Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — ESG Presentation (July 2021)
59 slides from Societe Generale S.a. Class A's sustainability presentation, July 2021
Slide 1: Sustainable and Responsible Banking
SUSTAINABLE AND RESPONSIBLE BANKING INVESTOR PRESENTATION July 2021 JULY 2021
Slide 2: Contents
CONTENTS APPENDICES 1 2 3 ESG OVERVIEW SUSTAINABLE & E&S RISK CULTURE & RESPONSIBLE MANAGEMENT CONDUCT AND FINANCE HUMAN CAPITAL › p3 › p14 › p20 › p26 4 5 6 CYBER SECURITY & CORPORATE REMUNERATION ARTIFICIAL GOVERNANCE POLICY INTELLIGENCE › p35 › p39 › p46 JULY 2021 │ 2
Slide 3: ESG Overview
ESG OVERVIEW SOCIETE GENERALE JULY 2021 | 3
Slide 4: Sustainability at the Core of Group Strategy
SUSTAINABILITY AT THE CORE OF GROUP STRATEGY OUR CORPORATE GROUP STRATEGIC INTEGRATED CORPORATE PURPOSE PLAN APPROACH PURPOSE Clarification of the Group _ All Business and Service Units 3 pillars for the next Corporate Purpose, approved integrating CSR in their Group Strategic by the Board in Januar
Slide 5: Governance and Accountability of Responsible Banking
GOVERNANCE AND ACCOUNTABILITY OF RESPONSIBLE BANKING THE BOARD GENERAL RESPONSIBLE COMMITMENTS CSR TEAM EXTENSIVE Approves CSR MANAGEMENT COMMITTEE defines, proposes, DEPLOYMENT strategy and risk Reviews CSR Validates new group CSR supports and OF TRAINING appetite; strategy and commitments and revi
Slide 6: Aligning Activities with the Principles for Responsible Banking
ALIGNING ACTIVITIES WITH THE PRINCIPLES FOR RESPONSIBLE BANKING KEY ADVANCES MADE BY THE GROUP ONE YEAR AFTER FOUNDING SIGNATURE TO THE PRINCIPLES – for full details see report link below : Responsibility founded on a groupwide Second large-scale consultation conducted with Code of Conduct, data
Slide 7: Six Strategic CSR Priorities
SIX STRATEGIC CSR PRIORITIES CSR PRIORITIES APPROVED CLIMATE BY BOARD RESPONSIBLE CHANGE EMPLOYER Committed to align Developing lending portfolio employee skills, with Paris Agreement SUSTAINABLE adapting to changing Integration of E&S DEVELOPMENT ETHICS & environments risk management OF AFRICA GOVE
Slide 8: Leadership in the Energy Transition
LEADERSHIP IN THE ENERGY TRANSITION Net Zero Banking Alliance founding member: committed to achieving carbon neutrality in banking portfolios by 2050, aligning with a new reference scenario of 1.5°C CO-CONSTRUCTION AND INNOVATION CLIENT-FOCUSED #1 worldwide in renewable energy advisory, #2 in financ
Slide 9: Leveraging Historical Presence to Contribute to Sustainable Development of Africa
LEVERAGING HISTORICAL PRESENCE TO CONTRIBUTE TO SUSTAINABLE DEVELOPMENT OF AFRICA INFRASTRUCTURE FINANCING SUPPORT FOR AFRICAN SMEs Four areas of focus: energy, transport, water Creation of local “SME Centres” bringing together and waste management and sustainable cities public and private stakehold
Slide 10: New Group Pledge for Diversity
NEW GROUP PLEDGE FOR DIVERSITY GROUP OBJECTIVE ACTION PLAN TO DELIVER MONITORING OF OBJECTIVE OBJECTIVE _ An enhanced talent management strategy _ The Board will carry out precise and _ 30% women in Group with a focus on career and professional regular monitoring of the management bodies by developm
Slide 11: Mapping of 2020 Extra-Financial Ratings
MAPPING OF 2020 EXTRA-FINANCIAL RATINGS AGENCIES BEST SCORE WORST POSITION VERSUS PEERS A1+ D3- TOP 1% ALL COMPANIES 100 68 60 50 30 0 WORLDWIDE AAA AA A BBB BB B CCC TOP 14% BANKS WORLDWIDE 100 79 60 57 54 30 0 TOP DECILE BANKS WORLDWIDE A+ C+ C C- D+ D D- TOP DECILE BANKS WORLDWIDE 0 10 20 25.9 30
Slide 12: Selected Reports for Further Reading
