Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — ESG Presentation (March 2018)
53 slides from Societe Generale S.a. Class A's sustainability presentation, March 2018
Slide 1: Societe Generale: Approach to Sustainability, March 2018
SOCIETE GENERALE: A P P R O A C H TO S U S TA I N A B I L I T Y MARCH 2018
Slide 2: Contents
CONTENTS INTRODUCTION – GROUP OVERVIEW 1. GOVERNANCE 2. REMUNERATION 3. CULTURE & CONDUCT 4. CYBER SECURITY 5. CSR VISION 6. CSR EXTRACTS FROM INVESTOR DAY APPROACH TO SUSTAINABILITY MARCH 2018
Slide 3: A European leader connecting Europe to the rest of the world
INTRODUCTION - GROUP OVERVIEW A EUROPEAN LEADER CONNECTING EUROPE TO THE REST OF THE WORLD RUSSIA AMERICAS 3% 7% CEE 10% WESTERN EUROPE ASIA - OCEANIA 69% 6% AFRICA 5% % % of 2016 Group revenues APPROACH TO SUSTAINABILITY MARCH 2018
Slide 4: Leading franchises across the board
INTRODUCTION - GROUP OVERVIEW LEADING FRANCHISES ACROSS THE BOARD CORPORATE CLIENTS FRENCH CORE GEOGRAPHIES FINANCIAL SERVICES AND FINANCIAL MARKET IN CEEMEA INSTITUTIONS N°3 Retail Bank N°2 in Romania N°1 Global Markets Fleet Management World leader in in Europe and Derivatives N°3 Private Bank N°3
Slide 5: A transformed group
I N TR O D U C TI O N - G R O U P O V E R V I E W A TRANSFORMED GROUP AT THE FOREFRONT OF MARKET TRENDS AND INNOVATION Boursorama: supporting online banking growth MORE RESPONSIBLE Pioneer in Asset Management MORE FOCUSED consolidation Anticipating post trade evolution CSR ambition at the he
Slide 6: Our long-term vision: committed to positive transformations
I N TR O D U C TI O N - G R O U P O V E R V I E W OUR LONG-TERM VISION: COMMITTED TO POSITIVE TRANSFORMATIONS OPEN BANKING PLATFORM TRUSTED PARTNER AND ARCHITECTURE FULLY DIGITALISED BANK A WINNER IN THE RACE FOR A BETTER CUSTOMER FOR LEADERSHIP IN EUROPE EXPERIENCE DELIVER SUPERIOR, PROFITABLE AND
Slide 7: Governance
GOVERNANCE SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 8: Snapshot of SG Board
1 – GOVERNANCE SNAPSHOT OF SG BOARD Board Chairman Separation of Chairman and CEO roles since May 2015 Independence 14 Directors; 91.6% independent (excluding 2 staff-elected) Diversity Gender: 50% women; Nationality: 36% non-French (US/ British, Italian, Spanish, Dutch) Competence Broad range of sk
Slide 9: Director competencies and experience (1/3)
1 – GOVERNANCE DIRECTOR COMPETENCIES AND EXPERIENCE (1/3) Appointment of 2 new Directors at 2018 AGM to replace Mr. Castaigne who finishes his third term and another who is leaving for personal reasons. APPROACH TO SUSTAINABILITY MARCH 2018 9
Slide 10: Director competencies and experience (2/3)
1 – GOVERNANCE DIRECTOR COMPETENCIES AND EXPERIENCE (2/3) APPROACH TO SUSTAINABILITY MARCH 2018 10
Slide 11: Director competencies and experience (3/3)
1 – GOVERNANCE DIRECTOR COMPETENCIES AND EXPERIENCE (3/3) APPROACH TO SUSTAINABILITY MARCH 2018 11
Slide 12: Diversity at Societe Generale
1 – GOVERNANCE DIVERSITY AT SOCIETE GENERALE…. Gender Nationality Background 36% NON- 26% 26% 50% 50% FRENCH Board 14 members MALE FEMALE 64% FRENCH 11% 21% 17% Incl employee representatives 25% NON- 25% 25% FRENCH RETAIL FINANCE General 100% MALE Management 4 members 75%- 25% 25% FRENCH BANKING TEC
Slide 13: Positively positioned vs peers on diversity
1 – GOVERNANCE …POSITIVELY POSITIONED VS PEERS ON DIVERSITY Gender SG French Banks European Banks 50% 50% 45% 55% 33% Male66% FEMALE MALE FEMALE MALE MALE FEMALE 74% Board 14% 13% 21% FEMALE General FEMALE FEMALE Management/ 86% 87% 79% Executive MALE MALE MALE Nationality 17% 36% NON- 27% NON- DOME
Slide 14: Board committees
1 – GOVERNANCE BOARD COMMITTEES 5 independent directors 4 independent directors Review of the risk panorama & mapping; risk limits; Preparation of Group accounts, management Group liquidity; stress tests; reputation dashboard; of relations with statutory auditors and compliance dashboard. approval o
Slide 15: Role of Board
1 – GOVERNANCE ROLE OF BOARD The Board of Directors collectively represents all shareholders Strategic Direction Remuneration Solid Governance ■ The Board sets SG’s strategic ■ The Board sets the compensation ■ The Board periodically: direction and ensures its of the CEOs including: - ensures that i
