CITIZEN ACT Opening MeetingWorkshop: All about CSR!

2nd February 2011 Christine Daoulas – Stéphane Vessières

CITIZEN ACT QUIZZ

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I : How much money is allocated to the market linked tothe environment in the world?

Definition : The market linked to the environment include allgoods and services linked with this sector :

renewable energies, improvement energetic housingconditions efficiency, recycling and management of wastes

1/ 590 billions of dollars2/ 35 billions of dollars3/  1370 billions of dollars

.

Answer 3 : 1370 billions of dollars.

CITIZEN ACT QUIZZ

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II : How much will this sum represent in 2020  :

1/ It will remain the same2/ It will double

3/ It will decrease

Answer 2 : It will double

The market linked to environment may double by 2020 and reach a sumof 2740 billions of dollars. It will generate millions of jobs according tothe report of UNEP (United Nations Environmental Programme).

CITIZEN ACT QUIZZ

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III : What are the Equator Principles ?

1/ Crossing the Equator line

2/ A law implemented in Equator

3/ 10 principles established by financial institutions to evaluate andmanage environmental and social issues linked to the financing ofproject

Answer 3 : 10 principles established by financial institutions to evaluateand manage environmental and social issues linked to the financing ofproject

CITIZEN ACT QUIZZ

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IV: What is the average percentage of disable people in a country?

1/ 10%2/ 15%3/ 8%

Answer 1 : 10%

CITIZEN ACT QUIZZ

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V: How much money is allocated to Socially Responsible Investingin the world in 2010?

1/ 2,8 billion euros

2/ 15,6 billion euros

3/ 39,2 billion euros

Answer : 15,6 billion euros allocated against 7,4 billion euros in 2008

Table of contents

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1. A day in my life of CSR expert

2. Definition

3. CSR and business

4. CSR and banking industry

5. What are the Equator principles

6. Société Générale and CSR

7. Examples of implemented actions

8. Case study

About me…

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A day in my life of CSRExpert!

Definition

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Corporate Responsibility is a concept whereby companies integrate socialand environmental concerns in their business operations and in their

interaction with their stakeholders on a voluntary basis

"Sustainable development is development that meets the needs of the presentwithout compromising the ability of future generations to meet their own needs."

(Brundtland report, « Our common Future »)

SOCIALSOCIAL Equitable ECONOMICECONOMIC

ENVIRONMENTALENVIRONMENTAL

SUSTAINABLESUSTAINABLEViableLiveable

CSR and banking industry What are the specific challenges facing the bank?

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Maintaining consumer confidence, ensuring the sound functioning offinancial and economic systems, contributing towards lasting economicand social development

Transparency of the activityClear, accessible, exhaustive information: rates, clauses, etc.Better understanding of the banking sector and its activities (e.g. tax havens, etc.)Use of funds: what exactly do banks do with their customers' money?Standards with Bâle II and Bâle IIIThe human capital factor: HRM and CSREthics and CSR: the aftermath of the financial crisis

Clients’ managementTailored, ‘personalized’ adviceFair treatmentEnsuring the delicate balance that ensures a win-win situation for both bank and customer:is the bank acting in my best interests?Access to and exclusion from banking servicesOver-indebtedness versus over-cautiousness…

Responsibility in the investments and financing activitiesDoes the bank offer "green" and/or charity products (that have a positive impact onsociety) and does it contribute towards the creation of a "green" economy?Does the bank finance (and invest in) activities, projects or businesses that have a negativeimpact (dirty money, cluster bombs, etc.)?

Responsibility

Transparency

Clients’management

Société Générale and CSR

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5 core priorities

1. a quality approach focused on the customer and a constantconcern for their satisfaction;

2. a robust system of corporate governance, which is continually beingadapted to the requirements of society;

3. increasingly robust internal control processes and risk management;

4. a comprehensive compliance policy and the application of ethicalvalues, helping to ensure our long-term performance;

5. a culture of innovation and a collective innovation programmedesigned to encourage employees to contribute to the Group’sdevelopment.

