ACT AND ENGAGE C orporate Social Responsibility Report CORPORATE SOCIAL RESPONSIBILITY REPORT

Transcription

1 ACT AND ENGAGE C orporate Social Responsibility Report CORPORATE SOCIAL RESPONSIBILITY REPORT 1

2 6.9 million members form the bedrock of Crédit Agricole s co-operative structure. They own the members shares comprising the capital of the 2,512 Local Banks and appoint their representatives each year: 29,000 directors who act as their voice within the Group. The Local Banks own most of the capital of the 39 Regional Banks. The Regional Banks are regional cooperative banks that provide their customers with a comprehensive range of products and services. Fédération Nationale du Crédit Agricole is the central body through which the Regional Banks discuss the Group s broad policies. Through SAS Rue La Boétie, the Regional Banks own 56.3% of Crédit Agricole S.A., the Group s central bank and central body. Crédit Agricole S.A. owns 25% of the Regional Banks capital (except the Corsican bank) and is the holding company for the Crédit Agricole Group s subsidiaries in France and abroad. 51 MILLION CUSTOMERS WORLDWIDE 150,000 EMPLOYEES 31 BILLION IN REVENUES 10.6 BILLION IN GROSS OPERATING INCOME 71 BILLION IN ATTRIBUTABLE EQUITY 11.8% * CORE TIER ONE RATIO * Restated for the sale of Emporiki GROUP ORGANISATION OWNERSHIP OF CRÉDIT AGRICOLE S.A. S SHARE CAPITAL % HELD BY THE 39 REGIONAL BANKS VIA THE HOLDING COMPANY SAS RUE LA BOÉTIE 43.4% FREE FLOAT 01 Institutional investors: 27.9% 02 Individual shareholders: 11.1% 03 Employees via the employee share ownership plan: 4.4% 0.3% TREASURY SHARES CUSTOMER-CENTRIC UNIVERSAL BANKING: AN INTEGRATED BANKING OFFERING SERVING ALL SEGMENTS OF THE ECONOMY The Crédit Agricole Regional Banks, Local Banks and Crédit Agricole S.A. form the Crédit Agricole Group and develop the customer-centric universal banking model which leverages synergies between the retail banks and the associated specialised finance businesses. SAVINGS MANAGEMENT FIRST-CLASS POSITIONS IN FRANCE AND EUROPE No. 1 bancassurer in France No. 1 asset manager in Europe Major player in private banking CORPORATE AND INVESTMENT BANKING A GLOBAL NETWORK SPANNING MOST OF EUROPE, THE AMERICAS AND ASIA Corporate banking Investment banking Debt optimisation and distribution Global markets RETAIL BANKING LEADER IN FRANCE AND MAJOR PLAYER IN EUROPE WITH ALMOST 11,300 BRANCHES SERVING MORE THAN 32 MILLION CUSTOMERS 39 CRÉDIT AGRICOLE REGIONAL BANKS Cooperative entities and fully-fledged banks with strong local roots, the Crédit Agricole Regional Banks provide a comprehensive range of banking and financial products and services to individuals, farmers, small businesses, companies and public authorities. LCL LCL is a retail banking network with a strong presence in urban areas across France. It is organised into four business lines: personal banking, small business banking, private banking and commercial banking. INTERNATIONAL RETAIL AND COMMERCIAL BANKING Crédit Agricole deploys its customer-centric universal banking model in the international markets, primarily in Europe and the Mediterranean Basin. SPECIALISED FINANCIAL. SERVICES. No. 1 in factoring in France A French leader in leasing A major player in consumer finance in Europe OTHER SPECIALISED. SUBSIDIARIES. Crédit Agricole Immobilier Crédit Agricole Capital Investissement & Finance Uni-éditions Crédit Agricole Cards & Payments N.B.: This report refers to Crédit Agricole S.A., a listed company that owns approximately 25% of the Regional Banks. It also refers to the Crédit Agricole Group, which includes 100% of the Regional Banks business and capital.