Slide 16: An organisation based on shared culture and goals
1 – GOVERNANCE AN ORGANISATION BASED ON SHARED CULTURE AND GOALS… REINFORCED INTERNAL DEPLOYING CULTURE & MORE AGILE ORGANISATION CONTROL SET UP CONDUCT PROGRAMME ■ New organisation and ■ A set-up based on 3 lines of ■ Company-wide culture & governance based on 17 defense conduct programme Business
Slide 17: To foster autonomy, collegiality and cooperation
1 – GOVERNANCE ... AND TO FOSTER AUTONOMY, COLLEGIALITY AND COOPERATION Human Audit and Finance Corporate Resources Inspection Resources and Communication and General Innovation Secretary Compliance Russia Risks Africa FRÉDÉRIC OUDÉA and French SÉVERIN CABANNES Overseas Territories Chief Executive O
Slide 18: Group governance, oversight and management structure
1 – GOVERNANCE GROUP GOVERNANCE, OVERSIGHT AND MANAGEMENT STRUCTURE Audit & Internal Risk Committee Compensation Nomination & Corporate Board of Control Committee Committee Governance Committee Directors General Management Committee General Group CEO and Deputy CEOs Management Prepares and supervise
Slide 19: Remuneration policy
2 REMUNERATION POLICY SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 20: Group remuneration policy and principles
2 – R E MU N E R A TI O N GROUP REMUNERATION POLICY AND PRINCIPLES Role of the Board Compensation Committee: To make recommendations to the Board regarding the Group’s remuneration principles and policies To prepare the decisions of the Board as concerns Chief Executive Officers’ remuneration, emplo
Slide 21: Say on pay ex ante: 2017 executive management remuneration policy
2 – R E MU N E R A TI O N SAY ON PAY EX ANTE 2017 EXECUTIVE MANAGEMENT REMUNERATION POLICY Compliant with banking standards and French governance code 3 Components to CEO and Deputy CEOs’ remuneration: Reflects experience and responsibilities and compares with practices FIXED COMPENSATION in similar
Slide 22: Regulated commitments: post-employment benefits
2 – R E MU N E R A TI O N REGULATED COMMITMENTS POST-EMPLOYMENT BENEFITS NON-COMPETE CLAUSE With a duration of 6 months, compensated as per fixed remuneration Only in case of forced departure SEVERANCE PAY 2 years fixed remuneration, subject to performance No supplementary pension scheme for the CEO
Slide 23: Say on pay ex post 2016: non-executive Chairman
2 – R E MU N E R A TI O N SAY ON PAY EX POST 2016 COMPENSATION – NON-EXECUTIVE CHAIRMAN: FIXED COMPENSATION ONLY, TO GUARANTEE COMPLETE INDEPENDENCE 2016 € 850,000 Unchanged since his appointment on 19 May 2015 FIXED COMPENSATION ANNUAL VARIABLE REMUNERATION €0 FOR 2016 LONG-TERM Mr. BINI SMAGHI rec
Slide 24: Say on pay ex post 2016: Chief Executive Officer
2 – R E MU N E R A TI O N SAY ON PAY EX POST 2016 COMPENSATION – CHIEF EXECUTIVE OFFICER 2016 € 1,300,000 FIXED COMPENSATION € 1,450,262 Targets reached giving right to 83% of the variable ANNUAL VARIABLE (€ 290,052 paid compensation REMUNERATION in March 2017 and 79% of quantitative objectives re
Slide 25: CEO remuneration comparison with CAC 40 companies
2 – R E MU N E R A TI O N SAY ON PAY EX POST – CHIEF EXECUTIVE OFFICER COMPARISON WITH CAC 40 COMPANIES CAC 40 – 2016 Remuneration (total & average) € 18,000,000 € 16,000,000 € 14,000,000 € 12,000,000 € 10,000,000 € 8,000,000 € 6,000,000 SG € 4,000,000 € 2,000,000 €0 Global remuneration Average remu
Slide 26: Say on pay ex post 2016: Deputy Chief Executive Officers
2 – R E MU N E R A TI O N SAY ON PAY EX POST 2016 REMUNERATION DEPUTY CHIEF EXECUTIVE OFFICERS SÉVERIN BERNARDO CABANNES SANCHEZ INCERA 2016 FIXED COMPENSATION € 800,000 € 800,000 € 744,630 € 761,466 Targets reached giving right to variable ANNUAL VARIABLE (€ 148,926 (€ 152,293 remuneration: REMUNER
Slide 27: Remuneration of regulated employees
2 – R E MU N E R A TI O N REMUNERATION OF REGULATED EMPLOYEES Change in average remuneration of regulated staff “Regulated” category of staff between 2015 and 2016 includes 754 individuals (excluding Chief Executive Officers) € 750,000 Employees identified because their activities may have -8% a sig
