Case study: How Groupe BPCE works with its clients and customers to encourage sustainable practices

Groupe BPCE is the second-largest banking group in France, contributing to over 20% of the country’s economy. It serves 35 million customers, including individuals, professionals, associations, businesses of all sizes, and institutional clients. Across France and internationally, its divisions provide tailored solutions in areas such as Retail Banking, Insurance, Financial Solutions & Expertise, Payments, Asset & Wealth Management, and Corporate & Investment Banking. Groupe BPCE is a signatory of the Principles for Responsible Banking (PRB) and is, accordingly, working with its clients and customers to encourage sustainable practices and enable sustainable economic activities.  Tweet This!

This case study is based on the 2023 PRB Reporting and Self-Assessment Template by Groupe BPCE, prepared in relation to its implementation of the PRB, that can be found at this link. Through all case studies we aim to demonstrate what ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Which Principles for Responsible Banking have been addressed?

The Principles for Responsible Banking addressed in this case are:

• • • Principle 3: Clients and Customers
      • 3.1 Client engagement
    • Principle 4: Stakeholders
      • 4.1 Stakeholder identification and consultation

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Engagement with stakeholders involves fostering ongoing dialogue and attentive listening among all parties concerned or involved in Groupe BPCE’s operations. The aim is to comprehend their needs and expectations so that the decisions made reflect the viewpoints of all involved, in line with BPCE’s CSR principles.

Groupe BPCE interacts with its stakeholders throughout its business activities, including:

• Customers (corporate clients, institutions, individuals)
• Cooperative shareholders (customers of Banque Populaire and Caisse d’Epargne)
• Directors (local savings companies, boards of directors of Banques Populaires, supervisory boards of Caisses d’Epargne, BPCE SA supervisory board, specialized committees)
• Employees (staff of the Group and its subsidiaries, employee representatives, labour unions)
• Suppliers and subcontractors (corporate partners, service providers, companies from protected and adapted sectors)
• NGOs and non-profits (organizations focused on environmental protection and human rights)
• Institutions, federations, and regulators (financial regulatory bodies, French Banking Federation, ORSE, Global Compact, ESBG, EACB, etc.)
• Rating agencies, investors, and independent third parties (financial and ESG rating agencies, statutory auditors)
• Academic and research institutions (business schools, universities, research institutions)
• And others.

Groupe BPCE collaborates with independent third-party organizations to verify information. For example, Deloitte conducts audits on the data presented in the non-financial performance report, providing reasonable assurance.

Natixis CIB interacts with a variety of stakeholders across its different businesses and functions, including clients, shareholders, employees, NGOs, associations, universities and schools, suppliers and subcontractors, rating agencies, regulators, and supervisory bodies. In 2022, for example, Natixis CIB co-chaired the ICMA SLB working group, which includes 150 members (investors, issuers, and subscribers). This group’s goal is to offer recommendations on identifying, selecting, and utilizing Key Performance Indicators for structuring Sustainability Linked Bonds. Ultimately, they aim to provide clearer guidance to market participants, arrangers, issuers, and investors regarding the design and evaluation of SLBs, enhancing both clarity and integrity in the process.

Moreover, in accordance with regulatory requirements, each asset management subsidiary of Groupe BPCE adheres to its own voting policy, which is disclosed to stakeholders on their respective websites. These voting policies enable the Group’s asset management firms to cultivate an engaged shareholder base with the aim of positively influencing the governance of the companies they invest in concerning CSR matters.

How did Groupe BPCE work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 PRB Reporting and Self-Assessment Template Groupe BPCE reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

Groupe BPCE has revamped its CSR strategy, organizing it into three key areas and twelve commitments. The Group’s aim is to assist all its customers in their environmental transition, fostering strong strategic dialogue with clients to advise them on their own environmental transition. By 2024, the Group plans to make supporting environmental transformation a core growth driver for its business.

For Groupe BPCE, aiding all customers entails:

• Providing expert advice and engaging discussions about the transition, supported by extensive training for sales teams and the establishment of expertise platforms across the Group, particularly in renewable energy.
• Building high-quality partnerships to assist clients in their transformation efforts, offering a comprehensive solution for their transition, especially in energy renovation.
• Introducing a dedicated suite of financing options, impact loans, and specialized savings and insurance products with clear balance sheet traceability.

The BPCE 2024 strategic plan emphasizes support for professionals, companies, and institutions in their environmental transition. The Group’s networks are also funding emerging sectors related to social and environmental transitions in regions, such as the circular economy, waste management, construction, eco-construction, short-circuit food, and the silver economy for senior citizens.

Since 2010, Natixis CIB has been a signatory of the Equator Principles, committing to a thorough analysis of environmental and social aspects of projects while maintaining continuous engagement with clients on mitigation strategies and impact commitments. Natixis CIB has established a policy for systematically engaging with clients on all transactions covered by the Equator Principles or falling under sectoral policies. To foster responsible client relationships, Global Financial Services has developed several sector-specific policies applicable to all products and services offered to clients in fields such as coal (covering all Groupe BPCE), defense, tobacco, oil and gas, nuclear energy, palm oil, and mining and metals. Additionally, the GWF and ESR screening tools, which systematically analyze ESG risks during the initiation of relationships and loan approvals, along with the expertise from the Green & Sustainable Hub, are essential for identifying clients’ sustainability issues and promoting sustainable practices. Natixis CIB is dedicated to advancing sustainable finance, focusing on green bond issuance (with 54 green bond issues arranged in 2022), renewable energy financing (25 new deals in 2022 representing an installed capacity of 6,812 MW, amounting to €2.2 billion arranged by Natixis), and financing for sustainable infrastructures.

Moreover, Natixis IM International Solutions has introduced an advisory service to assist clients in aligning their strategic allocations and portfolios with a Net Zero trajectory through four key steps: assessing the portfolio’s exposure to climate risks using the ESG + Climate Portfolio Clarity tool; implementing an asset allocation consistent with Net Zero objectives; choosing investment solutions that meet return, risk, and climate goals in line with clients’ commitments and financial needs; and providing a reporting platform that enables clients to communicate their trajectory and commitments effectively.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Groupe BPCE, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.groupebpce.com/app/uploads/2024/04/prb-reporting-groupebpce-april-2023-2.pdf

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