3 CONTENTS PROFILE Part 1 OUR ECONOMIC RESPONSIBILITY Part 2 OUR SOCIAL RESPONSIBILITY Part 3 OUR ENVIRONMENTAL RESPONSIBILITY INDICATORS AND APPENDICES 02 Message from the Chairman and the Chief Executive Officer 04 Significant events 06 Customers and local regions lie at the heart of our cooperative model 12 Strengthening confidence 17 Having a clear lobbying policy 18 Listening to our customers 20 Helping people cope 26 Recruiting young people from diverse backgrounds 28 Developing the employability of our people 32 Promoting equal opportunity 36 Risk prevention and promoting well-being in the workplace 38 Being responsible right down the line 44 Supporting energy transition 48 Investing responsibly 51 Limiting and reducing our ecological footprint 56 Measuring our CSR performance 58 FReD, central pillar of our CSR approach 60 Customer-centric governance structure at all levels 62 CSR governance criteria in Social and environmental indicators 68 Cross-reference table 70 Extract from Crédit Agricole S.A. s Management Report THE CRÉDIT AGRICOLE GROUP IS THE FRENCH LEADER IN CUSTOMER-CENTRIC UNIVERSAL BANKING AND ONE OF THE LARGEST BANKS IN EUROPE. AS LEADING FINANCIAL PARTNER TO THE FRENCH ECONOMY, THE CRÉDIT AGRICOLE GROUP SUPPORTS ITS CUSTOMERS IN THEIR PLANS AND PROJECTS IN FRANCE, EUROPE AND AROUND THE WORLD. LEADER IN RETAIL BANKING, IT OPERATES IN ALL SEGMENTS OF THE MARKET: INSURANCE, ASSET MANAGEMENT, LEASING & FACTORING, CONSUMER FINANCE AND CORPORATE & INVESTMENT BANKING. BUILT ON ITS STRONG COOPERATIVE AND MUTUAL ROOTS, ITS 150,000 EMPLOYEES AND THE 29,000 DIRECTORS OF ITS REGIONAL AND LOCAL BANKS, THE CRÉDIT AGRICOLE GROUP IS A RESPONSIBLE, HELPFUL BANK SERVING 51 MILLION CUSTOMERS, 6.9 MILLION MEMBERS AND 1.2 MILLION SHAREHOLDERS. CRÉDIT AGRICOLE STANDS OUT FOR ITS DYNAMIC, INNOVATIVE CORPORATE SOCIAL RESPONSIBILITY POLICY. IT FEATURES AMONG THE TOP 3 OF EUROPE S 31 LARGEST BANKS AND INSURANCE COMPANIES IN NOVETHIC S RESPONSIBLE REPORTING RANKINGS. A BANK SERVING 51 MILLION CUSTOMERS * 11,277 BRANCHES IN 11 COUNTRIES * (INCLUDING 9,090 IN FRANCE AND 942 IN ITALY) OPERATIONS IN 60 COUNTRIES WORLDWIDE A BANK SERVING THE ECONOMY Signature of the United Nations Global Compact and Climate Principles Endorsement of the Equator Principles by Crédit Agricole Corporate and Investment Bank Signature of the Principles for Responsible Investment by Amundi and Crédit Agricole Assurances Signature of the Charter for Responsible Purchasing between major buyers and SMEs * Including the Regional Banks CRÉDIT AGRICOLE S.A. IS A MEMBER OF SEVERAL SUSTAINABLE DEVELOPMENT BENCHMARK INDICES: CORPORATE SOCIAL RESPONSIBILITY REPORT 01

4 MESSAGE FROM THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER OUR FIRST CSR REPORT, THE EXPRESSION OF OUR AMBITIONS IN CORPORATE SOCIAL RESPONSIBILITY Insight CSR LIES AT THE HEART OF THE GROUP S STRATEGIC ORIENTATIONS Jean-Marie Sander, Chairman, and Jean-Paul Chifflet, Chief Executive of Crédit Agricole S.A. At Crédit Agricole, our corporate social responsibility (CSR) policy is based on a pragmatic approach that permeates throughout the entire Group and engages all of our people. We seek to take account of today s social and environmental concerns in our product and service development process as well as in our day-to-day business practices. For example, we are introducing new financing policies for sensitive sectors with Crédit Agricole CIB, our corporate and investment banking arm; we are developing socially responsible investment with Amundi; in payments, we are launching an environmentally-friendly bank card; we finance renewable energy projects; we provide households with a home eco-renovation package; we are improving the way we handle customer complaints. When we were drawing up our Group Plan in 2010, we identified four important issues in today s society where we can play a useful role: agriculture and food processing, housing, health and ageing, and energy efficiency and the environment. All of these issues involve a significant CSR dimension. We are also pursuing our efforts to reduce our direct environmental footprint. All entities of the Crédit Agricole S.A. Group have embarked on a responsible paper approach and have invested in servers that are less energy hungry and carry a European certification label. But no matter what we do, we will always have a