Slide 28: Culture & Conduct
CULTURE & CONDUCT SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 29: Leveraging Group values
3 – C U L TU R E & C O N D U C T LEVERAGING GROUP VALUES A culture based on four values, which form the basis of the Leadership Model and are applied throughout the organisation for performance evaluation, promotion and talent development APPROACH TO SUSTAINABILITY MARCH 2018 29
Slide 30: Accelerating cultural transformation
3 – C U L TU R E & C O N D U C T ACCELERATING CULTURAL TRANSFORMATION AN AMBITIOUS PROGRAMME A three year programme designed to accelerate our cultural transformation with two clear objectives: Reach the highest standards of service, integrity and behaviour, and to ensure that these are at the hea
Slide 31: Accelerating cultural transformation: roadmap
3 – C U L TU R E & C O N D U C T ACCELERATING CULTURAL TRANSFORMATION WITH A CLEAR ROADMAP FOR TRANSFORMING OUR CULTURE Reinforcing our commitments to stakeholders and business principles through an updated Code of Conduct, translated into 22 languages, with Groupwide deployment and training to en
Slide 32: Cyber security
CYBER SECURITY SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 33: Governance of cyber security
4 - C YB E R GOVERNANCE OF CYBER SECURITY CONTEXT TONE FROM THE TOP Cyber crime is rising and affecting in particular the Cyber security is monitored by the Board of increasingly digitalised financial sector Directors’ Risk Committee: The EU regulatory framework for cyber and data security M
Slide 34: Cyber security as a foundation of clients' trust
CYBER SECURITY AS A FOUNDATION OF CLIENTS’ TRUST AWARENESS AND POLICIES PREVENTION REACTION DETECTION ■ Security Policies ■ Leading solutions for customers: ■ Phishing Campaigns ■ Computer aligned with SG Cryptodynamic Visa card and Security e-learning Emergency international (with KPIs reported to
Slide 35: CSR vision
CSR VISION SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 36: A clear CSR strategy integrated across the SG Group
5 – CSR VISION A CLEAR CSR STRATEGY INTEGRATED ACROSS THE SG GROUP LONGSTANDING ADHERANCE AND SUPPORT FOR TONE FROM THE TOP INTERNATIONAL INITIATIVES Each year, the Board approves the Group’s CSR objectives and strategy and reviews the developments of the programme General principles: 2000 2001
Slide 37: Working with regulation to shape strategy
5 – CSR VISION WORKING WITH REGULATION TO SHAPE STRATEGY France continues to enhance its sustainable and climate-related regulation, strengthening the pioneering role of the Paris marketplace in green finance Law on Energy Transition for Green Grenelle 2 Law – Article 225 / Duty of Vigilance Bill Gr
Slide 38: CSR goals integrated in business development
5 – CSR VISION CSR GOALS INTEGRATED IN BUSINESS DEVELOPMENT A TRUSTED PARTNER COMMITTED TO POSITIVE TRANSFORMATIONS LISTENING TO OUR STAKEHOLDERS’ EXPECTATIONS AND INTEGRATING ESG RISKS IN OUR BUSINESS DEVELOPMENT GOALS… IN THE WAY WE CONDUCT BUSINESS… CLIMATE CHANGE CLIENT SATISFACTION AND PROTECTI
Slide 39: Pioneering in sustainable and positive impact finance
5 – CSR VISION PIONEERING IN SUSTAINABLE AND POSITIVE IMPACT FINANCE OUR CONVICTIONS We believe that integrating positive impact criteria in financing and investment solutions generates long-term outperformance for all stakeholders. We are a founding member of the UNEP “Positive Impact Finance Ini
Slide 40: Societe Generale: recent announcements
5 – CSR VISION SOCIETE GENERALE : RECENT ANNOUNCEMENTS Societe Generale strengthens its commitments in the fight against climate change (December 2017) Development of financing the energy transition : €100 billion contribution to the financing of the energy transition between 2016 and 2020 Stren
Slide 41: CSR extracts from Investor Day
6 CSR EXTRACTS FROM INVESTOR DAY 28.11.17
Slide 42: Client satisfaction and protection