SELECTED REPORTS FOR FURTHER READING CLIMATE DISCLOSURE REPORT https://www.societegenerale.com/sites/default/files/documents/2020-10/climate-disclosure-report-20201027.pdf PRINCIPLES FOR RESPONSIBLE BANKING https://www.societegenerale.com/sites/default/files/documents/2021- 04/Societe%20Generale_Pri
Slide 13: Appendices
APPENDICES SOCIETE GENERALE JULY 2021 | 13
Slide 14: Sustainable & Responsible Finance
SUSTAINABLE & RESPONSIBLE 1 FINANCE JULY 2021 │ 14
Slide 15: Leading the Industry with Collective Action
LEADING THE INDUSTRY WITH COLLECTIVE ACTION FOUNDING SIGNATORY OF THE PRINCIPLES FOR RESPONSIBLE BANKING AND COLLECTIVE COMMITMENT ON CLIMATE ACTION SOCIETE GENERALE A REGULAR Committing to strategically align our business with the UN Sustainable FOUNDING SIGNATORY TO Development Goals and the Paris
Slide 16: PACTA: Pioneering Alignment of Credit Portfolios
PACTA: PIONEERING ALIGNMENT OF CREDIT PORTFOLIOS Implementing a standard, called PACTA for Banks, which is open source and available for all to use: joint publication of a methodology with the Katowice Banks and 2DII in September 2020 OBJECTIVE: _ Select indicators that are enablers of the transitio
Slide 17: Accelerated Transition Timelines
ACCELERATED TRANSITION TIMELINES NO IMMEDIATE FROM END-2021: REDUCE REDUCE CONDITIONS: DEDICATED EXPOSURE EXPOSURE ceasing to offer products COAL FINANCING and services (unless all clients with mining and power assets to to thermal to thermal of coal mines dedicated to energy coal to coal have defin
Slide 18: Supporting Businesses and Entrepreneurs
SUPPORTING BUSINESSES AND ENTREPRENEURS SMEs ENTREPRENEURS START-UPS _ 30 Regional Business Centres _ Acquisition of Shine the _ Helped the creation in 2019 of FOCUSING 22 500 start-ups in France across France delivering proximity and responsible neobank for entrepreneurs ON OUR expertise through a
Slide 19: A Leader in Sustainable & Positive Impact Finance
A LEADER IN ‘SUSTAINABLE & POSITIVE IMPACT FINANCE’ AND ‘SUSTAINABLE & RESPONSIBLE INVESTMENTS’ BEST-IN-CLASS SUSTAINABILITY A PIONEER IN ESG WITH AN RESEARCH HOUSE INTEGRATED OFFER • Top ranked Cross asset sustainability • Pioneer in holistic impact assessment as a research team established in 2006
Slide 20: E&S Risk Management
E&S RISK 2 MANAGEMENT JULY 2021 │ 20
Slide 21: Aligned with the Concept of Double Materiality
ALIGNED WITH THE CONCEPT OF DOUBLE MATERIALITY CONCEPT DRIVING SCOPE OF RESPONSIBILITIES BETWEEN CSR AND RISK DEPARTMENTS JULY 2021 │ 21
Slide 22: Identifying and Managing E&S Risks
IDENTIFYING AND MANAGING E&S RISKS REGULAR AND OPEN DIALOGUE _ Regular dialogue between Group top management, risk and sector experts: _ Leverages existing risk governance, in particular the Group Risk Committee chaired by the Group CEO E&S RISKS DO NOT _ Allows the identification of new E&S factors
Slide 23: Compliance & Reputational Risks: E&S Risk Management Framework
COMPLIANCE & REPUTATIONAL RISKS: E&S RISK MANAGEMENT FRAMEWORK E&S RISK IDENTIFICATION E&S ASSESSMENT E&S ACTIONS E&S RISK MANAGEMENT _Identifies whether the _The E&S assessment can result in a PRINCIPLES customer’s activities or the _Assesses counterparties or transactions positive, conditional tra
Slide 24: Managing Long Term Impact of Climate Risk
MANAGING LONG TERM IMPACT OF CLIMATE RISK GOVERNANCE: MEASURING SENSITIVITY TO CLIMATE RISK: _ Implementation of a Climate Vulnerability Indicator (CVI), to reinforce the credit analysis on the most _ Since 2017, Group Risk Committee exposed counterparties. The CVI : reviews climate risks at least o
Slide 25: Disciplined Approach Through Duty of Care Plan
