsibility at this difficult time meant for us not only providing the Clients with constant and secure access to finances and supporting the Clients of all segments in a new reality, often generating financial problems. A pandemic is also a time of special concern for the safety and comfort of employees. During this special time, we tried our best to take care of our employees and their loved ones. We focused on remodelling HR processes into digital ones in the widest possible range. This involved modifying internal procedures for the organisation of work – especially in the context of the dimension and rules of remote work. The pandemic showed that thanks to a flexible and agile approach to the situation and the adaptation of modern ICT solutions already available in the bank, it was possible to switch the working model to hybrid in a very short time.

For the sake of the health and safety of employees, we have enabled remote work – or – where it was necessary to work from the office to ensure the continuity of the organization – to work in a rotation system, in so-called split-teams. In accordance with the procedures established by the internal committees and the guidelines of the BNP Paribas Group, all trainings, workshops, meetings were held in online form.

For those working in bank branches, we have reduced working hours. We have equipped all facilities with the necessary protective materials, such as disinfectant fluids and masks.

We encouraged our clients to limit their visits to branches, enabling them to use other service channels – ATMs and CDMs, online and mobile banking. In addition, for the sake of employees who are in the high-risk group (those over 60 years of age or pregnant women), we recommended remote work, or if it is not possible to do it, staying at home while retaining the right to remuneration.

The PulsCheck survey of employees conducted in 2020 confirmed that they were evaluating the bank's activities well during the pandemic. You can read more about this in the Employee Satisfaction subsection.

KEY FIGURES:

44%
each month, an average of 44% employees worked remotely for an average of 23% of working days

81%
of employees have estimated that BNP Paribas Bank Polska S.A. organizes work in a way that minimizes the risk of infection

85%
of employees have indicated that they could count on the support of their supervisor and 70% have declared that they felt the support of other units

70%
of people replied that the bank provides the necessary hygiene and disinfection measures

Regulations

The main documents regulating employee issues at BNP Paribas Bank Polska S.A. are the Workplace Rules and Regulations and the Corporate Collective Labor Agreement. The Department of Employee Relations, Compliance and HR Risk is responsible for the employee relations area in the bank. Each of the directors of individual organizational units in the area of Human Resource Management is responsible for the implementation of the employment policy at the bank, and additionally, the whole is coordinated by the PMO team of HR projects.

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We consciously and actively manage employee relationships, compliance and the process of minimizing risks within the employee area.

Our employee relations management policy respects the laws, values of the BNP Paribas Group, as well as generally accepted principles of social coexistence. All employees are subject to the BNP Paribas Group Code of Conduct and the bank's internal regulations. In our business we are guided by high ethical standards and values, which in particular include: honesty, openness, mutual trust, responsibility, professionalism and respect. This applies to any activity of the bank or its subsidiaries, regardless of their nature. We require compliance with ethical standards from all persons representing the bank or cooperating with it.

The policies that govern the area of employment apply to all employees of the bank. These are:

§ Diversity management policy of BNP Paribas Bank Polska S.A.

§ Anti-mobbing policy of BNP Paribas Bank Polska S.A.

§ Policy for reporting violations of the law and the ethical standards procedures in force at BNP Paribas Bank Polska S.A., including whistleblowing

§ Workplace Rules and Regulations of BNP Paribas Bank Polska S.A.

§ Instructions on the procedure for handling complaints and motions in employee matters

§ Rules of conduct in the event of reports of harassment and sexual harassment in professional relations at BNP Paribas Bank Polska S.A.

§ Rules for recruiting employees of BNP Paribas Bank Polska S.A.

§ BNP Paribas Group Code of Conduct

§ The ILO Global Business & Disability Network Charter

§ BNP Paribas Agreement on Fundamental Rights and Global Social Solutions

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The main indicators we monitor in the area of employment are:

§ number of holiday days used

§ number of overtime hours

§ percentage of employees who left the bank after one year of work

§ percentage of workers on sick leave

§ absenteeism rate due to maternity leave

§ absenteeism rate

§ occupational mobility: functional and geographical

§ rotation rate

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Compliance management in the area of employment

Compliance management in the area of employment includes, amongst others, monitoring compliance with the Anti-mobbing policy and respect for human rights.

BNP Paribas Bank Polska S.A. does not tolerate any mobbing in the organization. The rules for counteracting mobbing are regulated by the Anti-mobbing policy implemented at the bank. It enables the employer to take actions aimed at preventing this phenomenon, and in the event of a problem - to react immediately. Employees are regularly informed about where and how they can report worrying situations. Examination of employees' reports in this regard is handled by the Commission for Counteracting Mobbing.

We also do not tolerate harassment or sexual harassment in the workplace. The Bank implemented Rules of conduct in the event of reports of harassment and sexual harassment in professional relationships. They enable safe reporting of reasonably justified suspicions without fear of retaliation against reporting persons. The perpetrator of potential psychological harassment is subject to disciplinary action.

Our organization participates in initiatives to build an ethical and safe workplace. All human rights policies can be found in the Governance Foundations Chapter.

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We also systematically examine the compliance and consistency of processes, procedures and actions taken regarding the management of human resources with the laws, requirements of national and EU supervisory authorities and the standards of the BNP Paribas Bank Polska S.A. Capital Group, to which the bank belongs.

Additionally, we analyse individual processes in terms of safeguarding against specific risks, such as litigation with employees, reputational damage, occurrences of abuse, corruption, as well as phenomena in the widely understood environment – e.g. labour market trends that affect amongst others the recruitment process, incentive schemes and career paths in the bank. When a risk is detected, process owners take measures to reduce the risk and keep it at an acceptable, i.e. low or moderate level. These activities are monitored and reported under the operational risk management system.

Risk management in the employee area is effective and supports the implementation of the bank's strategic business objectives.

Rules for submitting complaints and applications

GRI 102-41, 402-1

In their activities The Bank and the Capital Group BNP Paribas Bank Polska S.A. are guided by high ethical standards, resulting in particular from the law, recommendations of supervisory authorities, standards provided for in the Code of Conduct of the BNP Paribas Group and internal regulations, and in line with the adopted values, which include honesty, openness, mutual trust, responsibility, professionalism and respect.

All employees are required to comply with applicable standards. They are therefore required to react in situations where they witness uneasy or unlawful conduct by other employees of the bank which raises doubts and indicates the existence of a likelihood of an infringement.

The rules for receiving and examining complaints and applications in employee cases submitted by employees, former employees or bank-based organizations representing employees are set out in the Instruction on the procedure for dealing with complaints and applications in employee matters.

The process of examining complaints and applications involves carrying out an investigation and issuing a response. Complaints and employee applications are handled by the Department of Employee Relations, Compliance and HR Risk. Additionally, the Executive Director of the Human Resources Management Area is responsible for the process of considering employee complaints and requests. After each calendar quarter, the Executive Director receives a register of complaints and motions in employee matters. 99.9 percent bank employees are covered by the Corporate Collective Labour Agreement.

According to the Methodology of internal legislation, the introduction of significant operational changes in the organization is preceded by changes in internal regulations. Employees are informed of changes or new regulations by their superiors and by e-mail. Communications about planned changes are also published on the internal intranet - Echonet. Wherever the planned amendments require consultation of the Works Council or agreements with the Labour Unions, the information shall be communicated to the interested parties in a timely manner enabling consultations or negotiations to take place.

OHS

GRI 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-9

Employee safety is a very important area of management in our organization. That is why in 2020 we have decided to further strengthen the work in the area of Occupational Health and Safety. In previous years, the Executive Director of the Human Resources Management Area has been responsible for tasks in the field of OHS. In the HR Department there were OHS positions, supported by the activities of an external company. In 2020, responsibility for OHS issues was transferred to the Business Operations and Support Area. An OHS team has been created. Its staff were assigned additional training and postgraduate studies in Occupational Health and Safety in order to strengthen internal competences in this area. We make sure that the OHS management process is carried out in accordance with generally applicable regulations. We have prepared and implemented additional internal regulations. As part of the evaluation of the OHS management process, Occupational Health and Safety analyses are developed annually in our bank.

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The bank has a functioning OHS Committee, which represents 100% of its employees. The President of the Committee reports to the Executive Director of the Human Resources Management Area.

We provide our employees with health care related to their work. All employees who need it are provided with a refund of glasses, and people with RSI-type diseases – with ergonomic workplace equipment through the purchase of work equipment (orthopaedic chairs, vertical computer mice, sensorimotor pillows).

Our safety culture is based on raising awareness among employees in this area. Employees receive regular mandatory initial and periodic trainings in the field of Occupational Health and Safety, where (amongst others) the following are discussed:

§ selected regulations in the field of labour law, organisation of working conditions, management of Occupational Health and Safety,

§ analysis of the circumstances and causes of accidents at work, occupational diseases and their prevention,

§ safety of behaviour and rules of conduct in the event of an accident or in emergency situations (e.g. fire, accident).

The trainings familiarize our employees with the principles of first aid and the problems of fire protection and environmental protection.

We are also working on continuous communication and improving Occupational Health and Safety knowledge. As part of this year's CSR Days, we have additionally organised virtual first aid training with focus on safety during the pandemic, as well as provided our employees with educational materials and guides on the subject of first aid.

Our goal in the area of OHS is to ensure the highest safety standards for bank employees and to reduce the number of accidents. This is achieved by dedicated communication promoting OHS issues and making employees aware of potential risks.

GRI 403-2

We monitor the number of accidents at work and explain their causes. We analyse employee absences and calculate the average length of absenteeism.

Number of workplace accidents in 2020 at BNP Paribas Bank Polska S.A.

Accidents by gender

Women

Men

Total

Total

22

4

26

Branches

21

2

23

Headquarters

1

2

3

Absenteeism in 2020 at BNP Paribas Bank Polska S.A.

Absenteeism by gender

Women

Men

Total

number of days of absence:

191,664

81,552

273,216

number of employees:

6,224

2,986

9,210

Absence indicator

12,2%

10,8%

11,7%

In connection with the COVID-19 pandemic, a Coronavirus Commission was established in the bank to ensure extraordinary safety for employees during this difficult time. As part of its activities, information on good and safe practices while working remotely was added on the intranet. Additional first aid training in the online formula was also organised. The Coronavirus Commission ensured the quality of the personal and collective protection equipment used to secure the bank's employees.

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Management of the employee area in subsidiaries of the BNP Paribas Bank Polska S.A. Capital Group

GRI 103-1, 103-2, 103-3

All companies of the BNP Paribas Bank Polska S.A. Capital Group manage employment with the utmost care. At the end of 2020, 9,455 employees were employed in the BNP Paribas Bank Polska S.A. Capital Group out of which 9,019 were full-time jobs.

The key employer in the BNP Paribas Bank Polska S.A. Capital Group is the lead company – BNP Paribas Bank Polska S.A., which employs 9,210 people out of which 8,845 are full-time jobs.

The companies follow the labour law regulations applicable in Poland and the European Union and have adopted the global policies of the BNP Paribas Group. In all Companies of the BNP Paribas Bank Polska S.A. Capital Group, the Code of Conduct of the BNP Paribas Group applies, which is the superior document for all regulations in force in individual Companies.

At BNP Paribas Bank Polska S.A., the implementation of BNP Paribas group policies is a responsibility of individual departments, which hold responsibility in terms of content and execution over the area which is regulated on the basis of the group procedure. The policies of the BNP Paribas Group are in force in BNP Paribas Bank Polska S.A. in the original version and, in justified cases, are supplemented by internal regulations, adapted to local market conditions.

In addition, depending on the specifics of the activity, each of the Companies of the BNP Paribas Bank Polska S.A. Capital Group has adopted detailed regulations regarding employment management.

Policies and procedures of the BNP Paribas Group in force in the Capital Group BNP Paribas Bank Polska S.A.

Lp.

Title of policy or procedure

1.

Diversity Governance at BNP Paribas

2.

Treatment of harassment notifications

3.

Agreement on the prevention of work-related stress

4.

Deployment of worldwide agreement on fundamental rights and global social framework

5.

Remote Working GHR Policy

6.

BNP Paribas Group Code of Conduct

7.

Person Group Recusal Policy For U.S. Persons

8.

Group Policy on Penalties for Misconduct by Employees

9.

Candidate and employee screening policy

10.

General Policy of the BNP Paribas Group on HR Personal Data Protection

11.

Binding Corporate Rules for HR

12.

Archiving employees' personal data

13.

Procedure for managing the rights to access, correct and challenge data and handling complaints regarding employees' personal data

14.

Proffessional path policy for employees

15.

External Recruitment of BNP Paribas Group Employees - Organisation and Guiding Principles

16.

Guiding principles for boarding of employees within the BNP Paribas Group

17.

Compulsory "block leave" vacation

18.

Managing Group Organisational Referential database (RefOG)

19.

Jobs & Activities Directory within BNP Paribas Group

20.

Conditions and application principles of the Long-Term Assignment Policy

21.

Conditions and application principles of the Short-Term Assignment Policy

22.

CRP General Guidelines Procedure

23.

Compensation guidelines and Remuneration policy for employees whose professional activities have a significant impact on the risk profile of the enterprise

24.

Roles and responsibilities related to Data Quality Management

25.

Group policy on the use of digital tools and email systems

26.

Human Resources Principles Applicable to Business Continuity Plan

27.

Group Policy on Anti-Money Laundering & Counter-Terrorist Financing Training

28.

Group Mandatory Trainings Policy

GRI 401-2, 404-3, 404-2, 403-1, 403-2, 403-3, 412-1, 412-2

Towarzystwo Funduszy Inwestycyjnych BNP Paribas S.A.

Employment at Towarzystwo Funduszy Inwestycyjnych BNP Paribas S.A.– as of 31.12.2020

Number of posts

38

Number of active posts

38

Number of employees

39

Number of active employees

39

Towarzystwo Funduszy Inwestycyjnych BNP Paribas S.A. operates on the basis of the policies and regulations in force in all Companies of the BNP Paribas Bank Polska S.A. Capital Group and the policies of the BNP Paribas Group, and in particular the parent document, which is the Code of Conduct of the BNP Paribas Group, which generally includes matters related to the fight against all forms of discrimination and respect for human rights.

Employees of the Company may lodge complaints and report irregularities to a direct supervisor or directly to a member of the Management Board supervising the given area. Matters related to complaints regarding harassment or discrimination are governed by the Company's Whistle-Blowing Policy and ethical procedures and standards. The employee has the option to report such information to their direct supervisor, the person responsible for the human resources dedicated to the unit, the Supervision Inspector. In addition, the employee has the possibility to report the issue anonymously, in accordance with the rules described in the Procedure.

In 2020, the Company did not report cases of corruption or discrimination in the workplace.

Benefits offered to employees in 2020:

§ sports card

§ life insurance

§ health insurance

§ individual training budgets allowing the choice of one’s own path of development

BNP Paribas Group Service Center S.A.

Employment at BNP Paribas Group Service Center S.A. – as of 31.12.2020

Number of posts

72

Number of active posts

62

Number of employees

121

Number of active employees

102

BNP Paribas Group Service Center S.A. operates on the basis of the policies and regulations in force in all Companies of the BNP Paribas Bank Polska S.A. Capital Group and the policies of the BNP Paribas Group, and in particular the parent document, which is the Code of Conduct of the BNP Paribas Group.

In the Company, the Work Regulations, the Remuneration Regulations and the HR Committee have been established. The company monitors the following indicators: two-week vacation leaves, overtime in the calendar year, the level of implementation of mandatory training for employees. As a risk in the employee area, the Company identified employee turnover.

The Company has adopted the Compliance Policy, the Anti-Corruption Policy and the Whistle-blowing Policy. Employees may report complaints or violations in accordance with the Whistle-blowing Policy, to an email address or by correspondence.

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78

The issue of the protection of human rights is governed by the Company's Regulations for The Management of Risk of Conflicts of Interest. Mandatory training to raise awareness of respect for human rights is being provided to the employees.

In 2020, the Company did not report cases of corruption or discrimination in the workplace.

Benefits offered to employees in 2020:

§ medical care package

§ sports card

§ Insurance

BNP Paribas Leasing Services Sp. z o.o.

Employment at BNP Paribas Leasing Services Sp. z o.o. – as of 31.12.2020

Number of posts

6

Number of active posts

6.

Number of employees

21

Number of active employees

21

BNP Paribas Leasing Services Sp. z o.o. operates on the basis of the policies and regulations in force in all Companies of the BNP Paribas Bank Polska S.A. Capital Group and the policies of the BNP Paribas Group, and in particular the parent document, which is the Code of Conduct of the BNP Paribas Group.

In the field of compliance management in the employee area, the Company applies generally accepted rules in accordance with legal requirements. It does not have its own regulations for the management of employee complaints, but has adopted the principle of transparency and response in accordance with social norms.

In 2020, the Company did not report cases of corruption or discrimination in the workplace.

The Company's employees benefit from the benefits offered by BNP Paribas Lease Group or the bank due to partial employment in these entities.

Benefits offered to employees in 2020:

§ medical care package

§ influenza vaccination on the premises of the company

§ fruity Wednesdays

§ actions for promoting physical activity

BNP Paribas Solutions Sp. z o.o.

Employment at BNP Paribas Solutions Sp. z o.o.– as of 31.12.2020

Number of posts

48

Number of active posts

46

Number of employees

54

Number of active employees

52

BNP Paribas Solutions Sp. z o.o. operates on the basis of the policies and regulations in force in all Companies of the BNP Paribas Bank Polska S.A. Capital Group and the policies of the BNP Paribas Group, and in particular the parent document, which is the Code of Conduct of the BNP Paribas Group.

The Company has the Employee Recruitment Regulations and the Rules of Conduct for Employees with U.S. Person Status. The Company also applies the Work Regulations, Remuneration Regulations, the Employee Code of Conduct and the Information Security Policy.

Employee complaints and non-compliances can be reported by e-mail.

79

79

In 2020, the Company did not report cases of corruption or discrimination in the workplace.

Benefits offered to employees in 2020:

§ sports cards

§ private medical care

§ group insurance

Campus Leszno Sp. z o.o.

Employment at Campus Leszno Sp. z o.o. – as of 31.12.2020

Number of posts

10

Number of active posts

9

Number of employees

10

Number of active employees

9

Campus Leszno Sp z o.o. operates on the basis of the policies and regulations in force in all Companies of the BNP Paribas Bank Polska S.A. Capital Group and the policies of the BNP Paribas Group, and in particular the parent document, which is the Code of Conduct of the BNP Paribas Group.

In the field of compliance management in the employee area, the Company applies generally accepted rules in accordance with legal requirements. It does not have its own regulations for the management of employee complaints, it has adopted the principle of transparency and response in accordance with social norms.

In 2020, the Company did not report cases of corruption or discrimination in the workplace.

Benefits offered to employees in 2020:

§ Medical care

§ group insurance

§ social fund

4.2.             Organizational culture and communication with our people

GRI 102-16

The organizational culture of BNP Paribas Bank Polska S.A. is based on the values described in The BNP Paribas Way, consistent within the BNP Paribas Group. Every day, we make every effort to ensure that our employees have a sense of belonging to an international community based on cooperation and trust in the mission of changing the world. Our organizational culture is based on seven foundations:

margines

§ Cooperation

§ Supporting change

§ Inspiration

§ Trust

§ Courage

§ Entrepreneurship

§ Vision

margines

In 2020, promoting diversity, inclusion and cooperation were a priority in strengthening our organisational culture. Our goal was to popularize behaviours and habits that will facilitate the building of a friendly and comfortable workplace, thanks to mutual respect and cooperation. We carried out a campaign about good cooperation, during which we showed good habits and principles, thanks to which we can work more efficiently and in a good atmosphere.

margines

Nine principles of good cooperation of BNP Paribas Bank Polska S.A.:

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80

§ Welcome your Colleagues

§ Meet deadlines

§ Don't come to the office with cold

§ Reach out to others by name

§ Show trust

§ Show respect and understanding

§ Respect both your and others’ time

§ Maintain full discretion in professional matters

§ Be helpful and friendly

Communication with our people

GRI 103-1, 103-2, 103-3, 102-42, 102-43, 102-44

At BNP Paribas Bank Polska S.A. we apply transparent communication rules. All employees have access to documents setting out the rules for communicating inside and outside the bank. Communication guidelines are available on the Echonet – the internal intranet. The standards for communication with employees at BNP Paribas Bank Polska S.A. are set amongst others in the Code of Conduct of the BNP Paribas Group, Fast Forward Bank Strategy and Internal Communication Strategy.

Communication with our employees is based on honesty, respect and compliance with ethical standards. It also includes promoting and strengthening the values that we follow on daily basis.

Priorities in communicating with employees:

§ Create simple and understandable messages

§ Transparent communication of particularly difficult topics

§ Applying the principle that employees are the first to get informed about anything

§ Dialogue-oriented communication

§ A responsible approach to employee development and engagement

"Closer"

One of the projects, which fit into the idea of an organization open to dialogue, was the "Closer" project, which was implemented in 2020 and in which employees met representatives of the Management Board. The meetings had an online breakfast formula, during which every ten employees met with two members of the Management Board of BNP Paribas Bank Polska S.A. All employees could take part in the meetings, regardless of seniority, location, or area of work. Breakfast was delivered to the participants. The meetings were an opportunity to ask questions and discuss selected topics related to the bank's strategy and activities. It was a very inspiring time, allowing to integrate the expectations of employees with the goals set by the members of the Management Board.

"Przemek Gdański invites you to lunch"

For almost three years, meetings from the series "Przemek Gdański invites you to lunch" have also been held. Every month, employees have the opportunity to meet with the Chairman of the Board of BNP Paribas Bank Polska S.A. The series is very successful and enjoys a great interest. The meetings are a source of inspiration and knowledge about our organization. During the meetings, the Chairman, together with selected employees who have expressed a desire to attend the meeting, discusses the challenges faced by the organization or difficult situations that they jointly seek to resolve. This is a very important aspect of the organization's management, which is why, despite the pandemic, the meetings have been transferred to the virtual world. The participants are delivered lunches from restaurants selected by Przemek Gdański, and meetings are held in the form of video conferences.

Employee satisfaction survey

We care about creating an environment which supports professional development and employee engagement. Their opinions are crucial for us, which is why we conduct a survey of employee satisfaction and changes taking place in the bank. We have been conducting the Global People Survey (GPS) for the last ten years. It is an annual voluntary survey of employee engagement, which helps us to understand their views on the most important issues related to working life. It helps us to identify priorities for change, measure the impact of actions, gain the

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81

knowledge needed to formulate strategies, and initiate actions across all areas. Due to the pandemic, we replaced the GPS test with a quarterly survey called Pulse Check. This type of survey, carried out several times a year, allows to reduce the waiting time for results, and thus ensures greater reactivity and efficient implementation of new activities in response to the obtained survey results. Thanks to this research, we know in which direction to introduce changes to the organization and how to formulate priorities and strategies for the coming years.

Answer categories with the highest number of indications:

§ Autonomy of work – 86 percent satisfied

§ Support from supervisors – 80 percent satisfied

§ Support index – 70 percent (support of superiors, access to appropriate work and communication tools)

§ Agile organisation – 74 percent

§ The employer with whom I associate my future – 61 percent

An important part of the Pulse Check study was the Net Promoter Score (NPS) module, expanded in 2020 with questions about recommendations for working in one’s own team. This indicator was higher than the others in the bank’s scale and reached +16 percent.

It is worth noting that an important topic discussed in Pulse Check (in two editions in 2020) was the issue of remote work and related challenges, such as emotions, organizational issues and housing conditions. After analysing the results, quick steps were taken in the bank to strengthen employees in this area.

In addition, a Survey of Opinion on remote work was conducted in 2020. The survey involved 57 percent of employees.

The study identified issues related to the positive and negative aspects of working from home:

§ 82 percent of the surveyed employees concluded that they had good conditions for remote work

§ According to the respondents, the efficiency of working from home, both individually and in teams, has increased significantly compared to working in the office

§ 41 percent of employees would like to work only 1-2 days a week in the office after the pandemic

4.3.        Data illustrating employment at the Bank and BNP Paribas Bank Polska S.A. Capital Group

KEY FIGURES:

9,210
employees at BNP Paribas Bank Polska S.A.

9,455
persons employed in the Capital Group BNP Paribas Bank Polska S.A.

8,845
full-time employees at BNP Paribas Bank Polska S.A.

9,019
full-time employees in the BNP Paribas Bank Polska S.A. Capital Group

64%
of employees in BNP Paribas Bank Polska S.A. Capital Group are women

36%
of employees in BNP Paribas Bank Polska S.A. Capital Group are men

82

82

62%

women in managerial positions at BNP Paribas Bank Polska S.A.

61%

women in managerial positions in the BNP Paribas Bank Polska S.A. Capital Group

Scale of employment

GRI 102-8

The scale of employment in the Capital Group BNP Paribas Bank Polska S.A. as of 31.12.2020

Number of full-time posts

Number of active full-time posts

Number of employees

Number of active employees

Capital Group BNP Paribas Bank Polska S.A. - total

9,019

8,235

9,455

8,646

Total bank, including:

8,845

8,074

9,210

8,423

   Head office

4,662

4,354

4,915

4,598

   Branches

4,048

3,590

4,159

3,693

   Mobile advisors

84

81

84

81

   Brokerage Office

44

43

45

44

   Labour Unions

7

6

7

7

ACTUS SP. Z O.O. ("ACTUS") REAL ESTATE FUND.

0

0

0

0

BNP PARIBAS MUTUAL FUND SOCIETY S.A. ("TFI").

38

38

39

39

BNP PARIBAS LEASING SERVICES SP. Z O.O. ("LEASING").

6

6

21

21

BNP PARIBAS GROUP SERVICE CENTER S.A. ("GSC")

72

62

121

102

Campus Leszno Sp. z o.o.

10

9

10

9

BNP Paribas Solutions Sp. Z o. o.

48

46

54

52

BGZ POLAND ABS1 DAC („SPV”)S1 DAC („SPV”).

0

0

0

0

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Employment in the Capital Group BNP Paribas Bank Polska S.A. - as of 31.12.2020 as compared to 31.12.2019 in terms of full-time contracts

31.12.2020

31.12.2019

Capital Group BNP Paribas Bank Polska S.A. - total

9,019

10,219

Total bank, including:

8,845

9,899

   Head office

4,662

5,101

   Branches

4,048

4,654

   Mobile advisors

84

87

   Brokerage Office

44

50

   Labour Unions

7

7

ACTUS SP. Z O.O. ("ACTUS") REAL ESTATE FUND.

0

0

BNP PARIBAS MUTUAL FUND SOCIETY S.A. ("TFI").

38

29

BNP PARIBAS LEASING SERVICES SP. Z O.O. ("LEASING").

6

6

BNP PARIBAS GROUP SERVICE CENTER S.A. ("GSC")

72

228

CAMPUS LESZNO SP. Z O.O.

10

8

BNP PARIBAS SOLUTIONS LTD.

48

49

BGZ POLAND ABS1 DAC ("SPV").

0

0

*Figures expressed in terms of full-time jobs have been rounded to the full unit

As of 31 December 2020, the employment volume in the BNP Paribas Bank Polska Group expressed in full-time equivalents (including employees on maternity, parental leaves and prolonged sick leaves) amounted to 9,019 full-time equivalent compared to 10,219 full-time equivalent on 31 December 2019 (a decrease of 1,200 FTEs). The y/y decrease in headcount was mainly due to the continuation of the employment optimization process following the bank's merger with Raiffeisen Bank Polska (Core RBPL).

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83

Restructuring of employment

On 31.12.2020, the bank completed the collective redundancy process scheduled for 2019-2020 resulting from the optimization of employment after the acquisition of Core RBPL. During the two years of the process, 1,472 employees left the bank.

Due to the need to adapt the bank's business model to the changed business environment, a new collective redundancy program for the period 2021-2023 was announced in agreement with the Labour Unions. It was established that the redundancies will cover no more than 800 employees.

In order to mitigate the social impact of collective redundancies, the bank agreed with Labour Union organisations to pay additional compensation and other elements of social protection to the redundant employees, regardless of statutory redundancy payments. Additionally, the Voluntary Departure Scheme has been introduced.

Employment on an employment contract in the BNP Paribas Bank Polska S.A. Capital Group (in terms of full-time equivalents) by period of employment and gender – as of 31.12.2020

Women

Men

Total

Fixed-term workers

988

523

1,511

Permanent workers

5,116

2,392

7,508

Total

6,104

2,916

9,019

Percentage of men and women in total number of employees with an employment contract

67.7%

32.3%

100.0%

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Employment on an employment contract at BNP Paribas Bank Polska S.A. (in terms of full-time equivalents) by period of employment and gender – as of 31.12.2020

Women

Men

Total

Fixed-term workers

981

511

1,492

Permanent workers

5,047

2,306

7,353

Total

6,028

2,817

8,845

Percentage of men and women in total number of employees with employment contract

68.2%

31.8%

100%

Branches

3,147

984

4,132

Headquarters

2,880

1,833

4,713

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Headquarters’ employees include all employees in the areas of support, Labour Unions and the Brokerage Office.

Branches’ employees include all employees working in the sales network, consisting of: Retail and Business Banking Regions, Corporate Banking and SME Sales Network Division, Consumer Finance Sales Division and Mobile Advisors.

Employment on an employment contract at BNP Paribas Bank Polska S.A. (per person) by period of employment and gender – as of 31.12.2020

Women

Men

Total

Fixed-term workers

1,033

559

1,592

Permanent workers

5,191

2,427

7,618

Total

6,224

2,986

9,210

Percentage of men and women in total number of employees with employment contract

68%

32%

100%

Branches

3,217

1,026

4,243

Headquarters

3,007

1,960

4,967

84

84

Headquarters’ employees include all employees in the areas of support, Labour Unions and the Brokerage Office.

Branches’ employees include all employees working in the sales network, consisting of: Retail and Business Banking Regions, Corporate Banking and SME Sales Network Division, Consumer Finance Sales Division and Mobile Advisors.

Employment on an employment contract in the BNP Paribas Bank Polska S.A. Capital Group (in terms of full-time equivalents) by gender and age – as of 31.12.2020

Age

Women

Men

Total

<30

840

454

1,294

30-50

4,681

2,199

6,880

>50

583

262

845

Total

6,104

2,915

9,019

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Employment on an employment contract at BNP Paribas Bank Polska S.A. (in terms of full-time-equivalents) by gender and age – as of 31.12.2020

Age

Women

Men

Total

<30

827

433

1,260

30-50

4,622

2,132

6,754

>50

579

253

831

Total

6,028

2,817

8,845

Branches

3,147

984

4,132

Headquarters

2,880

1,833

4,713

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Headquarters’ employees include all employees in the areas of support, Labour Unions and the Brokerage Office.

Branches’ employees include all employees working in the sales network, consisting of: Retail and Business Banking Regions, Corporate Banking and SME Sales Network Division, Consumer Finance Sales Division and Mobile Advisors.

Employment on an employment contract at BNP Paribas Bank Polska S.A. (per person) by gender and age – as of 31.12.2020

Age

Women

Men

Total

<30

876

471

1,347

30-50

4,756

2,248

7,004

>50

592

267

859

Total

6,224

2,986

9,210

Branches

3,217

1,026

4,243

Headquarters

3,007

1,960

4,967

Headquarters’ employees include all employees in the areas of support, Labour Unions and the Brokerage Office.

Branches’ employees include all employees working in the sales network, consisting of: Retail and Business Banking Regions, Corporate Banking and SME Sales Network Division, Consumer Finance Sales Division and Mobile Advisors.

Number of employees employed in the BNP Paribas Bank Polska S.A. Capital Group on a contract other than an employment contract and co-workers (per person) – as of 31.12.2020

Women

Men

Total

Employed on the basis of contract of mandate

54

57

111

Employed on the basis of contract of commission

0

0

0

Employed on the basis of internship-agreement

4

9

13

Self employed

7

33

40

85

85

Supervised and/or seasonal employees

15

1

16

Total

80

100

180

Number of employees employed at BNP Paribas Bank Polska S.A. on the basis of a contract other than an employment contract and co-workers (per person) – as of 31.12.2020

Women

Men

Total

Employed on the basis of contract of mandate

50

38

88

Employed on the basis of contract of commission

0

0

0

Employed on the basis of an Internship agreement

4

9

13

Self-employed

0

0

0

supervised and/or seasonal workers

15

1

0

Total

69

48

117

Number of employees employed under an employment contract at BNP Paribas Bank Polska S.A.

6,224

2,986

9,210

Number of all persons providing work for BNP Paribas Bank Polska S.A.

