The document discusses a meeting agenda focused on sustainable finance. The agenda includes welcoming remarks, a presentation on a leaders study program, presentations from clients on digital twin solutions for construction and sustainable finance transactions in real estate, construction and social housing. It also includes an investor view on corporate ESG strategies and a presentation on MovinOn. The document notes that all work is currently hypothetical and requires confidentiality.

1. The elements and propositions included in this document are only work hypotheses. Any decision which might impact current organization structure will be taken according to legal and social procedures in place.
1
SUSTAINABLE
FINANCE
CORPORATE & INSTITUTIONAL BANKING
Leaders’ Study Program
15th October 2019
As a reminder, all work currently done is
in “study mode”, and requires strict
attention in terms of confidentiality

2. The elements and propositions included in this document are only work hypotheses. Any decision which might impact current organization structure will be taken according to legal and social procedures in place.
2
Today’s meeting agenda
 Welcoming words – C. Chalchat 12h00 - 12h15
 Presentation of Leaders Study Program - P. Manohar 12h15 - 12h45
 Our clients’ solutions : Dassault Systèmes : Digital Twin for construction – S. Huffeteau/ N.
Senemaud
12h45 - 13h15
 Pause 13h15 – 13h30
 Sustainable Finance transactions in Real Estate, Construction, Social Housing sectors – C. Moitry 13h30 – 14h00
 Investors view on Corporates ESG strategy – B. Lasfargues 14h00 – 14h30
 Presentation of MovinOn – P. Cannou/ A. Offergeld 14h30 – 15h00

3. The elements and propositions included in this document are only work hypotheses. Any decision which might impact current organization structure will be taken according to legal and social procedures in place.
3
Today’s meeting agenda
 Welcoming words – C. Chalchat 12h00 - 12h15
 Presentation of Leaders Study Program - P. Manohar 12h15 - 12h45
 Our clients’ solutions : Dassault Systèmes : Digital Twin for construction – S. Huffeteau/ N.
Senemaud
12h45 - 13h15
 Pause 13h15 – 13h30
 Sustainable Finance transactions in Real Estate, Construction, Social Housing sectors – C. Moitry 13h30 – 14h00
 Investors view on Corporates ESG strategy – B. Lasfargues 14h00 – 14h30
 Presentation of MovinOn – P. Cannou/ A. Offergeld 14h30 – 15h00

4. SUSTAINABLE LOAN MARKET AT A GLANCE
4
An expanding market with a strong development in 2018 and continuing growth expected in 2019
0
50
100
150
-
10,000
20,000
30,000
40,000
50,000
60,000
2017 2018 2019
Cumulativenumberofdeals
Dealamount(EURmequiv.)
Green Loan
SLL
Number of deals (cumulative)
€7bn
€46bn
€8bn
€58bn
€2bn
€6bn
+660%
(compared to
2017) +24%YTD
(compared to 2018)
SUSTAINABLE LOANS ISSUANCE 2017-2019YTD
All sectors:
88%
SLL
GL
Real Estate,
Housing,
Construction
75%
25%
REAL ESTATE, CONSTRUCTION AND HOUSING
MARKET SHARE 2017-2019 YTD
12%
Source: BNP Paribas, as of Oct 2019