DISCIPLINED APPROACH THROUGH DUTY OF CARE PLAN IDENTIFIES ENVIRONMENTAL & SOCIAL RISKS RESULTING FROM GROUP ACTIVITIES WORLDWIDE PREVENTS SERIOUS BREACHES SOCIETE GENERALE DUTY OF CARE PLAN SCOPE GOVERNANCE MONITORING Covers human rights, fundamental Roll-out is coordinated by the CSR, HR and Implem
Slide 26: Culture & Conduct and Human Capital
CULTURE & CONDUCT AND 3 HUMAN CAPITAL JULY 2021 │ 26
Slide 27: Anchoring a Culture of Responsibility
ANCHORING A CULTURE OF RESPONSIBILITY . A COMMON A GROUP CODE OF CULTURAL FOUR GROUP VALUES: LEADERSHIP MODEL: CONDUCT: TRANSFORMATION: Reinforcing a speak-up culture: Team Spirit Describing required A Group Code of Conduct that new whistleblowing system Responsibility management and sets out th
Slide 28: Three-Year Culture and Conduct Programme
THREE-YEAR CULTURE AND CONDUCT PROGRAMMME ACCELERATING CULTURAL TRANSFORMATION A CLEAR ROADMAP WITH 3 MAIN OBJECTIVES... 1 Accelerate SG’s cultural transformation 2 Achieve the highest standards of quality of service, integrity and behaviour 3 Make SG’s culture a differentiating factor: quality of s
Slide 29: Relying on a Multi-Pronged Approach
RELYING ON A MULTI-PRONGED APPROACH… GOVERNANCE Culture & Conduct programme launched January 2017: regular follow up by the Board Overall responsibility for the programme is with General Management : the Group Head of Culture & Conduct reports directly to the CEO and delivers an annual dashboard
Slide 30: ... and with Clear Deliverables
… AND WITH CLEAR DELIVERABLES PROGRAMME KEY ACHIEVEMENTS 96% of active employees, worldwide, completed A new quarterly committee, chaired by the CEO, was created in 2020 to allow General Management to continue to follow the Group’s training on the appropriation of the Group Code of progress on Cultu
Slide 31: Evolution of Gender Diversity
EVOLUTION OF GENDER DIVERSITY GENDER : % Females in senior Group bodies, end-2020 BOARD GENERAL MANAGEMENT STRATEGY COMMITTEE MANAGEMENT COMMITTEE KEY GROUP POSITIONS AMBASSADORS 14 members 6 members Top 30 Top 60 Top 150 Top 1000 43% 43% Target : 30% 29% 26% 24% 21% 21% 20% 19% 17% 17% 0% 2014 2020
Slide 32: Active Signatory to Non Discrimination Charters
ACTIVE SIGNATORY TO NON DISCRIMINATION CHARTERS 2015 SIGNATORY TO THE SOCIETE GENERALE COLLECTIVE AGREEMENT ON GENDER EQUALITY IN FRANCE SOCIETE GENERALE APPLIES A Renewal of the agreement in 2019 GLOBAL POLICY OF NON- DISCRIMINATION AND DIVERSITY 2016 SIGNATORY TO THE WOMEN’S EMPOWERMENT PRINCIPLES
Slide 33: Action Levers Defined at Group and Local Levels (1/2)
ACTION LEVERS DEFINED AT GROUP AND LOCAL LEVELS (1/2) OTHER ACTIONS DEFINED EMBEDDING DIVERSITY IN ALL HR PROCESSES AT LOCAL AND BUSINESS/ _ Diversity objectives to form part of the evaluation of each member of the Management Committee from 2021 SERVICE UNIT LEVEL _ UK: 30% women in senior GENDER PA
Slide 34: Securing a Strong Pipeline of Diverse Talent (2/2)
SECURING A STRONG PIPELINE OF DIVERSE TALENT (2/2) TARGETED ACTIONS SUCCESSION TARGETED PLANNING DEVELOPMENT _ Accelerated career paths for selected KEY GROUP POSITIONS _ Executives programme 150POSITIONS, REVIEWED ANNUALLY women Focused on Key Group Positions and Management 19% WOMEN ; 18% NON-FREN
Slide 35: Cyber Security and Artificial Intelligence
CYBER SECURITY 4 AND ARTIFICIAL INTELLIGENCE JULY 2021 │ 35
Slide 36: Governance of Cyber Security
GOVERNANCE OF CYBER SECURITY TONE FROM THE TOP CONTEXT and COLLABORATION Cyber security is monitored by the Board of Directors’ Risk Committee, which receives a quarterly IT and cyber dashboard The EU regulatory framework for cyber and data security is moving fast: The Group Risk Committee monit