residual ecological footprint, so in 2008 we decided to take offsetting measures. We have invested in the Livelihoods fund launched in 2011 with Danone, Schneider Electric and Caisse des Dépôts et Consignations to finance development projects in Africa and Asia, which will generate carbon credits as of Lastly, we are implementing an internal policy that aims to help everyone find their place right from the recruitment stage, enjoy decent working conditions and gain in value throughout their career. Our Group is made up of 39 cooperative banks the Regional Banks together with other retail banks (LCL and the international retail banks) and specialised subsidiaries corporate and investment banking, asset management and specialised financing services (consumer finance, leasing and factoring). Each of these businesses has its own strong culture and history. Each has its own CSR practices. But we wanted to strengthen them yet further through progress incentives and performance measurement. The Regional Banks have adopted a Cooperative Regional Pact with the aim of giving all our customers the resources they need to expand and develop. At Crédit Agricole S.A., our progress approach is called FReD, a structured system designed to drive CSR forward at all levels of the organisation. Our progress is audited by an independent audit firm. Our recent entry into the Vigeo and NYSE Euronext extra-financial indices is proof that our approach is working and that we are making acknowledged progress in CSR. Our commitment to CSR springs from our cooperative and mutual roots. Crédit Agricole s culture, which is based on tangible, grassroots engagement and a focus on performance, has been adapting to economic and social change for more than a hundred years now. But it must be constantly nurtured and reinvented. Today, it requires us no doubt more than others to have strong ambitions in corporate social responsibility. This CSR report, which is the first of its kind for Crédit Agricole S.A., is yet further evidence of these ambitions CORPORATE SOCIAL RESPONSIBILITY REPORT 03

5 SIGNIFICANT EVENTS Including social and environmental relationship managers in more than 330 criteria in our financing policies branches monitored the results of this Crédit Agricole CIB has implemented project and capitalised on feedback with 1 st edition of the sector policies for the arms, oil and gas, a view to making the package available Outreach Days shale gas, coal-fired power, hydroelectric more widely throughout the network. power and nuclear power industries. tonnes of CO This approach demonstrates our desire Environmental risk measured in 2 offset by to embrace citizenship issues, in particular respect for human rights, com- In partnership with law firm Lepage and SME loan applications the Group over five years. bating climate change and preserving some ten Regional Banks, Crédit Agricole S.A. has developed a risk manage- biodiversity. ment tool covering 11 business sectors. The tool includes a questionnaire to help the relationship manager assess the environmental risk of a customer s project before making the lending decision. Two Regional Banks have been testing this tool since November low energy consumption homes already built by Crédit Agricole Immobilier. Investing responsibly with Amundi Amundi has chosen to progressively integrate environmental, social and governance (ESG) considerations in all its analysis processes and asset management decisions. Amundi believes that a company s global performance and an asset manager s responsibility go beyond purely financial considerations and has therefore introduced a rigorous system for analysing the performance of companies and governments on extrafinancial criteria. Eco-renovation for a more energy efficient home Eight Regional Banks tested an innovative package designed to help households with their energy efficiency projects. The package combines a green financing offer with an energy audit and expert advice enabling homeowners to determine how best to go about their renovation work. For three months, 280 Three low energy consumption housing projects combining energy efficiency with social diversity In 2012, Crédit Agricole Immobilier completed and delivered three BBC (low energy consumption) certified housing projects: Le Cazalot comprising 49 apartments near Bordeaux, Les Bois Dortis, a housing estate comprising 13 apartments and 15 individual houses near Toulouse, and Pavillon Vert, comprising 124 homes near Montpellier. Not only are they energy efficient and environmentally friendly, but they also promote social diversity, in particular by combining apartment blocks with single family dwellings. skills volunteering assignments proposed to employees. 