5. SUSTAINABILITY LINKED LOANS VS GREEN LOANS
5
The SLL and the GL correspond to different uses, frameworks and pricing mechanisms and should ideally both involve an extra-financial rating agency
SUSTAINABILITY LINKED LOAN PRINCIPLES
 Relationship to Borrower’s overall CSR strategy
 The borrower to communicate to lenders its sustainability
objectives as set out in its CSR strategy and how these
align with its sustainability performance targets (SPTs)
 Target setting – Measuring the sustainability of the Borrower
 SPTs to be ambitious and meaningful
 SPTs either internal (ESG KPIs) or external (ESG rating) or
both
 Borrower to be potentially assisted by one or more
Sustainability Coordinator(s) or Sustainability Structuring
Agent(s)
 Reporting (of actual performance vs SPTs)
 Information relating to SPTs to be provided to lenders and
ideally also publicly disclosed (for transparency purpose)
 Review (of actual performance vs SPTs)
 External review (performed by an auditor, environmental
consultant and/or independent ratings agency) strongly
recommended or advisable (as the case may be)
 If not, the borrower to duly justify internal expertise to
validate its performance vs SPTs
 Common categories of sustainability performance targets (SPTs)
 KPIs: energy efficiency, greenhouse gas emissions,
renewable energy, water consumption, affordable housing,
sustainable sourcing, circular economy, sustainable farming
and food, biodiversity
 Global ESG assessment: ESG rating / certification
GREEN LOAN PRINCIPLES
 4 documentation pillars
 Use of proceeds / Provision of funding
 Process for project evaluation and selection
 Management of proceeds
 Reporting
 Eligible domains across sectors
 Renewable energy
 Energy efficiency
 Pollution prevention and control
 Environmentally sustainable management of living natural
resources and land use
 Terrestrial and aquatic biodiversity conservation
 Clean transportation
 Sustainable water and wastewater management
 Climate change adaptation
 Eco-efficient and/or circular economy adapted products,
production technologies and processes
 Green building
ELIGIBILITY CRITERIA
ELIGIBLE SECTOR CREDIBLE ESG POLICY
SLLS:
EXISTING EXTERNAL ESG SCORE AND/OR ESG TARGETS?
PURPOSE
GENERAL CORPORATE
PURPOSE FINANCING
SUSTAINABLE CAPEX
FINANCING
SLL GREEN LOAN
LOAN MARKET ASSOCIATION FRAMEWORK
SLL PRINCIPLES GREEN LOAN PRINCIPLES
EXTERNAL ESG REVIEW
ESG SCORE OR KPIS VALIDATION / GLP
PRICING INCENTIVE
OVERALL ESG
PERFORMANCE
TRANSLATING INTO
MARGIN ADJUSTMENT
DEPENDING ON EACH
BANK POLICY
SUSTAINABLE LOAN PROJECT
NO
YES

6. SUSTAINABLE LOAN MARKET AT A GLANCE
6
Understanding the use of KPIs in Real Estate, Construction and Housing sectors
Source: BNP Paribas, as of Oct 2019; * Including Real Estate, Construction and Housing
1kpi
67%
2kpi
11%
3kpi
5%
4kpi
11%
5kpi
6%
#KPIS USED BY NUMBER OF DEALS
IN REAL ESTATE, CONSTRUCTION
AND HOUSING 2017-2019YTD
1kpi
40%
2kpi
20%
3kpi
26%
4kpi
5%
5kpi
9%
#KPIS USED BY NUMBER OF DEALS IN
ALL THE SECTORS* 2017-2019YTD
 Injury frequency rate
 Carbon Intensity
 Number of BREEAM certified Assets /
BREEAM certifications
 LEED Certifications
 C02 Emissions reduction
 Waste Separation Rate
 Energy Consumption
 # Unemployed residents getting back to work
 # people successfully enrolled in an
education programme
 Being listed / maintain position in Indexes
 Rating Providers Score (i.e. GRESB or CDP)
TYPE OF KPIS USED AS OF TODAY

7. REAL ESTATE SECTOR ANALYSIS
7
1
3
13
0
5
10
15
2017 2018 2019
0
5
10
Billions€
# SLL DEALS 2019YTD
Deals Volume
3
5
8
0
5
10
2017 2018 2019
1
2
3
Billions€
# GL DEALS 2019YTD
Deals Volume
12%
6%
12%
17%23%
18%
6%
6%
% SLL DEALS BY COUNTRY
Hong Kong
Mexico
UK
Singapore
France
Spain
Luxembourg
USA
2 DEALS
3 DEALS
4 DEALS
3 DEALS
#1
#1
#1 2 DEALS 32%
7%
31%
6%
6%
6%
6%
6%
% GL DEALS BY COUNTRY
Singapore
Ireland
UK
Australia
Spain
Hong Kong
France
Netherlands
#1
#1
#1
#1
#1
#1
5 DEALS
5 DEALS
Source: BNP Paribas, as of Oct 2019