6,293

3,034

9,327

Employment in the Capital Group BNP Paribas Bank Polska S.A. by province – as of 31.12.2020 (in terms of full-time equivalents)

Women

Men

Total

Lower Silesian Voivodeship

267

97

363

Kuyavian-Pomeranian Voivodeship

198

57

255

Lublin Voivodeship

192

66

258

Lubusz Voivodeship

93

20

113

Łódź Voivodeship

188

65

253

Lesser Poland Voivodeship

521

410

931

Masovian Voivodeship

2,377

1,467

3,844

Opole Voivodeship

79

14

93

Podlaskie Voivodeship

150

38

188

Subcarpathian Voivodeship

103

22

125

Pomeranian Voivodeship

240

124

365

Silesian Voivodeship

909

291

1,200

Świętokrzyskie Voivodeship

85

16

101

Warmian-Masurian Voivodeship

178

44

222

Greater Poland Voivodeship

364

152

516

West Pomeranian Voivodeship

161

31

192

Total

6,104

2,915

9,019

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Employment at BNP Paribas Bank Polska S.A. by province – as of 31.12.2020 (full-time equivalents)

Women

Men

Total

Lower Silesian Voivodeship

267

97

363

Kuyavian-Pomeranian Voivodeship

198

57

255

Lublin Voivodeship

192

66

258

Lubusz Voivodeship

93

20

113

Łódź Voivodeship

188

65

253

Lesser Poland Voivodeship

520

410

930

Masovian Voivodeship

2,306

1,374

3,680

Opole Voivodeship

77

14

91

Subcarpathian Voivodeship

150

38

188

Podlaskie Voivodeship

103

22

125

Pomeranian Voivodeship

240

123

364

Silesian Voivodeship

908

290

1,198

Świętokrzyskie Voivodeship

84

16

100

Warmian-Masurian Voivodeship

178

43

221

Greater Poland Voivodeship

364

151

515

West-Pomeranian Voivodeship

161

30

191

Total

6,028

2,817

8,845

86

86

*Figures expressed in terms of full-time jobs have been rounded to the full unit

Employment at BNP Paribas Bank Polska S.A. by province – as of 31.12.2020 (per person)

Women

Men

Total

Lower Silesian Voivodeship

291

112

403

Kuyavian-Pomeranian Voivodeship

198

58

256

Lublin Voivodeship

199

68

267

Lubusz Voivodeship

93

23

116

Łódź Voivodeship

191

67

258

Lesser Poland Voivodeship

534

416

950

Masovian Voivodeship

2,422

1,477

3,899

Opole Voivodeship

77

15

92

Subcarpathian Voivodeship

150

39

189

Podlaskie Voivodeship

103

23

126

Pomeranian Voivodeship

244

127

371

Silesian Voivodeship

914

298

1,212

Świętokrzyskie Voivodeship

84

16

100

Warmian-Masurian Voivodeship

178

43

221

Greater-Poland Voivodeship

383

174

557

West-Pomeranian Voivodeship

163

30

193

Total

6,224

2,986

9,210

GRI 401-1

Data illustrating the turnover in employment in the BNP Paribas Bank Polska S.A. Capital Group in 2020 (per person)

§ 1,118 – number of new hires in 2020 in the BNP Capital Group Paribas Bank Polska S.A. (employed on the basis of an employment contract)

§ 2,432 – number of persons who left BNP Paribas Bank Polska S.A. Capital Group in 2020 (employed on the basis of an employment contract).

The turnover rate in the BNP Paribas Bank Polska S.A. Capital Group amounted to 25.7 percent in 2020.

Data illustrating the turnover in employment at BNP Paribas Bank Polska S.A. in 2020 (per person)

§ 1,118 - number of new hires in 2020 at BNP Paribas Bank Polska S.A. (employed on the basis of an employment contract)

§ 2,432 - Number of persons who left BNP Paribas Bank Polska S.A. in 2020 (employed on the basis of an employment contract). The number of persons who left BNP Paribas Bank Polska S.A. (employed on the basis of an employment contract) in 2020 takes into account the departures at the initiative of the employee and the employer.

Turnover rate at BNP Paribas Bank Polska S.A. in 2020

Rotation

Women

Men

Total rotation

Branches

26.6%

24.3%

26.0%

Headquarters

20.8%

19.1%

20.1%

Total rotation

23.8%

21.0%

22.9%

The calculation of the turnover rate in BNP Paribas Bank Polska S.A. in 2020 takes into account:

§ in the numerator: persons who terminated their employment with BNP Paribas Bank Polska S.A. between 31 December 2019 and 30 December 2020, excluding technical posts;

§ in the denominator: the number of persons employed at BNP Paribas Bank Polska S.A. - as of 31/12/2020, excluding technical and inactive persons.

4.4.              Renumeration and benefits

GRI 401-2

Our remuneration policy is based on transparent principles and reflects employee orientation. It refers to good market practices in the area of remuneration. It stands in compliance with relevant laws and regulations. The remuneration policy is governed by the following rules:

§ The remuneration rules for bank employees are set out in the applicable Corporate Collective Labour Agreement and Remuneration Regulations;

§ The rules of functioning of the bonus systems are defined in the bonus regulations for employees of particular business areas and lines;

§ Supervisory responsibilities in the area of human resources management are carried out by the Supervisory Board, supported by the Human Resources and Remuneration Committee and the Nominations Committee. The Committee oversees key processes and develops opinions and recommendations to the Supervisory Board regarding amongst others the conditions of employment of the members of the Board of Directors of the Bank, including the amount of fixed and allocated variable remuneration;

§ The bank also has a remuneration policy for people who have a significant impact on the risk profile of BNP Paribas Bank Polska S.A.

GRI 202-1

Figures illustrating the level of the basic salary of the lowest-level employees in BNP Paribas Bank Polska S.A. in relation to the minimum wage

Minimum wage in Poland

The ratio of the lower level wage to the minimum wage:

in 2020

for women

for men

PLN 2,600

146.8%

147.8%

Minimum wage in Poland

Average salary of the lowest-level employees:

in 2020

for women

for men

PLN 2,600

PLN 3,818

PLN 3,842

BNP Paribas Bank Polska S.A. implements the compensation review process every year – one of the important criteria taken into account in this process is to close the wage gap for which dedicated funds are allocated.

Gender Pay Gap

Following the best market practices, in 2020 the Gender Pay Gap was measured for the first time in BNP Paribas Bank Polska SA. The methodology of the pay gap study used was consistent with the methodology implemented in the BNP Paribas Group. The analysis concerned the basic remuneration of active employees and took into account such variables as: business areas, grade levels, gender. Having analysed the results, systemic and dedicated actions and recommendations were undertaken to mitigate the pay gap level, including the annual Compensation Review Process, which is implemented in the Bank.

Benefit offer

At BNP Paribas Bank Polska S.A., the approach to the health and well-being of our employees has always been important. In 2018, with the introduction of the new benefit strategy and the BEneFIT program, we took even more

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conscious and long-term measures to create a friendly working environment, improve the psychophysical condition and safety of our employees, as well as their loved ones.

The benefit strategy of BNP Paribas Bank Polska S.A. is implemented under four pillars: safety, health, work-life balance and a friendly working environment. We provide employees with access to a range of benefits, initiatives, offers, tools and solutions (stationary and mobile, implemented with leading partners in the market) that support employees in the field of health management, promote physical activity and mutual inspiration and realization of passion. Many benefits are offered in a model allowing close relatives of employees (partners, children, parents) to use them, which allows to take care of whole families and makes it easier for employees to harmoniously reconcile work and private life.

Benefit offer for employees of BNP Paribas Bank Polska S.A.

Pillar: security

§ Employee Capital Plans, under which the employer finances part of the contribution

§ Attractive Life and Accident insurance for employees and their loved ones

§ Additional insurance for school children

Pillar: Health

§ Comprehensive Health Care Program for Employees and their loved ones

§ E-medicine services and MediSpot services (special internal medicine schedule dedicated only to bank employees)

§ MultiSportPlus, MulitiSportKids and MutliSportSenior card

§ Worksmile app, which brings employees together around their passions and sports activities

§ Health Days and wellness campaigns at the bank's premises

§ Flu vaccinations organised at bank locations

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Pillar: work life – balance

Pillar: a friendly working environment

§ "Two Hours for Family" action

§ MyBenefit Cafeteria System

§ Co-financing of holidays for workers and their children

§ Benefits from the Company Social Fund

§ Actions and activities under the "Bank Close to Close Ones" program

§ Corporate wellness program "WELL"

§ Flexible working hours

§ Gifts for employees' children

§ Promotion of parental leaves

§ Crossbooking at selected bank locations

§ Gifts for newborn children of employees

§ "Become a GPS Picasso" Summer Holiday contest with attractive prizes

§ Before the pandemic, we were one the few employers offering 8 days a month of remote work

§ Additional days of leave above those guaranteed by the Labour Code (additional day of special leave, additional two days for volunteering and an additional day of leave after the full annual holiday limit has been used)

§ Mobile app for language learning

§ Attractive discount offer for employees at many partners of Bank BNP Paribas Polska S.A.

§ Financial assistance for disadvantaged employees

§ Financial assistance for retired bank employees

§ Replacing computers with laptops and introducing remote access to systems (the number of applications that can be used on the mobile has increased from 30 to more than 80 throughout the year)

In an accelerated manner, the COVID-19 epidemic brought everyone to a reality for which BNP Paribas Bank Polska S.A. was already largely prepared. The Bank has always been mindful of supporting employees in their diverse needs and meeting them in a way that will enable self-realization. Before the pandemic, many solutions for employees were already successively introduced, incl. dozens of applications and IT solutions.

In order to minimize the adverse effects of the pandemic and maximize the support for the employees, we very quickly organized a number of actions supporting the psychophysical condition, safety and development of employees and their loved ones.

The bank prepared a list of courses and educational materials to support parents in organizing children's time during the lockdown in March. Multisport Card could access audiobooks, e-books and many online sports activities. The bank provided employees with telephone-based psychological support and many trainings aimed at supporting a new reality to which we all had to adapt literally overnight: webinars for managers: "How to work efficiently from home?", or virtual development training on dealing with conflict or stress.

In the area of communication with employees, the #stayathome campaign was launched, which deals with topics related to safety rules and functioning in times of a pandemic. Workshops on empathic communication, activities for children, technological support of employees were also organized.

Corporate wellness program "WELL"

The pandemic has accelerated efforts to launch a comprehensive corporate wellness program that we have been working on since the beginning of 2020. The project was implemented in June 2020 under the motto "WELL". The program is a part of our "Bank Close to Close Ones" initiative and is part of the "Friendly Working Environment" pillar of the BEneFIT strategy. This is a viable response to the needs of bank employees, as well as their loved ones during the pandemic. The program was launched online. Its name refers to the idea of wellness – as the art of life, which promotes harmony and affirmation of happiness. Thanks to a program prepared in this way, we educate, support and give our employees tools to take care of their psychophysical condition. We help them maintain a harmonious work-life balance even with the limitations brought by the pandemic.

The program is based on four pillars of health: stress reduction, nutrition, activity and regeneration, and is implemented in cooperation with experts who have been supporting employers for many years in creating wellness programs tailored to the needs of employees and organizational culture of the company.

The program is a real help in taking care of a good quality of life and a basis for strengthening the psychophysical condition: it helps to reduce stress, calm the mind, release physical and emotional blockages, take care of the immune system, healthy nutrition, improve the efficiency of the body, encourage physical activity.

Employees have the opportunity to take part in daily classes/activities on Webex "Get up from the desk" and "Calm before bedtime" which build healthy habits. Regular online consultations by specialists: psychologists, nutritionists, sports and mental trainers, which are 100% financed by the bank, are very popular. We also organize recurring webinars on interesting topics in the field of organization of work, health, nutrition and prevention. We invite valued experts on as webinar speakers.

All exercises, tips and webinars are recorded and placed in a digital library in the form of videos or podcasts, so that employees can use them at any time, as well as inspire family members or practice together. In the library, there are many articles on various topics – sports, nutrition, mental health, sleep, injuries, exercise. Thanks to the implemented social application, which is used by almost 3 thousand people, participants can be in constant contact with each other and keep up to date with information about the program "WELL", share sports achievements, compete or pursue passions and develop hobbies. The application has about 30 active groups moderated by employees – from runners, cyclists, enthusiasts of yoga, healthy cooking, photography, sailing or mountain tours, to chess players and mushroom pickers. In addition, we involve management staff in activities, so that they are an example for employees and encourage mentees to take care of good quality of life.

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One of the organized activities that received tremendous attention was the "Become a GPS Picasso" holiday contest. With this initiative, we conjured up incredible commitment and creativity. Employees drew fantastic drawings with the GPS track and engaged their families. The best works were awarded with recharges on the cafeteria platform and could be used, for example, to buy sports equipment or pursue their passion.

Total Reward Statement

The Total Reward Statement (TRS) is a comprehensive report that aims to show each employee the total benefits of working at the bank. The Individual TRS Report, which each employee received in 2020, in addition to the list of financial benefits, shows also non-wage benefits that employees use during the year and other benefits available to employees of the organization. These include: insurance, MyBenefit Cafeteria system, trainings, development program, as well as social benefits, subsidies and Employee Capital Plans. Thanks to the TRS reports, each employee has the opportunity to receive an individual statement of benefits from working in the bank and to get acquainted with the full package of benefits offered by the employer.

KEY FIGURES:

more than 300
Miś-Szumiś Teddy Bears were given to the newborn children of our employees (since June 2020)

2,062
employees took part in the "Two hours for the family" action ”

more than 4k
employees used Multisport cards

more than 1k
close ones of our employees (partners, children, parents) have used Multisport cards

more than 6k
employees have benefited from the wellness program "WELL"

more than 8k
people covered by private medical care plan

more than 9k

people using the MyBenefit cafeteria platform

more than 36k

benefits provided from the Company Social Fund

4.5.              Training and development

GRI 103-1, 103-2, 103-3, 404-2

At BNP Paribas Group, we believe that taking care of employee development is the best investment in the future of our organization. That is why we are constantly developing our offer of trainings and development programs at the global level and in local markets. Employees of the Bank and companies of the BNP Paribas Bank Polska S.A. Capital Group have access to a wide range of initiatives supporting responsible and dynamic career management.

The development program offered by BNP Paribas Bank Polska S.A. supports the implementation of the business strategy. Activities include programs dedicated to all employees, including specialized programs dedicated to the management. In addition, projects are carried out to support the development needs of individual units of the bank.

Competency model

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We have built a competency model on which we base all our development activities and our offer for employees. The model was created based on information we have received from employees, managers, Board of Directors, as well as resulting from GPS and Pulse Check surveys. We have identified seven key competences. Each of the programs offered in the bank supports the development of these competencies.

7 key competences at BNP Paribas Bank Polska S.A.:

§ Customer orientation

§ Inspire and motivate others

§ Strategic thinking

§ Flexibility

§ Change management

§ Digital knowledge and culture

§ Networking

Our approach to employee development is based on the 70-20-10 method. We believe that 70 percent of development effectiveness comes from practice (your own experience), 20 percent from learning from others, and 10 percent from training. We want our employees to develop primarily through practice. We make sure that the programs offered, from training for the new hired, through experts and talents, to trainings for leaders, complement each other, constituting a coherent and substantive whole. We also support our employees in building competencies based on our competence model, especially such as customer orientation, flexibility, knowledge and digital culture.

Trainings completed in 2020 at BNP Paribas Bank Polska S.A.:

§ Introductory for new employees, the so-called onboarding;

§ Regarding new product offerings and operating system support for newly hired employees;

§ Soft competencies development: development activities in the field of team building, communication, remote work, specialized, personal and managerial competences;

§ Regarding EFPA EFA and certification of Premium Advisors for Retail and Business Banking;

§ Developing sales competencies and knowledge of product and process changes for the Personal Finance Banking sales force;

§ Raising PF product and process knowledge for Retail and Business Banking network employees, including insurance, cash credit, credit card;

§ Product and process-related, strengthening cooperation in teams, improving sales competencies for employees in the area of SME and Corporate Banking;

§ Supporting development paths in the area of RB – Premium Academy, Business Academy, Leadership Academy;

§ Enhancing the risk culture of compliance, financial security, insurance, information technology and cybersecurity risks, sustainability and social responsibility, risk management;

§ Developing soft competencies and key competencies of the future within Zoom for Development;

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§ Supporting the use of modern technologies (conducting meetings, organizing teamwork, motivating, maintaining engagement) under the New ways of working program;

§ Enhancing the development of managers' leadership and communication skills, including feedback training, as a part of the Leadership Development Academy;

§ Knowledge sharing programs teaching the use of MS Office tools, SQL and developing industry knowledge in the area of finance as a part of the MamToDamTo program

§ CX Training, Agile Training, Digital Academy;

§ Training within the framework of the "Simple Language" project;

§ Foreign language learning - through the eTutor language platform supporting English language learning. The platform is available to all bank employees free of charge.

Trainings to support employees during the pandemic:

§ Trainings to counteract harmful stress factors in the workplace: Anti-stress training, Mindfulness for beginners

§ Trainings and webinars supporting employees and managers: webinars on working in a home office mode, managing a dispersed team, communication in a dispersed team, and managing emotions in the face of sudden change

GRI 404-1

The total number of training participants was over 125.9 thousand, including: 112.8 thousand. employees benefited from e-learning trainings, 632 people took part in external trainings, 9.4 thous. participated in internal training in the online formula (Skype, Webex), 3 thousand employees benefited from internal training in training rooms.

Average number of training hours per employee at BNP Paribas Bank Polska S.A. in 2020 by gender and structure of employment

Structure of employment

Woman

Men

Total

Board

-

9.9

9.9

Managers

22.0

17.7

20.1

Other employees

18.1

18.3

18.1

Total

18.5

18.2

18.4

E-learning, modular training, external and internal training are included in the calculation. The number of training hours collected for this calculation has been rounded to two decimal places.

Average number of training hours per employee in the BNP Paribas Bank Polska S.A. Capital Group in 2020 by gender and structure of employment

Structure of employment

Woman

Men

Total

Board

-

9.4

8.1

Managers

21.8

17.6

20.0

Other employees

18.1

18.2

18.1

Total

18.5

18.0

18.3

E-learning, modular training, external and internal training are included in the calculation. The minimum difference between the data illustrating the average number of training hours per employee in the bank and the Capital Group of BNP Paribas Bank Polska S.A. is due to the fact that employment in the bank as a parent company is almost 50 times higher than employment in all other Companies combined.

KEY FIGURES:

18.4
average number of training hours per employee of BNP Paribas Bank Polska S.A.

18.3
average number of training hours per employee of BNP Paribas Bank Polska S.A. Capital Group

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Development Festival

In 2020 we organized the "Development Festival", which was a part of the initiative of the entire BNP Paribas Group – the "Mobility Days". The virtual event, which lasted three weeks, allowed employees to learn how to grow within our organization. As part of the "Development Festival", numerous online meetings were held, aimed at informing about acquiring a specific skill that can be used on a daily basis at work. During this innovative event, employees were also able to talk to many inspiring guests. During the festival, trainings being a part of numerous development programs available at the bank and initiatives giving opportunities to learn and improve skills on a daily basis were presented:

§ "Zoom on Development" program

§ Competence model

§ Development program for managers

§ Initiative #MamToDamTo (knowledge sharing)

§ eTutor app

§ "About Me" platform

§ Digital training offer

§ "Data and Agile Academy"

The festival was also an opportunity to launch many projects, which over the next months we will be intensively implementing in the organization.

All events have been tailored to the needs of the target groups. During the "Development Festival" we presented amongst others the new edition of "Zoom for Development", developing the competences of the future and a talent support program, which is connected with the broad activities of the BNP Paribas Group. For new employees, in addition to the "Nice to see you" training, we have prepared special development modules that will help them to better find themselves in our organization. These modules are, for example, an introduction to Agile or Customers Experience. We promoted a competence model based on a set of key competencies and inspired to build one’s own brand.

#MamToDamTo

Each of us is a specialist in some field. We have many skills and they are often associated with the specific areas of our everyday work. Sometimes they might as well result from our passions and interests. Therefore, it is easy for us to perform certain tasks, and for other ones we need to devote some more time. In 2020, we launched recruitment for a new #MamToDamTo knowledge sharing program, where employees train and share knowledge and experience with others.

Development programs

In addition to training, we also enable our employees to participate in long-term development programs.

N-WOW

The N-WOW ("New ways of working") training program was developed in response to the needs of employees, which were identified during the diagnostic phase of the Petrus Project (the new multifunctional headquarters of the bank). It also addresses the organization's new needs related to the work model transformation caused by the COVID-19 pandemic. The Project Team, in cooperation with the Department of Development and Career Management, has developed a comprehensive program that aims to address the most important areas related to work in a new reality. It is aimed at all employees, in particular employees and managers who are included in the move to a new location and those who work remotely.

The N-WOW training program consists of three modules:

§ Remote and hybrid remote-work techniques

§ Leadership role in distributed and hybrid teams

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§ Elements of emotional intelligence in practice

The program is being implemented remotely. All activities can be found on the electronic platform MyDevelopment (the bank’s e-learning platform). The program is also being implemented in the form of podcasts, so that the employees can use the materials at any time. Additional webinars are available for managers.

Zoom on development

The Zoom for Development program supports the development of a learning organization and is based on the 70-20-10 development model. As part of the program, employees learn how to develop the competences of the future and have the opportunity to shape their careers independently with the help of experts and tools available in the bank. As part of the program, employees choose the scope and form of development that interests them, plan activities using the Individual Development Plan in AboutMe, and using proposals for development activities and programs supporting development develop themselves through projects available in the bank.

Leaders for Tomorrow

In 2020, we launched the "Leaders for Tomorrow" talent program. It has nearly 200 employees. It covers almost 200 employees. These people achieve above-average results and, most importantly, have potential for further development and taking up senior managerial positions within the BNP Paribas Group. Leaders for Tomorrow follows the 70/20/10 model, where the greatest emphasis is placed on learning through experience. We engage our leaders in projects of business and strategic importance. As part of cross-functional projects, we strengthen cooperation between areas, taking into account different experiences and perspectives.

Well Leading

As part of the development of managers, we run a leadership development program called "the Academy of Leadership Development - Well Leading". The Academy's mission is to shape consistent leadership attitudes so that they inspire employees to act effectively. We also want to shape consistent behaviours among the managers. We make sure that they are conscious and harmonious at the level of well thinking, well doing and well feeling. The program is based, among others, on developing the following competencies: customer orientation, strategic thinking, change management, as well as motivating and inspiring. It also supports building a management model based on Agile.

The program is intended for two target groups:

§ New Born Leaders – Managers up to one year of seniority

§ Team Leaders – Team Managers

Digital Ambassadors

The aim of the program is to build a digital culture in the bank by empowering employees with digital competencies. Digital Ambassadors play a key role in this process. Their task is to acquire digital knowledge and skills, including:

§ promotion of social tools and digital solutions supporting distance work and business efficiency

§ transfer of knowledge to colleagues

§ participation in the testing and implementation of new solutions

§ promoting new work techniques, collecting and communicating information about employees' needs to the IT department

§ tracking market novelties in order to implement them in the bank

In 2020, the second edition of the Digital Ambassadors program, which was attended by 51 Digital Ambassadors, was completed.

Employee assessment

GRI 404-3

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In BNP Paribas Bank Polska S.A., employee assessment covers persons who have worked in the bank for at least 4 months. In 2020, 8,224 people employed in the bank under an employment contract were subject to an employee evaluation, 5,400 of them were women, and 2,824 were men.

4.6.             Diversity in the workplace

GRI 103-1, 103-2, 103-3

Promoting diversity in the workplace is one of the BNP Paribas Group's main responsibilities regarding responsibility in the workplace. Thanks to it, we create a modern, socially responsible organization that understands the changes taking place in the world and is able to create innovative market solutions. Values such as openness, tolerance, respect for diversity, ensuring the safety and sense of belonging of each employee are inscribed in the DNA of the BNP Paribas Group. The companies of the BNP Paribas Bank Polska S.A. Capital Group approach diversity management with due diligence.

Working to support diversity, build an inclusive culture and prevent exclusion is one of our bank's responsibility priorities. We address our inclusivity efforts to employees, customers and the social environment. Both our bank and the BNP Paribas Foundation, in cooperation with expert organisations, carry out a number of initiatives that strengthen diversity, level educational opportunities and prevent exclusion.

In 2016, we adopted a Diversity Policy that aims to create and promote a work environment focused on respecting and making the most of the potential inherent in employee differences for the growth of the bank. In the same year, we appointed a Diversity Officer to ensure coordination and supervision of respect for diversity in the organization. The Diversity Officer coordinates activities related to respect for the principles of diversity in general and promotes the sharing of good practices within the Group. Employees can also report violations of these rules, i.e. all forms of discrimination to the Diversion Officer. Currently at BNP Paribas Bank Polska S.A. two persons perform the function of Diversity Officer. We work intensively on diversity in the organization, taking care to build an inclusive organizational culture (Diversity & Inclusion).

Diversity & Inclusion

Diversity

Diversity is a fact, a reality that surrounds us. Each person is unique, one of a kind. Some of the differences between us are visible at first glance, others are deeply hidden. Some characteristics are particularly protected by law because of the higher risk of discrimination in the social space: e.g. gender, age, disability, ethnic origin, nationality, political beliefs, religion, sexual orientation or gender identity. Of course, there are many more faces of diversity. After all, we all differ in talents, skills, character traits, personalities, experiences, personal situations, opinions and other attributes. We are a bank that is open to everyone.

Inclusion

Inclusion is an intentional effort. What makes diversity work, makes sense, benefits employees, customers and society. It uses everyone's potential, allows one to feel good in the organization, in society. Enables one to have a sense of belonging and influence on what is happening in the business and social environment. Structural inclusion is a creation of fair, prejudice-free structures, processes and business practices. Behavioural inclusion is the development of an organizational culture based on mutual respect and trust.

We build Diversity & Inclusion area at BNP Paribas Bank Polska S.A. within the framework of:

§ promoting diversity in the workplace

§ openness and accessibility to diverse groups of Clients, with a particular focus on those at risk of exclusion

§ pro-social activities to support Diversity & Inclusion and prevent exclusion

At the level of the BNP Paribas Group, diversity management is governed by documents:

§ Diversity Management Policy of BNP Paribas Bank Polska S.A.

§ Anti-mobbing Policy BNP Paribas Bank Polska S.A

§ Policy for reporting violations of the law and regulations in force at BNP Paribas Bank Polska S.A.

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§ Policy of ethical procedures and standards, including whistleblowing

§ Work Regulations of BNP Paribas Polska S.A.

§ Instruction on the procedure for handling complaints and motions in employee matters

§ Rules for dealing with reports of harassment and sexual harassment in professional relations at BNP Paribas Bank Polska S.A.

§ Rules for recruitment of employees of BNP Paribas Bank Polska S.A. - Annex 2

§ BNP Paribas Group Code of Conduct

§ The ILO Global Business & Disability Network Charter

§ BNP Paribas Agreement Concerning Fundamental Rights and Global Social Solutions

As a bank, we are actively committed to promoting diversity and anti-discrimination. We are also a signatory to the Diversity Charter. It is a commitment signed by organisations that decide to ban discrimination in the workplace and work to create and diversity.

"The Diversity Charter is an initiative under the auspices of the European Commission. It brings together employers of all sectors and sizes for whom diversity is much more than a fact and a value in itself. At the same time, it brings together employers who understand that building inclusive organizations is good for business and very much needed socially. We are therefore very happy that BNP Paribas Bank Polska S.A. has been a signatory of the Diversity Charter since 2016. Although this is a group of exceptional organizations, the richness of initiatives, internal and external activities of the bank are special. This confirms that BNP Paribas Bank Polska S.A. perfectly hears and understands the changing world, while seeking answers to the challenges of a difficult present and an uncertain future. Which has never been more needed than now."

Marzena Strzelczak
President of the Responsible Business Forum

In 2020, BNP Paribas Bank Polska S.A. was among the leaders of diversity management for the second time in the Diversity & Inclusion rating organized by the Responsible Business Forum with the support of Deloitte Polska.

For more information about the rating, please visit: http://odpowiedzialnybiznes.pl/karta-roznorodnosci/rating/

"The pandemic has highlighted the importance of a strong organisational culture in which promoting diversity and inclusivity is an essential element. BNP Paribas Bank Polska S.A. as a company qualified for the 2nd edition of the Diversity & Inclusion Rating can be an example for other employers of how to take care of financial results while creating a culture of diverse workplaces."

Irena Pichola
Partner at Deloitte, Team Leader Sustainability Consulting Central Europe

Initiatives to promote diversity

Diversity Days

Openness, tolerance, respect for diversity, anti-exclusion are values that are inscribed in the DNA of the BNP Paribas Group and our bank. That's why every year we get involved in the celebration of Diversity Week in the Group. In October 2020, we organized Diversity Days to make employees aware of the strengths and potential of diverse teams.

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In 2020, as part of Diversity Days, we focused on:

§ Raising awareness of one's own prejudices and stereotypes

§ Ensuring the quality of communication in everyday relationships (equality language)

§ Learning to communicate well with people with disabilities

§ Preventing violence

§ Promoting the equal role of parents in the upbringing of children

Through this initiative we promoted the idea of Diversity & Inclusion. We also made our employees aware of the importance of equal opportunities and fighting exclusion.

You can read more about our initiatives to promote diversity in the workplace later in the chapter.

In 2020, we have taken measures to promote respect for diversity and to build awareness, both among customers and the society.

We stand in solidarity with the LGBT+ community. In response to difficult social situations, we have created the "A zone open to everyone" project. in 2019. We have expressed our firm disapproval of any discrimination, including that which is built on prejudices about gender identity and sexual orientation. The bank's branches have been marked with a rainbow-themed frame – a symbol of the LGBT+ community, expressing in this way that regardless of gender identity and orientation, skin colour, fitness or views, everyone in our community is treated with respect and handled with due care. For we believe that in a changing world everyone should feel safe being themselves. In 2020, we strengthened efforts to support the LGBT+ community. We showed solidarity and support during the Rainbow Friday campaign. We also organized a webinar for employees to support children and young people with adolescence issues, including gender identity or sexual orientation.

We are actively involved in activities promoting diversity and preventing the exclusion, e.g. through numerous activities in the areas of cultural support, equal opportunities through education and facilitation of our establishments for the excluded.

1. Strengthening cultural diversity

§ Cooperation with the “Ocalenie” Foundation – support in providing assistance to e.g. families from Syria, Iraq, Ukraine or Chechnya.

You can read more about our work on cultural diversity in the Community section.

2. Equal opportunities through education

§ Scholarship program "Class" – support of talented students from smaller towns.

§ BAKCYL – an initiative in which bank employees reach schools, providing young people with financial knowledge.

§ AGROTALENTS – a development program for young people, often coming from rural areas, tying their future with agriculture.

You can read more about our efforts to promote diversity and equal social opportunities in the Community section.

3. Support for groups at risk of exclusion

§ Noble Gift – a nationwide social project of the WIOSNA (“Spring”) Association, promoting the idea of wise helping, reaching out with help to the most needy families.

§ Dream Up is - a program for education through art, initiated by the BNP Paribas Group and currently implemented in 30 countries, addressed to children from disadvantaged communities.

§ “Our House” Society – support for children in foster care.

You can read more about our support for people from groups at risk of exclusion in the Community section.

4. Bank accessible to everyone

§ Actions to increase the availability of products and services to people at risk of exclusion

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§ Cooperation with the National Institute of Senior Economy in the field of standards of service for the elderly

You can read more about increasing the availability of the bank in the Economy section.

Figures illustrating diversity in the Bank and BNP Paribas Bank Polska S.A. Capital Group

GRI 405-1

Diversity in BNP Paribas Bank Polska S.A.

The oldest employee (age)

71.9

The youngest employee (age)

20.0

The average age of employees

39.2

The longest period of service

39.17

Structure of employment in the BNP Paribas Bank Polska S.A. Capital Group in 2020 by gender

Structure of employment

Women

Men

Total

Directors

36.9%

63.1%

100.0%

Managers

61.4%

38.6%

100.0%

Other posts

66.3%

33.7%

100.0%

Total

64.4%

35.6%

100.0%

In the category of "Directors" the Directors of Divisions, Directors of Departments, Directors of Offices, Directors of Regions, Directors of Macro-Regions and members of the Boards of Companies of the BNP Paribas Bank Polska S.A. Capital Group were included.

Other supervisors were included in the "Managers" category.

The percentage refers to the number of active employees in the Capital Group BNP Paribas Bank Polska S.A. (8,656 persons).

Employment structure at BNP Paribas Bank Polska S.A. in 2020 by gender

Structure of employment

Women

Men

Total

Directors

37.7%

62.3%

100.0%

Managers

62.0%

38.0%

100.0%

Other posts

66.6%

33.4%

100.0%

Total

64.8%

35.2%

100.0%

The "Directors" category includes Directors of Divisions, Directors of Departments, Directors of Offices, Directors of Regions, Directors of Macro-Regions and members of the Management Board of BNP Paribas Bank Polska S.A.

Other supervisors were included in the "Managers" category.