41,700 collected for the benefit of 5 associations. OUTREACH VOLUNTEER PROGRAMME Strong employee engagement The skills volunteering programme launched in 2012 and advertised on ca-solidaires.fr met with an overwhelming response. Almost 1,000 employees registered on the site and many initiatives were taken by Crédit Agricole S.A. and its subsidiaries to make the Group s partner associations known, collect funds and sign up employee volunteers. ECO-PROJECT, THE TROPICAL RAINFOREST RECLAIMS ITS RIGHTFUL PLACE Crédit Agricole S.A. employees chose a tropical rainforest rehabilitation project in Borneo for its 2012 carbon offset programme. The project aims to restore flora and fauna in the area by regenerating more than 25,000 hectares of tropical rainforest. More than 1,680 tonnes of CO2 were offset in 2012 through the purchase of carbon credits raised by the Borneo project. EcoAct/FTF Hats off to organic innovations At the second Crédit Agricole and Agence Bio Excellence Bio awards, prizes went to two innovations that have given the organic farming industry a new boost: the development of a heat treating technique for preserving fruits and the creation of a new organic spelt wheat product. Supporting employees in their career A Jobs and Skills Planning & Forecasting Agreement (GPEC) was signed by the Works Council of consulted entities on 6 July 2012 with the aim of using internal mobility and career development as a source of sustainable employee motivation and a means of retaining our best people. The agreement was drawn up jointly after workshops involving 160 representatives of both the trade unions and the Human Resources department and led to the creation of two bodies: the GPEC Committee, which is now responsible for monitoring the agreement, and the Observatoire des Métiers, which forecasts changes in needs and in sensitive businesses and translates them into skills and jobs CORPORATE SOCIAL RESPONSIBILITY REPORT 05

6 CUSTOMERS AND LOCAL REGIONS LIE AT THE HEART OF OUR COOPERATIVE MODEL COOPERATIVE DYNAMICS BREATHE LIFE INTO LOCAL REGIONS Nationwide presence with 7,000 Crédit Agricole branches 85% of earnings invested in the local economy 100% of bank deposits devoted to local financing Elected representatives participate actively in the bank s decisions and in local development Members contribute to supporting local projects Preservation of the local cultural and architectural heritage CRÉDIT AGRICOLE IS A DECENTRALISED BANKING GROUP WITH STRONG LOCAL ROOTS. IT IS FOUNDED ON THE MUTUAL VALUES OF ITS REGIONAL COOPERATIVE BANKS. Your bank is here. It finances projects here, here, here. ONE MEMBER A RIGHT TO VOTE BASED ON THE PRINCIPLE OF ONE MEMBER, ONE VOTE ONE VOTE DIRECT DIALOGUE WITH ANALYSTS AND INVESTORS For the first time in early 2013, Crédit Agricole S.A. organised a direct discussion on governance between an independent director representing its Board of Directors and experts in the markets and socially responsible investment. CUSTOMER-CENTRIC GOVERNANCE In a mutual governance structure, the decision-making power creates close links between the Board of Directors, which represents the member customers, and General Management. With their founding principle of dual review, the mutual banks were well ahead of banking laws such as the NRE law in France or the second pair of eyes rule requiring dual supervision of banking activities. Functions are segregated: the Board of Directors and its Chairman are responsible for defining strategic orientations and overseeing their implementation, whilst executive responsibility lies with General Management. In each Regional Bank, the Board of Directors meets at least once a month to determine strategic orientations and make sure they are applied. Consequently, the member customers who contribute to the bank s capital also take part in its democratic life. They have a right to vote based on a one member, one vote principle and their elected representatives take part in the bank s major decisions. They