8. CONSTRUCTION SECTOR ANALYSIS
8
1*
4
2
0
2
4
6
2017 2018 2019
0
1
2
3 Billions€
# SLL DEALS 2019YTD
Deals Volume
1 1
0 0
0
1
2
2016 2017 2018 2019
0
100
200
Millions€
# GL DEALS 2019YTD
Deals Volume
100%
% GL DEALS BY COUNTRY
Sweden
14%
43%
29%
14%
% SLL DEALS BY COUNTRY
France
Netherlands
Switzerland
Spain
1 DEAL
3 DEALS
2 DEALS
1 DEAL
2 DEALS
Source: BNP Paribas, as of Oct 2019; *Transaction volume not disclosed

9. HOUSING SECTOR ANALYSIS
9
0
1
3
0
1
2
3
4
2017 2018 2019
0
50
100
150
200
Millions€
# GL DEALS 2019YTD
Deals Volume
100%
% SLL DEALS BY COUNTRY
UK4 DEALS
Source: BNP Paribas, as of Oct 2019

10. GRESB
10
Overview
Scope: Real Assets
Assesses the sustainability performance of real estate
and infrastructure portfolios and assets worldwide;
Strategy based on 3 pillars that guide their vision:
Assessments (ESG performance in real assets),
Technology (Data validation) and Stakeholders
(Convene a global community)
Coverage
904 real estate funds and property companies, 75
infrastructure funds, 280 infrastructure assets and 25
debt portfolios
GRESB Investor Members represent over USD 18 trillion
in institutional capital – such as Aberdeen, Cohen &
Steers, BlackRock and ING.
Type of products
ESG data, Scorecards, Benchmark Reports and portfolio
analysis tools
Real Estate Membership Fee Schedule for 2019
(Fund Manager / Property Company)*:
 1 Entity/fund with over AuM €1b: €4000
 1 Entity/fund with less than AuM €1b: €6000
Infrastructure Membership Fee Schedule for 2019*:
Fund Manager:
 1 Entity/fund with over AuM €1b: €4000
 1 Entity/fund with less than AuM €1b: €6000
Asset Operator:
 1 asset: €4000
Investor fee for 2019*:
 AuM < €1b: €5400 / AuM > €1b: 10800
Methodology Assessment
The Assessments are guided by what investors and the
industry consider to be material issues in the sustainability
performance of real asset investments and are aligned with
international reporting frameworks such as GRI and PRI;
Assessment participants receive comparative business
intelligence on where they stand against their peers, a
roadmap with the actions they can take to improve their ESG
performance and a communication platform to engage with
investors.
Pros
Granular ranking – grades and summary report
available in the public domain
Good community of institutional investors, investment
management companies, fund managers, asset
operators, industry bodies and service providers.
Cons
* Higher prices of assessment for non-members
Grades and summary report are not available in the
public domain (example of report here)
Limits
Only covers Real estate and Infrastructure portfolios and
assets
Precedent transactions
Focus – SLL
Yearly review
ESG Score can be used for SLL
Thames Water (BNPP Participating) / Gecina (BNPP not
participating)