The percentage ratio refers to the number of active employees at BNP Paribas Bank Polska S.A. (8,423 persons).

Structure of employment in BNP Paribas Bank Polska S.A. Capital Group in 2020 by age

Structure of employment

<30 years old

30-50 years old

>50 years old

Directors

0.2%

84.7%

15.1%

Managers

3.6%

85.7%

10.7%

Other posts

16.9%

73.5%

9.5%

Total

14.7%

75.4%

9.9%

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In the category of "Directors" were included Directors of Divisions, Directors of Departments, Directors of Offices, Directors of Regions, Directors of Macro-Regions and members of the Boards of Companies of the BNP Paribas Bank Polska S.A. Capital Group.

Other supervisors were included in the "Managers" category.

The percentage refers to the number of active employees in the Capital Group BNP Paribas Bank Polska S.A. (8,656 persons).

Employment structure at BNP Paribas Bank Polska S.A. in 2020 by age

Structure of employment

<30 years old

30-50 years old

>50 years old

Directors

0.3%

84.8%

15.0%

Managers

3.6%

85.8%

10.6%

Other posts

16.8%

73.6%

9.6%

Including

14.6%

75.4%

10.0%

In the category of "Directors" were included Directors of Divisions, Directors of Departments, Directors of Offices, Directors of Regions, Directors of Macro-Regions and members of the Boards of Companies of the BNP Paribas Bank Polska S.A. Capital Group.

Other supervisors were included in the "Managers" category.

The percentage ratio refers to the number of active employees at BNP Paribas Bank Polska S.A. (8,423 persons).

Composition of supervisory bodies in the Capital Group BNP Paribas Bank Polska S.A. in 2020 by gender

Women

Men

Total

Members of the Supervisory Boards of The Capital Group Companies

7

23

30

Members of the Management Boards of the Capital Group Companies

2

17

19

Total

9

40

49

Composition of supervisory bodies at BNP Paribas Bank Polska S.A. in 2020 by gender

Women

Men

Total

Supervisory Board

3

9

12

Management Board

0

9

9

Key managers

28

47

75

Total

31

65

96

Composition of supervisory bodies in BNP Paribas Bank Polska S.A. Capital Group in 2020 by age

<30 years old

30-50 years old

>50 years old

Members of the Supervisory Boards of The Capital Group Companies

0

16

14

Members of the Management Boards of the Capital Group Companies

0

10

9

Composition of supervisory bodies at BNP Paribas Bank Polska S.A. in 2020 by age

<30 years old

30-50 years old

>50 years old

Supervisory Board

0

2

10

Management Board

0

2

7

99

99

Composition of supervisory bodies at BNP Paribas Bank Polska S.A. in 2020 by age

30-40

40-50

50-60

>60

Supervisory Board

0

2

6

4

Management Board

0

2

7

0

Key managers

10

53

11

1

Composition of supervisory bodies at BNP Paribas Bank Polska S.A. in 2020 divided into seniority in the organization

Length of service in the bank

<5

5-10

10-15

15-20

20-25

>25

Management Board

5

2

1

0

0

1

Key managers

24

14

8

16

11

2

Total

29

16

9

16

11

3

Inclusion strategy for persons with disabilities

In the field of employing people with disabilities, we have established cooperation with external entities that support us in better adapting the organization to increase the employment of people with disabilities and conduct training and planning internal communication promoting an open, inclusive workplace. In 2021, we plan to continue the training, launch a campaign aimed at employees, and focus on further adapting the organization and recruitment of people with disabilities.

Number of employees with certified disability employed in 2020 in the Capital Group BNP Paribas Bank Polska S.A. by gender (as of 31.12.2020)

Women

Men

Total

44

18

62

Number of employees with certified disability employed in 2020 at BNP Paribas Bank Polska S.A. by gender (as of 31.12.2020)

Women

Men

Total

Total

44

16

60

Branches

24

8

32

Headquarters

20

8

28

Initiatives to strengthen the role of women

Women changing BNP Paribas

Diversity is the highest value of our organization. 68 percent of bank employees are women, so it is very important for them to feel appreciated and have the possibility of personal development adequate to their needs. The bank's employees launched the bottom-up initiative "Women Changing BNP Paribas" to work on strengthening the role of women in the organization, promoting the idea of Diversity & Inclusion in the bank, and building men's involvement in gender equality activities.

As a part of the initiative, among other things, a survey on equal treatment of women and men and observed behaviour in employee relations was conducted among the employees. A dedicated Women Up development program (described later in this chapter) was also developed for women.

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The Women Changing BNP Paribas initiative organised its activities within five thematic zones:

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Power Zone

§ Activation of women in the sales network

§ Diagnosis of needs, unlocking potential

§ Cooperation with ambassadors

Voice Zone

§ External and internal communication

§ Ensuring bank brand DNA consistency

§ Partnership in external projects supporting women

Openness Zone

§ Anti-discrimination

§ Developing and promoting D&I culture

Blossoming Zone

§ Training and development programs

§ Mentoring programs

§ Cooperation with universities

Change Zone

§ Participants' voice surveys

§ Creating performance indicators

§ Change of rules and procedures

§ Focus on effects

Power Zone Ambassadors were also appointed as part of the program. They are 55 women from 28 localities who work in the bank's sales network. Their role is to engage their colleagues in the network and explore the needs of women working in branches, business centers and macro-regions.

The publication of the Code of Diversity, trainings, workshops, a mentoring program by women for men (but also vice versa – by men for women), media presence, cooperation with organisations that support and work for women – are the selected activities on which the leaders and ambassadors of the program will focus in 2021.

Women Up Program

As part of unique development programs, we implement the Women Up program, dedicated to women working in the bank. It was prepared by the Blossoming Zone, operating as part of the "Women changing BNP Paribas" project. It is an annual development program that allows participants to identify and strengthen their talents or develop personal branding skills. In order to participate in the program, it was necessary to submit bold ideas of the changes that you want to implement in the bank. The program is based on three pillars: transparency, objectivity and action.

In 2020, 166 applications were received during the recruitment process, from which the Jury selected 101 participants. Finally, a list of ideas was created, the top ten of which were called diamond ideas. They will be implemented in project groups. They are amongst others:

§ Parent-friendly workplace – a program for women and men returning from childcare leave

§ AGE in XL size – a development program dedicated to people of + age, aimed at integrating and drawing on their rich experience

§ Innovation Up – a space to exchange ideas, inspiration, jointly solve business problems and learn about global trends in AI, big data, VR etc.

In addition to participating in the development program, the authors of ideas also received the support of Patrons - high-level managers, who will support the implementation of ideas in the organization. #WomenUp is an extraordinary initiative at the bank promoting team collaboration that strengthens and builds a sense of belonging and community of employees.

In 2020, we were also involved in promoting external initiatives that strengthened and developed the potential of women in Poland:

§ Chairman of the Board of BNP Paribas Bank Polska S.A. is a co-founder of the Polish Male Chamions of Change club, which works to increase the number of women in senior positions, close the pay gap, and better utilize the talents of both genders in their companies.

§ The bank is a partner of the Businesswoman of the Year competition, organized by the Succes Written in Lipstick Foundation, which publicizes the success of women in business, science and culture. You can read more here: https://bizneswomanroku.pl/

§ We have also joined the I Am a Leader program organized by Vital Voices Poland and developing the potential of young women aged 16-19 who are active in their community. The winners of the I Am a Leader

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§ competition took part in a series of trainings in leadership, self-presentation and communication, career design, developing one’s strengths. You can read more here: https://vitalvoices.pl/nasze-programy/programy/jestem-liderka-2/

§ We became a partner of the "Become a Ms. Ambassador" competition organized by the Israeli Embassy in Warsaw and the Leopoldy Wild Foundation. The laureates had a unique opportunity to serve as an ambassador for one day at one of the twelve embassies that take part in the project. You can read more here: https://www.ambassadorforaday.org/

"Women considering starting their own business are often looking for inspiration and support. It helps them take that first bold step. They also look at the achievements of other women. These so-called role models, give them faith that it is possible. The Businesswoman of the Year competition has already promoted several hundred of such inspiring Polish women (role models) who set paths, show new areas, break stereotypes. Thanks to a long-term cooperation, such as this one with BNP Paribas Bank Polska S.A., we have a chance to introduce a real change on the market, both in the area of equalising opportunities and utilising the talent potential of both genders, and to promote diversity."

Olga Kozierowska
President of the Success Written in Lipstick Foundation

We are a bank that supports women in various aspects of life, especially in their professional development. However, actions are more important than words, therefore 100 key managers of BNP Paribas Group, including Przemek Gdański – the Chairman of the Management Board of BNP Paribas Bank Polska SA, joined the #JamaisSansElles (Never Without Her) initiative. The French Association #JamassSansElles works to promote equal opportunities and the visibility of women in public life. By signing the #JamaisSansElles charter, BNP Paribas Group board members and now key managers from 14 countries, have pledged not to attend any public event over three people - debates, expert panels, roundtable discussions - unless a woman is present.

Parenting support

For a long time we have been witnessing social and cultural shifts in parental involvement in child rearing, particularly a shift in attitudes toward fatherhood among young men. At the bank, we support diversity and equal opportunities in the workplace for both parents.

In 2020, as a partner of the Share The Care Foundation, we co-created the "Employers' Guide 50/50 - that pays off for everyone. The role of employers in encouraging men to take parental leave." As part of the project, we also engaged in a series of premiere online debates on equalizing both parents' right to child care and its benefits. As a bank of a changing world, we have been seeing changes in parental trends and the growing role of fathers in raising children for a long time. This is confirmed by research. According to the “Family Power” study and the "Diagnosis of attitudes, motivations and barriers towards paternity and parental leave" study, women and men agree that both sexes are equally good carers for their children (79%). That is why, as a bank of a changing world, we promote the idea of parental equality and engage in initiatives to support its implementation.

GRI 401-3

Parental leaves in 2020 at BNP Paribas Bank Polska S.A.

Women

Men

Total

Number of employees entitled to parental leave

6,224

2,986

9,210

Number of employees who took parental leave

618

4

622

The data relate to maternit, paternity and parental leaves.

"Together with BNP Paribas Bank Polska S.A., we promoted the idea of equal opportunity diversity in the workplace for both parents. This is a very important area in the Bank's activity. Employees are encouraged to get involved in actions promoting openness, tolerance and counteracting exclusion. There are numerous bottom-up initiatives supporting equal opportunities, employment of people with disabilities and reconciliation of family and

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professional roles for women and men. As a result, the Bank is one of the labour market leaders in the area of strengthening work-family balance and respecting the right of both parents to care for their children."

Karolina Andrian
President of Share The Care Foundation

4.7.              Employer branding

Our organization attaches great importance to the quality of recruitment. We look for and employ employees in accordance with applicable law and the best market practices. We want to reach the widest possible group of talented candidates, which is why we are present where they are - at job fairs, universities and in social media. We offer apprenticeships and internships to people without work experience. Employees with extensive experience are offered participation in internal recruitment, which plays an important role in the process of filling managerial positions. It is important for employees who value professional development to be able to implement their plans in our organization.

Our goal is the high quality of recruitment processes. All persons involved in the employment processes are obliged to apply the principles of ethics resulting from the Labour Code and internal regulations, as well as the regulations regarding confidentiality and non-discrimination. In the recruitment process, we place particular emphasis on respecting diversity in terms of age, gender, sexual identity, nationality, skin colour, religion, health, marital status, political beliefs and other personal preferences and characteristics. Decisions in the recruitment process are made with professional objectivity and impartiality.

Internal initiatives

As a part of the promotion of the internal labour market, we have made it easier for employees to access vacancies in the bank and in the Companies of the BNP Paribas Group. We have created a tab in Echonet - our internal intranet, where employees can find internal recruitment rules, and offers promoted in the bank and its companies. We have started a series of monthly online meetings within the internal labour market. These events are aimed at presenting the internal labour market and showing opportunities for development within the bank and in the Companies of the BNP Paribas Group. During meetings with recruiters, company representatives and managers, employees have the opportunity to talk about interesting offers, get acquainted with the rules of internal recruitment and recruitment conducted in areas of their interest.

We pay special attention to building the personal brand of our employees. Two basic tools serve this purpose. One more outward-oriented – LinkedIn. The second, About Me, is an inward-oriented tool. As part of the "Development Festival", we promoted it and showed its value to the employees. It is used not only to set goals, but also to show each of us through the prism of our skills, competences, experiences, what we would like to do, how we would like to develop. We can also indicate our preferences for further professional career there. This tool allows us to present ourselves to the organization and build our personal brand.

External initiatives

Ambassador Duo

Ambassador Duo is a program aimed at students. Over the course of two semesters they cooperate with the bank by conducting a number of promotional activities at universities. This is an opportunity to gain experience in carrying out your own projects, acquire specialist knowledge from bank experts and additional training. Program participants are entitled to remuneration in the form of a scholarship, and prizes await the best of the duos. The Ambassador Duo program recruits people who stand out with their energy, willingness to act and the multitude of ideas for promoting the bank in their university environment.

In June 2020, the third edition of the Ambassador Duo program ended, and in September another edition was launched, expanded with numerous initiatives in the field of CSR and ecology.

Together with the participants of the program, we have also organized Development Days with BNP Paribas. It was a series of online webinars, thanks to which we reached a wide group of students from ten universities all

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over Poland. Thanks to the involvement of employees from different areas of the bank, students had the opportunity to gain knowledge amongst others on: recruitment, time management, CSR, or data science. The events were attended by 600 students who rated the webinars at 4.7 on a 5-point scale.

In the current edition, the bank cooperates with duos from the following universities:

§ University of Warsaw

§ AGH University of Science and Technology in Cracow

§ Cracow University of Economics

§ Poznan University of Economics and Business

§ University of Gdansk

§ University of Economics in Katowice

§ Wrocław University of Economics

BUW for Owls (Warsaw University Library for Night Owls)

In 2020, together with the Library of the University of Warsaw, we carried out the BUW for Sów campaign, as a part of which we prepared the Green Zone of BNP Paribas Bank. Visitors to our stand were able to learn about offers of internships and apprenticeships in the bank. Green Zone of BNP Paribas stand was created from ecological materials and filled with juicy greenery. It included an HR area and an ambassador duo, where students could learn about offers of internships and work at the bank. In addition, in the cafe area, where there were eco-snacks and an energy-bike, you could squeeze out the vegetable and fruit juice which you have composed yourself.

Traineeship programs

Focus on Development in Summer

"Focus on Development in Summer" is a program of paid summer internships aimed at students of at least second year of study. Their aim is to promote the bank as an employer and to strengthen contact and interest in the offers of internships of young people.

35 participants selected in the recruitment process were invited to participate in the program, within two months (August - September), interns had the opportunity to gain banking knowledge by actively participating in the tasks and projects of the selected department. Due to the epidemiological situation, the practices took place in stationary, remote and hybrid forms. Interns had additional support in the form of mentors – colleagues and dedicated HR personnel. Each week, dedicated webinar training was provided for the entire group, addressing the following topics:

§ Personal brand on LinkedIn

§ Time management

§ Financial markets – risk management

§ How to hear what has been said

§ Design thinking

§ Mindfullness

§ Investments and pensions

§ Personal brand

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The #StażJużCzas (“High time for internship”)

It is an innovative internship program whose partner besides the bank is Google Cloud. As part of the project, six interns employed in the IT area work with us. Students work on two projects: building a voice assistant, which will be a new form of communication with the customer, and development of a tool to automate infrastructure processes. The products that will be developed after the completion of the program will be a real support for business and clients in 2021.

5.    Social
responsibility

Tekst tabela

Tekst tabela

Tekst tabela

5.1. Social responsibility area management

GRI 103-1,103-2,103-3, 413-1

BNP Paribas Bank Polska S.A. is a socially responsible company, committed to the development of its environment and actively supporting positive social change. Our initiatives focus on areas where we can contribute to substantial positive change. The Bank's social responsibility includes increasing the availability of products and services, openness to customers' needs and initiatives which benefit local communities. The aforementioned activities are carried out as part of the Bank’s CSR and Sustainability Strategy.

Commitments of BNP Paribas Bank Polska S.A. within the area of social responsibility – one of the four cornerstones of our CSR and Sustainability Strategy

§ Wider access to products and services.

§ Counteracting social exclusion and supporting human rights.

§ Philanthropy focused on the arts, social solidarity and the natural environment.

The Bank's social involvement projects are implemented by the CSR and Sustainable Development Office in cooperation with the BNP Paribas Foundation.

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The BNP Paribas Foundation focuses on three key areas:

Activities in the field of education - levelling educational opportunities in groups threatened by social exclusion, e.g. through long-term scholarship programmes, e.g. scholarship programme "Class".

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Social solidarity activities - support for young refugees, partnerships with NGOs, or promotion and strengthening of employee volunteering at the bank.

Initiatives to make culture and the arts more accessible - including “Meetings with music” as part of a long-standing partnership with the National Philharmonic.

The Bank’s social responsibility initiatives are carried out in partnership with third sector organisations (through numerous educational and communication programs) and are possible owing to the extraordinary commitment of

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our employees. A volunteering program has been active at the Bank since 2011; its motto is: "You can count on me".

Our initiatives in the field of social responsibility support the UN'S Sustainable Development Goals. We ccounteract social exclusion as well as provide support for education and culture, especially in small communities.

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The Bank’s Sustainable Development Goals in the field of economic responsibility

Goal 1.

No poverty

Goal 2.

Zero hunger

Goal 4.
Quality education

Goal 10.

Reduced inequality

Goal 17.

Partnerships for the Goals

KEY FIGURES:

22,507
hours devoted to social responsibility initiatives by our employees

3,509
employees involved in social responsibility projects

124
“Noble Gift” team leaders

2,470
employees took part in the “Noble Gift” campaign

130
Local Bank Ambassadors

36
projects completed with grants awarded in the Bank's Competition for Social Projects

97

volunteers of the BAKCYL program (“Bankers

for the Financial education of Youth”)

348

employees involved in the “Good Kliometers” initiative

over 200

employees donated within the individual philanthropy project “I support all year-long”



5.2.             Volunteering and Social Commitment

GRI 103-1, 103-2, 103-3, 413-1

“You can count on me” is the motto of a social involvement initiative at the Bank. True to its name, the project, which has been launched in 2011, encourages employees to engage in social initiatives and support local communities. They cooperate with social organisations and launch their own initiatives. Each employee is entitled to 2 additional days-off per year for volunteering. The project participants can choose between individual volunteer initiatives and team projects. The program is coordinated by the BNP Paribas Foundation.

Our efforts are part of an international initiative of the BNP Paribas Group #1MillionHours2Help. The goal for the BNP Paribas Group worldwide was to devote one million hours to voluntary work in 2020. Due to the pandemic, the initiative was prolonged to include 2021.

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Find out more about our volunteering projects: https://www.bnpparibas.pl/fundacja/dzialalnosndacji/wolontariat-pracowniczy-mozesz-na-mnie-polegac

Competition for Social Projects

For the past eight years, our employees have been cooperating with NGOs and submitting ideas for voluntary activities which support local communities.

The "Competition for Social Projects” (a national grant Competition for Bank employees) provides encouragement for volunteer teamwork.

The projects are wide-ranging, depending on the needs of the local community and the interests of employees. The main areas of involvement include counteracting social exclusion and protecting the natural environment. The winners of the competition receive funds for the implementation of their ideas and expert support from the BNP Paribas Foundation.
In 2020, 36 projects were implemented and the grants amounted to PLN 133 thousand. As part of the competition, the Bank’s employees cooperated with the “Work Mum” Foundation to organise a series of webinars for mothers returning to the labour market after maternity leave. Cooperation with the Sant'Egidio Polska Foundation, on the other hand, resulted in a series of educational meetings devoted to the integration of Roma youth in Poznań.

The Competition has had 8 editions, 194 projects which benefited local communities have been carried out and our employees devoted 7,483 hours to volunteer work for 24,000 beneficiaries.

KEY FIGURES:

36
projects completed in 2020

PLN 133 thousand
support for volunteer projects in 2020

24 thousand
beneficiaries in 8 editions of the program

1,392 hours
of volunteer work resulting from the “Competition for Social Projects” in 2020

BAKCYL – Bankers for the Financial Education of Youth

Financial education from an early age is the cornerstone of well-planned and safe financial decisions in adulthood. The bank’s employees have therefore been visiting primary and secondary schools for the past seven years to provide youth with banking knowledge and experience. The project is a part of the BAKCYL program - Bankers for the Financial Education of Youth, which is coordinated by the Warsaw Banking Institute. BAKCYL is a branch of one of the largest non-commercial educational programs in the European financial sector, “Bankers for Education”, which brings together 170 banks. The aim is to provide the young generation with practical knowledge in the field of finance. Bank employees volunteer to conduct lessons and share their financial knowledge and experience.
In 2020, due to the pandemic, hybrid lessons were introduced (remote teachers, students in the classroom) and were later replaced by fully online learning. In addition, bank employees carried out their own, individual initiatives, such as webinars on Children's Day and online summer workshops devoted to basic legal issues as part of the #BAKCYL entrepreneurship initiative - “Holidays 2020”.

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In 2020, the input of BNP Paribas Bank Polska S.A. volunteers was recognised during the 4th Congress of Financial Education, organised by the Warsaw Banking Institute. Seven of our employees received awards for the most active volunteers of the BAKCYL program.

The Bank has participated in the BAKCYL program since its outset, i.e. since 2013, and is actively involved in educating youth. Initiatives related to the program are coordinated by the BNP Paribas Foundation.

Additionally, employees are eager to volunteer and devote their time to the Bank's pioneer program, launched in 2020 and entitled “Mission: Education” The program introduces children and adolescents - but also adults and seniors - to knowledge about money, savings and expense planning. More information about “Mission: Education” is included in further sections of the present chapter.

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KEY FIGURES:

97
employees involved in the BAKCYL program

143
lessons carried out
(including 80 online lessons)

7
employee-volunteers distinguished for active support of the BAKCYL program

Strategic partnership with “Noble Gift”

The Bank’s employees have been supporting the “Noble Gift” campaign for many years. The constantly growing number of volunteers among us was an impulse to cooperate on a larger scale. Since 2018, the Bank has been a strategic partner of “Noble Gift”. The official partnership and the nationwide nature of the project allow us to effectively utilise the volunteering potential among our employees. The packages prepared by volunteers respond to the very specific needs of beneficiaries and embrace the idea of “wise aid”.

In 2020, the “Noble Gift” initiative proved especially valuable, due to the ongoing pandemic. The project was joined by 124 teams from various areas of the bank and from various companies of the BNP Paribas Group: BNP Paribas Faktoring Sp. z o. o., BNP Paribas Securities Services SKA and BNP Paribas Leasing Solutions Sp. z o. o., BNP Real Estate Poland Sp. z o.o. Volunteers from the Alumni Association of the "Class" scholarship program also joined the efforts. All teams had additional financial support: each package received PLN 1,000 from the BNP Paribas Foundation. In addition, together with the WIOSNA Association, we organised webinars for leaders to help them assemble teams and prepare packages during a pandemic.

We also encouraged our Customers to join the campaign. They could choose to transfer a bonus for opening an account to the “Noble Gift”. The funds thus collected served to assemble packages from the Bank's Customers which were delivered to those in need.

Additionally, within the mamBONUS loyalty program, the bank's customers were able to exchange collected points for vouchers which supported the “Noble Gift”. The points were awarded automatically, for credit card payments in stores and online.

In 2020, 124 leaders with their teams prepared packages for 134 families. A total of 2,470 employees participated in preparing the packages.

Since the beginning of the partnership in 2018, the Bank has donated over PLN 3 million to “Noble Gift”.

"We are glad that BNP Paribas Bank Polska S.A. has been a partner of the “Noble Gift” program for many years. This year, due to the pandemic, there was an even greater need for our aid. We received far more applications from the needy and lonely. Our cooperation with the Bank enabled us to provide substantial help to chosen families, but also to provide what is even more valuable than material support: care, interest and the hope for a better tomorrow in these difficult times. The commitment of the bank's employees is extraordinary, they have been helping those who have run out of happiness in their lives for the past three years. BNP Paribas Bank Polska S.A. is the largest company among our partners.”

Joanna Sadzik
President and Managing Director of the WIOSNA Foundation, organizer of the “Noble Gift” campaign

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KEY FIGURES:

124
“Noble Gift” leaders

134
families in need received packages prepared by the Bank’s employees

2,470
employees involved in the campaign in 2020

over PLN 3 million
support for the “Noble Gift” campaign since 2018

Social campaigns addressed to employees

GRI 413-1

“Good Kilometers”

Employees of BNP Paribas Bank Polska S.A. can also get involved in social initiatives by being physically active. The “Good Kilometres” campaign is organized annually by the BNP Paribas Foundation. Employees have 30 days to cover as many kilometers as they can while cycling, running or practicing other long-distance sports. They track their activities on the Bank's social and gamification platform. Each kilometer is converted into funds transferred to an NGO of the employee’s choosing.

This year's edition will go down in history both due to the unusual circumstances of the pandemic and the record-breaking distance that the employees covered: over 70 thousand kilometres, which corresponds to c. 45 times the distance between Warsaw and Paris. As many as 348 employees took part in the September efforts. The result was achieved through 5,395 activities, such as running, cycling or walking a dog. The effect of our employees’ involvement was a donation of PLN 20 thousand to the “Herosi” Foundation, which helps children undergoing cancer treatment. In addition, the BNP Paribas Foundation donated PLN 5 thousand to three organisations selected by employees: “Rak’n'Roll" Foundation, “Zwalcz Nudę” Foundation and “SOS Wioski Dziecięce”.

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KEY FIGURES:

348
employees took part in the campaign

5,395
activities

over 70 thousand
kilometers covered

PLN 35 thousand
support for NGOs chosen by our employees

“Blood Donation Day”

Since 2011, the BNP Paribas Foundation has been organising the “Blood Donation Day” in cooperation with Regional Blood Donation Centres. Employees donate blood in mobile blood donation points. In 2020, over 100 employees from three locations (Warsaw Kasprzaka, Cracow Awatar and Ruda Śląska) took part in the campaign. 236 liters of blood have been collected since the beginning of the initiative!

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KEY FIGURES:

3
locations with mobile blood donation centers in 2020

100
employees involved

236 liters
of blood donated since 2011

Employee Philanthropy

Individual Philanthropy Program – “I support all year-long”

Our individual philanthropy program is based on a payroll mechanism and has been active since September 2017. Employees can decide to make monthly deductions from their salary and donate them to a selected cause. All bank employees can participate in the program.

In 2020, our employees chose to support the “Alivia” Oncology Foundation and the "Class" scholarship program of the BNP Paribas Foundation. In 2021, the donations will support the “Active Against Depression” Association and the SYNAPSIS Foundation.

Voluntary salary deductions are a simple and convenient tool of individual philanthropy that enables employees to support important social goals and respond to the needs of NGOs (systematic and predictable financial support).

"We are glad that the employees of BNP Paribas Bank Polska S.A. chose the “Alivia” Oncology Foundation as recipients of the support extended through the "I support all year-long“ campaign. Regular financial support is very important for our organisation. It allows us to provide patients with constant and effective help. Our programs give cancer patients specific tools, knowledge and resources to find the most effective treatment. It is especially important during the epidemic, at a time when early cancer detection and treatment are particularly difficult.“

Agata Polińska
President of the “Alivia” Oncology Foundation

5.3.              Social commitment during the pandemic

Support for the national health service

The SARS-CoV-2 pandemic transformed the world we knew. The word "change" took on an entirely new meaning in early 2020, all aver the world. We suddenly needed to start operating in new, previously unknown conditions. At BNP Paribas Bank Polska S.A. - due to the scale of our enterprise and a sense of social responsibility - we were instantly aware that we would need to get involved in the fight against the pandemic. As the Bank for a changing world, we wanted to support Poles during this time of difficulty. Our priority was to provide aid for the national health service. We financed 2,000 SARS-CoV-2 tests as part of the "Badamy-Wspieramy" project, thanks to our cooperation with Warsaw Genomics, ALAB Laboratoria and the Diagnostyka Group. In addition, the Bank purchased 20 thousand protective masks, which were delivered to medical centres.

A group of volunteers from our Personal Finance Operations Division sewed 450 masks, which were donated to the Center for the Promotion of Women Foundation and two orphanages which our employees cooperate with: The House for Children in Szymonowo and the "PROMYK 1" House for Children and Youth in Morąg.

The Bank also made a donation to support the development of a fundraising tool for hospitals: https://www.wsparciedlaszpitala.pl/. The WdS system is a free platform that provides information about the needs of hospitals and thus lets donors find out what is really needed.

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We were also involved in preparing meals for medical workers. The cooks of the Paribar canteen at our Warsaw Kasprzaka location prepared meals and regularly delivered them to employees of the Wolski Hospital in Warsaw. The Bank's support was also available to medics from the Sochczew Hospital, who received meals prepared at Leszno Palace, at a restaurant which belongs to the Bank's subsidiary - Campus Leszno Sp z o.o.

The total value of meals delivered by BNP Paribas Bank Polska S.A. to medics from the Wolski Hospital in Warsaw and the Hospital in Sochaczew amounted to PLN 155 thousand.

BNP Paribas Bank Polska S.A. was also involved in the #hot16challenge2, a nationwide aid campaign. Participants recorded a short song and nominated another person, company or organisation. The campaign was accompanied by an online fundraiser which helped the health service in the fight against coronavirus. Both nominees and the audience could make donations.

margines

KEY FIGURES:

2 thousand
SARS-Cov-2 tests for medical personnel financed

20 thousand
safety masks donated to the national health service

PLN 155 thousand
total value of meals delivered to medics from the Wolski Hospital in Warsaw and the Hospital in Sochaczew

Support for social partners

We are aware that the pandemic has transformed the lives of many. Senior citizens are a particularly vulnerable group due to age-related health issues. Therefore, in 2020, we decided to support them in cooperation with the “Little Brothers of the Poor” Association, to whom BNP Paribas Bank Polska S.A. donated PLN 15 thousand. The donation funded Easter baskets which contained essential food products and which were distributed among the elderly who suffer from loneliness and illness.

As a strategic partner of the “Wiosna” Association’s “Noble Gift” campaign, the Bank supported the organization in providing assistance to those in need, especially by promoting the "Good Words - Help for Seniors" info-line project, which helps the elderly during the COVID-19 pandemic. The project provides seniors with the support of specialists - psychologists, therapists and volunteers. The line is operated by Dr. Barbara Smolińska’s team from the “Pracownia Dialogu” Psychological Aid Foundation.

The epidemic is particularly difficult for cancer patients. Necessary treatment at a hospital may carry the risk of infection and sometimes the continuity of treatment is endangered. We therefore decided to support the “Alivia” Foundation’s fundraiser for the purchase of protective gear for oncological patients. The BNP Paribas Foundation donated PLN 20 thousand. As a result, the “Alivia” Foundation had sufficient funds to provide cancer centres with the necessary supplies, including protective masks, disposable gloves and aprons, disinfectants, as well as safe transport for patients.

We also supported students who were faced with the need to find equipment for e-learning overnight. The pandemic forced schools and colleges to close their doors and urgently switch to remote lessons. Therefore, in cooperation with “Wasko”, we prepared 250 banking laptops and donated them to students in need. It was possible owing to the incredible commitment of the bank's IT department and “Wasko”, who serviced the computers free of charge. In addition, at this difficult time, we purchased over 500 laptops with routers (worth PLN 1 million) for students in need. It was a continuation of our efforts to counteract digital exclusion. The purchased laptops were distributed among students by the “Impact Foundation”. “Orange”, a mobile services provider, was a partner of the project.

We did not forgot about the need for psychological support. Many of us were worried about our health or losing employment. This contributed to mood deterioration and could cause depression. We therefore provided financial support to the “Itaka” Foundation’s Anti-Depression Helpline. With the Bank's support, its operations were extended from 4 to 15 hours a week for 12 months. It is an important tool in the fight against depression, especially in times of a pandemic. Thanks to our initiative, the Foundation was able to provide 750 additional hours of

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telephone conversations with specialists working in the “Itaka" Foundation's Anti-Depression Helpline. Details are available at: https://stopdepresji.pl/

The Bank provided financial support for a food collection organised by the SOS Food Bank in Warsaw. The collected products were distributed amongst those who found themselves in need during the pandemic.

BNP Paribas Bank Polska S.A. and the BNP Paribas Foundation also supported social organisations which faced financial difficulties as a result of the pandemic. We helped, among others, the MONAR Association, which provides specialised help for addicts and is active in addiction prevention.

