AN EXPERT IN SOLIDARITYINVESTMENT

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SOLIDARITY INVESTMENT FUNDS& PROCESSThe asset manager
for a changing
world

SOLIDARITY INVESTMENT‘Solidarity’ funds are a French innovation unique in Europe andare part of our impact investing solutions. Solidarity investment
involves unlisted companies or non-profit organisations whose
objective is to respond to a social problem (fight against exclusion,poor housing, etc.) and / or an environmental problem throughthe development of innovative products or services. Savers andinstitutional investors finance concrete solutions to combat socialand environmental challenges through 90/10 funds or specialisedfunds.

COLLECTIVE EMPLOYEESAVINGS

SRI applies to listed securities issued by companies orgovernments. It involves carrying out an extra-financial
analysis based on environmental, social and governance(ESG) criteria in addition to financial analysis during theinvestment.

SOLIDARITY FUNDSSOCIAL BUSINESSES

90/10 FUNDSUNLISTED COMPANIES OR
NON-PROFIT ORGANISATIONSBANKSAVINGS
90-95% of assets
selected according
to the principles
of Sustainableand Responsible
investment (SRI)INSTITUTIONALINVESTORSSAVERSSOLIDARITY INVESTORSSOLIDARITY INVESTMENT: NOT TO BE CONFUSED WITH SUSTAINABLE ANDRESPONSIBLE INVESTMENT (SRI)

which respond by theiractivity to a social and / orenvironmental problem

5 à 10% invested(or viaSOLIDARITYaSOLIDARITYdirectly
INVESTMENTINVESTMENT
specialized fund)in social businesses

SOLIDARITY INVESTMENTSOLIDARITY INVESTMENTSOLIDARITY INVESTMENTSOLIDARITY INVESTMENTINSTITUTIONALINVESTORSSPECIALISED FUNDSSOLIDARITY INVESTMENT
20-25% of assets
invested inmoney market toensure liquidity

75 à 80% invested
directly in socialbusinesses

IN BRIEF: SOLIDARITY INVESTMENT AT BNP PARIBAS ASSET MANAGEMENT
BNP Paribas Asset Management has been developing and managing
solidarity funds for more than 15 years. At the end of 2018, € 96
million are invested in 25 companies or non-profit organisations
with which we have established a long-term relationship of trustand proximity.

Our team of expert analysts dedicated to solidarity investment
ensures the surveying, the analysis and the follow-up of thefinanced structures. Thanks to a structured investment process, it
ensures the quality of our solidarity investments in terms of boththe social impact and the economic model.

81.7

96

12.5

25

230.000'solidarity' funds,
6 of which havebeen labelled by
Finansolbillion € of AuM
in 'solidarity'
funds

million €solidarity
investments
in France

million €microfinanceinvestments in theemerging marketssocial businessfinanced by
the funds

Employeesolidarity
savers

Source: BNPP AM and BNPP ERE, data as of 31/12/2018

PROCESS SUITABLE FOR SOLIDARITY INVESTMENT
1.

SURVEYING

2.

ANALYSIS

BNPP AM’s team of analysts dedicated to solidarity investment meets more than 30
players a year to :• Promote solidarity funds, a new financing solution still unknown to the players in
the Solidarity Economy,• Identify new investment opportunities.
In this context, BNPP AM works in close collaboration with the retail banking, inparticular with the Social Entrepreneurship correspondents and the local ecosystemof the Solidarity Economy (Ashoka, federations, incubators, …).

Preselection : the objective is to ensure that the structure has an effective social
impact and is in line with the fund strategy.
• Done on the basis of an internal methodology, based on a grid analysis and indicators specific to each area of social action.
• Based on an interview with the management of the structure.
Due diligence : if the structure is eligible, a full analysis is performed. It is based onthree pillars:• The governance,• The business, the economic model and the financial sustainability,• The need for financing expressed.

TEAM OFSOLIDARITYINVESTMENTANALYSTSTEAM OFSOLIDARITYINVESTMENTANALYSTSBNPP AM has developed analytical tools adapted to take into account the specificities of the structures of the solidarity economy.

3.