have the opportunity to meet the people who run the bank once a year. They also enjoy a range of products and services available only to them (e.g. member s card, member s passbook account, etc.). They have access to specific information about the bank s management, results and strategic orientations. As a general rule, a large proportion of the bank s earnings is not redistributed but held in reserves to support its robustness and finance its long-term investments. The Group has a trademark decentralised organisation structure, with decision-making shared between the local and regional entities at grassroots level and the national bodies. Representatives of the regional entities are involved in the governance of the national bodies. The Crédit Agricole S.A. Group s central bank also controls the specialised subsidiaries, which make their skills available to the Group s networks. Crédit Agricole S.A. is a listed company. 56% of its share capital is held by the Regional Banks. It also has 1.2 million individual shareholders. EMPOWERING THE COOPERATIVE MODEL Crédit Agricole takes many initiatives to instil this cooperative, regional model into each and every one of its practices to build a customer relationship that is more human and at the same time more technological, and more supportive at all important times of a customer s life. During the Fédération Nationale du Crédit Agricole congress in Brussels in October 2012, the Crédit Agricole Regional Banks reaffirmed their goal of broadening their cooperative dimension by We have therefore drawn up a Cooperative Regional Pact whose missions are to be a strong voice of cooperative values worldwide and to monitor and measure the effectiveness of our action in the local regions where we operate. The commitments made in the Pact involve: excellence in customer relations, economic development of local regions and the environment, cooperative, mutual governance, exemplary human resources practices, forceful statement of Crédit Agricole s social responsibility in the local regions to serve the collective interest. Launched in early 2013, the Pact gives structure to and consolidates the Regional Banks CSR commitments. PROVIDING ANSWERS TO ECONOMIC AND SOCIAL ISSUES Engaging at grassroots level means working on the major challenges facing today s society. Crédit Agricole has chosen four areas of excellence in which it intends to become an exemplar by 2015 : agriculture and food processing, housing, energy efficiency and the environment, health and ageing. Historical involvement with agriculture Crédit Agricole is the leading French bank and one of the biggest insurers in the agriculture and food processing sector. We intend to strengthen this position. Homes for everyone Leading mortgage bank in France, Crédit Agricole is also a provider of solutions across the entire property value chain. The Group has strengthened its position in this business through its subsidiary Crédit Agricole Immobilier. A sustainable economy Confronted with today s energy and climate challenges, the Group wants to think about growth differently and become an exemplar in the area of energy efficiency and the environment. Dealing with the problem of ageing To meet the challenges posed by an ageing population, the Group provides protection, health, retirement and longterm care solutions through its bancassurance expertise. We are also strengthening our partnership with organisations that specialise in health and ageing issues CORPORATE SOCIAL RESPONSIBILITY REPORT 07

7 SUPPORTING THE LOCAL REGIONS Using their strong local roots to serve their communities, most of the Regional Banks set aside a local development fund to finance projects that contribute to creating and maintaining local economic activity. Active participation in local life Driven by the will to be closely involved in and support local economic and social issues, the Regional Banks take action through several mechanisms: eight Regional Banks have set up a foundation, fourteen have created an association and five have set up an endowment fund. Of all the projects financed, 37% involve local region coordination, 29% outreach, 18% economic development, 16% heritage and 3% the environment. The Group supports regional entrepreneurship Three Regional Banks (1) have set up a regional college of innovation and cooperation (ETICoop). The