Slide 37: Cyber Security Strategy Based on Two Pillars
CYBER SECURITY STRATEGY BASED ON TWO PILLARS: PROTECTION AND EFFICIENCY WE MAKE OUR ACTIVITY ATTRACTIVE to retain and attract our cybersecurity WE WORK HAND IN HAND WITH talents THE BUSINESS because we need them to make the right decisions WE APPLY A UNIFIED SECURITY MODEL to break silos, accelerate
Slide 38: Governance of Artificial Intelligence
GOVERNANCE OF ARTIFICIAL INTELLIGENCE STRONG GROWTH IN THE ADOPTION OF DATA AND AI IN THE TRANSFORMATION OF SOCIETE GENERALE OVER THE LAST TWO YEARS: WE NOW COUNT MORE THAN 500 DATA USE CASES IN OUR PIPELINE, OF WHICH 200 ARE LIVE DATA SCIENCE TEAMS NOW TOTAL MORE THAN 150 FULL TIME EMPLOYEES BOARD
Slide 39: Corporate Governance
5 CORPORATE GOVERNANCE JULY 2021 │ 39
Slide 40: Snapshot of SG Board
SNAPSHOT OF SG BOARD Board Chairman Separation of Chairman and CEO roles since May 2015 Independence 15 Directors; 91.6% independent (excluding 3 staff-elected) Gender: 40% women; Diversity Nationality: 9 nationalities Key changes in 2021: Competence Broad range of skills: Risk, Control, Finance, IT
Slide 41: Director Competencies and Experience (1/3)
DIRECTOR COMPETENCIES AND EXPERIENCE (1/3) Lorenzo Frédéric William Jerome BINI SMAGHI OUDEA CONNELLY CONTAMINE First appointment : 2014 First appointment : 2009 First appointment : 2017 First appointment : 2018 Term : 2022 Term : 2023 Term: 2021 Term : 2022 Italian French French French Tenure (yrs)
Slide 42: Director Competencies and Experience (2/3)
DIRECTOR COMPETENCIES AND EXPERIENCE (2/3) Gérard Juan Maria Annette Lubomira MESTRALLET NIN GENOVA MESSEMER ROCHET First appointment : 2015 First appointment : 2016 First appointment : 2020 First appointment 2017 Term : 2023 Term : 2024 Term 2024 Term : 2021 French Spanish German French/Bulgarian T
Slide 43: Director Competencies and Experience (3/3)
DIRECTOR COMPETENCIES AND EXPERIENCE (3/3) Lorenzo BINI SMAGHI Lorenzo BINI SMAGHI Frédéric OUDÉA Frédéric OUDÉA Jérôme CONTAMINE GOVERNANCE, William CONNELLY Diane CÔTÉ CORPORATE MANAGEMENT, Diane CÔTÉ Annette MESSEMER SHAREHOLDER RELATIONS, CSR, Kyra HAZOU Gérard MESTRALLET BANK, INSURANCE France
Slide 44: Board Committees
BOARD COMMITTEES 5 INDEPENDENT DIRECTORS 5 INDEPENDENT DIRECTORS Review of the risk panorama & mapping; Culture & Conduct; CSR; Review of Group accounts; Statutory Auditors; audit and HR risks; GDPR; cyber security; liquidity remediation; Brexit; NPLs; internal control; participation in US Risk Comm
Slide 45: Group Governance, Oversight and Management Structure
GROUP GOVERNANCE, OVERSIGHT AND MANAGEMENT STRUCTURE BOARD OF Audit & Internal Risk Compensation Nomination & Corporate DIRECTORS Control Committee Committee Committee Governance Committee General Management Committee GENERAL Group CEO, Deputy CEOs and Deputy General Managers MANAGEMENT Prepares and
Slide 46: Remuneration Policy
6 REMUNERATION POLICY JULY 2021 │ 46
Slide 47: Continuing to Apply Responsible Compensation Practices
CONTINUING TO APPLY RESPONSIBLE COMPENSATION PRACTICES CSR performance condition 20% of the award, of which: _ ½ Energy transitionfinancing EXECUTIVE MANAGEMENT LONG-TERM INCENTIVES _ ½ Positioning within the extra-financial ratings (SAM, Sustainalytics & MSCI) For Executive Management: _ Achievemen
Slide 48: Group Remuneration – Key Policy and Principles
GROUP REMUNERATION – KEY POLICY AND PRINCIPLES . POLICY STRUCTURED CONTROL OF THE ROLE OF THE BOARD VARIABLE AND LONG- ON PRINCIPLES OF REMUNERATION POLICY COMPENSATION TERM REMUNERATION: LOYALTY AND VALUES: FOR REGULATED STAFF: COMMITTEE: To make recommendations to the General Management: varia
