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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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

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	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.
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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.
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	§ “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
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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.
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