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KEY FIGURES:

PLN 15 thousand
support for „Easter Basket for the Elderly” in cooperation with the “Little Brothers of the Poor” Association

PLN 1 million
for the purchase of over 500 laptops with routers for students in cooperation with “Orange” and the “Impact” Foundation

250 bank laptops
serviced by “Wasko” and donated to children in need to support e-learning

PLN 20 thousand
for protective supplies donated to the “Alivia” foundations

PLN 10 thousand
for a food collection organised by the SOS Food Bank

750

additional hours of the “Itaka” Foundation’s Anti-Depression Helpline

5.4.              Initiatives for local communities

GRI 203-1, 413-1

The Bank’s Local Ambassadors

The Bank’s Local Ambassadors (#LAB) is a program created in 2018 by BNP Paribas Bank Polska S.A. The #LAB program is a platform for interesting initiatives which benefit local communities. At the end of 2020, the Bank had 130 Local Ambassadors operating all over Poland: advisors, directors of branches and regional directors. #LABare involved wherever things are happening. They take part in initiatives which require expert advice or organisational support. In the past year, which was particularly difficult due to the pandemic, they devoted a total of 2,800 hours to the benefit of local communities.

Key initiatives of the Bank’s Local Ambassadors in 2020:

▪     5th Walk and Run of Independence in Konstantynów Łódzki;

▪     Webinar session during the World Entrepreneurship Week in cooperation with the Municipal Public Library in Chrzanów;

▪     Collection of essential products for the staff and patients of the hospital in Zduńska Wola;

▪     Collections and auctions for animal shelters;

▪     Support for the residents of the Nursing Home in Radom;

▪     St Nicolas’ Day celebrations for the charges of nursing Homes, schools and kindergartens all over Poland, incl. in Kędzierzyn-Koźle and Kozula.

In 2020, the Bank's Local Ambassadors Program was supported by two partners - the National Institute of Silver Economy (NISE) and the “Zwolnieni z Teorii” Foundation.

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The cooperation with NISE resulted in the creation of “GOonline” - an online banking guide for senior citizens. It is available at: https://www.bnpparibas.pl/Bank-bez-barier. The Bank's Local Ambassadors conducted online training for students of Universities of the Third Age. They also promoted safe online solutions among seniors.

In partnership with the “Zwolnieni z Teorii” Foundation, #LAB once again served as mentors for youth who carried out social projects as part of the 6th edition of the “Zwolnieni z Teorii” Olympics. The competition gives young people the opportunity to gain experience in project management and to receive an international project management certificate. #LAB supported youth teams in carrying out projects devoted to important topics: ecology, social issues, combating the exclusion of vulnerable groups, promoting equal opportunities in education. During the Grand Final, which was organised as an online gala, three projects received awards, their mentors were the Bank’s Local Ambassadors from Bochnia (“100naSTART": Golden Wolf and Silver Wolf for the best project in the Lesser Poland Voivodeship), Lubliniec (“ecoData": Golden Wolf and Silver Wolf for the best project in the Silesian Voivodeship) and from Krakow (“Hello, this is Drought!”: Golden Wolf).

"It is extraordinary that the employees of BNP Paribas Bank Polska S.A. cooperate with us to change the face of education by adding the invaluable ingredient of practicality. Mentors of the “Zwolnieni z Teorii” program help young people to implement social projects by sharing their experience and knowledge. With the aid of mentors, the participants not only develop a number of soft skills, but also discover that they can really influence their surroundings. The Bank’s Local Ambassadors help with the practical aspects of project management and support our participants in their first business experiences, which gives them a great start on the labor market. I appreciate the cooperation with the Bank's volunteers, because their involvement develops entrepreneurship among young people and contributes to the development of unique social initiatives.”

Ola Chrustek
Partnership Manager, “Zwolnieni z Teorii” Foundation

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KEY FIGURES:

130
participants of the #LAB program

2,800 hours
devoted to local communities in 2020

8,900 hours
devoted to local communities since the beginning of the #LAB program in 2018

50
social projects mentored by #LAB and implemented by youth as part of the “Zwolnieni z Teorii” Olympics

134 hours
of online and offline mentoring

134 thousand
beneficiaries of the social projects developed in the “Zwolnieni z Teorii” Olympics

The Local Grants Program

GRI 203-1, 413-1

At BNP Paribas Bank Polska S.A., we believe social responsibility means taking action to wisely improve our environment. We launch many initiatives which benefit local communities. Therefore, for the past ten years, we have been implementing the Local Grants Program. Its goal is to provide financial aid to NGOs which support their communities. Thus, we try to improve the quality of life of local communities, while strengthening our brand as a reliable and trustworthy partner. In the 10th edition, we helped organisations whose goals include:

§ environmental protection and promotion of eco-attitudes,

§ health promotion,

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§ minimising social exclusion, especially among children, the elderly and people with disabilities,

§ promoting entrepreneurship and strengthening the role of women.

In 2020 we celebrated the 10th jubilee of the Program and its budget amounted to PLN 240,000. The funds supported 60 social organisations with individual grants of PLN 4,000. Applications for the program describe the organisations and present plans for the allocation of grant funds. They are submitted by branch directors or the Bank’s Local Ambassadors.

Since the beginning of the program, the Bank donated over PLN 1.7 million for the implementation of social projects, 760 grants were awarded.

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KEY FIGURES:

60
grants of a total value of PLN 240 thousand in the 10th edition of the program

760
grants for local NGOs in 10 editions of the program

Over PLN 1,7 million
of support for local NGOs

5.5.              The BNP Paribas Foundation

GRI 103-1, 103-2, 103-3, 203-1

The Foundation’s mission is to responsibly invest in people, ideas and projects by conducting and supporting innovative initiatives in the fields of education, culture and social solidarity. We strive to inspire and create a stimulating environment, thus contributing to the development of a civil society.

The BNP Paribas Foundation was established in 2006 to carry out tasks related to the social responsibility of the Bank in 3 crucial areas:

§ initiatives related to education: levelling of educational opportunities in vulnerable groups, primarily through long-term scholarship programs;

§ social solidarity initiatives: support for refugee youth, partnerships with NGOs, as well as initiatives promoting and strengthening employee volunteering at the Bank;

§ initiatives to increase access to culture and art.

§

Through pioneer programs and cooperation with expert organisations, the Foundation provides equal educational opportunities, prevents the exclusion of the disadvantaged and vulnerable, supports the construction of social capital and the development of civic organisations in local communities.

The chairman of the Foundation’s Council is the President of the Management Board of BNP Paribas Bank Polska S.A., and members represent key areas of the Bank's operations from the perspective of the Foundation's goals.

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Initiatives coordinated by the BNP Paribas Foundation in 2020:

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§ “Class” scholarship program”

§ “Agro-talents” scholarship program,

§ “Knowledge to the power” program in cooperation with the Ocalenie Foundation

§ “Dream Up” program in partnership with the Praga Południe Center for Culture Promotion

§ ”You can count on me” - an employee volunteering program

§ Competition for Social Projects

§ Bankers for the Financial Education of Youth (BAKCYL)

§ Employee volunteering as part of the “Noble Gift” campaign

§ “I support all year-long”, an individual philanthropy program for the Bank’s employees based on a payroll mechanism

§ Social campaigns: “Blood Donation Day” and ”Good Kilometres”

§ Support in the fight against the COVID-19 pandemic

§ Zaangażowanie we wsparcie walki z pandemią COVID-19

In 2021, we plan to continue our long-term scholarship programs: "Class", “Agro-talents", “Knowledge to the Power" and the "Dream Up" educational program. We will support social organisations and cultural institutions. The Foundation plans to continue the employee volunteering program at the Bank, with particular focus on promoting the idea of individual philanthropy. We will also be promoting employee volunteering at other companies.

The Foundation’s educational initiatives
“Class” Scholarship Program

“Class” is an innovative scholarship program of the BNP Paribas Foundation. Its goal is to help elementary school graduates from poor families who live in rural areas and small towns. In 2020, we celebrated the program’s 18th anniversary and it is one of the longest-running scholarship programs in Poland. Scholarship holders can attend top high schools in 5 Polish cities. Since 2003, nearly 800 scholarship holders from over 350 towns took part in the program.

In 2020, 26 scholarship holders joined the program. In total, there were 100 scholarship holders in the 2020/2021 school year. Since the beginning of the program, the Foundation has allocated nearly PLN 24 million for this purpose.

The funds donated by the bank's employees in the “I support all year-long“ program allowed 40 "Class" scholarship holders to take part in a summer sailing camp at Lake Kisajno.

For details about the program, visit: https://www.bnpparibas.pl/fundacja/dzialalnosc-fundacji/program-stypendialny-klasa

margines

KEY FIGURES:

PLN 24 million
allocated for the “Class” scholarship program
in 18 years

800
graduates from 350 towns and villages since 2003

100
scholarship holders in the 2020/2021
school year

40
scholarship holders took part in the summer sailing camp at Lake Kisajno in 2020

“The “Class” scholarship program allowed me to realise my dream of studying at a renowned secondary school in Wrocław. I come from a small town and I never thought I would be able to attend a prestigious high school. The scholarship provided me with the financial aid necessary to pay for my accommodation, as well as the purchase of textbooks and all the necessary educational materials. I believe that the opportunity shaped who I am today. Thanks to the “Class” program, I was accepted to study law at the

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University of Wrocław. The “Class” program is not only an educational stepping stone, it also helps one establish long-term relationships with other alumni. After graduating from high school, we join the Alumni Association, whose slogan is: “You can count on me!“

Oskar Olejnik

Graduate of the “Class” scholarship program,
President of the Board of the “Class” Program Alumni Association

“Agro-talents”

“Agro-talents” is a comprehensive program for the development of young talents – a system of scholarships for ambitious youth who see their future in agriculture. The BNP Paribas Foundation and its partners - educational institutions, experts and the Bank's Customers - cooperate to strengthen agricultural education.

The program is implemented through:

§ A scholarship program for the winners of the Agricultural Knowledge and Skills Competition organised by the top 8 agricultural universities. The program’s partner is the Warsaw University of Life Sciences. The BNP Paribas Foundation funds 40 scholarships a year. Thus far, 363 people have received support.

§ The Bridge Scholarship Program of the Educational Enterprise Foundation for the most talented students of agriculture after their 3rd and 4th year of studies. In 2020, the BNP Paribas Foundation provided 13 scholarships worth a total of PLN 52.5 thousand.

§ Cooperation with the Warsaw University of Life Sciences in the field of education, exchange of knowledge and experience.

The Foundation’s social solidarity initiatives

DREAM UP

”Dream Up” is an initiative created and financed by the Fondation BNP Paribas in Paris and it is currently active in 30 countries. In each country, the goal is to educate and prevent social exclusion through art. In Poland, the BNP Paribas Foundation organises music classes with professionals and supports the personal and social development of children and youth in Warsaw's Praga district in partnership with the Praga Południe Culture Promotion Center.

The second edition of the "Dream Up" program, scheduled for 2018-2021, is addressed to children and adolescents aged 10 to 18 who live in Warsaw’s Praga district. The participants of the first edition can also take part in the 2nd edition. The program includes:

§ free music lessons with professionals - musicians with teaching experience;

§ learning to sing and play instruments (including flutes, guitars, ukulele, violin, djembe, bongos);

§ giving concerts at events in the Praga district;

§ a musical ensemble - the Prague Dream Up Orchestra, which plans to record an album.

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KEY FIGURES:

33
participants in the second edition of the program

close to 2600 hours
of music lessons

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1
concert of the Dream Up Orchestra

PLN 90 thousand
of financial support from the Fondation BNP Paribas

“Knowledge to the power”

The BNP Paribas Foundation has been active in supporting diversity and counteracting social exclusion for many years. That is why, since 2016, we have been cooperating with the “Ocalenie" Foundation and helping refugees from Syria, Iraq, the Ukraine and Chechnya. In 2018, both foundations jointly launched the “Knowledge to the Power" scholarship and tutoring program to help young refugees find their place in the Polish education system. Participants of the program benefit from the help of volunteer-tutors and take part in workshops as well as educational and cultural outings and summer camps. The organisers are in close contact with the families of scholarship holders, offering them support whenever it is needed.

Since the beginning of the program in 2018, we have provided individual tutoring to 108 children from 15 countries: Chechnya, Tajikistan, the Ukraine, Syria, Georgia, Russia, Iraq, Dagestan, Armenia, Ingushetia, Afghanistan, Cameroon, Kazakhstan, Kenya and Kyrgyzstan. In the 2020/2021 school year, 75 students are taking part in the program, 47 are supported by the BNP Paribas Foundation.

Since 2019, the "Knowledge to the Power" program is a part of the European initiative of the BNP Paribas Group for the integration of young refugees and - thanks to a 3-year grant from the BNP Paribas Group - it will continue until the end of 2021.

“Several thousand people a year flee from persecution and become refugees seeking a safe haven in Poland. We help them to achieve basic independence, e.g. by teaching Polish and supporting the education of their children. Our cooperation with the BNP Paribas Foundation in the implementation of the “Knowledge to the Power” program, has enabled us to help over 100 young people. As a result, they are slowly becoming part of the Polish society, which will make it easier for them to become independent and find a job in the future.”

Agata Kołodziej

Coordinator of support programs for children and youth, “Ocalenie” Foundation

Cooperation with the Warsaw Philharmonic

BNP Paribas Bank Polska S.A. and the BNP Paribas Foundation have been cooperating with the National Philharmonic since 2003 to provide music education and support the role of music as an important form of high culture. Since the 2011/2012 season, the Foundation has been a partner of "Meetings with music" - a series of concerts for small-town students from 7 voivodeships in Poland. The program gives young students the opportunity develop their cultural sensitivity and participate in concerts conducted by professional musicians. In the 2020/2021 season, the Philharmonic launched a project entitled "Online Music Meetings". Ten online events were recorded, each in two versions - for younger and older children. Children could listen to both old and new music on mobile devices. The performances included instrumental music, singing, dancing and acting.

In the 2019/2020 season, 1,520 broadcasts took place in schools, and in the 2020/2021 season, 167 broadcasts were carried out by the end of 2020. In 2020, the Foundation donated PLN 100 thousand to the program.

Initiatives in the third sector

The BNP Paribas Foundation supports the third sector in Poland through long-term partnerships with NGOs, but also through active participation in coalitions, committees and working groups. Since 2009, the Foundation has been a member of the Donors' Forum in Poland, a platform which brings together non-governmental organisations, institutions and companies that value philanthropy, charity and support initiatives for the public good. In 2020, the BNP Paribas Foundation became a partner of the Forum of Corporate Foundations for the 4th time. The Forum is the most important event for corporate foundations in Poland.

"This year, over 70 participants took part in the Forum of Corporate Foundations. We discussed how corporate foundations can strengthen the education system in Poland and counteract climate change. In addition, thanks to the input of the BNP Paribas Foundation, participants could learn how to support refugees in Poland through education. These meetings are always very valuable, as they allow us to share our knowledge and inspire us to take further action.“

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Magdalena Pękacka
Director of the Donors’ Forum

Since 2011, the bank has been a member of the Pro Bono Leaders Coalition (formerly the Coalition of Presidents-Volunteers), coordinated by the Academy for the Development of Philanthropy. In December 2020, the 8th Pro Bono Leaders Conference was held, during which the first Employee Volunteering Charter in Poland was presented. The idea behind the creation of the document is to promote and support volunteering among Polish companies. Representatives of the BNP Paribas Foundation participated in developing the Charter.

5.6.             Mission Education

In autumn 2020, we started the implementation of our new interdisciplinary project, “Mission Education”. It is a number of initiatives and partnerships in the field of education. Its aim is to improve public knowledge with regard to finance, ecology, security, entrepreneurship and psychology. Beneficiaries of the program gain new skills, discover their own potential, and broaden their horizons. The program includes:

§ finance classes for children and youth conducted in schools and based on educational materials prepared by the Bank,

§ finance lectures for seniors,

§ cybersecurity webinars,

§ "Know your powers” - a family workshop in cooperation with the “Kosmos dla Dziewczynek” Foundation,

§ A new series of educational podcasts in the BNP Paribas Talks series,

§ educational initiatives in partnership with the “Children's University” Foundation,

§ webinars with WSB University.

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In 2020, the commitment of our employees (including The Bank’s Local Ambassadors) allowed us to organise webinars devoted to cybersecurity and online shopping. In partnership with the National Institute of Silver Economy, we created the “GOonline” banking guide - a basis for webinars which strengthened the digital competences of seniors. We also organised a free workshop, "Know your powers”, which helped participants to discover their talents and strengths. It was the continuation of a 2019 project carried out by the “Kosmos dla Dziewczynek” Foundation. This year, the workshop took place online. Each participant had the opportunity to complete a test prepared by the “Kosmos dla Dziewczynek” Foundation. The exercise was inspired by the Strengthsfinder test and it provided the young participants and their families with a plan for further development.

"The “Kosmos dla Dziewczynek” Foundation and BNP Paribas Bank Polska S.A. created a harmonious cooperation. We are on the same path as both our organisations believe that that by investing in children, we can change their future and, consequently, the future of the world! The Bank's commitment to strengthening the education system in Poland works perfectly with our “cosmic” mission to empower children. With the Bank's support, our Foundation has already helped thousands of kids discover and name their strengths. It is a great achievement because the awareness of one’s talents helps one achieve better results in learning, increases self-confidence and self-esteem.”

Magda Turbalska-Martyniuk
Manager of the “Know your Powers” project, “Kosmos dla Dziewczynek” Foundation

5.7.              Responsible marketing

As a responsible financial institution, we believe that one of the pillars of our responsibility is to raise important social topics in our marketing communication. We want to draw society's attention to important phenomena, contribute to shaping positive social attitudes and change the world we live in.

#APPRECIATE, DON’T JUDGE

As in 2019, we promoted the need to receive and provide positive feedback using the slogan #DoceniajNIEoceniaj (#AppreciateDON’Tjudge). We believe that such an approach is the key to effective motivation and the achievement of one’s goals.

Our campaign highlighted the power of our loved ones’ words and gestures. We encouraged people to support others in implementing their plans rather than criticising and judging. Appreciation is power, it helps you spread your wings and motivates you to act.

Find out more: https://www.doceniajnieoceniaj.pl/

BNP PARIBAS TALKS

Since 2018, the BNP Paribas Talks project has led to the organisation of meetings with writers, poets, artists and important figures from the world of culture. The meetings - which had previously been held at the Bank’s branches all over Poland - have now been moved to the virtual world due to the pandemic. In April 2020 we were the first bank in Poland to publish its own podcast on a regular basis (at https://talks-bnpparibas.pl/ and on the Spotify platform). In nine months, the Spotify podcast was played over 6,000 times by people from 26 countries, and the website was visited by over 5,000 people. By transferring the meetings online and diversifying topics to include psychology, business, ecology, travel and literature, we reached more people than would have been possible with traditional meetings.

Support for #STAYatHOME

The bank employed its social media to encourage people to stay at home. We carried out a campaign to raise awareness about the importance of taking care of one’s health and to encourage the transfer of social contacts to a virtual space. You can read more about our initiatives during the pandemic at: https://www.bnpparibas.pl/koronawirus-aktualnosci

#Jeszcze Będzie Przepięknie (#It will be beautiful yet)

At the beginning of the pandemic, we carried out a campaign whose motto was the lyric of a song by Tilt “It will be beautiful yet". Its goal was to support society through a difficult time and bring comfort by showing that we all share the burden of isolation. The well-known and symbolic lyrics of the song inspired hope and provided encouragement for Poles during the pandemic. The campaign was consistent with the Bank's efforts to maintain continued access to financial services during the pandemic as well as with its social initiatives in the fight against coronavirus.

Find out more at: https://www.bnpparibas.pl/jeszczebedzieprzepieknie/

“Let’s get Poland moving”

In 2020, we launched the #rozruszajmyPolskę (#LETSgetPOLANDmoving) campaign. Its goal was to help small businesses which were struggling due to the economic consequences of the pandemic. In cooperation with the “Opus B” advertising agency, we created a mechanism that rewarded people for using services such as, i.a.: gastronomy, the beauty industry, tourism and fitness. We created a website (https://rozruszajmy.pl/) with a list of entrepreneurs who took part in the campaign. Anyone who activated the GOmobile application and paid with a card at one of the listed service outlets could get a PLN 50 refund from the Bank.

“It’s Today”

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In 2020, we became a partner of the „To Już Dziś” (“It’s Today”) YouTube channel created by Abstrachuje.tv. The cooperation included a campaign which promoted reliable sources of information on the Internet. The YouTube channel was a great platform which enabled us to provide trustworthy information regarding climate change, technological advancements and social problems. It also allowed us to counteract the phenomenon of fake-news. The channel provides informative and relevant content, enriched by a large dose of humor. The videos featured Rafał Masny, the co-creator of the legendary Polish YouTube channel, “Abstrachuje.tv".

Find out more on YouTube: https://www.youtube.com/watch?v=noYrDIdw_bA

Lend a helping hand

The year 2020 was challenging and we therefore decided break the tradition of buying Christmas gifts for our clients and contractors. Their production and transport would have had a significant impact on the natural environment. Instead, we decided to spread goodwill and thus give something more valuable. Our Clients, partners and contractors could choose an organisation which we supported financially.

They selected an organisation and a specific project from a list on a dedicated website (https://www.bnpparibas.pl/dzielsiepomoca/). The list included social partners of the Bank and the BNP Paribas Foundation. The organisations and projects included:

§ “Ocalenie” Foundation - Christmas packages for migrant and refugee families,

§ “Alivia” Foundation - safe and free transport to therapy for cancer patients,

§ “ITAKA” Foundation - longer working hours of the Anti-Depression Helpline,

§ Mudita” Association’s "Spa for moms” - for mothers who take care of their disabled or chronically ill children on a daily basis,

§ K.I.D.S. Foundation - implementation of a new VR solution which minimises the anxiety and pain associated with the puncture procedure in the chemotherapy of children.

The initiative was extremely successful. Over 37,000 people voted for one of the five projects. We provided support for five NGOs, worth a total of PLN 200 thousand. The funds were distributed proportionally to votes for particular organisations. We are grateful to our clients for their commitment and to our NGO partners for making the world a better place, not just during the holidays.

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KEY FIGURES:

37 253
votes cast

PLN 200 thousand
support for five NGOs

The Bank of Green Changes

We care about the natural environment and therefore strive to raise awareness about the importance of protecting our planet. We promoted responsible eco-attitudes by sponsoring the Kraków Green Film Festival and participating in numerous other initiatives and events. We also carried out an educational campaign on the proper use of fertilisers, addressed to farmers and the society in general. More information on our efforts to promote eco-attitudes can be found in the Environmental Responsibility chapter.

5.8.             Sponsorship initiatives

Sponsorship initiatives constitute an important aspect of the Bank’s social involvement. Our sponsorship goals are a part of the global sponsorship strategy of the BNP Paribas Group. Its pillars are to support the development

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of tennis and culture (especially cinema). Bank BNP Paribas sponsors numerous projects related to the development of tennis in Poland, both at the professional and amateur level. We also support film festivals, opening night events and cultural events.

MASTERCARD OFF CAMERA Festival - #WE LOVE CINEMA

The Bank is a strategic partner of the largest independent cinema festival in Central Europe. This year, due to the pandemic, the formula of the festival has been changed. The organisers of the Mastercard OFF Camera decided to show festival entries in drive-in cinemas and on the player.pl platform. The films had over 100,000 views. The movie town also moved to the Internet. The online version hosted competitions, meetings with the jury, authors and critics, as well as discussions about films and tv shows. This year, the Bank supported the "Among us, women" section. It was a tribute to female creators and female characters, who are often neglected by world cinema. Films shown in this section promoted female solidarity and community. Many of them were directed by women.

Kraków Green Film Festival

BNP Paribas Bank Polska S.A. was the main sponsor of the 3rd Kraków Green Film Festival (KGFF), which took place in August 2020. It is a unique international festival of ecological films, which gathers the best productions from around the world. The goal is to educate and promote pro-ecological attitudes through film, discussions, panels and accompanying events.

More information about KGFF can be found in the Environmental Responsibility chapter.

#WE ARE TENNIS

The history of the BNP Paribas Group has always been intertwined with the history of tennis. It is a universal sport, based on the idea of fair play, and we have been supporting it for 45 years. The Group is committed to the development of tennis at all levels: professional, amateur and junior. We also support tennis competitions for players with disabilities. In addition to organising and sponsoring tennis events around the world, the Group runs an international information and community portal for tennis enthusiasts.

Find out more about the initiative: https://wearetennis.bnpparibas/fr/

Economic Events

In 2020, we supported a number of international economic events in Poland.

§ Main Partner of the 12th European Economic Congress in Katowice - the partnership included the following sessions: "Green Deal - analysis and practice", "Banking sector", "Building a multigenerational company", "Employee Capital Plans in the new reality", "Trade, geopolitics, practice” and "Food industry - the future of the sector";

§ Partner of the Open Eyes Economy Summit congress;

§ Main partner of the “Not-Irresponsible” conference focused on responsibility in finance and business. The theme of the 2020 conference was ‘Jealousy’;

§ Partner of the 10th European Financial Congress - the Bank chaired sessions on responsible financing, climate change and innovation during the pandemic;

§ Partner of the “Eco-city” conference, where the Bank promoted its offer addressed to local managers and housing communities regarding energy transformation financing for residential buildings;

§ Partner of the Retail Banking Congress - the largest retail banking forum in Poland. Przemek Gdański, the President of the Management Board of BNP Paribas Bank Polska S.A., took part in the 3rd Debate of Retail Banking Giants during the Congress;

§ Partner of Infoshare 2020, the largest technology conference in Central and Eastern Europe;

§ Gold Partner of the "New normal logistics and supply chain" conference on the future of the TSL industry, organised by the Polish-German Chamber of Industry and Commerce;

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§ Partner of the "On the fast lane to digital transformation” conference, organised by the Polish-German Chamber of Industry and Commerce. The event was devoted to the information and communication technology (ICT) industry;

§ Partner of the annual ESG Reporting conference dedicated to reporting standards. The leading topics of the 5th edition were the requirements set by financing institutions in light of ESG factors as well as reporting on environmental, social and organisational governance issues.

§ Strategic Partner of the International Family Business Congress - the most important event addressed to business owners;

§ Co-host of a debate entitled "Climate for business change - the perspective of climate change and the accompanying opportunities and risks for the Polish financial market”. The debate was a part of the Corporate and Investment Banking Congress, an initiative of the European Financial Congress.

Representatives of BNP Paribas Bank Polska S.A. also spoke at numerous congresses and shared their knowledge and good practices in the areas of management, finance, agribusiness, energy transformation and sustainable development.

5.9.             Good practices of BNP Paribas Group Companies in Poland

CSR initiatives in companies belonging the BNP Paribas Bank Polska S.A. Capital Group

Social responsibility is important to all companies in the Bank’s Capital Group. Their operations adhere to the highest standards of responsibility and to the guidelines of the BNP Paribas Group (including the Code of Conduct of the BNP Paribas Group), and their employees are involved in social initiatives.

Employees of the Capital Groups’s subsidiaries are often simultaneously employed at BNP Paribas Bank Polska S.A. and are involved in the Bank’s social initiatives. Additionally, individual companies strive to increase the social commitment of employees.

In accordance with the Group's Policy, BNP Paribas Leasing Services Sp. z o.o. encourages employees to become involved in philanthropic and altruistic initiatives. Despite the coronavirus pandemic, employees took part in various charitable endeavours. In 2020, we were able to provide assistance to six families in need as part of the “Noble Gift” campaign. Five teams of our employees (over 60 people) participated in the preparation of packages. In addition, employees raised money for the treatment of a girl suffering from SMA by participating in a sports challenge. Nearly 60 employees participated, covered a distance of 2,279 km and collected PLN 3,200. The Bank made an additional donation of PLN 3 thousand. Employees also took part in charity runs which supported social initiatives and were eager to get involved in local communities to help in the times of the pandemic. They supported the BNP Paribas Group fund for the inhabitants of Beirut and the “Rescue & Recover” Fund for the fight against COVID-19. In 2020, BNP Paribas Leasing Services Sp. z o.o. donated a total of PLN 15,000 to charity. Operational services for BNP Paribas Leasing Services Sp. z o.o. are provided by BNP Paribas Lease Group sp.z o.o

Employees of BNP Paribas Group Service Center S.A. took part in the annual “Noble Gift" campaign and prepared packages for families in need. In 2020, they also organised fundraisers, including a collection of bottle caps for a child with disabilities. In 2020, the Company donated over PLN 10 thousand to charity.

The Campus Leszno Sp. z. o. o. Company supported medical personnel from a hospital in Sochaczew. The company's employees prepared and delivered meals for medics who were fighting the COVID-19 pandemic. The employees’ social commitment also included a collection of clothes, shoes, toys and Christmas decorations, which were donated to a training and educational facility in Wyszogród. Employees were also involved in other initiatives, including a charity auction for an ill child.

Good CSR and sustainable development practices of BNP Paribas Group Companies in Poland

BNP PARIBAS LEASE GROUP SP. Z O. O.

BNP Paribas Lease Group sp.z o.o. provides operations services for BNP Paribas Leasing Services Sp. z o.o. on the basis of relevant service contracts. In 2020, the company cooperated BNP Paribas Leasing Services Sp. z o. o. in the area of corporate social responsibility and sustainable development.

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Social responsibility

In 2020, the company's employees became involved in the annual “Noble Gift” campaign, coordinated in the BNP Paribas Bank Polska S.A. Capital Group by the BNP Paribas Foundation.

The Company promoted responsible attitudes which positively impact the environment among employees and their relatives as part of the "BePrime" and "We are responsible" campaigns.

The company’s employees also took part in a number of grassroots initiatives:

§ they supported children from a Pre-Adoption Center;

§ they took part in the #BiegnijzZosia - let's defeat SMA! Campaign which included a sports challenge and a fundraiser for a girl suffering from SMA;

§ they took part in two charity runs in Warsaw and Wrocław, supporting noble causes;

§ during the pandemic, they were involved in local initiatives;

§ they supported the BNP Paribas Group fund for the inhabitants of Beirut and the “Rescue & Recover” Fund for the fight against COVID-19.

Responsibility in the workplace

During the COVID-19 pandemic, BNP Paribas Lease Group Sp. z o. o. ensured safe work conditions for its employees, provided access to psychological care, and provided the appropriate equipment for remote work, e.g. by lending office chairs and additional monitors.

Additionally, employees received the following wellbeing benefits:

§ concierge services,

§ fitness balls and sports cards,

§ remote work,

§ flexible working hours,

§ medical care and a wide insurance offer,

§ an international exchange program.

In 2020, the Company organised a Diversity Week with workshops devoted to assertiveness and services for customers with special needs or in difficult situations. During the Week, employees took part in a webinar on relations with children, led by Emilia Kulpa-Nowak, a specialist in conscious relations, a certified NVC trainer, life coach, author of courses, articles and the book "How to build a relationship with a child. Path to agreement without violence”.

On March 8, 2020, as part of Women's Day celebrations the Company organised office massages and a workshop entitled "Training and nutrition. Influence on the proper functioning of your body.”

The company became a strategic partner of the 2nd edition of the "IN HAND" mentoring program in cooperation with the “Business Boutique” Foundation. The initiative strives to empower women in business.

Environmental responsibility

To counteract its negative impact on the environment, the Company conducts quarterly inspections aimed at reducing the use of paper and limiting CO₂ emissions caused by the car fleet and business trips. The company is also implementing a policy to reduce paper and plastic waste.

In 2020, the Company encouraged employees to sort waste and promoted eco-attitudes. It eliminated plastic accessories, including plastic cups and plastic bottles in vending machines. Advertising and office materials ordered by the Company are made from ecological, recycled materials which are produced according to the principles of sustainability. The company has also launched the "Paperless" project with the aim of digitising processes and creating e-archives, thus reducing paper consumption. The company has also introduced video identification, and is encouraging customers to resign from paper invoices as part of the "Customer Portal” initiative. Another initiative of the Company - the "Vehicle Policy” - promoted low emission cars. In the Company’s tender procedures, a contractor’s CSR policy constitutes at least 5 percent of the evaluation.

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In 2020, the Company introduced eco-friendly initiatives in the area of business. The "Green Energy” project for financing ecological installations (including water treatment stations, sewage treatment plants, electric vehicle charging stations, photovoltaics, heat pumps, wind energy) was launched. The company also implemented the "Photovoltaics" project, whose aim is to promote and finance solar energy installations.

BNP PARIBAS SECURITIES SERVICES SP. K., POLISH BRANCH

Social responsibility

At BNP Paribas Securities Services, corporate social responsibility is a key value. This results in the involvement of employees in voluntary initiatives, primarily those aimed at supporting educational organisations which improve the quality of learning conditions for children and youth. In 2020, one of the Company's priorities was to support medical workers struggling with the effects of the COVID-19 pandemic. The company launched the "Give lunch to a medic" program. It is a grassroots initiative which provides support for the medical personnel of the Wolski Hospital. It was also a way of supporting two local restaurants, for whom the project meant ensuring the continuity of business. Nearly 150 employees decided to donate their BenefitLuch lunch cards to medics. As a result, medical workers received over 7,500 meals from two local restaurants, the value of which was c. PLN 150,000.