Slide 49: Remuneration Policy - Executive Management Say on Pay Ex Ante 2020
REMUNERATION POLICY - EXECUTIVE MANAGEMENT SAY ON PAY EX ANTE 2020 Key changes introduced in 2020: Narrower set of circumstances in which CEOs are entitled to severance pay: no longer payable upon resignation whatever the reason; Introduction of a pro-rata calculation in certain cases for the lo
Slide 50: Say on Pay Ex Ante 2021 Remuneration Policy for Non-Executive Officers
SAY ON PAY EX ANTE 2021 REMUNERATION POLICY FOR NON-EXECUTIVE OFFICERS REMUNERATION FOR DIRECTORS Total compensation amounts to EUR 1.7 million and was adopted by the General Meeting on 23 May 2018. This remains unchanged despite the number of Directors increasing from 14 to 15. The allocation t
Slide 51: Say on Pay Ex Ante 2021 Remuneration Policy for CEOs
SAY ON PAY EX ANTE 2021 REMUNERATION POLICY FOR CEOS CHIEF EXECUTIVE OFFICER & DEPUTY CHIEF EXECUTIVE OFFICERS Reflects experience and responsibilities and is in line with practices in similar companies FIXED COMPENSATION Fixed compensation maintained at 1 300 000 € for the CEO and 800 000 € for the
Slide 52: Say on Pay Ex Ante 2021 Remuneration Policy for CEOs
SAY ON PAY EX ANTE 2021 REMUNERATION POLICY FOR CEOS CHIEF EXECUTIVE OFFICER & DEPUTY CHIEF EXECUTIVE OFFICERS NON-COMPETE CLAUSE For a period of 6 months, compensated as per fixed remuneration Universal Registration Document p. 105 Non-payment of the clause in case of departure within six months be
Slide 53: Say on Pay Ex Post 2020 Compensation Chief Executive Officer
SAY ON PAY EX POST 2020 COMPENSATION CHIEF EXECUTIVE OFFICER LTI 32% Variable Fixed 50% 18% 2020 FIXED €1,300,000 COMPENSATION €480 695 At the 2020 AGM, the CEOs announced that they wished to give up 50% of After renouncing 50% the theoretical 2020 annual variable resulting from the Board’s evaluati
Slide 54: Chief Executive Officer Remuneration Comparison with CAC 40
CHIEF EXECUTIVE OFFICER REMUNERATION Comparison with CAC 40 Companies and Financial Institutions in Europe Global compensations 2019 25,000,000 25 000 000 € € 20,000,000 20 000 000 € € 15,000,000 15 000 000 € € CAC 40 EUROPEAN FINANCIAL INSTITUTIONS 10,000,000 10 000 000 € € 10,000,000 10 000 000€€
Slide 55: Say on Pay Ex Post 2020 Compensation Deputy Chief Executive Officers
SAY ON PAY EX POST 2020 COMPENSATION P. Aymerich & D. Lebot DEPUTY CHIEF EXECUTIVE OFFICERS LTI PHILIPPE SÉVERIN DIONY 35% AYMERICH CABANNES LEBOT Fixed 50% 2019 FIXED Variable 15% COMPENSATION 800 000 € 800 000 € 800 000 € 229 448 206 172 € 253 828 € After renouncing 50% of the amount resulting fro
Slide 56: CEO Pay Ratios 2016 – 2020
CEO PAY RATIOS 2016 – 2020: Average remuneration (in K€) 54,4 54,4 54,8 52,3 50,5 71 66 65 57 59 Ratio excluding renunciation 48 Ratio to employee median 2016 2017 2018 2019 2020 remuneration The ratio compared to the average remuneration of employees has dropped from 47 in 2019 to 36 in 2020 (to 42
Slide 57: Compliance with Regulations Concerning Remuneration
COMPLIANCE WITH REGULATIONS CONCERNING REMUNERATION 781 PEOPLE ARE CONSIDERED “CRD IV REGULATED” Change in average remuneration of IN THE GROUP regulated staff between 2019 and 2020 (including the Executive Officers) 750 000 € -6% 500 000 € • People identified because their activities can have a sig
Slide 58: Disclaimer
DISCLAIMER This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods
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