6 – C S R I N A C TI O N CLIENT SATISFACTION AND PROTECTION A REQUEST FOR PRESENCE, ADVICE AND PROTECTION OUR CONVICTIONS SOCIETE GENERALE IN ACTION As a relationship bank driven by our clients’ trust, client satisfaction and Omni-channel banking: branch, digital, mobile offers suited to protectio
Slide 43: Client satisfaction and protection: facts and figures
6 – C S R I N A C TI O N CLIENT SATISFACTION AND PROTECTION A REQUEST FOR PRESENCE, ADVICE AND PROTECTION FACTS AND FIGURES Wholesale banking, retail banking in France and a growing part Launch of specialised digital platforms for SMEs: “MyHedge” and of international retail banking are subject to
Slide 44: Climate change: engaged in the fight against global warming
6 – C S R I N A C TI O N CLIMATE CHANGE ENGAGED IN THE FIGHT AGAINST GLOBAL WARMING OUR CONVICTIONS SOCIETE GENERALE IN ACTION The UN COP21 (Paris 2015) aims at “holding the increase in the Commitment to align the carbon footprint of the portfolio with the 2°C global average temperature to well
Slide 45: Climate change: facts and figures
6 – C S R I N A C TI O N CLIMATE CHANGE ENGAGED IN THE FIGHT AGAINST GLOBAL WARMING FACTS AND FIGURES Monitoring of the Carbon footprint of Push on Renewable Energy Societe Generale Internal Carbon Tax the Balance Sheet and Sustainable Finance Group Carbon Initiative Challenge Implemented methodolog
Slide 46: Responsible employer: include, grow, engage our people
6 – C S R I N A C TI O N RESPONSIBLE EMPLOYER INCLUDE, GROW, ENGAGE OUR PEOPLE OUR CONVICTIONS SOCIETE GENERALE IN ACTION We believe that our people make our business Encourage and support diversity and inclusion Our responsibility is to foster commitment, by deploying an Foster employabilit
Slide 47: Responsible employer: leadership model
6 – C S R I N A C TI O N RESPONSIBLE EMPLOYER INCLUDE, GROW, ENGAGE OUR PEOPLE LEVERAGING ON GROUP VALUES: THE LEADERSHIP MODEL TONE FROM THE TOP Recruitment process, promotion process and management Group Management Committee members’ yearly performance and training aligned on the Leadership Mode
Slide 48: Responsible employer: working conditions and skills
6 – C S R I N A C TI O N RESPONSIBLE EMPLOYER INCLUDE, GROW, ENGAGE OUR PEOPLE ENSURING FAIR WORKING CONDITIONS DEVELOPING SKILLS AND EMPLOYABILITY International agreement on social dialogue with UNI Global Union Training hours per capita (per annum) 26.2 Global programme Life at Work to foster
Slide 49: Responsible employer: diversity and commitment
6 – C S R I N A C TI O N RESPONSIBLE EMPLOYER INCLUDE, GROW, ENGAGE OUR PEOPLE PROMOTING DIVERSITY FOSTERING COMMITMENT Management Total Staff(1) Board(1) Committee(1) 68% of people committed to their job (IPSOS employee survey, 2017) 84% of people are proud to work with Societe Generale (IPSOS
Slide 50: Social trends and innovation
6 – C S R I N A C TI O N SOCIAL TRENDS AND INNOVATION OUR CONVICTIONS SOCIETE GENERALE IN ACTION Digital tools and technologies that are environmentally respectful and Specific offers to entrepreneurs supporting business and private data protection contribute to the emergence of new economic mod
Slide 51: Social trends and innovation: facts and figures
6 – C S R I N A C TI O N SOCIAL TRENDS AND INNOVATION FACTS AND FIGURES SMEs and Microfinance Sustainable Cities and Mobility Impact-based Solutions Societe Generale Equipment Finance ALD Automotive #2 in Europe and #3 worldwide for EUR 1.1bn AuM in SRI Equipment Finance and Vendor Sale Distributed
Slide 52: Contribution to the sustainable development of Africa
6 – C S R I N A C TI O N CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT OF AFRICA OUR CONVICTIONS SOCIETE GENERALE IN ACTION The significant and historical presence of Societe Generale in Africa The Group is engaged in actions at all levels: gives us a responsibility and a singular role to play in su
Slide 53: Contribution to the sustainable development of Africa: facts and figures
6 – C S R I N A C TI O N CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT OF AFRICA SOCIETE GENERALE ID CARD IN AFRICA FACTS AND FIGURES EUR 15.2bn credits (at end-2016) Innovation labs in Dakar, Casablanca and Tunis Present in 18 countries PanAfricanValley: network of 135 African managers to ‘co