True to tradition, the Company took part in the “Noble Gift” campaign, coordinated in the BNP Paribas Bank Polska S.A. Capital Group by the BNP Paribas Foundation. Over 300 volunteers from the Company prepared nine packages for families in need. The value of the parcels amounted to PLN 30 thousand, and each parcel received PLN 1,000 of support from the company.

As part of the "Back to School" program, the Company's volunteers collected several dozen books and several hundred stationary items for the student-patients of the Children's Memorial Health Institute and for the charges of the “Centruś” Association at a local primary school.

The Company’s employees also carried out a winter collection of food, blankets, dog toys and funds for animals in the care of the “Judyta” Foundation for Puppies. The employees also launched a dog-walking initiative to help the Celestynów shelter for homeless animals. The first, autumn edition of the campaign was attended by over a dozen volunteers who spent a day at the shelter and went on walks with the dogs.

Owing to cooperation with the BNP Paribas Foundation, the employees of BNP Paribas Securities Services implemented five volunteer projects:

§ “Work Mum" - online workshops and webinars for mothers returning to the labour market;

§ “Tea Service" - food packages for the homeless distributed at the Central Railway Station in Warsaw;

§ Food parcels for refugee families under the care of the “Ocalenie” Foundation;

§ Support for the World MS Day in cooperation with the Polish Multiple Sclerosis Society;

§ "Open Bicycle Workshop" - the establishment of a bicycle repair workshop at the Youth Sociotherapy Center in Łomianki.

In 2020, the Company also supported a Christmas concert of the Warsaw School of Economics. The concert is a cyclical charity event carried out with the help of the Company's employees and potential job candidates. It is an opportunity to present the Company to future employees - the students. In 2020, the concert was accompanied by the auction of an online mentoring meeting with Andy Crighton, CEO of BNP Paribas Securities Services. Additionally, a Company expert in social media communications conducted two webinars for students.

Responsibility in the workplace

BNP Paribas Securities Services employs over 800 employees, most of whom are women. The operating language of the Company is English, but services are provided for Clients from many European countries, therefore the company has teams of French, Spanish, Italian and German speakers. Many employees use two foreign languages in their daily work. The Company thus offers an international work environment - many employees come from the Ukraine, Belarus, India, France and Russia. A key value for the company is respect for diversity. In 2020, BNP Paribas Securities Services organised an online "Diversity Week". It was a series of meetings and courses aimed at enriching the potential of employees and promoting a culture based on diversity.

Due to innovation, the employment of new technologies and the highest quality services, BNP Paribas Securities Services is developing dynamically. Employees benefit from, i.a. opportunities for constant development, an

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innovative approach, great workplace atmosphere, a modern office in the very center of Warsaw, attractive non-financial benefits and sports benefits.

Environmental responsibility

The headquarters of BNP Paribas Securities Services - Wronia 31 - has received the BREEAM Outstanding ecological certificate for the Post Construction stage. In addition to the systematic implementation of eco-improvements and promoting eco-attitudes, the Company is committed to biodiversity in the local urban ecosystem. Its employees, in cooperation with the “Pszczelarium” company, take care of two beehives on the technical terrace of the Company's skyscraper, which have been a home to 40 thousand bees since 2019.

As regards environmental impact, the Company cooperates with the House - Family - Human association. As part of the cooperation, employees collect plastic caps and donate several dozen kilograms of them every year to the association. The funds obtained from their sale are allocated to the purchase of wheelchairs and prostheses for people in need.

The company's employees also took part in cleaning the Kabacki Forest. Several dozen employee-volunteers with their families participated in an environmental campaign organised by the “Po Prostu Kultura” Foundation. It resulted in the removal of several dozen bags of garbage from the forest.

BNP REAL ESTATE POLAND SP. Z O. O.

Social responsibility

The Company’s CSR efforts in 2020 included initiatives to strengthen social sensitivity. Employee-volunteers were involved in the preparation of packages for those in need as part of the “Noble Gift” campaign, coordinated at the BNP Paribas Bank Polska S.A. Capital Group by the BNP Paribas Foundation. Additionally, the Company provided funds for the purchase of a Health Card for the recipient of the package.

To raise awareness about autism, the Company became involved in a campaign organised by the “SYNAPSIS” Foundation for the 4th time. On the International Autism Day, Company buildings are illuminated in blue. It is a gesture of solidarity and an effort to draw attention to the situation of people with autism in Poland.

The company also supported an orphanage in Wrocław. Seven tablets were donated to the facility.

The company encourages employees and customers the get involved in CSR initiatives, including the “Blood Donation Day”, bicycle rallies and electro-waste collection.

Responsibility in the workplace

The Company has introduced the #Wellbe program, which aims to increase well-being and promote a healthy lifestyle among employees. In 2020, as part of the initiative, employees could benefit from the services of a massage therapist and dietitian as well as participate in sports activities and courses devoted to the work-life balance. Workshops on healthy nutrition and physical activity were also held. During the pandemic, employees received weekly newsletters with information about online cultural, sports or culinary events.

Environmental responsibility

BNP Paribas Real Estate is comprised of 6 business lines which provide services related to the entire “lifecycle” of real estate: construction investments, transactions, consulting, valuation, property management and investment management. The Company's services cover all types of real estate, including office space, retail space, residential, warehouse and industrial space. Environment responsibility is an important part of the Company's policy. The company promotes and practices real estate management in accordance with the principles of sustainable construction, taking into account all aspects of respect for the natural environment. Owing to the Company’s property management methodology, buildings in the company's portfolio maintain BREEAM and LEED certificates with the highest ratings.

The company promotes the implementation of modern ecological solutions in real estate as well as electric and public transport for real estate owners.

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BNP PARIBAS FAKTORING SP. Z O. O.

Social responsibility

In 2020, employees of BNP Paribas Faktoring Sp. z o.o. took part in the “Noble Gift” campaign, coordinated in the BNP Paribas Bank Polska S.A. Capital Group by the BNP Paribas Foundation.

Responsibility in the workplace

The company's employees had the opportunity to participate in the Development Academy training program, while Company managers took part in the Manager's Academy program. The company’s procedures related to external training and co-financing education have also been updated. The Company now supports the development of employees by participating in the financing of post-graduate studies and certified vocational training.

In 2020, the Company continued to improve its organisational culture based on six key values:

§ honest and open communication,

§ decisions based on reliable data,

§ development of professional competences,

§ personal responsibility (and a sense of responsibility for all operations),

§ respect for others and individual credibility (including respect for commitments),

§ contribution to the success of others.

During the COVID-19 pandemic, BNP Paribas Faktoring Sp. z o. o. provided employees with jobs

in safe conditions, access to professional psychological care and equipped working people

from home with the appropriate equipment, i.e. the possibility of renting an office chair and additional monitors.

Additionally, it offered employees the following benefits supporting wellbeing:

§ sports cards,

§ work from home,

§ flexible working hours,

§ medical care and a wide insurance offer,

On March 8, 2020, the Company organized the Women's Day, during which office massages of the cervical and shoulder girdle were held, supplemented with consultations with physiotherapists on prophylaxis and correct body position during work.

As part of pro-health prophylaxis, the Company organized flu vaccinations at the company's headquarters,

which were used by 25 employees and several close family members. Everything took place in a time discipline, with full sanitary regime, as required by the Ministry of Health.

Environmental responsibility

As part of minimizing the impact of the organization's activities on the natural environment, the Company conducted activities aimed at eliminating plastic. The company gave up on water in plastic bottles and moved on on the office water filtering system. As part of the FAKTOR HELPS group's charitable activities, employees were encouraged to collect plastic caps. It was the result of participation in the charity collection "Odkręcamy dla Myszy" - a collection of money for the treatment and rehabilitation of an athlete after

BNP PARIBAS CARDIF

BNP Paribas Cardif in Poland is represented by two insurance companies: Towarzystwo Ubezpieczeń na Życie Cardif Polska S.A. and Cardif Assurances Risques Divers S.A. Branch in Poland.

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Social responsibility

The company has been active on the Polish market since 1998, its business model is unique is it is based on partnership. It co-creates solutions together with partners/distributors from various sectors, who sell the products to Customers. The company's business model requires a high level of responsibility in many areas. The company was the first to introduce GAP insurance and unemployment insurance and is a pioneer in the telemarketing sale of insurance. As a pioneer of bancassurance in Poland, the Company has extensive experience and knowledge regarding all aspects of the market, including the products, distribution, marketing, as well as training and operations.

During the COVID-19 pandemic, the Management Board developed new guidelines for the Company, which ensured business continuity. Thus, the quality of services from the customers’ perspective remained unchanged. The Company has also adopted solutions to protect customers and to validate a wide array of insurance claims. Consequently, events related to COVID-19 were included in the scope of insurance coverage.

For the convenience of customers, the Company adopted new forms of communication:

§ e-mail and text messages were used to inform Clients about the benefits of continuing insurance coverage when loan instalments are suspended due to credit holidays,

§ a comic book - sent to Agents in instalments - showed the benefits of insurance coverage during the COVID-19 pandemic.

In 2020, BNP Paribas Cardif was also involved in charitable initiatives. Once again, it supported the Great Orchestra of Christmas Charity by taking part in a charity auction. The company also sponsored the Gala for Young Heroes organised by the “Dziecięca Fantazja” Foundation. The Galas take place 4 times a year and are unique events which give joy and hope to over 800 seriously and terminally ill children.

Furthermore, the company organised a competition on the Endomondo platform. Employees participated in a sports challange and each kilometre covered meant PLN 1 donated to charity.

Once again, BNP Paribas Cardif supported the Pink October campaign by providing financial aid to the “Alivia" Oncology Foundation and by organising a webinar on cancer prevention for employees.

Additionally, the company funded packages in the Christmas Food Collection campaign organised by the “SOS Food Bank” in Warsaw. The recipients of the parcels are people living in extreme poverty, the elderly, the sick, people with disabilities, the homeless, single parents, as well as people in quarantine and victims of the pandemic.

The company became a partner of the "I'm a Leader" program organised by the “Vital Voices Foundation” which supports the development of young girls.

Responsibility in the workplace

Out of concern for the health, safety and comfort of employees, the Company adapted the organisation of work to the reality of the pandemic. Initially, the team was divided to work at two separate locations. Later on, work was performed remotely. Employees whose tasks require physical presence in the office have been assigned precise duty-hours in order to limit their presence at the office to a necessary minimum. In addition, the Company covered the costs of taxi rides to the office and suspended parking fees.

Working hours at the company are flexible, so that it is easier to combine professional duties with childcare. Additionally, employees received the "Principles of sustainable work at home", a guide supporting wellbeing in the difficult circumstances of the pandemic.

Furthermore, the Company's employees were able to equip their home office by borrowing work equipment. A contract with ALAB laboratories allowed employees to get serological COVID-19 tests at a lower price.

Environmental responsibility

Aware of environmental challenges, the Company used the “Bank of Green Changes” educational materials, prepared by BNP Paribas Bank Polska S.A., to conduct a campaign which promoted eco-attitudes among employees and their relatives.

ARVAL SERVICE LEASE POLSKA SP. Z O. O.

Social responsibility

Employees of Arval Service Lease Polska Sp. z o.o. regularly support people in need. During the "Sweet Monday" campaign, volunteer-employees bake cakes and bring them to the office. Funds from the sale of baked goods are donated to a charity selected by employees.

During the COVID-19 pandemic, the Company supported medical workers.13 cars were allocated to serve medical facilities in the Warmian-Masurian Voivodeship. They were used to transport staff, patients, and medical supplies. The company's employees also decided to support the medics by offering them free meals. Lunch codes from the Multikafeteria Benefit Systems program (normally used by employees at work) were donated to provide warm meals for medical personnel.

Responsibility in the workplace

During the COVID-19 pandemic, the Company devised new guidelines for employees to ensure the continuity of the organisation's operations and the maximum safety and comfort of its employees. A package of solutions for remote work was prepared, which enabled employees to borrow office and computer equipment. The Company also adjusted its training policy to the needs arising from the pandemic and implemented a number of training initiatives so that employees could adapt more quickly to remote work. The training opportunities included courses devoted to change management, managing a dispersed team and stress management. Additionally, the Company provided employees with psychological assistance.

The company also promoted a wellness culture and offered benefits, including:

§ the opportunity to participate in the "Two hours for the family" campaign,

§ fruit delivery,

§ free sports activities,

§ the MyBenefit platform which contains, i.a. MultiSport cards, cinema tickets, theatre tickets, food coupons.

The company also devised a talent development program, "Spread your wings”, and conducted a Summer Internship Program for students.

Environmental responsibility

Arval Service Lease Polska Sp. z o.o. is a leading provider of mobility-related services. In Poland, it is a leader in the field of long-term car rental and in car fleet management (CFM). Many years of experience and technologically advanced solutions, have allowed the Company to offer mobility support services in virtually all areas: from financing, through fleet selection consulting, technical services, to an attractive insurance product. To meet the changing expectations of customers and protect the natural environment, the company is constantly expanding its offer to include innovative solutions that go beyond traditional corporate mobility management schemes. The Arval Car Sharing service allows many drivers to use the same car, while ensuring simplified renting and returning procedures. Arval Bike Lease is a unique service which allows companies to expand their vehicle fleet with traditional and electric bikes.

The Company’s Electromobility Strategy aims to increase public knowledge about ecological drives through market education. Initiatives within the Strategy include:

§ low-emission car rental offer;

§ website dedicated to electromobility: https://www.arval.pl/o-arval/elektromobilnosc; the website is a source of information and practical advice on the use of EVs and charging infrastructure;

§ The “Electromobile Mythbusters” campaign - expert commentary in the media and social media campaigns;

§ support for clients who wish to build a low-emissions fleet and those who wish to introduce an EV policy;

§ numerous reports and analyses on the EV market, including Fleet Barometer 2020;

§ driving lessons devoted to safe and ecological driving conducted by Arval Driving Academy;

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§ Safe Driving Ambassador competition, aimed at reducing the number of claims and educating drivers in the field of road safety.

In response to environmental challenges, the Company introduced a long-term policy - Arval Beyond - for the years 2022 - 2025. Its aim is to reduce the negative impact on the natural environment. In Poland, the policy includes the purchase of 25 thousand electric vehicles and thus the reduction of CO₂ emissions by 30%, and accident rates by 10%.

The Company uses the SMaRT (“Sustainable Mobility and Responsibility Targets”) methodology for fleet management. It is a tool which facilitates the energy transformation of fleets. The methodology helps to identify and introduce the best-suited mobility patterns for a company fleet. The patterns involve the employment of sustainable energy and reduce the negative impact on the environment.

In order to counteract climate change, the Company continued its efforts to minimise plastic waste in 2020. Plastic water bottles were replaced with glass ones, while plastic dishes, cutlery, cups and coffee stirrers were eliminated. The Company segregates waste and collects old batteries. It also strives to minimise paper consumption and reduce water consumption. Aerators and motion detectors have therefore been installed in water taps.

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7.    6.

8.   Environmental responsibility

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6.1. We are the Bank of Green Changes

Care for the natural environment is one of the key commitments of BNP Paribas Bank Polska SA. We believe that great changes start with ourselves, therefore we attach great importance to actions for the benefit of our planet every day.

GRI 103-1,103-2, 103-3

Commitments of BNP Paribas Bank Polska S.A. under environmental responsibility – one of the four pillars of the CSR strategy and sustainable development

§ Enabling our clients to transition to a low-carbon economy respectful of the environment

§ Reducing the environmental impact of our operations

§ Advance awareness and sharing of best environmental practices

Key actions of BNP Paribas Bank Polska S.A. supporting the implementation of the environmental Sustainable Development Goals are: financing investments increasing access to renewable energy, promoting sustainable development of cities and communities and active participation in partnerships and initiatives for climate justice.

margines

The Bank’s Sustainable Development Goals in the field of economic responsibility

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Goal 6.

Clean water

And sanitation

Goal 7.

Affordalble and
clean energy

Goal 12.

Responsible consumption and production

Goal 13.

Climate action

przerwa

Goal 14.
Life below water

Goal 14.
Life on land

Goal 17.

Partnerships for the Goals

margines

In 2011, The BNP Paribas Group has identified climate change prevention as a strategic priority and has committed itself to expanding its efforts to protect biodiversity, water, air and natural resources, as well as to support the development of the circular economy.

BNP Paribas Bank Polska S.A. has been making strenuous efforts to combat climate change for years. To this end, we (amongst others) limit financing of high-emission sectors, support the energy transition by offering "green" products and services, limit the negative impact of our operations on the environment, and promote environmentally friendly attitudes among our employees, customers and clients. An important part of our activities is establishing partnerships and promoting climate justice through industry initiatives and events.

After many years of intensive environmental efforts, in April 2019 we launched the Bank of Green Changes Program, which aggregates all of the organisation's climate activities to date.

The Bank of Green Changes program consists of:

1.      the development of the offer of pro-ecological products and services to support the energy transition;

2.      reducing the negative impact of the functioning of our organization (so-called eco-improvements);

3.      educational campaign aimed at employees in all areas of the bank and external stakeholders.

6.2.             Managing environmental responsibility

GRI 103-1, 103-2, 103-3

TCFD: Describe the board’s oversight of climate-related risks and opportunities.

Describe management’s role in assessing and managing risks and opportunities.

Describe the organization’s processes for identifying and assessing climate-related risks.

Describe the organization’s processes for managing climate-related risks.

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BNP Paribas Bank Polska S.A. takes a number of climate measures. When reporting the data for 2020, we refer to the Climate Disclosure Guidelines: Task Force on Climate-related Financial Disclosures (TCFD).

The current Strategy for the functioning of BNP Paribas Bank Polska S.A. is the adopted by the Management Board and the Supervisory Board in May 2018 “Fast Forward” strategy for 2018-2021. The CSR and Sustainable Development Strategy, which consists of 12 commitments under four pillars of responsibility: economic responsibility, responsibility in the workplace, social responsibility and environmental responsibility. The CSR and Sustainability Strategy is consistent with the BNP Paribas Group's strategy and takes into account the local circumstances. The Strategy's implementation activities are the bank's contribution to achieving the UN Sustainable Development Goals. Focusing in its activity on environmental, social and governance aspects (E - environment, S - social, G - governance) and wanting to implement more efficiently the sustainable development mission, in October 2020, following the Management Board’s decision, BNP Paribas Bank Polska SA appointed a new function in the organisation - Chief Sustainability Officer, who became the head of the Sustainability Council. The Chief Sustainability Officer’s main responsibilities include defining and monitoring the ESG Strategy (which will be an integral part of the new Strategy of BNP Paribas Bank Polska S.A. for 2022-2024), supervising development of sustainable banking products and services and linking ESG initiatives undertaken in different business lines.

For more information, see the Management Foundations, ESG Management section.

Within the organizational structures of BNP Paribas Bank Polska SA there are units responsible for sustainable development, ESG and climate actions:

CSR and Sustainable Development Office responsible for coordinating CSR and Sustainable Development Strategies. As a part of its environmental responsibility, the Office oversees:

§ the Bank of Green Changes program, which aggregates all of the organization's efforts to support pro-climate actions;

§ cooperation with business lines in the development of green products and services with positive environmental impact;

§ inspiring and coordinating the implementation of eco-improvements in the functioning of the organisation;

§ promoting responsible and green attitudes among employees, their loved ones and other stakeholders;

§ partnership with external expert organizations working to combat climate change;

§ implementing and coordinating CSR Policies in sectors deemed sensitive and monitoring clients in social, environmental and corporate governance areas;

§ non-financial reporting on the local market and to the BNP Paribas Group;

§ supervision of the implementation of solutions supporting the "Idea of Engagement of the BNP Paribas Group",

§ supporting the implementation of the Sustainable Development Goals (SDGs) throughout the organisation.

Office for Sustainable Development Programmes:

§ The aim of the unit is to analyse and develop programs that optimally support investments made by the bank’s clients from different market segments, especially in the areas of energy efficiency, the use of renewable energy sources, electro mobility and environmental protection.

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§ The Office cooperates with the European Investment Bank and the Bank Gospodarstwa Krajowego and other national and European public institutions.

§ It is the internal competence center for sustainable finance and consolidates all the bank's projects in this area.

§ The programs implemented by the Office are aimed at all market segments: individual clients, individual farmers, housing communities, micro, small, medium-sized and large companies.

§ The aim of the unit is to expand and strengthen internal competences in the field of sustainable development and to obtain funding for ecological projects in the form of credit lines, grants or guarantees, and to provide technical assistance and promotion of ecological attitudes to clients.

More information on the activities of the Office for Sustainable Development Programs can be found later in the chapter.

BNP Paribas Bank Polska S.A. analyses the possible impact of climate change trends by identifying opportunities and risks to its activities and development prospects. To this end, it distinguished climate risks and opportunities in the short, medium and long term.

GRI 102-15

TCFD: Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

Key climate risks related to customers' activities and affecting the development of products and services, identified by the organization:

§ The energy consumption of Polish industry based on the coal-based energy mix (more than 70% of the energy produced comes from coal) will reduce its competitiveness against the economies of other countries.

§ An outdated and energy-intensive building stock in Poland generating high energy demand.

§ The rising energy prices leading to a lower competitiveness of the economy and a decline in living standards.

§ Climate change (droughts) disrupting businesses.

§ Part of the bank's client portfolio consists of climate change-sensitive entities, e.g. rising energy prices (energy-intensive companies) or droughts significantly affecting the agri-food sector.

§ Exposure of the agri-food part of the portfolio to water stress.

§ Exposure to the economically disadvantageous effects of climate regulation for the bank's clients (especially in the short and medium term).

§ Regulatory uncertainty in the context of possible future mechanisms introduced by regulators which would affect companies' operations (e.g., emission fees, waste management, additional taxes).

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Risks identified by BNP Paribas Bank Polska S.A.:

§ Short- and medium-term perspective:

§ new global/EU/local regulations which generate the necessity of the implementation of systems to assess and report on the climate activities of the bank and its clients (cost of structures),

§ a new risk of loss of market share in the event of clearly stricter requirements for the bank in relation to competition,

§ operational risk of investment projects involving modern environmentally beneficial solutions related to the relatively early stage of development of the implemented technologies.

§ Long-term perspective:

§ Agro Customer segment is one of the industries most exposed to climate risks, which translates into credit risk on the bank's side,

§ disruption of Clients' activities and liquidity in the corporate segment, due to climate change and high temperatures, the need to limit exposure to all carbon-intensive industries (also indirectly), as rising prices of CO₂ emission packages will increasingly hit the financial health of companies.

BNP Paribas Bank Polska S.A. assumed for the purposes of this analysis that the short-term perspective is up to 1 year, the medium-term is 1 – 5 years, and the long-term perspective is more than 5 years.

Key climate opportunities for customer activity, affecting the development of products and services, identified by the organization:

§ Moderate increase in demand (companies, individuals) for energy transition investments. In the medium- and long-term, this demand is likely to increase in the wake of rising energy prices and the need to switch to cheaper energy sources and improve energy efficiency. Commercial banks will be the party substantially financing these investments.

§ Enhance the role of financial institutions in the transfer of national and EU funds to support the energy transition. The bank's experts estimate that around 30% of national and EU funds will pass through financial institutions including commercial banks in the form of credit lines, guarantees, subsidies.

§ Implementation of the European Union's “Farm to Fork” policy and supporting instruments to assist the transformation of the food production sector to operate in a sustainable manner.

Chances for the Bank:

§ Short-term perspective: strengthening the bank's reputation and brand and using advanced climate engagement as a differentiator in the market.

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§ Medium-term perspective: offering new green products by gaining a strong position as beneficiary and intermediary of EU funds for energy transition and climate change.

§ Long-term perspective: an opportunity to grow business and lead in positive changes in the economy, while maintaining profitability and improving the bank’s image.

Climate risk management

GRI 102-15

TCFD: Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Describe the targets used by the organization to manage climaterelated risks and opportunities and performance against targets.

The BNP Paribas Group is committed to aligning its loan portfolio with global climate objectives by supporting the objective described in Article 21(c) of the Paris Agreement: "Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development".

BNP Paribas Bank Polska S.A. monitors the level of environmental, social and governance (ESG) risks within all of its Corporate clients. Additionally, as a part of the BNP Paribas Group, the Bank pays special attention to financing sectors considered sensitive in terms of ESG risk.

In the process of risk materiality assessment, on the basis of identified risk factors, the Bank assessed ESG risk as material. In consequence, the catalogue of material risks was supplemented.

The Bank has introduced an ESG risk definition into its Risk Management Strategy. As a next step, in order to reduce and control risk, the bank developed rules for measuring ESG risk in the bank's internal capital adequacy assessment process (ICAAP). The capital plan of BNP Paribas Bank Polska S.A. for the years 2021-2023 was supplemented with limits for ESG risk coverage determined on the basis of risk measurement.

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BNP Paribas Bank Polska S.A. distinguishes nine sectors that are particularly vulnerable due to environmental, social and corporate governance risks:

§ coal-based energy
(coal exit 2030)

§ nuclear

§ mining
(coal exit 2030)

§ agri-food

§ defence and security

§ fuel – in terms of unconventional oil and gas resources

§ forestry – wood pulp

§ tobacco

§ forestry – palm oil

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In each of these sectors, the bank implements CSR Policies and Principles for clients operating within them. In order to become the Bank’s Client or obtain financing, an entity must meet a number of requirements governed by the sector-specific Policy. In the case of sectors that are particularly harmful from the point of view of sustainability, the bank makes strategic decisions to withdraw from serving clients belonging to these sectors. Such sectors include the tobacco sector, from which the BNP Paribas Group announced its exit as early as back in 2017.

Another is the coal-based energy sector. Since 2015, the bank has withdrawn from financing the coal-based energy sector and does not provide new financing to energy groups based on coal-based energy. By successively tightening the regulations in this area, in 2017 a decision was made to stop financing all projects for the

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construction of new coal power plants and thermal coal mines, and to support only those coal-based energy companies that are actively involved in switching to other energy sources.

In 2019, The BNP Paribas Group has adopted deadlines (2030 for the European Union and the OECD and 2040 for the rest of the world) after which BNP Paribas customers engaged in coal power, mining or coal infrastructure, wishing to remain in a relationship with the bank, will no longer be able to use coal.

BNP Paribas has pledged that it will not enter into cooperation with new Customers if coal-related activities generate more than 25% of their revenues. In addition, BNP Paribas Group maintains its commitment to terminate cooperation with any Client that builds new coal-based generation capacity. Moreover, all current and potential Customers of the Bank operating in the mentioned industries are informed about the CSR Policies and receive an explanation of the analysis process.

For more information on CSR policies, see The Responsible Finance section in the Economy chapter.

In addition to the cyclical risk analysis in the vulnerable sectors, ESG risk assessment is carried out as part of the credit analysis process for corporate clients. In 2019, a so-called second CSR control line was established in the Risk Department of CIB and Corporate Clients, which pays special attention to the occurrence of ESG risks in the activities of current and potential Clients, including this aspect in the overall risk analysis of the Client's business activities. If a high level of ESG risk is identified, it is possible to downgrade the Client's rating.

An important aspect for BNP Paribas Bank Polska SA is also regulatory risk, which results from changes in the legal environment related to the ESG strategy. The Bank monitors on a current basis the work of supervisory authorities and legislative proposals in the financial sector to ensure adequate risk management and control. The Bank recognizes changes in the ESG area and accepts that they will have a real impact on its operations.

For more information on Risk Management and aspects of the ESG, see Management Foundations.

BNP Paribas Bank Polska S.A. is aware that the European Union and the world as a whole are increasingly facing the disastrous and unpredictable effects of climate change, the depletion of natural resources and other sustainability issues. This will mean that radical actions will have to be undertaken, inter alia, through entities in the financial services sector. According to the bank, sustainable development is the foundation for building a low-carbon economy, and the role of financial institutions in this process is special.

At the UN Climate Summit – COP24 in Katowice in December 2018, five leading banks including BNP Paribas made a joint commitment, reaffirming the commitments under the Paris Agreement and confirming the adjustment of their loan portfolios to the global climate objectives. As a result of the commitment, the BNP Paribas Group implements the Paris Agreement Capital Transition Assessment (PACTA) methodology, which aims to align the bank's portfolio with the objectives of the Paris Agreement by reorienting financial flows.

In May 2020, the independent UK NGO ShareAction named BNP Paribas the best European bank in terms of contribution to climate risk management. This is the second time we have been ranked among the top banks for sustainability.

In the ShareAction 2020 survey, BNP Paribas Group came first with an overall rating of 63.2%, compared with an average of 39.9% for all banks. BNP Paribas is one of two banks that scored above 60%. The group achieved the best results (from 75% to 100%) for the dialogue with stakeholders and an overall climate action strategy. BNP Paribas is also distinguished in terms of a wide range of sectoral policies and leadership in the field of offered products and "green" services.

More information: https://media.bnpparibas.pl/pr/508619/bnp-paribas-najlepszym-europejskim-Bankiem-w-zakresie-dzialan-na-rzecz-klimatu-wedlug-raportu-shareaction

Approach to energy transition

GRI 103-1, 103-2, 103-3

TCFD: Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

As a responsible financial institution, BNP Paribas Bank Polska S.A. knowingly limits its participation in industries widely considered harmful and inconsistent with the principles of sustainable development, while supporting pro-ecological investments and financing renewable energy sources.

BNP Paribas Bank Polska S.A. actively cooperates with individual and business (micro, medium, large companies) clients, as well as international corporations, to implement sustainable development practices.

The Bank supports its clients who implement pro-ecological investments supporting the Sustainable Development Goals, in particular, Goal 13. Climate action.

The "green" financing granted in 2020 is PLN 993 million, and the total value of loans granted by BNP Paribas Bank Polska S.A. PLN 2.7 billion for financing projects supporting sustainable development

In 2020, the largest part of the “green” funding provided helped to achieve Objective 7. Clean and accessible energy. In 2020, BNP Paribas Bank Polska S.A. granted loans totalling PLN 784 million for the production of energy from renewable sources, of which over 231 million went to prosumers producing energy for their own needs. For initiatives supporting the construction of environmentally friendly buildings certified* as (for example) BREEAM or LEED (PLN 56 million) and thermo-modernization of facilities (PLN 60 million). The bank is also promoting the transformation of transport to greener, and in 2020 it granted PLN 21 million in loans for this purpose.

According to the bank's analysts, prosumer photovoltaic installations alone avoided the consumption of 50,000 tonnes of coal, which means a reduction in CO₂ emissions of around 100,000 tonnes. That's the amount that more than 4.5 million fully-grown trees absorb every year.

Banking Competence Centre for the Development of Green Financing Programs

In 2018, we set up an The International Financial Institutions and Sustainable Growth Programmes Bureau. In 2020, The Bureau has changed its name to the Sustainable Development Programmes Bureau.

The unit's objective is, among other things, to analyse and develop programs that will optimally support the investments made by the bank's customers related to energy efficiency, the use of renewable energy sources, electromobility and environmental protection. In this field, the Bureau cooperates with national and international institutions, such as Bank Gospodarstwa Krajowego or the European Investment Bank. Programs are addressed to clients from all market segments: Individual Clients, individual farmers, housing communities, micro-enterprises, small, medium and large companies. The Bureau is an internal competence center for sustainable financing and focuses all projects in this area. Its tasks also include providing technical assistance to clients and promoting pro-ecological attitudes.

Strategic projects implemented in 2020:

§ Strengthening the energy transition project for housing communities – the bank has signed an agreement with an external energy consultant whose role is to provide technical support to residential communities in the form of energy consultancy and energy audits to implement the thermo-modernization of multi-family residential buildings.

§ Introduction of the BiznesMax guarantee to the offer, which is used, among others, for financing projects in the so-called pro-ecological and innovative path.

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§ Energy Transition Project for SMEs and Mid-Cap – establishing cooperation with an external energy consultant whose role is to provide entrepreneurs with technical support, expertise and energy audits to accelerate the implementation of investments in the field of energy efficiency of commercial buildings.

§ Establish a team of energy transition experts in the bank to support companies in improving the energy efficiency of commercial buildings and on issues related to renewable energy installations integrated into buildings.

§ A project to increase access to green finance for individual clients, farmers and housing communities by launching a risk-sharing instrument that has been implemented in cooperation with the European Investment Bank.

Other initiatives implemented in 2020:

§ Improving energy transition financing competencies among the bank’s employees.

§ Promoting and disseminating energy transition knowledge among entrepreneurs, housing communities and individuals.

§ Clean Air project, providing funding for individuals wishing to carry out thermo-modernization of residential buildings, including the replacement of heat sources for environmentally friendly ones – cooperation with The National Fund for Environmental Protection and Water Management on the inclusion of commercial banks in financing and distribution.