INVESTMENT

In the case of a favourable investment recommendation from the team, the project ispresented to the fund manager during an investment committee:• Detailed presentation of the proposed structure and investment,• Exchanges between the fund manager and the analysis team who validate thefinancial viability of the project,• Validation of the terms of the proposed investment: duration, tool and conditions.
The fund manager is the final decision-maker: no investment is made without hisvalidation.

4.

MONITORING

The monitoring of the solidarity investments is done at two levels:• Global tracking of portfolios: control of ratios of right-of-way, monitoring of deadlines, assessment of future investment needs,• Specific follow-up of each funded structure: at least once a year, meet with themanagement of each structure to monitor their social impact and financial situation.
• We establish a long-term partnership with the funded structures. The analyticalteam advises and accompanies them whenever necessary throughout the duration of the investment. Trust and transparency are at the heart of the relationshipwith each of our partners.

MANAGEROF THESOLIDARITY
FUNDS

TEAM OFSOLIDARITYINVESTMENTANALYSTS

OUR AREAS OF INTERVENTIONS AND OUR
SOLIDARITYINVESTMENTSOLIDARITY PARTNERS
Projects financed as of 31/12/2018

SOLIDARITY INVESTMENTACCESS TO EMPLOYMENTMICROFINANCE AND SUPPORTTO ENTREPRENEURSHIPSOLIDARITY INVESTMENT- Groupe ID'EES- Group la Varappe- ADIE- Le Relais France- Initiative France- Réseau Cocagne- Phitrust Partenaires- Wimoov- SIFAACCESS TO CARE HOMESACCESS TO HOUSING- Entreprendre
pour humaniser
la dépendance- Foncière Chênelet

TY INVESTMENT- Foncière Habitat et Humanisme- SNL Prologues- SOLIFAPENVIRONMENTAL PROTECTION
AND SUSTAINABLE
CONSUMPTIONACCESS TO HEALTH ANDSUSTAINING INDEPENDENCE- Café Michel- Titi Floris

NVESTMENT- Siel Bleu
- Croix-Rouge Française

- Darwin Bastide- ETIC- Foncière Terre de Liens

INTERNATIONAL SOLIDARITY- ACTED- SIDI

Source: BNPP AM - December 2018

- ALIMA- Microfinance Solidaire

IMPACT MEASUREMENT AND REPORTING TO OUR CLIENTS
Using a social impact measurement tool developed internally, we monitor the social performance of our solidarity investments andwitness the impact of the financed projects on our savings.

MONITORINGREPORTING

We define with each of our partners the social impactindicators specific to their fields of action and their projects.
Based on these indicators, we review the social impact of theprojects in which we invest the savings of our clients on anannual basis.

Every semester, we value the impact of our partners in asocial performance report, made for our clients. A thematic
focus illustrates this impact by presenting some of theactions in more detail, which are carried out by our partners
on the different topics.

BNP PARIBAS ASSET MANAGEMENT :AT THE HEART OF THE BNP PARIBAS ECOSYSTEMBNP Paribas Asset Management works closely with the other entities of the BNP Paribas group* in order to offer a complete range of financial
solutions and support to meet the needs of the players in the Solidarity Economy• For all the investments linked to collective
employee savings plans, ERE participates inthe selection of solidarity partners and gives its
opinion as to the relevance of the social model

BNP PARIBAS EPARGNE &RETRAITE ENTREPRISESDistribution of collective
solidarity savings• Development and promotion of the solidarity
savings for companies and employees

BNP PARIBASASSET MANAGEMENTGROUP BNP PARIBAS – CSR TE• Co-construction of tools
and financing solutions(impact measurement, social impact bonds, etc.)