Société Générale and CSR

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How does Société Générale implement CSR:

1. Equator Principles’ implementation (GLFI/EME)2. Sustainable banking (Green Finance/ fair trade financing / E&S

criterias…)3. Carbon market (ORBEO)4. SRI5. Supportive products and solidarity-based products6. Facilitate the access to banking services (BDDF)7. Support to the creation of a company8. Micro-finance9. A responsible management: our HR policy

Société Générale and CSR

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• Signature of the Global Compact in 2003A joint commitment by a group of companies, UN institutions and civil

society focused around universal principles : human rights, labourstandards, environment

• OECD guidelines for enterprisesVoluntary principles and standards for responsible business

practices: publication of information, anti-corruption measures,taxation, social relationships, consumer protection…

• Signatory of the statement by financial institutions on the environmentand sustainable development (UNEP-FI) (2001)Unique international partnership between the United Nations

Programme for the Environment and the private banking sector.

• Signatory of the Carbon Disclosure Project (CDP) since 2006A Rockefeller Philanthropy Advisors initiative supported by the United

Nations Programme for the Environment.

Société Générale and CSR

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• Adoption of Equator Principles in 2007Principles relating to project finance based on the policies and

directives of the World Bank and IFC (International FinanceCorporation).

• Diversity Charter in FranceSigned in November 2004 alongside 40 major enterprisesMarch 2007: Société Générale received the Professional Equality Label

• SGAM Paris signatory of Principles for Responsible Investment (PRI)in 2006Integration of environmental, social and corporate governance

issues in the investment decision-making process

• Founding member of the Wolfsberg group in 2000Global anti-money laundering guidelines

• Participation in market working groups (Orse, EpE, Medef, Afep…)

What are the Equator Principles?

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•Equator Principles are : “a financial industry benchmark for determining, assessingand managing social & environmental risk in project financing”

• Launched in 2003 by ten international banks, EPs have now become a globalstandard for project finance

•EPs provide a framework for the environmental and social evaluation of projects:compliance with IFC social & environmental policies and quantitative environmentalguidelines (outside High Income OECD countries)

• A voluntary agreement, but “Equator has teeth”: Adopters agree that they “will notprovide loans directly to projects where the borrower will not or is unable to comply withour environmental and social policies and procedures”.

• November 2010, EP has been adopted by around 70 banks

Microfinance

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•Policy of developing microfinance activities inthe countries Société Générale operates.

• Société Générale has stakes in 5 MFIs (Ghana,Madagascar, Mauritania, Cameroon, Burkina Faso)and in Microcred (a microfinance investmentcompany - PlanetFinance)

• Partnership with Adie since 2006. EUR 2.5million credit line providing 789 “solidarity loans”to micro-businesses.

• Assisted microcredit services with networksapproved by the Caisse des Dépôts etConsignations ("Restaurants du coeur", "Crésus","Secours Catholique", "Centre Communald'Actions Sociales")

Diversity

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• Equal recognition and opportunities for all employeesàGender Equality Agreement with staff representatives since 2005;

• Drive and coordinate diversity policies and implement tools to monitor andreport on diversity àDiversity Council (Group, since 2005)

• Develop diversity in managementà Promotion of female executives: the Group is aiming to increase thepercentage of women in senior management to 42% (40% at the endof 2008)

• Inform and train managers and staff on the importance of diversity

• Pursue the active recruitment and long-term employment of disabledemployeesà A team of 5 for the “Mission Handicap” (France, since 2007)à Over 200 initiatives aimed at encouraging the long-term employment ofdisabled workers

Carbon neutrality project

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•A target to reduce CO2 emissions by 11% peroccupant in the period 2008 to 2012

• Constant upgrading of reporting systems

• Introduction of carbon reduction plans foreach business division with annual targets forenergy, travel and paper consumption

• Offsetting scheme via purchase of emissioncredits (Paris central services in 2008, France in2009, Group from 2010) and internal billing.

• Ongoing communication to heighten staffawareness of climate change and the carboneconomy

The Société Générale Corporate CitizenshipCommitment

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The Société Générale Corporate Foundation for Solidarity

The purpose of the Foundation is to :

• improve the employment prospects and literacy of young people

• by supporting both national and local projects.

• develop long-term partneships with national and international charitiesincluding Care, Secours Populaire and the Red Cross.

« Talents & Partage »

It is an association of current and retired Group employees that supportsinititiaves dedicated to :• children from depraved background,• elderly peolple in difficulty,• disabled people,• favour profesionnal insertion.

CSR assessment by external parties

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What is the correct CSR assessment ?

CSR assessment by external parties

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CSR assessment by external parties

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CSR assessment by external parties

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Several scores, due to :

- different methodologies

- different references

- different scopes

Société Générale answers to all types of questionnaires (CSRagencies, NGOs, Investors…) and provides its policy andpractices about CSR issues.