In 2021, the Office for Sustainable Development Programmes Bureau will focus, among other things, on activities aimed at:

§ development of new sustainable financing programs, including, but not limited to, a loan subsidy program to finance the purchase of electric cars,

§ cooperation with the government in developing the best models for financing the energy transition,

§ systematically increasing lending to finance the energy transition,

§ implementation of financing under the Clean Air Program into the bank's offer,

§ continuing to fund companies that invest in innovation,

§ promoting sustainable development with regard to energy efficiency and RES, among others, and sharing best practices in this area,

§ continuation of building expert knowledge in the field of energy transformation within the organization,

§ further analysis of the legislative environment and its planned changes.

6.3.             Green products and services and funding programmes

Our key commitment to environmental responsibility is to support customers in the energy transition and thus to develop environmentally friendly products and services. BNP Paribas Bank Polska S.A. continues to develop its

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offer of products and services that help customers in the transition to a low-carbon economy and in the development of their sustainable and green investments.

BNP Paribas Bank Polska SA has a long tradition of financing green investments. Since 2008 we have been financing small and medium-sized renewable energy sources (RES) projects: wind farms, agricultural biogas plants, small hydro plants and photovoltaic installations. One of the first major initiatives in this area was an agreement with the EBRD for a Sustainable Energy Financing Program in Poland, concluded in 2011. The real acceleration in this area, however, came in 2018-20, when the bank significantly expanded its own know-how, gained amongst others by hiring engineers to support the bank's clients in their energy transition.

The team of experts in Energy Transformation, Renewable Energy Sources and Agro supports Clients who plan pro-ecological undertakings that promote sustainable economic system and energy transformation of the Polish economy.

In 2020, we offered numerous environmentally friendly products and services as well as sustainability financing programs.

Investments in renewable energy

Thanks to the cooperation of BNP Paribas Bank Polska S.A. experts with BNP Paribas Energy, Infrastructure and Natural Resources from CIB in Brussels and Paris, at the turn of 2019 and 2020 we launched the financing of the "Perfect Wind" project developed by Akuo. The credit facilities included in the "project finance" formula are designed to finance the construction of a 132 MW wind farm. The project is one of the first large projects financed under the new renewable energy support system in Poland.

BNP Paribas Bank Polska acts as a Lender, Credit Agent and Collateral Agent. In addition, the Global Markets team arranged and executed transactions hedging the interest rate risk and currency risk of this project.

In May 2020. BNP Paribas Bank Polska has signed loan agreements with subsidiaries of independent power producer Qair Polska and its partners. The "project finance" syndicated financing of approximately PLN 630 million will help to finance existing and newly built wind and photovoltaic farms. The investment is co-financed by the European Bank for Reconstruction and Development (EBRD). Within the consortium with EBRD, BNP Paribas Bank Polska S.A. is co-financing five Polish special purpose vehicles owned by two experienced sponsors - French renewable energy producer and operator - Qair, and French infrastructure fund - RGreen Invest. The portfolio includes the construction of three wind farms with a total capacity of 68MW, as well as the refinancing of the acquisition of already operating wind farms with a total capacity of 106MW. In addition, the bank will independently finance investments in three photovoltaic farms with a total capacity of 25MW. Qair is an independent power producer with 220 MW of assets - exclusively from renewable sources. The Group's projects under financing and construction have a capacity of 780MW, with a further 3GW of assets under development with future potential.

More information: https://media.bnpparibas.pl/pr/518237/630-mln-zlotych-na-zielona-energie-Bank-bnp-paribas-w-konsorcjum-z-eboir-sfinansuje-farmy-wiatrowe-i-fotowoltaiczne

Cyfrowy Polsat Green Bonds

In 2020, we supported the process of issuing Cyfrowy Polsat Green Bonds, which is the first non-financial sector company to issue such securities in the Polish market. The Bank acted as co-organiser and joint bookrunner of the bond issue. The issue received a certificate of compliance with Green Bond Principles 2018, certified by the expert firm Sustainalytics.

More information: https://media.bnpparibas.pl/pr/487681/Bank-bnp-paribas-wspolorganizatorem-zielonych-obligacji-cyfrowego-polsatu

Equal Business Park Funding

BNP Paribas Bank Polska S.A. has taken part, with a participation of EUR 27.5 million, in financing the acquisition of the Equal Business Park office complex by Ares / Apollo Rida. The complex, comprising of four buildings offering in total over 60,000 sqm of class A office space, is located in Krakow. Each building is technologically advanced and ecologically constructed, and has a BREEAM Green Building certificate (at the Very Good level). The campus is organized in such a way as to meet a number of green building requirements. Moreover it is located close to a park and is bicycle friendly. It is also easily accessible by public transport due to its proximity to the city's main arteries, tram stops and railroad station.

Offer for individual customers

Instalment loan to finance green energy sources

Since 2017, we have been offering individual customers the opportunity to finance the purchase and installation of photovoltaic installations and other sources of renewable energy, including water heaters, heat pumps, recuperators and home wind turbines, with an instalment loan.

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The current loan offer allows to finance up to 100% of the photovoltaic installation value, even up to the amount of PLN 80 thousand, with a repayment period of up to 144 months. In 2020, the offer was available at more than 420 of the bank's partners - market-leading entities involved in the sale and installation of photovoltaic installations.

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KEY FIGURES:

20.5 k
home photovoltaic installations have been created since 2017 - thanks to our offer

10 k
photovoltaic installations have been built in 2020

PLN 493 mln
total funding since 2017

More than PLN 230 mln
funding granted in 2020

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More product information: https://www.bnpparibas.pl/klienci-indywidualni/kredyty/kredyt-ratalny-na-finansowanie-projektow-energetycznych

Green Mortgage

In September 2020. BNP Paribas Bank Polska S.A. has launched an offer of the so-called Green Mortgage. It is addressed to Customers who apply for a mortgage to finance energy-efficient real estate. Within the Green Mortgage offer customers may count on 0.1% margin reduction if they meet the following conditions:

§ they possess / will possess an environmental certificate, e.g. BREEAM / Green House,

§ they possess / will possess an energy performance certificate confirming the value of annual demand for non-renewable primary energy EP not exceeding 50 kWh/(m2*year).

Thanks to the Bank's cooperation with Yareal (development company), the customers of both companies can obtain financing for the purchase of an environmentally-friendly apartment with the BREAM certificate at a reduced price and with minimum formalities.

BNP Paribas Bank Polska SA has also entered into partnership with the Polish Green Building Council (PLGBC), the issuer of the Green Home certificate. Under the Green Home and Green Mortgage programs, the partners cooperate to develop and promote sustainable housing in Poland. The Green Home certificate is recognised by the bank when granting a loan with a reduced margin.

More information about the Green Mortgage can be found at: https://www.bnpparibas.pl/klienci-indywidualni/kredyty/kredyt-hipoteczny-z-niska-marza

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Online Mortgage

For those interested in a mortgage loan, BNP Paribas Bank Polska S.A. has prepared a Mortgage Loan Online portal: https://www.bnpparibas.pl/hipoteka-online/. At this address, potential customers can initially verify their creditworthiness, check which documents are necessary to apply for a mortgage loan, provide the bank with information on a loan and real estate, and leave a request for a contact with a bank employee.

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Long-term lease of equipment – plans for 2021

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A new product of BNP Paribas Bank Polska S.A., developed in cooperation with BNP Group Service Center, concerns long-term lease of equipment. It has been inspired by the latest trends and the changing attitude of consumers. The product based on the idea of closed-loop economy will be made available to customers in the first half of 2021.

The concept of the service is to provide the Customers, in addition to traditional proposals such as interest-free instalment loan, with the option of long-term lease of the latest smartphone models (Samsung and Apple). With this approach, the customer does not have to pay a large amount at one time - he pays a monthly instalment only during the period when he leases the phone. In addition, you can choose the protection of the phone: insurance and servicing, so you do not have to worry about anything. This is a significant advantage of this product over the 0% instalments or subscription contract with the telecommunications operator. In case of theft, malfunction or damage to the phone, the customer can take advantage of additional services, which are an integral part of the product.

The customer will be able to choose one out of two contract options:

§ 24-month contract, higher buyout amount, possibility of exchanging the phone for a new model between the 18th and 22nd month of the contract;

§ 30-month contract, lower buyout amount, possibility of exchanging the phone for a new model between the 18th and 24th month of the contract.

The possibility of exchanging the phone for a new model during the contract term is the most valuable service opportunity for the customer. In case of using the option, the customer does not have to worry about selling the phone. It goes to the partner who renews the phone and sells it on the secondary market. At the end of the contract, the customer returns the device or buys it. Some of the phones returned by customers will be refurbished and then given to social partners cooperating with the bank and the BNP Paribas Foundation.

Green investment products

We support investment solutions designed not only to meet the investment objective, but also in a socially responsible and environmentally friendly way.

As the Bank of Green Changes, we took part in a campaign aimed at planting 1 tree for every EUR 1,000 invested in socially responsible investments (related to the issuance of structured certificates: Environmentally Friendly Companies, Environmentally Friendly Companies II, Climate Investment, Climate Investment II).

By promoting the investments, we encouraged people to participate in the reclamation of the forested part of the area destroyed during the 2017 tornado in the Greater Poland Voivodeship. Thanks to the initiative, more than 14,000 trees of various species were planted in Lipusz in 2020.

Offer for Food & Agro sector customers

Photovoltaics for the farmer

Farmers from the micro sector can become independent from electricity prices by investing in technology to convert sunlight into electricity. An average photovoltaic installation means 4 tons less of carbon dioxide emitted into the atmosphere annually. Farmers can take advantage of the offer to finance the purchase and installation of photovoltaic installations under:

§ A working capital loan in the credit account of Rzeczówka Light,

§ Working Capital Loan,

§ Agro Leader mortgage loan,

§ Agro Progres Investment Loan.

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More information about the product can be found at: https://www.bnpparibas.pl/rolnicy/kredyty/oferta-specjalna-fotowoltaika

Renewable energy insurance

Farmers and entrepreneurs can insure their photovoltaic installations, solar collectors and heat pumps under the following products offered by BNP Paribas Bank Polska S.A.:

§ Concordia Agro (for farmers),

§ Concordia Company (for businesses).

The insurance was prepared by an insurance company Concordia Polska Towarzystwo Ubezpieczeń S.A. The Bank acts as an agent in the sale of the product as Concordia's Insurance Agent.

Offer for housing communities

Investment loan with BGK bonus for thermo-modernization of real estate

The loan was created in cooperation between BNP Paribas Bank Polska S.A. and Bank Gospodarstwa Krajowego as part of the “BGK Loan with a Bonus” program. It is aimed at housing communities intending to improve the energy class of multi-family residential buildings.

More information: https://www.bnpparibas.pl/male-firmy/oferta-dla-wspolnot/kredyt-z-premia-bgk

ECO-COMMUNITY at a profit program

EKO-COMMUNITY at a profit is a program for financing energy efficiency in multi-family residential buildings. Under the program, housing communities may receive a grant (of 90%) for the costs associated with the preparation of technical documentation related to the investment of thermo-modernization of buildings, including energy audits. Additionally, the housing communities can benefit from the assistance of energy transformation specialists whose role is to support the communities in improving the energy efficiency of multi-family buildings. These are important tools for communities to decide on the implementation of investments in thermo-modernization of multi-family buildings or RES installations integrated with the buildings. The financing is made possible thanks to an agreement signed by the bank with the European Investment Bank on the bank's participation in the ELENA (European Local Energy Assistance) initiative under the European Union's Horizon 2020 program.

More information: https://www.bnpparibas.pl/strefa-zielonych-produktow/eko-wspolnota-z-zyskiem

Offer for businesses

Green Energy Investment loan

The Green Energy investment loan is designed to support investments in renewable energy sources. It is designed to finance the construction of wind power plants, hydroelectric power plants, photovoltaic power plants and systems to produce electricity or heat from biomass or biogas. The loan can be used by entities operating or commencing business activity in the production of energy from renewable sources. One of the conditions for obtaining the loan is presentation of a promise of a concession to produce energy from renewable sources issued by the President of the Energy Regulatory Office (if required by law).

More information: https://www.bnpparibas.pl/przedsiebiorstwa/finansowanie/kredyt-inwestycyjny-zielona-energia

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Technology credit

It is intended for small and medium-sized enterprises wishing to implement new own or acquired technologies aimed at bringing innovative products, including m.in. having a positive impact on the environment, to the market.

As part of this initiative, implemented in cooperation with the Bank of the National Farm, companies can receive a non-refundable technological bonus, which pays off part of the loan capital, which is an incentive to implement innovative investments.

More information: https://www.bnpparibas.pl/przedsiebiorstwa/finansowanie/kredyt-technologiczny

Loan with free Businessmax guarantee

The BiznesMax guarantee is a free-of-charge form of loan repayment security offered by BNP Paribas Bank Polska S.A. under the agreement signed with Bank Gospodarstwa Krajowego under the Guarantee Fund for the support of innovative enterprises under the "Intelligent Development" Operational Programme. Obtaining the guarantee means also an opportunity to receive a subsidy to the interest rate of the loan covered by the guarantee. The biznesmax guarantee makes it possible to secure loans aimed at financing pro-ecological investments.

More information: https://www.bnpparibas.pl/korporacje/finansowanie/gwarancja-bgk-biznesmax

Credit Union+

The Unia+ Loan is a product intended for projects co-financed with EU funds. EU grants are disbursed mainly upon project completion, therefore in order to carry out the intended investments it is necessary to have sufficient funds to finance the project in advance, which can be obtained thanks to the offer of the Unia+ Loan. The product has been developed based on the Bank's experience gained since the pre-accession funds. BNP Paribas Bank Polska S.A. is the leader in financing EU investments in the agribusiness sector, and additionally has a significant share in financing projects with subsidies in the non-agro sector.

The Union+ Loan does not only mean financing. With the support of experts who deal with the subject of EU funds at the bank, our advisors are ready to provide you with consultations at every stage of the application process or implementation of a subsidized project.

More information: https://www.bnpparibas.pl/przedsiebiorstwa/finansowanie/kredyt-unia-plus

ECO-COMPANY at a profit program

EKO-COMPANY at a profit is a financing program for energy efficiency in commercial buildings. Under the program, the Bank offers companies the service of preparing energy audits and expert opinions as well as additional technical documentation related to the investment in energy efficiency of commercial buildings. An entrepreneur interested in such a service will be able to obtain co-financing of 90% of the net cost of the service, which is provided under the ELENA initiative - an EU Horizon 2020 program. The service provided by the Bank is an important tool for the Customer to make a decision on implementing an investment aimed at achieving energy savings. In addition, entrepreneurs can benefit from the assistance of energy transformation specialists, whose role is to support businesses in improving the energy efficiency of their buildings. The service is dedicated to companies that meet the criteria of small and medium enterprises according to the EU definition or the definition of a Mid-Cap Entrepreneur (employment on the level below 3,000 employees across the group).

More information: https://www.bnpparibas.pl/strefa-zielonych-produktow/eko-firma-z-zyskiem

Leasing of Photovoltaic Installations

Companies which want to invest in a photovoltaic installation can finance such a project through a finance lease or an operating lease.

6.4.             Managing the organization's environmental impact

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GRI 103-1, 103-2, 103-3

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As the Bank of Green Changes, we strive to minimize the environmental impact of our operations.

Our priorities are:

§ reduction of resource consumption and CO₂ emissions

§ developing the bank's eco-fleet

§ the use of energy from renewable sources in the total consumption

§ implementation of new eco-efficiency measures in the workplace

Companies belonging to the BNP Paribas Bank Polska SA Group focus in their activity on the respect for natural environment and implement their own policies and good practices regarding minimisation of the consumption of natural resources. They are bound by the BNP Paribas Group Code of Conduct which includes, among others, general guidelines on environmental protection. Monitoring of environmental indicators is performed at the BNP Paribas Group level.

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Most of the companies of the BNP Paribas Bank Polska S.A. Capital Group that conduct operational activities are sub-tenants of space in the bank's headquarters:

§ BNP Paribas Leasing Services Sp. z o.o. in January 2021 moved from the bank's headquarters at ul. Suwak 3 in Warsaw to the headquarters at ul. Grzybowska 78 (Prime building).

§ BNP Paribas Group Service Center S.A. in January 2021 moved from the bank's headquarters at ul. Suwak 3 in Warsaw to the headquarters at ul. Grzybowska 78 (Prime building).

§ BNP Paribas Towarzystwo Funduszy Inwestycyjnych at the headquarters at ul. Twarda 18 in Warsaw (Spektrum Tower).

§ In January 2021, BNP Paribas Solutions Sp. z o.o. moved from the bank's headquarters at ul. Grzybowska 78 in Warsaw (Prime building) to the headquarters at ul. Kasprzaka 2 (Petrus building).

§ BNP Paribas Financial Services Sp. z o.o. at the bank's headquarters at ul. Grzybowska 78 in Warsaw (Prime building).

They implement good practices regarding minimisation of resource consumption in force at BNP Paribas Bank Polska S.A. based at ul. Kasprzaka 2, Warsaw.

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Petrus – new headquarter in Warsaw

In 2020, we started moving our headquarters to a new office space in a modern LIXA complex of office buildings. "Petrus" is a building located in Warsaw's Wola district, right next to the capital's key transportation hub - the Rondo Daszyńskiego metro station. The new building has a BREEAM certificate on the Excellent level and many pro-ecological solutions. Green terraces and a patio are not only a place of rest for the employees, but also a home for bees, which previously lived on the roof of the previous headquarters. "Apiary under the stars" is the bank's contribution to the sustainable urban ecosystem. An air quality sensor has also been installed on the building so that our employees and all users of the Airly platform can monitor the air quality around the building. Cyclists have been provided with showers and bicycle parking adapted to their needs. The Petrus headquarters is also equipped with a charging station for electric cars. The building space has been designed to implement further initiatives to reduce the printing and storage of paper documents. The installation systems are designed in a way which guarantees reduction of electric energy and water consumption. These are just some of the pro-ecological solutions implemented in Petrus as part of the bank's commitment to environmental responsibility.

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Campus Leszno Sp. z o.o. company operating under the marketing name: “Pałac pod Kampinosem” ("the Palace near Kampinos Forest”) is located in Leszno at 1 Fabryczna street.

To counteract its negative environmental impact, the Company continued its plastic exit process, which began in 2019. At the Company's facility, drinks and juices are served in reusable vessels: pitchers, carafes and glass diffusers. The Company has completely abandoned the purchase of water in plastic bottles and replaced it with dispensers - all Company employees as well as guests of the facility have unlimited access to filtered drinking water. The Company has also reduced the use of plastic in ordered promotional and advertising materials and office supplies. The facility segregates waste, and employees and guests are educated on the responsible use of resources. The company also collects used batteries and toners, which are being handed over to recycling companies. The Company, due to its service and catering activities, out of concern for the safety of customers during the pandemic, has decided to temporarily use disposable accessories only to the extent necessary to conduct business.

6.5.             Sustainable resource consumption and eco-improvements

GRI 301-1, 303-3, 307-1

TCFD: Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

Minimizing plastic consumption

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BNP Paribas Bank Polska S.A. is successively eliminating the use of plastic in its operations since 2019. The possibility of ordering disposable accessories and drinks in plastic bottles has been withdrawn from eCommerce platforms. Head offices, business centers and branches have been equipped with water dispensers, carafes and glasses. Minimization of plastic consumption can also be felt in canteens in the bank's headquarters: plastic cutlery and packaging have been replaced with ecological and compostable ones. During the COVID-19 pandemic, the promotion of coming for meals with one's own containers was temporarily stopped for the safety of employees and clients.

The waste composting program continued in the canteen at the bank's headquarters in Warsaw in the new Petrus building at 2 Kasprzaka Street. The compost produced fertilizes the surrounding lawns. In addition, employees can take it home to nourish their plants. The organization plans to expand the composting program in 2021 at other headquarters.

We make every effort to ensure that the products available in the wending machines at the bank's headquarters are packaged in environmentally friendly packaging, such as glass bottles.

In 2020, we will improve the process of archiving documents in the bank. We have implemented new policies regarding the use of plastic document sleeves.

We separate waste at our facilities into fractions in accordance with the law and the regulations of local municipalities.

The bank promotes and produces sustainable marketing gadgets: reusable lunchboxes, bottles and eco-bags. Outdated promotional materials are given a second life or donated to community organizations. Marketing materials such as roll-ups are recycled into useful accessories such as bags and backpacks.

We are also committed to using eco-friendly alternatives to plastic sheeting for our branch windows, which is free of PVC and other environmentally harmful chemicals. The ecological film we use is collected from our branches and processed into granulate that can be reused in the production of all polypropylene materials, such as water pipes and tanks, medical accessories (e.g. syringes), carpets and linings, all kinds of housings and cable insulation, car parts (e.g. bumpers) and toys.

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For several years, furniture and equipment left over from facility closings or renovations has been donated to community organizations, schools and hospitals. In 2020, the furniture and equipment remaining after the bank moved to a new location was made available for employees to buy. Each employee could, for a symbolic one złoty (1PLN), buy the furniture which gained a second life and furnished their home offices. Additionally, the remaining pieces of equipment were donated to community organizations, including the Habitat for Humanity Foundation, which runs a charity store "ReStore" at 12 Łojewska Street in Warsaw's Bródno district. It is a non-profit store with furniture and interior decoration and finishing materials received in the form of donations and available at very attractive prices. Profits generated from sales are allocated to the Habitat for Humanity Poland Foundation to meet its statutory goals. The ReStore is a unique project promoting charitable, ecological and creative attitudes, bringing generations together and integrating the local community.

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Reduction of paper consumption

We are an innovative bank. Our goal is to focus on the Customer, which involves simplifying and digitizing our processes. Being customer-friendly also translates into responsibility to the environment. We implement numerous initiatives to minimize paper consumption. We promote e-correspondence among the Customers of all segments.

Starting in 2019, flyers and other advertising materials are printed on certified 100% recycled paper. This way, we save resources and protect the planet from deforestation. In addition, we have discontinued the display of flyers and other printed materials in the transformed branches. In 161 branches of our retail network, all marketing information is available only in a digitalized version - on tablets.

In 2020, we made the decision that from the beginning of 2021, bulk mail sent to our clients will be delivered on 100% recycled certified paper with certificates including FSC, EcoLabel and Blue Angel.

In the buildings of the central bank we use eco-paper with a reduced weight. We encourage our employees and customers to use documents electronically and print materials only when necessary. In order to reduce paper consumption, we implement rules on the electronic distribution of correspondence and work on electronic documents stored on network resources. Follow Me Printing is available in the buildings of the bank's headquarters.

In 2019, thanks to the implementation of the new E-delegacje tool, we have completely eliminated paper and printed delegation requests. The process was digitised and new functionalities streamlined the work and displaced paper forms. In 2020, we developed paperless initiatives by, among other things, implementing other Bank applications to facilitate paperless work.

GRI 301-1

§ 260.3 t – purchase of paper for printing equipment at BNP Paribas Bank Polska S.A. in 2020*

§ 14% - reduction in paper purchases during the reporting period for 2020 as compared to 2019.

*Data covers the reporting period from 01.10.2019 to 30.09.2020 to ensure consistency in the scope of data reporting locally and within the BNP Paribas Group.

Autenti

In 2020, together with two other banks and VC funds, BNP Paribas Bank Polska S.A. announced an investment in Polish fintech Autenti offering a platform for electronic contract signing and digital document workflow. According to forecasts, in 2023 the global market for electronic signatures will be worth $5.5 billion. A joint investment of the three banks, which represent approx. 30% of the assets of the Polish banking sector, is yet another proof that partnership in the Polish banking sector is possible and that it can contribute to the development of key solutions that are beneficial to the economy, the environment and the customers.

Autenti is a Polish company that started its operations in 2014. It offers solutions to sign any document online, on any device with internet access. Fast, convenient, secure and in compliance with the law. Since its market debut,

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the company has acquired more than 1,200 business customers and has already sent e-signature documents to more than a million Polish people.

Within twelve months, e-signature was implemented in subsequent areas of the Bank's operations, which resulted in over 290,879 documents signed without using paper in all areas of the organization. Upon the order of BNP Paribas Bank Polska S.A., Autenti issued 420 qualified signatures with remote identity verification and 80 signatures in a traditional method.

When making our investment decision, we were guided by the idea that Autenti has a chance to become a universal platform for electronic document signing. Very quickly it turned out that thanks to the platform it became much easier to work remotely and to offer services to customers while maintaining the principles of social distancing. We electronically signed, among others, documents from the Management Board meetings, contracts with our contractors, product documents with corporate clients or internal credit risk documents. Circulation of documents became much faster and easier, especially when working remotely.

Since April 2020, the platform can be used by both the bank's clients and employees sending documents as part of internal procedures. The e-signature is used in the process of remote account opening by individual customers and when granting instalment loans and credit cards. The improvement is also used in the process of opening an account in the bank's branches. The documents are not printed, but signed electronically using a smartphone. In May 2020, thanks to the electronic signature, BNP Paribas Bank Polska S.A. improved the process of concluding lease agreements at car dealerships. In the same month, entrepreneurs also gained access to e-signature. Soon afterwards, the technology was also used in the branches. Bank's Customers only need a smartphone to confirm deposits and cash withdrawals. They can also sign contracts without using paper. Such a solution is not only more convenient, but also environmentally friendly. Additionally, it relieves the advisor from several additional activities, which allows to devote more time to the Client. Autenti can also be used by clients of Wealth Management, SMEs and Corpo Centers. The Bank more and more extensively uses e-signatures in internal operations (i.e. Management Office, Investor Relations Office, Finance, BNP Paribas Foundation, HR, Operations, Collections, Risk and Procurement. Using short-term qualified signatures issued by Autenti, B2B contracts with contractors are signed remotely.

In 2021, we intend to further develop our cooperation with Autenti and implement the e-signature solutions in more business areas.

KEY FIGURES:

more than 290K
paperless documents in all areas of the organization

420
qualified signatures with remote identity verification issued by Autenti on behalf of the bank

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In 2020, BNP Paribas Bank Polska S.A. in cooperation with the auditing firm KPMG conducted an analysis of the environmental impact of paperless initiatives.

According to the Report, paperless initiatives saved approximately 880,000 sheets of paper (1,800 reams) in 2020. These actions translate into avoiding the emission of 3.6 tons of carbon dioxide. This corresponds to the volume of almost 1 hot air balloon or 22 trucks.

Since the launch of the paperless initiative for digitalization of customer documentation, i.e. since 2018, a total of nearly 1.4 million sheets of paper has been saved at BNP Paribas Bank Polska S.A., which translates into approximately 2.8 thousand reams of A4 paper. It was estimated that paper savings in 2018-2020 at this level avoided generating as much as 5.7t of CO₂ and consuming 155m³ of water. It would take almost 11 months for 1ha of forest of "mature" deciduous trees to absorb this amount of CO₂.

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Water consumption

GRI 303-3

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In our offices, we implement solutions which reduce water usage. The used plumbing devices are equipped with mechanisms reducing water consumption by several times, e.g. aerators and motion sensors. Used equipment gives possibility to use ecological dish-washing programs.

§ In 2020. BNP Paribas Bank Polska SA Group used 59,754m³ of water.

§ BNP Paribas Bank Polska S.A. used 57,642 m³ of water.

§ A significant decrease in water consumption was observed in 2020. (by 21,468 m³ of water at the BNP Paribas Bank Polska S.A. Group level) as compared to the previous reporting period. This is due to the transition of employees to the remote work mode caused by the pandemic.

§ In 2020, there was a change (shift) in the reporting period of water consumption data. BNP Paribas Bank Polska S.A. has adopted reporting deadlines in line with those used by the global BNP Paribas Group. Water consumption data cover the period from 1 November 2019 to 31 October 2020.

GRI 307-1

In 2020, no penalties or non-financial sanctions for non-compliance with environmental laws and regulations were imposed on the Bank or BNP Paribas Bank Polska Group.

6.6.             Electromobility initiatives

As part of our environmental responsibility, we reduce emissions of harmful substances into the environment. For this purpose, for several years we have been introducing hybrid cars to our fleet. We also own electric cars, which are at the disposal of our employees while moving around Warsaw.

In 2020, we have nearly doubled the number of hybrid cars owned. After the finalization of the plan implemented in 2020, they account for more than 70% of Class B cars used by the bank's retail branches. The state of the fleet as of 31.12.2020 is 1,450 cars. Currently, our fleet includes 2 fully electric cars and 174 hybrid cars. In the light of the prospect of integrating electric cars or plug-in hybrids into the fleet, and also for our clients, in 2020 we have equipped our Warsaw headquarters (Prime and Petrus buildings) with six electric chargers enabling simultaneous charging of 16 cars. There are plans to install additional stations in the headquarters in Cracow and Ruda Śląska.

In 2020, we implemented a new business travel policy. Its goal is to encourage employees to reduce business travel, resulting in reduced greenhouse gas emissions. Employees are encouraged to:

§ Use online meeting options instead of organizing business trips

§ choice of green means of transport, e.g. railways,

§ sharing of company cars,

§ non-printing of tickets.

GRI 302-1, 305-1, GRI 305-2, 305-3

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Business trips at BNP Paribas Bank Polska S.A. in 2020

Type of means of transport

distance [KM]

2019

distance [KM]

2020

Company cars

29,355 ,08

24,781,987

Private cars

1,067,098

1,430,481

Aircraft

2,605,895

828,292

Train

5,751,479

2,438,597

Carsharing

The service introduced in 2018 and dedicated to employees of selected branches of the sales network, where it acts as an equivalent of a company car. The positive experience of the service of renting a car by the hour or even by the minute, while maintaining mobility and safety, resulted in the expansion of the service nationwide.

Thanks to the program, we contribute to the traffic volume during rush hours - one carsharing car can replace 8 to 20 private cars. In addition, the optimal dimensions of cars facilitate parking in urban spaces, and the most modern engines allow for dynamic driving while maintaining low fuel consumption and CO₂ emissions.

In 2020, carsharing employees drove a total of more than 116,000 km.

Bicycle to work

The promotion of bicycles as an environmentally friendly means of transport for the daily commute to work is already a regular feature of the bank's promotion of eco-transportation. At the headquarters, employees have access to secure bicycle parking and showers. We have also provided our employees and customers with access to bicycle racks in front of most of our branches.

At the Bank, as part of saving resources and respecting the environment, we are also promoting responsible business travel planning, the availability of teleconferencing and videoconferencing, and reducing training trips by providing e-learning training.

6.7.             Energy efficiency and emissions management

We support low-carbon measures because they not only have measurable environmental effects, but also provide new impulse for economic development and are an important part of our mission.

100% electricity from renewable sources

In 2020, the Bank purchased guarantees of origin of energy from renewable sources, covering 100% of energy consumed by the BNP Paribas Bank Polska Group.

In 2020, we signed an agreement with Respect Energy (formerly TRMEW Obrót) to purchase energy for 2021-2022. Under the agreement, 100% of the electricity purchased directly by the bank from 2021 onwards will come from renewable sources, mostly from hydroelectric power plants. This will enable the bank to make a significant contribution to reducing carbon dioxide emissions into the atmosphere, as well as lowering emissions of sulphur dioxide, nitrogen oxides and particulate matter.

Respect Energy is the only supplier of green energy in Poland. It is a company with Polish capital. It cooperates with a group of over 400 green producers. It operates in 21 markets.

"Respect Energy is the only Polish energy supplier offering electricity coming exclusively from renewable sources. We can see that our business philosophy is more and more often enthusiastically received by our customers. They want to use clean green energy and contribute to the improvement of the natural environment and the fight against the climate change. We are glad that in 2020, such an important financial institution as BNP Paribas Bank Polska S.A. joined the group of our Customers.”

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Sebastian Jabłoński
Chairman of the Board of Respect Energy S.A.

Photovoltaic installations in the locations of our business

In December 2020. BNP Paribas Bank Polska SA finalised the tender procedure for the selection of a contractor to install a photovoltaic system in the Headquarters located in Ruda Śląska. The project implementation and completion is scheduled for the second quarter of 2021. Estimated annual energy production amounts to 83 MWh, which constitutes 60-70 percent of energy demand of this location.

Additionally, in 2021 it is planned to analyse the possibility of launching photovoltaic installations in three to five branches of BNP Paribas Bank Polska S.A.