Coordination of the social
entrepreneurship strategy
within the group

BNP PARIBAS RETAIL BANKING• Development of solidarity savings• Distribution of solidarity savings
to individuals• Surveying and co-financing• Bank of social businesses*The actors of the BNP Paribas ecosystem are presented in detail on the last page of this document

IDENTITY CARD OF FINANCED STRUCTURES•

PREREQUISITES: high social impact activity•

AREA OF SOCIAL ACTION:all (priority for insertionin all its forms – see at the back of this page)•

LEGAL STATUS: all (non-profit organisations,cooperatives, commercial companies…)•GEOGRAPHICAL AREA: France in priority•

NEED: development and scaling-up•

SIZE: minimum investment threshold of 300k€

OUR FINANCING TOOLSOur financing tools are numerous, to adapt to the specificneeds of the structures of the solidarity economy

EQUITYQUASI-EQUITY

DEBT

Subscription tothe capital of thecompany

For non-profit• Promissory notes
organisations and• Bonds andcooperatives
convertible bonds

Within the limitof 10% of
the capital post
increase

Within the limitof 25%of the issue

Within the limitof 25% of its total
indebtedness
Maximum durationof 5 years

BNP PARIBAS EPARGNE & RETRAITE ENTREPRISESKEY FIGURESFor 15 years, BNP Paribas E&RE has been committed to collective employee
solidarity savings. Its role is to promote and distribute solidarity funds toits business customers and to facilitate the network of solidarity partners
by enhancing their actions with employees (events, website, brochures,etc.). E&RE participates in the evaluation of the social impact of the structures financed and gives an opinion as to their relevance to the investment
strategy.

• More than 8,000 companies propose
solidarity savings funds

BNP PARIBAS GROUP CSR TEAM

• Nearly EUR 1.6 bn in global support
to social enterprises

Support to Social Entrepreneurship is brought to the Group level throughthe Company Engagement department, thanks to a dedicated team of5 people. The team accompanies and coordinates the initiatives of theGroup's various businesses, in France and internationally, and develops
innovative products and services: social impact measure, social impact
bonds, impact investing, etc.

• EUR 1.7 Billion aum in solidarity
funds
Source: BNP Paribas E&RE - December 2018

• Including eur 300 millions inmicrofinance institutions (MFIs)• 2 033 Clients, partners in 7 countries
and 38 microfinance institutions in17 countries
Source: BNP Paribas - RSE Groupe - December 2018

BNP PARIBAS RETAIL BANKING
Since 2013, BNP Paribas retail banking has developed a dedicated support
system, with a network in France of more than 100 Social Entrepreneurshipcorrespondents - business managers or credit experts trained in thespecificities of the sector - and a specific credit policy that takes accountof the particularities of economic models in the financial analysis of thestructures of the solidarity economy.
The bank has also established partnerships with key players in theecosystem: incubators (La Ruche, Sense Cube ...), investors (France Active,Alter Equity ...) and networks (Ashoka, the Mouves) to help social businesses
at each stage of their life cycle.

• 1 400 Social enterprises supported by
BNPP Retail Banking• 100 Social entrepreneurshipcorrespondents• 700 Million € in outstanding loans
Source: BNP Paribas BDDF - RSE - December 2018

BNP PARIBAS ASSET MANAGEMENT France is a portfolio management company approved by the Autorité des Marchés Financiers under the number GP96002, incorporated as asimplified joint-stock company, having its registered office at 1, boulevard Haussmann 75009 Paris, France, RCS Paris 319 378 832, and its website: www.bnpparibas-am.com. This
content is communicated to you for information purposes only and does not constitute:
1. neither an offer to sell nor a solicitation to purchase, nor should it serve as a basis or be taken into account for any contract or
2. nor an investment board.
The opinions expressed in this document constitute the judgment of the Portfolio Management Company at the time indicated and are subject to change without notice. ThePortfolio Management Company is under no obligation to update or modify them. Investors should consult their own legal and tax advisors on the basis of legal, tax, residential andaccounting considerations before investing in financial instruments to determine the adequacy and consequences of investment, provided that they are authorized,
varying degrees of risk and that no assurance can be given as to the adequacy, suitability or the profitability of a specific investment for the portfolio of a customer or future
customer. Given the economic and market risks, no guarantee can be given as to the realization by the financial instruments of their investment objectives. Performance may vary,in particular, depending on the investment objectives or strategies of the financial instruments and on significant economic and market conditions, including interest rates. Different
strategies applied to financial instruments can have a significant impact on the results presented in this document. The documentation covered by this warning is available atwww.bnpparibas-am.com.

The asset manager
for a changingworld

April 2019 - Design : CREATIVE SERVICES AM - P1904003

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