11. CASE STUDY: GECINA SUSTAINABILITY LINKED LOAN
 Owner of properties of which approximately 97% are situated in Île-de-
France, Gecina is the specialist in centrality and usage
 Gecina is a French listed real estate investment company (SIIC) on
Euronext Paris and has included the SBF 120, CAC Next 20, CAC Large
60, Euronext 100, FTSE4Good, DJSI Europe and World, Stoxx Global
ESG Leaders and Vigeo indices
 At the end of June 2019, their property wealth amounted to €19.9 billion
Features of the facility
 The EUR260m RCF has a tenor of 6 years with the option to be extended for 1 more
 The margin on the loan is tied to Gecina’s annual performance against Environmental, Social &
Governance (“ESG”) metrics as defined by the “Infrastructure GRESB” score
 GRESB is an independent ESG benchmark which assesses the sustainability performance of real
estate and infrastructure assets
 If Gecina outperforms the benchmark then the margin will be reduced, whereas an under
performance would lead to a higher margin
Benefits for Gecina
 Refinancing of a EUR 260m Revolving credit facility, structured as
sustainability linked loan
 Bonus/malus mechanism linked to Gecina’s ESG performance,
assessed by GRESB
 BNP Paribas acted as Sustainability Coordinator, Lender and Agent
Gecina: An ambitious and bold CSR policy
FINANCING
SOLUTION
GECINA
Sources: Gecina website – CSR Policies; Gresb 2018 results assessment; BNP Paribas 2019
 The climate, the digital transformation and the aspirations of the next generation are just some of
the challenges Gecina faces as a player in the real estate sector. Their CSR policy strategy is
based on 4 pillars:
Well-being
Circular Economy
Low carbon
Biodiversity
 The unique SLL structure links preferential interest rates with sustainability targets in an effort to
support Gecina in driving its sustainability strategy whilst also meeting its financing needs;
 This facility ultimately reflects the vision of placing sustainability at the core of its business
strategy.
GRESB 2018 Results in Sustainable Real Assets
 This assessment covered more than 79,000 assets (of which more than 49,000 reported at the
asset level) across 64 countries and represented over USD 3.6 trillion in gross asset value
 Gecina was considered an Europe sector leader under the property type “Office-Listed”
INTERNAL
USE ONLY

12. CASE STUDY: THAMES WATER SUSTAINABILITY LINKED LOAN
 UK's largest water and wastewater services provider, with an annual
turnover of around £2 billion, 15 million customers and over 6,000
employees
 The company supply 2.7 billion litres of drinking water, on average, each
day to ten million people, and carry out more than 400,000 water quality
tests on water samples each year, an average of more than 1,000 a day
Features of the RCF
 Syndicate of 13 relationship banks with 5 years tenor (extension options for a further 2 years)
where proceeds will be allocated for general corporate purposes
 The margin on the loan is tied to Thames Water’s annual performance against Environmental,
Social & Governance (“ESG”) metrics as defined by the “Infrastructure GRESB” score
 GRESB is an independent ESG benchmark which assesses the sustainability performance of real
estate and infrastructure assets
 If Thames Water outperforms the benchmark then the margin will be reduced, whereas an under
performance would lead to a higher margin
 In addition, the borrower will donate any financial gains to the Thames Water charitable fund for
the benefit of charities and communal groups
Benefits for Thames Water
 An innovative mechanism reflecting Thames Water’s vision and ambition as a company which
leads in sustainability
 Aligning financing needs and instruments with sustainability ambitions
 Communication and visibility given to the first companies leveraging on sustainability to finance
their activity - the transaction received national press coverage:
 The first UK corporate to tie the financing of its RCF to its Infrastructure GRESB score
(Global Real Estate Sustainability Benchmark)
 £1.4 billion RCF (increased from £950m previously)
 Pricing includes a bonus-malus mechanism linked to the company
ESG performance
 BNP Paribas acted as Documentation Coordinator
Brandon Rennet , CFO at Thames Water
BNP Paribas’ role
 BNP Paribas was documentation coordinator, providing structuring advice for the loan
documentation and the PIL element via Debt Markets and dedicated Sustainable Finance teams
 Close collaboration with BNP Paribas’ media relations team in order to develop a joint
communication plan with Thames Water, highlighting the transaction
Sustainability performance
“The facility (…) underlines our commitment to sustainability and the pursuit of the UN
Sustainable Development Goals. We’re delighted to have the support of our
relationship banks as we do the right thing for our customers and the environment”
Thames Water and the United Nations’ SDGs
FINANCING
SOLUTION
THAMES
WATER
Sources: Thame Water Press Release (December 2018), Thames Water Website, BNP Paribas