Energy consumption

GRI 302-1,302-4

Energy consumption (own production or purchased) at BNP Paribas Bank Polska S.A. in 2020

Type of Energy

2019

2020

MWh

GJ

MWh

GJ

Purchased thermal energy, including:

-

53,547

-

37,170

heat from RES (geothermal)

-

75

-

62

Electricity purchased, including:

27,295

98,262

22,651

81,543

electricity from RES confirmed by guarantees of origin

16,620

59,832

22,651

81,543

Total

-

151,809

-

118,713

Energy consumption (own production or purchased) in the Capital Group BNP Paribas Bank Polska S.A. in 2020

Type of Energy

2019

2020

MWh

GJ

MWh

GJ

Purchased thermal energy, including:

-

54,025

-

37,509

heat from RES

-

75

-

62

Electricity purchased, including:

27,601

99,364

22,878

82,362

electricity from RES confirmed by guarantees of origin

16,620

59,832

22,878

82,362

Total

-

153,389

-

119,871

Fuel consumption in BNP Paribas Bank Polska S.A. Capital Group in 2020

Fuel type

2019

2020

Consumption

[GJ]

Consumption

[GJ]

Petrol

1,462,147 litres

48,904

1,257,185 litres

42,048

Gas

594.173 m³

21,759

482,130 m³

17,656

Diesel

537,374 litres

19,410

468,399 litres

16,919

Heating oil

24,383 litres

791

20,761 litres

673

Total

-

90,864

-

77,296

§ Fuel consumption by the Bank and BNP Paribas Bank Polska SA Capital Group is identical because subsidiaries' business activity is conducted in premises owned by BNP Paribas Bank Polska SA. (with the exception of Campus Leszno Sp. z o.o.).

§ Petrol and diesel consumption is only applicable to BNP Paribas Bank Polska S.A.

§ Fuel and energy consumption is monitored in the internal records of companies of the BNP Paribas Bank Polska S.A. Capital Group.

§ The data for 2019 are for a full calendar year (01 January 2019 - 31 December 2019).

§ In 2020, there was a change in the reporting period. BNP Paribas Bank Polska SA has adopted reporting deadlines consistent with those applied by the BNP Paribas Group. Data showing energy consumption and emissions cover the period from 1 November 2019 to 31 October 2020.

§ Moving the reporting period forward by two full months allows for comparability of 2019 data, maintaining a 12-month reporting period.

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§ Conversion of fuel consumption into energy expressed in GJ was made using the heating values published in the KOBIZE document “Heating Values and CO₂ Emission Factors in 2016” for reporting under the Emissions Trading Scheme for 2019 and the analogous document for reporting emissions for 2020.

§ Explanation of adjustments to 2019 data. In the 2019 Annual Report, the item for thermal energy consumption included purchased heat and heat generated by burning natural gas and fuel oil. In this report, these items are shown separately. Previously, indirect coal consumption for electricity and heat production consumed by BNP Paribas Bank Polska Group was also shown, whereas now only direct fuel consumption is reported in line with GRI requirements. The diesel oil consumption was updated by the value related to oil consumed for emergency electricity generation.

Carbon dioxide emissions

GRI 103-1, 103-2, 103-3

TCFD: Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks

Due to the rapid pace of global warming, the European Union has set a target to reduce greenhouse gas emissions by 60% by 2030, as compared to 1990, and achieving climate neutrality by 2050. Therefore, new regulations are being introduced in the EU, the purpose of which is to persuade enterprises to measure and report to stakeholders (regulators, supervisors, customers and social environment) about the climate impact and to reduce greenhouse gas emissions.

In 2018, the European Parliament issued a report proposing amendments to the draft of Sustainable Investments Regulation. The report proposes to add information on greenhouse gas (GHG) emissions in three scopes, the so-called scope 1, 2, 3 emissions, to the previously adopted scope of information (defined by the Directive of the European Parliament and of the Council of 26. June 2013 on annual financial statements, consolidated financial statements and related reports of certain types of undertakings).

The results should be presented in relation to the climate objectives of the European Union.

The organization's carbon footprint includes the total sum of greenhouse gas emissions caused directly or indirectly by the organization.

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Scope 1 includes direct emissions from the combustion of fuels at stationary or mobile sources owned or controlled by the organization.

Scope 2 includes indirect emissions resulting from the consumption of purchased or externally supplied electricity, heat or cooling.

Scope 3 includes other indirect emissions that arise throughout an organization's value chain.

Carbon Reduction 2020

In 2017, BNP Paribas Bank Polska S.A. joined the global program of the BNP Paribas Carbon Reduction Group 2020. The BNP Paribas Group's objective was to reduce CO₂ emissions per employee by 25% by 2020 as compared to 2012. Thanks to its commitment and joint action, the BNP Paribas Group has already achieved global neutrality in 2017.



Activities carried out by BNP Paribas Bank Polska S.A. in the field of reducing emissions from its operating activities:

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150

§ purchase of energy from renewable sources and purchase of certificates of guarantee of origin,

§ minimizing energy consumption,

§ successive replacement of the cars in the bank's fleet with hybrid or electric ones,

§ restricting business travel.

GRI 305-1, 305-2, 305-3, 305-5

In 2020, BNP Paribas Bank Polska S.A. was supported by experts from Bureau Veritas in Poland in the process of calculation and development of assumptions for further emission reductions.

Greenhouse gas emissions at BNP Paribas Bank Polska S.A. in 2020

GHG emission source

emissions [TONNES CO₂e]

2019

emissions [TONNES CO₂e]

2020

2020 VS 2019 [%]

Scope 1

Petrol

3,389

2,914

-14.0

Gas

1,206

979

-18.9

Diesel

1,438

1,254

-12.8

Heating oil

61

52

-14.9

Scope 2

Thermal energy

5,160

3,581

-30.6

Electricity

market-based

7,730

0

-100

Scope 3

Business trips

Train

237

90

-61.9

Private car

189

245

+29.7

Aircraft

471

151

-68

Scope 1+2+3

market-based

19,881

9,265

-53.4

In addition (under Scope 3), the carbon footprint of paper consumed in 2020 by the bank in printing equipment at headquarters and branches was 138.4 tons of CO₂e.

Greenhouse gas emissions in the BNP Paribas Bank Polska S.A. Capital Group in 2020

GHG emission source

emissions [TONNES CO₂e]

2019

emissions [TONNES CO₂e]

2020

2020 vs 2019 [%]

Scope 1

Petrol

3,389

2,914

-14.0

Gas

1,206

979

-18.9

Diesel

1,438

1,254

-12.8

Heating oil

61

52

-14.9

Scope 2

Thermal energy

5,206

3,614

-30.6

Electricity

market-based

7,952

0

-100

Scope 3*

Business trips

Train

237

90

-61.9

Private car

189

245

+29.7

Aircraft

471

151

-68

Scope 1+2+3

market-based

20,149

9,298

-53.8

* Emissions from the combustion of petrol and diesel fuel by the car fleet and emissions from business trips refer only to BNP Paribas Bank Polska S.A.

§ Fuel and energy consumption is monitored in the internal records of companies of the BNP Paribas Bank Polska S.A. Capital Group.

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§ Data on the consumption of own-produced or purchased energy in 2019 refer to the full calendar year (01 January 2019 - 31 December 2019).

§ In 2020 there was a change in the reporting period of own or purchased energy consumption. BNP Paribas Bank Polska SA has adopted reporting periods consistent with those applied by the BNP Paribas Group. Data showing energy consumption and emissions cover the period from 1 November 2019 to 31 October 2020.

§ Conversion of fuel consumption into energy expressed in GJ was made using the heating values published in the KOBIZE document "Heating Values and CO₂ Emission Factors in 2016" for reporting under the Emission Trading Scheme for 2019 and the analogous document for reporting emissions for 2020.

§ Data regarding business trips are taken from the internal records of BNP Paribas Bank Polska S.A.

§ Data regarding business trips for 2019 are for the period from 1 October 2018 to 30 September 2019.

§ In 2020, there was a change in the reporting period of business trips. BNP Paribas Bank Polska S.A. has adopted reporting periods consistent with those applied by the BNP Paribas Group. Business travel data refer to the period from 1 October 2019 to 31 September 2020.

§ Emissions calculations were prepared in accordance with the following standards: The Greenhouse Gas Protocol A Corporate Accounting and Reporting Standard Revised Edition, GHG Protocol Scope 2 Guidance, and Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

§ The greenhouse gases identified and included in the calculations were CO₂, CH4, and N2O, which were expressed as CO₂ equivalents. No biogenic CO₂ emissions were identified.

§ The reference point for reduction targets are the 2019 emissions, which was the first year for which the new approach to calculating GHG emissions has been used.

§ The sources of emission factors were publications of KOBIZE (National Balancing and Emission Management Centre), the Energy Regulatory Office and the DEFRA (Department for Environment, Food and Rural Affairs, UK Government) database.

§ As a criterion for the consolidation of emission volumes for the BNP Paribas Bank Polska S.A. Capital Group, a financial control criterion was adopted, which means that 100% of the company's emissions were attributed to the Group (excluding emissions from the combustion of fuels by the fleet and business trips in subsidiaries).

§ Emissions from electricity generation were calculated using the market-based method. In the case of the energy mix, an average indicator for Poland was used due to the lack of knowledge of individual energy suppliers in the locations, and for energy from renewable sources confirmed by guarantees of origin, an indicator of 0 kg CO₂e/kWh was used.

§ The 2019 Annual Report shows Scope 2 emissions. This year's publication shows Scope 1 and business travel emissions (Scope 3) as well.

§ The differences in Scope 2 emissions from the previous report are due to the alignment of emission factor sources.

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§ In this report, emissions for 2019 have been re-calculated.

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Our commitments to reduce the negative environmental impact of operational activities for 2021:

§ 100% of energy used from RES: purchase of energy from renewable sources for energy directly purchased by BNP Paribas Bank Polska S.A. (under the agreement with Respect Energy for 2021-2022) and purchase of renewable energy origin guarantees for energy not purchased directly by the bank.

§ Mass correspondence sent to Customers on 100% Recycled paper, with FSC, Eco Label and Blue Angel certifications

§ Installation of photovoltaic panels in the Operational Centre in Ruda Śląska

§ Expansion of the bank’s "Apiary under the stars" in Warsaw and Ruda Śląska and creation of a new apiary in Krakow

§ Successive reductions in greenhouse gas emissions through the implementation of new initiatives and eco-improvements in different areas of the bank

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6.8.             Biodiversity initiatives

Apiaries under the stars

For BNP Paribas Bank Polska S.A. an important element of environment protection activities is the concern for biodiversity, including the very important one - the bees. It is estimated that about ¾ of our food depends on bees and other pollinating insects. Unfortunately, as a result of human activity, the number of areas where these beneficial animals can live is decreasing.

Our contribution to sustainable urban ecosystems is the constantly expanding network of "Apiaries under the stars". Since June 2017, honey bees have been living in the three hives installed on the roof of the bank's headquarters office building at 10/16 Kasprzaka Street in Warsaw. In 2020, the apiary was moved to the bank's new headquarters at 2 Kasprzaka Street. In 2019, an apiary consisting of six hives was established in Ruda Śląska. Bee families also took up residence on the terrace of the office building of Arval Service Lease Polska (a member of BNP Paribas Bank Polska Group) and BNP Paribas Securitas Services (one of the companies of the BNP Paribas Group in Poland).

Currently, the Bank's apiaries are inhabited by nearly 500,000 bees, which produced 230 kg of honey in 2020 alone. Thanks to the decisions made in 2020, another banking "Apiary under the stars" will be opened in spring 2021 in Kraków, while the apiaries in Warsaw and Ruda Śląska will be enlarged. Additionally, an apiinhalation hut will be built in Ruda Śląska to serve the employees and the local community.

To strengthen its bee advocacy efforts, in 2020 the bank began working with Fundacja Pszczoła (“the Bee Foundation”), the priorities of which include promoting beekeeping knowledge and protecting wild pollinators.

"Biodiversity and concern for bee life is very important to BNP Paribas Bank Polska SA. As the Bank of Green Changes, it cares for the survival of this species which makes life on Earth possible. Currently, the situation of bees is difficult. They are being decimated by diseases, schematized agriculture, and even climate change. In order to save these extremely useful insects, the Educational Apiary and the Community Garden were created in Piła, in which we show good ecological solutions, which can be easily implemented in your home and garden. We want to show how important are individual, everyday choices of each of us, because it gives the scale and the power of influence. Thanks to the cooperation and support of the bank we built an additional hut for apiinhalation there, which improves the condition of the respiratory tract, strengthens immunity and reduces the effects of stress. This is what I call a harmonious coexistence with the environment - we respect and strengthen it and in return we get the same - after all we are its integral part.”

Bożena Wola
Chairman of the Board of Fundacja Pszczoła

Moreover, we support the Beekeeper of the Year contest, aimed at popularizing knowledge about beekeeping and its importance for biodiversity. Thanks to this initiative, we can disseminate good practices in the field of environmental protection and ecological education.

KEY FIGURES:

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Nearly 0.5 mln
bees in the bank's "Apiary under the stars"

230 kg
of honey produced in 2020

710 kg
of honey has been produced by bees from the "Apiaries under the Stars" since 2018.

Supporting afforestation

As the Bank of Green Changes, BNP Paribas Bank Polska S.A. undertakes numerous climate actions, often combining the product offering with the popularisation of environmental attitudes and initiatives. The year 2020 was exceptionally "green". Thanks to the commitment of its customers and partners, the bank planted in total over 60 thousand trees - from native species to aerobic trees with exceptional oxygen production capabilities.

BNP Paribas Bank Polska SA encouraged its customers to create the "Great Oxygen Gardens" together. For each open account or cash loan granted, the Bank undertook to plant an Oxytree tree which absorbs almost 10 times more CO₂ than the most popular domestic deciduous tree species. The pandemic has prevented for all 50,000 trees pledged by the bank to be planted this year, but the first plantings have already been established. As of June 2020, 21 thousand oxygen trees are growing in controlled plantations in Sarbia and Radomieck in Lubusz Voivodeship. Further sites for next year's plantations are also already prepared.

In the middle of the twentieth century, forests covered slightly more than one fifth of Poland's area, and today - just under one third. Although forest areas in our country are expanding, there is a need to restore areas that, for example, suffered from storms. In 2017, after violent storms, tens of thousands of hectares of forests were destroyed, including over 2,200 hectares of forest in the Runowo Forest Inspectorate in the Kuyavian-Pomeranian Voivodeship. BNP Paribas Bank Polska SA got involved in this initiative as part of its participation in the Carbon Dioxide Unit auction. The funds for the purchased Carbon Dioxide Units allowed to restore about 5 ha of forest near Bydgoszcz (Drzewianowo Forestry). In November and December 2020, approx. 25 thousand mainly deciduous trees were planted there, e.g. oaks, beeches, lindens, sycamores and others.

Additionally, BNP Paribas Bank Polska SA took part in Reforest Action campaign. Its objective was to plant one tree for each EUR 1,000 invested within socially responsible investments. It was related to the issue of structured certificates: Environmentally Friendly Companies, Environmentally Friendly Companies II, Climate Investment, Climate Investment II. Thanks to the bank's Clients, in October more than 14,000 trees of various species were planted in Lipusz, Pomeranian Voivodeship, where forests were destroyed by a storm in 2017.

More information: https://www.bnpparibas.pl/Bankzielonychzmian/

In 2020, through the BNP Paribas Foundation, we donated PLN 20 thousand to help save the Biebrza National Park, which has been consumed by fires for years. Thousands of hectares of habitats of endangered species have already been burnt. For BNP Paribas Bank Polska SA, concern for the natural environment is a key commitment and the foundation of responsible business. Involvement in counteracting the natural disaster and supporting the burning Biebrza National Park, for BNP Paribas, is a natural reaction. The Bank encourages everyone who is not indifferent to the fate of our planet to get involved.

More information: https://media.bnpparibas.pl/pr/502220/bnp-paribas-przekazal-20-000-zl-na-ratowanie-biebrzanskiego-parku-narodowego

KEY FIGURES:

60 k
trees planted thanks to the involvement of BNP Paribas Bank Polska S.A .

PLN 20 k
donated to save the Biebrza National Park

6.9.             Promoting eco-attitudes and climate justice

TCFD Indicators used by the organisation to assess climate risks and opportunities in line with risk management strategies and processes.

The Bank of Green Changes educational campaign for employees and their relatives

155

155

We are living on credit against the Earth, and the ecological debt is increasing dramatically. Combating climate change is the responsibility of all of us - governments, companies and institutions, NGOs and citizens. At BNP Paribas Bank Polska S.A. we believe that big changes start with us. Therefore, we pay a lot of attention to educating our employees and their relatives about climate change. In our opinion, conscious employees who understand progressive changes and follow values consistent with the organization, really contribute to fighting climate change. Their knowledge and involvement translate into responsible everyday choices, initiating eco-improvements in the organization and its environment and dynamic development of "green" products and services. Guided by this conviction, in April 2019 we inaugurated the Bank of Green Changes program, an important part of which is an educational campaign aimed at employees and their loved ones.

The first edition of the educational campaign, under the slogan "Responsible use of resources", enjoyed great interest among employees. During the 1st edition, 2,500 employees were involved in various educational activities - almost ¼ of the entire organization. Following its success, in April 2020, the bank launched the 2nd edition of the campaign under the slogan "Responsible Consumption and Sustainable Lifestyle", which covered a variety of topics including: the environmental impact of the pandemic, sustainable agriculture and food production, responsible shopping and eco-mobility. The bank is already planning topics for the next edition of the campaign. In each edition, the bank's employees receive a dose of ecological knowledge - tips and ready-made solutions to help them live in harmony with the planet, learn about the causes and effects of climate change and ways to counteract them.

Employees can regularly check their knowledge through thematic quizzes. Eco-experts will receive environmentally friendly gadgets to help them implement the principles of zero waste. The Bank also encourages employees to undertake monthly eco-challenges and share their ideas and achievements. This way, we reinforce eco-attitudes among employees. As a part of the campaign, a special page has been created on the internal intranet - a repository of ecological knowledge for the employees of BNP Paribas Bank Polska SA. It contains practical guides, information on waste segregation, eco-themed coloring pages for kids, and - in cooperation with the organizers of the Karków Green Film Festival - a database of films about the impact of human activity on the environment, climate change and ways to counteract it.

The program includes inspirational meetings and workshops as well as webinars. Knowledge was shared with the bank's employees by recognized experts, such as Franck Courchamp - creator of the documentary film "Insignificant" and Marcin Popkiewicz - nuclear physicist, climatologist, author of the book "Nauka o Klimacie" ("The Climate Science"). The content partner of the educational campaign is UNEP/GRID-Warszawa.

Eco-volunteering

BNP Paribas Bank Polska S.A., as part of its climate actions, organises campaigns to support the promotion of eco-attitudes among employees and their loved ones. In 2018 and 2019, as part of the "Let's Connect Our Cities" campaign, our employee volunteers in cooperation with the Łąka ("Meadow") Foundation planted flower meadows in Warsaw, Krakow and Ruda Śląska.

In September 2019, the bank, in partnership with the Our Earth Foundation and under the patronage of the Director General of State Forests, organized the #TrashChallenge campaign.

In 2020, out of concern for the safety of employees during the pandemic, volunteer actions did not take place; however, the bank and the BNP Paribas Foundation encouraged employees and their relatives to make an individual commitment to the environment.

KEY FIGURES:

More than 3,500
pracowników wzięło udział w 2 edycjach kampanii edukacyjnej Bank Zielonych Zmian

More than 2,500
people took eco-quizzes during the two editions of the campaign

70
ideas for improvements in the organization were submitted by employees

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156

Promoting eco-attitudes among stakeholders

TCFD: Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process

Concern for the environment is something that BNP Paribas Bank Polska S.A. strives to promote among clients, partners and all stakeholders. Following the eco-commitment of our employees, in 2019 we developed a campaign "Climate change costs money". We try to infect our partners with concern for the environment, including "newonce" magazine and "newonce" radio, which in 2019 has developed a series of broadcasts and podcasts called KLIMAT ("Climate"). They are available at: www.newonce.radio/klimat.

A campaign on nitrogen

As the Bank of Green Changes, we have been supporting sustainable agriculture for years and have taken many initiatives for climate protection and low-carbon economy development. In 2020, we implemented a campaign to promote rational nitrogen fertilization of soils, as part of which we provided farmers with a special calculator, free of charge. Fertilizers containing nitrogen are, of course, necessary for crop production and the law does not require farmers to completely abandon them, but nitrogen pollution of waters from this source is one of the most significant threats to the environment. Thanks to the intuitive calculator, the farmer can precisely calculate how much manure he can use to achieve the desired results and at the same time minimize the negative impact on the environment. The tool, available on our portal Agronomist.pl, can be used thanks to the staff of the Agricultural Advisory Centre in Brwinów.

The launch of the tool was accompanied by a media campaign aimed at raising awareness of the importance of sustainable fertilization. The Polish Association of Sustainable Agriculture "ASAP" was the content partner of the campaign, while PWR, publisher of such titles as "Tygodnik Poradnik Rolniczy" (“Weekly Agricultural Guide”) and "Top Agrar", was its media partner.

More information: https://www.bnpparibas.pl/Bankzielonychzmian/

BNP PARIBAS TALKS

In 2020, as part of the BNP Paribas Talks project, we produced a series of podcasts under the theme "Ecology". Our guests included Maria Andrzejewska, Director of the UNEP/GRID-Warszawa Centre and Adriana Palka, a respected runner and personal trainer. During the conversation listeners could learn more about the idea of the "Green Ribbon #forPlanet" campaign. We also hosted Orina Krajewska, who spoke about healthy and ecological lifestyle during pandemic and Marek Kaminski, a traveler promoting eco-mobility. Our bank experts also spoke as part of the series. Bartosz Urbaniak, Head of Agro Banking of BNP Paribas for Central Eastern Europe and Africa, talked about drought, while Rafał Makowski, Managing Director of Consumer Finance Sales in our bank, discussed the boom on the solar market.

Podcasts can be listened to on Spotify and at: https://talks-bnpparibas.pl/

Green Ribbon campaign #ForPlanet

The Green Ribbon #ForPlanet campaign, organized by UNEP/GRID-Warsaw, which we joined as a lead partner in 2020, aims to raise public awareness of the major environmental challenges associated with biodiversity loss. Its aim was to raise widespread awareness that human safety cannot be ensured without preserving the richness and diversity of nature.

As emphasized by the organizer of the campaign, the UNEP/GRID-Warsaw, the loss of biodiversity is not just the disappearance of one or another species from the face of the Earth. It is a risk of a whole range of undesirable side effects - from the spread of alien invasive species in a given area, through the weakening of the ability of forests and peatlands to absorb greenhouse gases, to the increasing risk of the spread of already known - and appearance of completely new - zoonotic diseases (e.g. COVID-19).

The situation we all find ourselves in now, reminds us that despite advanced development, we are still subject to the laws of nature and we should take immediate action to take the best possible care of our planet - the diversity of species and ecosystems. Only this way do we have a chance to contain the climate crisis.

157

157

As a partner of the "Green Ribbon #ForPlanet" campaign, we encouraged our employees, customers and surroundings to take eco-friendly actions. The highlight of the campaign was the celebration of World Environment Day (June 5). By joining the campaign and the World Environment Day celebrations, we also contribute to global activities organized under the aegis of the United Nations Organization.

More information about the campaign: http://dlaplanety.pl/

Kraków Green Film Festival

We believe that by raising awareness and sharing best practices, we can protect our planet. Therefore, in 2020. BNP Paribas Bank Polska S.A. has become the main sponsor of the third edition of Krakow Green Film Festival. KGFF is an international festival of ecological films, which gathers the best productions from all over the world. The idea of the event is to educate and promote pro-ecological attitudes through films, discussions, panels and other accompanying events, which content value was taken care of by UN Global Compact Network Poland.

The screenings took place in six outdoor cinemas in the most charming corners of Krakow. Out of almost a thousand films from all over the world which were submitted to the festival, about 70 were qualified for the main competition. An alternative form of participation in the festival was a free streaming platform where all of the competing films were made available.

Videos from Kraków Green Film Festival are available at: https://vod.greenfestival.pl/

8.10.         Climate Partnerships

GRI 102-13

BNP Paribas Bank Polska S.A. as a responsible financial institution undertakes a number of actions to promote natural environment protection. The bank's experts actively participate in industry and sector events where they promote climate justice, e.g. in 2020 during the European Financial Congress our bank hosted the debate "Air protection, water crisis, green energy - the role of the financial sector in the development of programs and tools to support sustainable transformation."

UN Global Compact Network Poland

The Bank is a partner of UN Global Compact Network Poland. As part of the partnership, it has joined the "Climate Positive" programme (until 2020 the programme was called "SDG 11 - Sustainable cities"). Within the partnership, the Bank supports UN Global Compact actions that promote green attitudes. The Chairman of BNP Paribas Bank Polska S.A., Przemek Gdański, is a member of the UNGC Programme Council. He also participates in the annual Yearbook publication presenting the Bank's activities and urging consumers, companies and institutions to get involved in initiatives under the 13th Sustainable Development Goal - Climate Action.

UNEP/GRID-Warsaw

We also cooperate with UNEP/GRID-Warszawa, which provides content-related support to the bank in the educational campaigns and implementation of eco-improvements in the organisation. We are a member of the Partnership for the Implementation of Sustainable Development Goals "Together for the Environment" organised by UNEP/GRID-Warszawa. The Partnership is a response to the need to create the best possible conditions for achieving the UN Sustainable Development Goals in Poland, especially those relating to environmental issues. Within the framework of the Partnership, the bank actively supports the "Green Ribbon #ForPlanet" campaign linked to the annual celebrations of World Environment Day in Poland. In 2020, the bank joined the Climate Leadership expert program for the second time. It is an initiative that brings together leaders, in efforts to achieve climate neutrality, businesses aware of their role in counteracting environmental degradation. The program is at the same time a tool for motivation and inspiration to take up specific, daring challenges. Thanks to this partnership, we jointly and systematically support the introduction of real changes in the market offer, production processes and supply chains of the largest companies - changes which are a response to the climate crisis and the related threats.

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158

"Ten companies from very different industries took part in the first edition of the Climate Leadership program. One of them was BNP Paribas Bank Polska S.A. The companies were supported by more than sixty experts, with whom they worked out real solutions. We hope that in the second edition of the programme, the changes introduced by business leaders will have a significant impact on reducing the harmful influence of their companies on the environment, and ultimately will accelerate the achievement of climate neutrality.”

Maria Andrzejewska
Director of the UNEP/GRID-Warsaw Centre

ECO-CITY

BNP Paribas Bank Polska S.A. has also joined the ECO-CITY project organised by the French Embassy in Poland and UNEP/GRID-Warszawa, and co-organised by the "Teraz Środowisko" ("Environment Now") trade journal. The purpose of the initiative is to exchange experiences between cities, promote best and proven solutions, and engage citizens in these activities. The initiative is accompanied by a contest, that aims to award the most environmentally engaged Polish cities. The project promotes energy efficiency in multi-family residential buildings, popularizes best environmental practices and supports sustainable cities and communities.

Bio Coalition

In 2020, we joined the Coalition for the Development of the Bio Food Market. It is an organization established to support the organic food industry, among others by raising consumer awareness. The Coalition was established under the auspices of the Minister of Agriculture and Rural Development, and initiated by Carrefour Poland, the Polish Chamber of Organic Food, the Warsaw University of Life Sciences and the Ekolan association. By joining this initiative as a leader in financing the agro industry, we will be able to support farmers in the development of this market.

Cool Farm Alliance (CFA)

In 2020, BNP Paribas Bank Polska has joined the Cool Farm Alliance (CFA), an international industry consortium bringing together entities working to develop sustainable agriculture. Our bank is the first financial institution which has joined the group of 60 companies within CFA. Thanks to our membership in CFA, the Food & Agro sector clients of BNP Paribas Bank Polska S.A. will be able to use an innovative Cool Farm Tool via our portal Agronomist.pl. This online calculator, which will be available in the first half of 2021, can be used to calculate greenhouse gas emissions related to agricultural production, assess biodiversity of farms or irrigation requirements for crops.

We partner with organizations and initiatives supporting environmental protection and combating climate change. Since 2017, we have supported the Association of Sustainable Agriculture "ASAP". In 2019, BNP Paribas Bank Polska S.A. joined the "Partnership for Climate" of the City of Warsaw. Przemek Gdański, as the first CEO from Poland, supported the "CEO Call to Action" initiative for climate justice, established in May 2019 during the SDG Summit in Brussels.

More information about partnerships between BNP Paribas Bank Polska S.A. can be found at: https://www.bnpparibas.pl/csr/partnerstwa

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159

9.   About the Report

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GRI 101, 102-1, 102-43, 102-44, 102-45, 102-46, 102-47, 102-48, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54, 102-56

BNP Paribas Bank Polska S.A. has been publishing annual reports since 2011, containing non-financial data disclosed in accordance with GRI (Global Reporting Initiative).

The present report covers the period from January 1 to December 31, 2020 including shifts in the reporting period for some data presented in the Environmental Responsibility chapter (as explained). The report includes data on BNP Paribas Bank Polska S.A. and key data on the companies which are part of the BNP Paribas Bank Polska S.A. Capital Group (referred to in the material as the Bank's Capital Group) as at 31 December 2020. These are:

§ BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A. („TFI”)

§ BNP Paribas Leasing Services Sp. z o.o.

§ BNP Paribas Group Service Center S.A. („GSC”)

§ BNP Paribas Solutions Sp. z o.o.

§ Bankowy Fundusz Nieruchomościowy Actus Sp. z o.o. („ACTUS”)

§ Campus Leszno Sp. z o.o.

§ BGZ Poland ABS1 Designated Activity Company („SPV”)

Due to the nature of operations of the ACTUS and SPV companies, the non-financial data presented in the Report do not include said entities.

The previous report “The CSR and Sustainability Report for the year 2019" presenting non-financial information of BNP Paribas Bank Polska S.A. and the BNP Paribas Bank Polska S.A. Capital Group was published on 3 March 2020 and sequentially on 7 May 2020 in a digital version, available at: https://raportroczny.bnpparibas.pl/.

Previous reports are available on the Bank's website at: https://www.bnpparibas.pl/csr/raporty-csr

Data previously reported did not require corrections. The recalculation has been performed on the 2019 carbon emissions data. The recalculation was carried out in order to align the sources of emission factors, and the results are published in Chapter Environmental responsibility. This report describes the organisation's approach to climate change as recommended by TCFD (Task Force on Climate-related Financial Disclosures). In other respects, the scope, coverage or measurement methods used have not changed from the previous report.

The publication highlights the activities of BNP Paribas Bank Polska S.A. supporting the implementation of the 17 Sustainable Development Goals adopted by the UN.

The Report fulfils the requirements of the Polish Accounting Act (Dz.U. 2019 poz. 351), which implements the guidelines of EU Directive 2014/95 regarding the disclosure of non-financial data.

The publication is part of a reporting package which includes:

160

160

§ Management Board report on the activities of the BNP Paribas Bank Polska S.A. Capital Group in 2020 (including Report on activities of BNP Paribas Bank Polska S.A.).

§ Financial statements of the BNP Paribas Bank Polska S.A. Capital Group and BNP Paribas Bank Polska S.A. for the year ended 31 december 2020

§ The CSR and Sustainability report presenting non-financial information of BNP Paribas Bank Polska S.A. and BNP Paribas Bank Polska S.A. Capital Group in 2020.

The above-mentioned documents are available on the Bank's website: https://www.bnpparibas.pl/relacje-inwestorskie/raporty-gieldowe/raporty-okresowe

The Report was prepared in accordance with the Global Reporting Initiative Standards (GRI Standards) in the Core version, with the support of independent consulting firm Go Responsible. The Report has not been subject to external verification.

In accordance with GRI Standards, the process of determining the significance of reported topics involved consultations with internal and external stakeholders of the Bank. The survey included employees of the companies and business units covered by the reporting and representatives of key groups of external stakeholders of the Bank, including, among others, business partners and suppliers, market environment representatives and partners, capital market representatives, members of local communities. The stakeholder survey was conducted from 16 to 26 November 2020 via an online survey. 43 external stakeholders and 91 internal stakeholders participated. The survey results were validated by management representatives during a strategy workshop as part of the work on this publication. In the course of the review of the significance of the reported topics, the below key topics were identified.

GRI 102-44, 102-47

List of key most material reporting topics for 2020

Subject

Page number

Impact of COVID-19 pandemic on the Bank's operations and performance

15-16, 21-23,
54-56, 77,
95-97,

Public engagement during COVID-19 pandemic

115-117

Digitalisation of Bank services and products

21-23, 62-64

Offering products and services that respond to social and/or environmental challenges

50-52, 65-69, 1142-147

Ethics in internal and external relations

35-36, 52-54

Education and development of employees

95-98

Simple and transparent communication

69-70, 85,

Reducing the negative impact of operational activities on the environment

136-158

Implementation of the Bank's development strategy for 2018-2021 (Fast Forward Strategy)

21-23

The Bank's strategic commitments and their implementation in terms of combating climate change

26-28,39-41,
135-163

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Thank you for reading the report. Fell free to contact the CSR and Sustainability Office to share any comments you may have on the reported content.

We thank all our readers and invite you to contact and cooperate with us!

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Maria Krawczyńska

Director of the CSR & Sustainability Bureau,
Board Member of BNP Paribas foundation

Agnieszka Michalik

CSR & Sustainability Senior Specialist

Contact: CSR@bnpparibas.pl

More information: https://www.bnpparibas.pl/csr

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Non-financial informations table

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In accordance with the requirements of the Accounting Act regarding non-financial reporting, the Report includes the following information:

Topic

Page number where topics were reported

1. Business model

p. 18-20

2. Key Performance Indicators

p. 15-16

3. Description of risks and risk management

p. 39-42

4. Main policies, procedures and other regulations at the level of the Bank and the BNP Paribas Bank S.A. Capital Group

p. 43-45

5. The results of implementing policies related to issues listed in the Accounting Act:

·        employee issues

p. 43, 75-109

·        social issues

p. 43-44, 110-134

·        environmental issues

p. 44, 135-163

·        human rights issues

p. 37-38, 44,

·        corruption prevention

p. 36-37, 44-45

163

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TCFD table

This report describes the organisation's approach to climate change as recommended by TCFD (Task Force on Climate-related Financial Disclosures):

GOVERNANCE

Disclosure

Description

Page number

Comment

Governance Disclosure A

Describe the board’s oversight of climate-related risks and opportunities.

136-140

Governance Disclosure B

Describe management’s role in assessing and managing risks and opportunities.

136-140

STRATEGY

Disclosure

Description

Page number

Comment

Strategy Disclosure A

Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

137-139

Strategy Disclosure B

Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

137-139

Strategy Disclosure C

Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

-

nonreported

RISK MANAGEMENT

Disclosure

Description

Page number

Comment

Risk Management Disclosure A

Describe the organization’s processes for identifying and assessing climate-related risks.

40-43,             1346-140

partially reported

Risk Management Disclosure B

Describe the organization’s processes for managing climate-related risks.

40-43,             1346-140

partially reported

Risk Management Disclosure C

Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.

40-43

partially reported

METRICS AND TARGETS

Disclosure

Description

Page number

Comment

Metrics and Targets Disclosure A

Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

47-51

partially reported

Metrics and Targets Disclosure B

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.

155-157

Metrics and Targets Disclosure C

Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

46-50,
139-140, 141-146

partially reported

164

164

165

165

GRI Content Index

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GRI 102-44, 102-47

List of indicators included in the Report

Area

Name and year of implementation of the Standard

GRI indicator

Description

Reference

166

166

PROFILE DISCLOSURES

GRI 101 Key Information

101

Assumptions and basis for reporting

164

GRI 102 General Disclosures 2016

102-1

Name of organization

6

GRI 102 General Disclosures 2016

102-2

Description of the organization's activities, main brands, products and/or services

6

GRI 102 General Disclosures 2016

102-3

Location of headquarters

6

GRI 102 General Disclosures 2016

102-4

Location of operations

6

GRI 102 General Disclosures 2016

102-5

Ownership and legal form

6

GRI 102 General Disclosures 2016

102-6

Markets served

6

GRI 102 General Disclosures 2016

102-7

Scale of the organisation

6

GRI 102 General Disclosures 2016

102-8

Data on employees and other persons working for the organisation

87

GRI 102 General Disclosures 2016

102-9

Supply chain description

34

GRI 102 General Disclosures 2016

102-10

Significant changes during the reporting period regarding size, structure, ownership or value chain

34

GRI 102 General Disclosures 2016

102-11

Explanation of whether and how the organisation applies the precautionary principle of approach

39, 43

GRI 102 General Disclosures 2016

102-12

External economic, environmental and social statements, principles and other initiatives adopted or endorsed by the organisation

23, 67, 69

GRI 102 General Disclosures 2016

102-13

Membership of associations and organisations

33, 67, 162

GRI 102 General Disclosures 2016

102-14

Statement from senior decisionmakers

4, 5

GRI 102 General Disclosures 2016

102-15

Key impacts, risk and opportunities

4, 5, 18, 20, 32, 39, 40, 137, 139

GRI 102 General Disclosures 2016

102-16

The organisation's values, code of ethics, principles and standards of behaviour

35, 84

GRI 102 General Disclosures 2016

102-17

Internal and external mechanisms for obtaining advice on ethics and legal issues as well as matters relating to the integrity of the organisation

35

GRI 102 General Disclosures 2016

102-18

Supervisory structure of the organisation with committees reporting to the highest governance body

11, 13

GRI 102 General Disclosures 2016

102-40

List of stakeholder groups engaged by the reporting organisation

32

GRI 102 General Disclosures 2016

102-41

Collective bargaining agreements

79

GRI 102 General Disclosures 2016

102-42

Identifying and selecting stakeholders

32, 70, 85

GRI 102 General Disclosures 2016

102-43

Approach to stakeholder engagement

32, 70, 85

GRI 102 General Disclosures 2016

102-44

Key topics and concerns raised

33, 34, 70, 85, 164, 165, 169

GRI 102 General Disclosures 2016

102-45

Entities included in the consolidated financial statements

164

GRI 102 General Disclosures 2016

102-46

Defining report content

165

GRI 102 General Disclosures 2016

102-47

List of material topics

165

GRI 102 General Disclosures 2016

102-48

Explanation of the effect of any corrections to the information contained in previous reports, indicating the reasons for them and their impact

164

GRI 102 General Disclosures 2016

102-49

Significant changes in relation to the previous report regarding the scope, coverage or measurement methods applied in the report

164

GRI 102 General Disclosures 2016

102-50

Reporting period

164

GRI 102 General Disclosures 2016

102-51

Date of publication of the last report (if published)

164

GRI 102 General Disclosures 2016

102-52

Reporting cycle

164

GRI 102 General Disclosures 2016

102-53

Contact data

164

GRI 102 General Disclosures 2016

102-54

Claims of reporting in accordance with the GRI Standards

(Core or Comprehensive option)

164

GRI 102 General Disclosures 2016

102-55

GRI index

169

GRI 102 General Disclosures 2016

102-56

Policy and current practice with regard to external verification of the report

164

SPECIFIC DISCLOSURES ON MATERIAL TOPICS

167

167

ECONOMIC ASPECTS

GRI 103 Management approach 2016

103-1

Explanation of the material topic and its boundaries

6, 20, 23

103-2

Approach to managing material topics

103-3

Evaluation of the approach to management within the topics identified as material

GRI 201 Economic performance 2016

201-1

Direct economic value generated (revenues) and distributed (operating costs, wages, payments to investors and the state, social investment)

15

GRI 202 Market presence 2016

202-1

Ratio of entry-level wage by gender to the minimum wage in the relevant market in the main business locations

92

GRI 203 Indirect economic impact 2016

203-1

Development and impact of investments in infrastructure and services

58, 67, 117, 118, 119

GRI 204 Purchasing Practices 2016

204-1

Percentage of spending on local suppliers in the main business locations

34

GRI 205 Anti-corruption 2016

205-1

Total number and percentage of establishments assessed in terms of corruption risk and significant risks identified

36, 69

205-2

Communication and training about anti-corruption policies

and procedures (governing bodies, employees, business partners)

36, 69

205-3

Confirmed incidents of corruption and actions taken

36

GRI 206 Anti-competitive behaviour 2016

206-1

Total number of legal actions taken against the organisation concerning infringements of free competition rules, monopolistic practices and their effects

38

ENVIRONMENTAL ASPECTS

GRI 103 Management approach 2016

103-1

Explanation of the material topic and its boundaries

20, 23, 30, 46, 136, 141, 147, 155

103-2

Approach to managing material topics

103-3

Evaluation of the approach to management within the topics identified as material

GRI 301 Materials 2016

301-1

Materials used for production and packaging by weight or volume

149, 150

GRI 302 Energy 2016

302-1

Energy consumption (electricity, heat, cooling, steam) within the organisation - from renewable and non-renewable sources

152

302-4

Reduction of energy consumption

154

GRI 303 Water 2018

303-3

Total water withdrawal by source

158

GRI 305 Emissions 2016

305-1

Direct (Scope 1) GHG emissions

149, 151

305-2

Indirect GHG emissions (resulting from the generation of purchased or acquired electricity, heat, cooling and steam consumed by the organisation)

149, 151

305-3

Other indirect (Scope 3) GHG emissions

149, 151

305-5

Reduction of GHG emissions

155

GRI 307 Environmental compliance 2016

307-1

Amount of significant fines and total number of non-financial sanctions for non-compliance with environmental laws and regulations

38, 149

GRI 308 Supplier environmental assessment 2016

308-1

New suppliers screened using environmental criteria

34

168

168

SOCIAL AND LABOUR ASPECTS

GRI 103 Management approach 2016

103-1

Explanation of the material topic and its boundaries

20, 23, 30, 65, 81, 85, 95, 100, 111, 119

103-2

Approach to managing material topics

103-3

Evaluation of the approach to management within the topics identified as material

GRI 401 Employment 2016

401-1

Total number and rates of new hires and staff turnover by age group, gender and region

91

401-2

Benefits provided to full-time employees which are not intended for temporary or part-time employees, by main location of business (e.g. Insurance, healthcare, etc.)

82, 92

401-3

Return to work and job retention rates after maternity/paternity leave by gender

107

GRI 402 Labour relations management 2016

402-1

Minimum notice periods in relation to operational changes, including whether these are set out in collective agreements

79

GRI 403 Occupational health and safety 2018

403-1

Occupational health and safety management system

79, 82

403-2

Identification of hazards, risk assessment and accident investigation

79, 82

403-3

Occupational health and safety services

79, 82

403-4

Employee participation, consultation and communication in the field of occupational health and safety

79

403-5

Employee training in occupational health and safety

79

403-6

Health promotion programs

79

403-7

Prevention and mitigation of impacts on health and safety in the workplace

79

403-9

Work-related injuries

79

GRI 404 Training and education 2016

404-1

Average number of training hours per year per employee by gender and by employee category

97

404-2

Management skills development and lifelong learning programmes that support continuity of employment and facilitate end-of-career management

82, 95

404-3

Percentage of employees receiving regular performance and career development reviews, by gender and employee category

82, 99

GRI 405 Diversity and equal opportunities 2016

405-1

Composition of governing bodies and staff by gender, age, minority membership and other diversity indicators

103

ASPECTS RELATED TO HUMAN RIGHTS

GRI 103 Management approach 2016

103-1

Explanation of the material topic and its boundaries

20, 23, 30, 46, 65, 81

103-2

Approach to managing material topics

103-3

Evaluation of the approach to management within the topics identified as material

GRI 406 Non-discrimination 2016

406-1

Total number of cases of discrimination (discriminatory incidents) and corrective actions taken

37, 38, 82

GRI 412 Human rights 2016

412-1

Total number and percentage of establishments undergoing human rights screening or human rights impact assessment

38, 82

412-2

Total number of hours of employee training on human rights policies or procedures with human rights aspects that are relevant to the organisation's operations, including the percentage of employees trained

38, 82

412-3

Percentage and total number of valid investment agreements and contracts containing human rights clauses or that have been subject to human rights screening

34

IMPACT ON THE SOCIAL ENVIRONMENT

GRI 103 Approach to management 2016

103-1

Explanation of the material topic and its boundaries

100, 111, 119

103-2

Approach to managing material topics

103-3

Evaluation of the approach to management within the topics identified as material

GRI 413 Local communities 2016

413-1

Percentage of establishments with implemented local community engagement programmes, impact assessments and development programmes (community impact assessments, local community development, consultation, stakeholder engagement)

110, 11, 114, 117, 118

GRI 414 Social Impact of Suppliers - assessment 2016

414-1

Percentage of new suppliers who were selected taking into account meeting the criteria of hiring practices

34

GRI 417 Marketing and labelling of products and services 2016

417-3

Total number of cases of non-compliance with regulations and voluntary codes on marketing communications, including advertising, promotion and sponsorship, by type of impact

38

GRI 418 Customer privacy 2016

418-1

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

38

GRI 419 Prevention of non-conformity in respect of products and services 2016

419-1

Amount of significant fines and total number of non-financial sanctions for non-compliance with laws and regulations

38

169

169

459 branches of retail and corporate banking	462 cash deposit machines (dual-purpose devices) and 140 ATMs	9,210 people employed at BNP Paribas Bank Polska S.A.

9,455 people employed in the Capital Group of BNP Paribas Bank Polska S.A.	8,845 people with a contract of employment at BNP Paribas Bank Polska S.A.	9,019 people with a contract of employment at the BNP Paribas Bank Polska S.A. Capital Group

22,507 hours of work devoted to social issues by employees	3,509 instance of our employees’ social involvement	97 volunteers of the „BAKCYL” program – Bankers for the Financial Education of Youth

60 grants for social organisations (each worth PLN 4 thousand) in the 10th Edition of the Local Grants Program	Over PLN 1.7 million of support for local social organisations in 10 editions of the Local Grants Program	100 scholarship holders of the “Class” scholarship program in 2020

240 CSR declarations signed by new suppliers	225 CSR analyses carried out	100% electricity from renewable energy sources

Over 3,500 employees involved in the Bank of Green Changes program from 2019	PLN 993 million of "green" financing granted in 2020	PLN 2.7 billion the total value of “green” loans in recent years

Full name	Office held in the Management Board of the Bank	Supervised areas
Przemysław Gdański	President of the Management Board	Bank Management, Strategy & Agro Markets Area, including supervising the Internal Audit Line, Compliance Line, Marketing, Communication and Social Involvement Line, Legal Line, Strategy and Market Analysis Line, Agrobusiness Line, HR Area, Transformation Area
Jean-Charles Aranda	Vice-President of the Management Board	Finance Area; including the Financial Accounting Line, the Capital Management Department, the Management Accounting and Investor Relations Line, the Tax Department, the Asset and Liability Management Line and the Data Governance Department
André Boulanger	Vice-President of the Management Board	Corporate and Institutional Banking (CIB) Area; including the Financial Markets Line, the CIB Strategic Clients Department, the CIB Business Support and Development Department and the Custody Services Department
Przemysław Furlepa	Vice-President of the Management Board	Retail and Business Banking; including the Sales Line, the Internet Banking Line, the Retail and Business Products Line, the Credit Decision Department, the Retail Banking and Analyses Office, the Wealth Management Department, the Customer Relations Development Department, the Customer Experience Transformation and Development Department, the Brokerage House
Wojciech Kembłowski	Vice-President of the Management Board	Risk Area; including the SME and Agro Customer Risk Line, System Risk Management Line, Corporate Restructuring and Debt Collection Line, Financial Risk and Contractor Line, Operational Risk Line, Credit Control and Fraud Prevention Line, CIB and Corporate Customer Risk Line, Individual and Micro Enterprises Risk Line
Kazimierz Łabno	Vice-President of the Management Board	Business Operations and Support Area; including the Operations Line, the Real Estate and Administration Department, the Operational Control Department, and the Central Purchasing Department
Jaromir Pelczarski	Vice-President of the Management Board	New Technologies and Cybersecurity Area; including the New Technologies, Architecture and IT Support Line, the IT Line for Central Functions, the Corporate Banking and Capital Markets IT Development Line, the IT Systems Development Line for Retail Customers, the Project Portfolio Management and IT Organisation Department, the Security and Business Continuity Line and the GSC (SPV) Team
Volodymyr Radin	Vice-President of the Management Board	Personal Finance Banking Area; including the Consumer Finance Sales Line, Automotive - Personal Finance Sales Line, B2C Sales Department, PF New Business Models and Innovation Department, PF Product Development and Customer Relations Line, PF Partner Service and Insurance Banking Department, PF Operations Line, Planning and PF Finance Department
Jerzy Śledziewski	Vice-President of the Management Board	SME and Corporate Banking Area; including the Sales Network Line of Corporate Banking and Agro Banking, Division of International Enterprises, the Public Sector and Institutions, Department of Credit Decisions in Corporate Banking, Business and Organisation Development Line, Specialised Finance Line, Cash Management Line, SME Sales Network Management Line, Product Development, SME Credit Strategies and Decisions Line, Leasing Department, Trade Finance Department, Factoring Management Department, Transaction Advisory Department, Large Corporates Office

Office held in the Supervisory Board	Composition of the SB as at December 31, 2020	Composition of the SB as at December 31, 2019
Chairman	Józef Wancer	Józef Wancer
Vice-Chairman	Lucyna Stańczak-Wuczyńska* independent member	Jarosław Bauc independent member
Vice-Chairman	Jean-Paul Sabet	Jean-Paul Sabet
Member	Francois Benaroya	Francois Benaroya
Member	Stefaan Decraene	Stefaan Decraene
Member	Magdalena Dziewguć independent member	Magdalena Dziewguć independent member
Member	Vincent Metz	Michel Falvert
Member	Sofia Merlo	Sofia Merlo
Member	Piotr Mietkowski	Piotr Mietkowski
Member	Jarosław Bauc independent member	Monika Nachyła
Member	Stéphane Vermeire	Stéphane Vermeire
Member	Mariusz Warych independent member	Mariusz Warych independent member


Supervisory Board Committees
Full name	Office held in the Supervisory Board	Audit Committee	Risk Committee	Remuneration Committee	Nominations Committee
Józef Wancer	Chairman			Member	Member
Lucyna Stańczak-Wuczyńska	Vice Chairman, Independent member	Member	Member	Member	Member

Jean-Paul Sabet	Vice Chairman			Chairman	Chairman
Jarosław Bauc	Independent member	Member
Francois Benaroya	Member	Member	Chairman	Member	Member
Stefaan Decraene	Member
Magdalena Dziewguć	Independent member
Vincent Metz	Member
Sofia Merlo	Member
Piotr Mietkowski	Member
Stéphane Vermeire	Member
Mariusz Warych	Independent member	Chairman	Member

Selected consolidated financial data		PLN ‘000			EUR ‘000
Statement of profit or loss	31.12.2020		31.12.2019	31.12.2020		31.12.2019
	(YTD)		(YTD)	(YTD)		(YTD)
Net interest income	3,060,070		3,168,759	683,937		736,619
Net fee and commission income	916,095		819,937	204,751		190,605
Profit before tax	1,110,567		872,955	248,216		202,930
Profit after tax	733,095		614,694	163,849		142,894
Total comprehensive income	863,677		598,767	193,035		139,195
Total net cash flows	(1,127,889)		1,407,756	(252,087)		327,251
Ratios	31.12.2020		31.12.2019	31.12.2020		31.12.2019
Number of shares (items)	147,418,918		147,418,918	147,418,918		147,418,918
Earnings per share	4.97		4.17	1.11		0.97
Statement of financial position	31.12.2020		31.12.2019	31.12.2020		31.12.2019
Total assets	119,577,288		109,954,142	25,911,695		25,819,923
Loans and advances to customers measured at amortised cost	74,097,269		71,836,643	16,056,442		16,869,002
Loans and advances to customers measured at fair value through profit or loss	1,539,848		1,974,396	333,676		463,636
Total liabilities	107,546,761		98,794,759	23,304,750		23,199,427
Liabilities due to customers	90,051,004		86,134,984	19,513,523		20,226,602
Share capital	147,419		147,419	31,945		34,618
Total equity	12,030,527		11,159,383	2,606,944		2,620,496
Capital adequacy	31.12.2020		31.12.2019	31.12.2020		31.12.2019
Total own funds	15,748,450		12,593,377	3,412,596		2,957,233
Total risk exposure	84,447,701		83,692,266	18,299,320		19,652,992
Total capital ratio	18.65%		15.05%	18.65%		15.05%
Tier 1 capital ratio	13.55%		12.80%	13.55%		12.80%


NON-FINANCIAL EFFICIENCY RATIO	2020 DATA FOR THE BANK
The number of customers of all business lines (increase / decrease as compared to the previous year)	3,938 thousand growth
Number of customers active online (increase / decrease as compared to the previous year)	1,302 thousand growth
Number of retail and corporate banking branches	459 retail and corporate banking branches, Including 17 partner branches
Number of ATMs and double-function devices	140 ATMs 462 double-function devices
Number of branches with the "Branch without barriers" certificate (increase / decrease as compared to the previous year)	51 growth
Number of Bank employees (by number of employees and in terms of the number of full-time posts)	9,210 employees 8,845 full-time posts
Average number of training hours per employee	18.3 hours
% of women in managerial positions	62% growth
Number of hours devoted to community involvement by employees	22,507 hours
The ratio of electricity from RES consumed by the Bank (increase / decrease as compared to the previous year)	100% growth
The volume of "green" financing loans (increase / decrease as compared to the previous year)	PLN 993 million growth

	tekst
	In a changing world, we support our customers’ sustainable development by taking care of their financial needs, providing professional services and innovative solutions. We also encourage professional development and employee involvement and generate shareholder value growth and benefits for the economy and local communities.
	tekst

tekst
The Bank’s strategic financial goals within the strategy include: a growth rate of the result on banking activity higher than the market, ROE above 10 percent and the C/I ratio at the level of c. 50 percent.
tekst


	§ “Noble Gift” § The Local Grants Program
	§ Social projects § Support for Food Banks
	§ BEneFIT § “Well” program § “Good Kilometres” program
	§ “Class” scholarship program § “Bakcyl” competence volunteering program § “Mission: Education”
	§ “Women Changing BNP Paribas” program § Partnership with the “Share The Care” Foundation
	§ The "Water? Yes! Plastic? No!” program § Promoting eco-attitudes
	§ Financing of renewable energy sources (RES)
	§ Financing the development of the Polish economy
	§ Supporting the development of strategic Clients § Technological loans
	§ Accessibility of products and services § Initiatives for Diversity
	§ Financing thermo-modernisation § The “Eco-City” Initiative
	§ Support for the sustainable development of the Food & Agro sector

	§ The “Bank of Green Changes” program § Eco-fleet § Withdrawal from the coal sector
	§ CSR policies § Agro Academy § Campaign for optimal nitrogen-based fertilisation
	§ The Bank’s "Apiary under the stars" § Support for afforestation § "Paperless" project
	§ Partnership in the "Ethics in Finance" competition § Declaration of Responsible Sales
	§ Partnership with: the Responsible Business Forum, the Polish Bank Association, UN Global Compact Network Poland, the French-Polish Chamber of Commerce

Five key pillars of the „Fast Forward” Strategy are the following:

1. Growth	2. Simplicity	3. Quality

4. Digitalisation	5. Enthusiasm

margines The Bank’s Sustainable Development Goals in the field of economic responsibility

Goal 8. Decent work and economic growth	Goal 9. Industry, innovation and infrastructure	Goal 11. Sustainable cities and communities	Goal 16. Peace, justice and strong institutions	Goal 17. Partnerships for the Goals
margines

margines
Commitments of the BNP Paribas Group regarding its withdrawal form the coal sector:
§ The BNP Paribas Group has committed to withdrawing from cooperation with Customers involved in coal-based electricity production, coal mining and coal infrastructure in the EU and OECD countries by the end of 2030.	§ The Group also maintains its commitment to terminate cooperation with Clients who invest in coal energy.	§ BNP Paribas has committed not to commence cooperation with new Clients if their coal-related activity generates over 25% of revenues.
margines

margines CUSTOMER DAYS IN NUMBERS:
3 days of meetings	11 lectures	26 speakers

c.a. 2,300 participants	over 10 hours of recordings of inspiring lectures

48% number of complaints reduced by 48%	8% increase in the operational ratio of First Contact Resolution (cases resolved during a Customer’s first contact with the Bank)

19% increase in the use of frontal competences by 19%	11 points NPS result improved by 11 points, which means that our Clients are increasingly will-ing to recommend our Bank to their family and friends

margines The Bank’s Sustainable Development Goals in the field of economic responsibility

Goal 3. Good health and well-being	Goal 5. Gender equality	Goal 8. Decent work and economic growth	Goal 10. Reduced inequality	Goal 17. Partnerships for the Goals
margines

9,210 people employed at BNP Paribas Bank Polska S.A.	9,455 people employed in BNP Paribas Bank Polska S.A. Capital Group	8,845 full time jobs at BNP Paribas Bank Polska S.A.

9,019 full-time jobs in the BNP Paribas Bank Polska S.A. Capital Group	62% women in managerial positions at BNP Paribas Bank Polska S.A.	61% women in managerial positions in the BNP Paribas Bank Polska S.A. Capital Group

39.2 Average age of BNP Paribas Bank Polska S.A. employees	39.17 the longest employment period at BNP Paribas Bank Polska S.A.	18.3 average number of training hours per one employee of the BNP Paribas Bank Polska S.A. Capital Group

margines
We achieve this through the following activities:
§ Implementation of the competency model and competency profiles. § Optimization of the recruitment process (e.g. thanks to the ServiceNow tool). § Implementation of the Taleo system. § Ongoing updates of HR Standards, responding to the current challenges of the employment market. § Digitization of HR processes (implementation of the TETA ME application and electronic personal files.	§ Continuous improvement of HR Processes. § Developing a development offer in response to business challenges. § Promoting Employee Value Proposition (EVP) and activities in the area of Employer Branding. § Development of Leadership (including through the "Well-Leading" development program). § Talent Development (amongst others through the "Leaders of the Future" program).	§ Supporting and encouraging knowledge sharing in the organization. § Improving the process of boarding new employees. § Building the position of HR Business Partners as strategic business partners. § Transition to virtual learning and transfer of all development activities to the online sphere.
margines

KEY FIGURES:
44% each month, an average of 44% employees worked remotely for an average of 23% of working days	81% of employees have estimated that BNP Paribas Bank Polska S.A. organizes work in a way that minimizes the risk of infection	85% of employees have indicated that they could count on the support of their supervisor and 70% have declared that they felt the support of other units	70% of people replied that the bank provides the necessary hygiene and disinfection measures

2. The Capital Group of BNP Paribas Bank Polska S.A.

History of the Bank

Management Board

Supervisory Board

Supervisory Board Committees

Business model

The pillars of operations for the BNP Paribas Group

Legal and regulatory basis for corporate governance

ESG risk management

Stakeholdersof the Bank:

Main forms and tools of communication with stakeholders

Key partnerships

CSR declaration

Code of ethics

Mechanisms of reporting irregularities

Anti-discrimination and respect for human rights

Risk management system

2.10. ESG risk management

Sectoral CSR policies

Employee issues

Social issues

Environmental issues

Human rights issues

Corruption prevention

Management

Clients

Foreign Trade Program

Cooperation with international Customers

“Family Business Initiative”

Declaration of Responsible Sales

4.1. Workplace Management

HR Transformation

Impact of the pandemic on the management of the employment area

Regulations

Compliance management in the area of employment

Rules for submitting complaints and applications

OHS

Management of the employee area in subsidiaries of the BNP Paribas Bank Polska S.A. Capital Group

4.3. Data illustrating employment at the Bank and BNP Paribas Bank Polska S.A. Capital Group

Scale of employment

Employee assessment

Diversity & Inclusion

Initiatives to promote diversity

Figures illustrating diversity in the Bank and BNP Paribas Bank Polska S.A. Capital Group

Inclusion strategy for persons with disabilities

Initiatives to strengthen the role of women

Parenting support

Internal initiatives

External initiatives

Traineeship programs

5.2. Volunteering and Social Commitment

Strategic partnership with “Noble Gift”

Social campaigns addressed to employees

Employee Philanthropy

Support for the national health service

Support for social partners

5.4. Initiatives for local communities

The Foundation’s educational initiatives “Class” Scholarship Program

The Foundation’s social solidarity initiatives

Initiatives in the third sector

5.6. Mission Education

5.7. Responsible marketing

Economic Events

Good CSR and sustainable development practices of BNP Paribas Group Companies in Poland

7. 6.

8. Environmental responsibility

Climate risk management

Approach to energy transition

6.3. Green products and services and funding programmes

Investments in renewable energy

Offer for individual customers

Offer for Food & Agro sector customers

Offer for housing communities

Offer for businesses

Minimizing plastic consumption

Reduction of paper consumption

Water consumption

Energy consumption

Carbon dioxide emissions

Promoting eco-attitudes among stakeholders

The Foundation’s educational initiatives
“Class” Scholarship Program

	margines
	The main indicators we monitor in the area of employment are:
	§ number of holiday days used § number of overtime hours § percentage of employees who left the bank after one year of work § percentage of workers on sick leave	§ absenteeism rate due to maternity leave § absenteeism rate § occupational mobility: functional and geographical § rotation rate
	margines

Accidents by gender
	Women	Men	Total
Total	22	4	26
Branches	21	2	23
Headquarters	1	2	3

Absenteeism by gender
	Women	Men	Total
number of days of absence:	191,664	81,552	273,216
number of employees:	6,224	2,986	9,210
Absence indicator	12,2%	10,8%	11,7%


Lp.	Title of policy or procedure
1.	Diversity Governance at BNP Paribas
2.	Treatment of harassment notifications
3.	Agreement on the prevention of work-related stress
4.	Deployment of worldwide agreement on fundamental rights and global social framework
5.	Remote Working GHR Policy
6.	BNP Paribas Group Code of Conduct
7.	Person Group Recusal Policy For U.S. Persons
8.	Group Policy on Penalties for Misconduct by Employees
9.	Candidate and employee screening policy
10.	General Policy of the BNP Paribas Group on HR Personal Data Protection
11.	Binding Corporate Rules for HR
12.	Archiving employees' personal data
13.	Procedure for managing the rights to access, correct and challenge data and handling complaints regarding employees' personal data
14.	Proffessional path policy for employees
15.	External Recruitment of BNP Paribas Group Employees - Organisation and Guiding Principles
16.	Guiding principles for boarding of employees within the BNP Paribas Group
17.	Compulsory "block leave" vacation
18.	Managing Group Organisational Referential database (RefOG)
19.	Jobs & Activities Directory within BNP Paribas Group
20.	Conditions and application principles of the Long-Term Assignment Policy
21.	Conditions and application principles of the Short-Term Assignment Policy
22.	CRP General Guidelines Procedure
23.	Compensation guidelines and Remuneration policy for employees whose professional activities have a significant impact on the risk profile of the enterprise
24.	Roles and responsibilities related to Data Quality Management
25.	Group policy on the use of digital tools and email systems
26.	Human Resources Principles Applicable to Business Continuity Plan
27.	Group Policy on Anti-Money Laundering & Counter-Terrorist Financing Training
28.	Group Mandatory Trainings Policy

margines
§ Cooperation § Supporting change	§ Inspiration § Trust	§ Courage § Entrepreneurship	§ Vision
margines

	margines
	Nine principles of good cooperation of BNP Paribas Bank Polska S.A.:

KEY FIGURES:
9,210 employees at BNP Paribas Bank Polska S.A.	9,455 persons employed in the Capital Group BNP Paribas Bank Polska S.A.	8,845 full-time employees at BNP Paribas Bank Polska S.A.

9,019 full-time employees in the BNP Paribas Bank Polska S.A. Capital Group	64% of employees in BNP Paribas Bank Polska S.A. Capital Group are women	36% of employees in BNP Paribas Bank Polska S.A. Capital Group are men

	Number of full-time posts	Number of active full-time posts	Number of employees	Number of active employees
Capital Group BNP Paribas Bank Polska S.A. - total	9,019	8,235	9,455	8,646
Total bank, including:	8,845	8,074	9,210	8,423
Head office	4,662	4,354	4,915	4,598
Branches	4,048	3,590	4,159	3,693
Mobile advisors	84	81	84	81
Brokerage Office	44	43	45	44
Labour Unions	7	6	7	7
ACTUS SP. Z O.O. ("ACTUS") REAL ESTATE FUND.	0	0	0	0
BNP PARIBAS MUTUAL FUND SOCIETY S.A. ("TFI").	38	38	39	39
BNP PARIBAS LEASING SERVICES SP. Z O.O. ("LEASING").	6	6	21	21
BNP PARIBAS GROUP SERVICE CENTER S.A. ("GSC")	72	62	121	102
Campus Leszno Sp. z o.o.	10	9	10	9
BNP Paribas Solutions Sp. Z o. o.	48	46	54	52
BGZ POLAND ABS1 DAC („SPV”)S1 DAC („SPV”).	0	0	0	0

	31.12.2020	31.12.2019
Capital Group BNP Paribas Bank Polska S.A. - total	9,019	10,219
Total bank, including:	8,845	9,899
Head office	4,662	5,101
Branches	4,048	4,654
Mobile advisors	84	87
Brokerage Office	44	50
Labour Unions	7	7
ACTUS SP. Z O.O. ("ACTUS") REAL ESTATE FUND.	0	0
BNP PARIBAS MUTUAL FUND SOCIETY S.A. ("TFI").	38	29
BNP PARIBAS LEASING SERVICES SP. Z O.O. ("LEASING").	6	6
BNP PARIBAS GROUP SERVICE CENTER S.A. ("GSC")	72	228
CAMPUS LESZNO SP. Z O.O.	10	8
BNP PARIBAS SOLUTIONS LTD.	48	49
BGZ POLAND ABS1 DAC ("SPV").	0	0

	Women	Men	Total
Fixed-term workers	988	523	1,511
Permanent workers	5,116	2,392	7,508
Total	6,104	2,916	9,019
Percentage of men and women in total number of employees with an employment contract	67.7%	32.3%	100.0%