aim is to support innovative projects that contribute to the development of the local economy. The three areas covered by this initiative are support for business start-ups, training and financing, particularly through local savings. The college is governed by a board comprising university partners and the Institut de Formation du Crédit Agricole Mutuel (IFCAM), the Group s training institute. Crédit Agricole has provided 2.2 million of equity to SMEs in local regions. It does this through regional organisations such as the 28 regional investment companies which enable the Regional Banks to use some of their own equity to finance SMEs and mid-market enterprises. The Group also has national organisations such as Sodica Capital Investissement and Amundi Private Equity funds. Through this activity, Crédit Agricole supports 730 companies in France representing 156,000 jobs. (1) Crédit Agricole Pyrénées-Gascogne, Aquitaine and Charente-Périgord Cultivating local employment Crédit Agricole S.A. and its subsidiaries also take action to promote local employment and regional development. In 2012, Crédit du Maroc organised sales assistant recruitment sessions in remote parts of Morocco with the aim of targeting local skills more effectively and contributing to regional economic and social development. In the same vein, Amundi has created funds that have a high social impact and contribute to the real local economy. These funds invest 5% to 10% of their assets in unlisted companies or associations. In this way, Amundi finances 13 local businesses in areas ranging from housing to social entrepreneurship. local projects financed in 2012 by the Regional Banks. million of funding provided. CRÉDIT AGRICOLE - PAYS DE FRANCE FOUNDATION Crédit Agricole played a pioneering role in corporate philanthropy in France, from as early as It was the first organisation to set up a corporate Foundation, which was recognised as serving the public interest in 1983, and to believe that heritage was a valuable resource for the cultural and economic development of the local regions. The Crédit Agricole - Pays de France Foundation also broadened the concept of heritage to encompass natural sites, old trades and crafts, rural buildings, etc., as well as monuments and museums. For 34 years, the Foundation, alongside the Regional Banks, has helped more than 1,100 projects come to fruition through 30 million of grants. In 2012, 2.1 million was made available to finance 42 projects. TOOKETS, CRÉDIT AGRICOLE S CHARITY TOKENS A local support initiative created by Crédit Agricole Pyrénées Gascogne in 2011, Tookets are tokens that represent a pledge to donate. Customers collect Tookets when they use their bank card or passbook account and then donate them to the charity of their choice, which receives the actual money. And it works! At the end of April, almost one thousand charitable organisations had received more than 50 million Tookets (1) donated by some 50,000 people. By 2014, around ten Regional Banks will join this initiative. (1) 1 euro = 100 Tookets Forteresse de Polignac (Haute-Loire) / Fondation Forteresse de Polignac CORPORATE SOCIAL RESPONSIBILITY REPORT 09

8 Part 1 OUR ECONOMIC RESPONSIBILITY A LEADING PROVIDER OF FINANCE TO THE FRENCH ECONOMY AND MAJOR EUROPEAN PLAYER WITH STRONG LOCAL ROOTS, CRÉDIT AGRICOLE IS COMMITTED TO PEOPLE AND BUSINESSES, INCLUDING THE MOST VULNERABLE. P. 12 STRENGTHENING CONFIDENCE P. 17 HAVING A CLEAR LOBBYING POLICY P. 18 LISTENING TO OUR CUSTOMERS P. 20 HELPING PEOPLE COPE CORPORATE SOCIAL RESPONSIBILITY REPORT 11

9 OUR ECONOMIC RESPONSIBILITY STRENGTHENING CONFIDENCE WE MEASURE CUSTOMER CONFIDENCE AND SATISFACTION AND MAKE IT A CENTRAL PILLAR OF OUR ACTION BY INVOLVING ALL OUR PEOPLE. INVOLVING EMPLOYEES TO BETTER SERVE THE CUSTOMER INTEREST Fostering the customer relationship The Customer Relationship 2.0 project aims to help us provide a more personal service and listen more attentively to our customers. Launched in September 2011, the project involved more than 800 employees in eight Regional Banks. Sixteen practices designed to improve customer satisfaction on themes such as professionalism, listening or proactiveness were tested over a period of eight months. The aim was to leverage all existing contact channels direct contact, telephone, internet or SMS to improve availability, information interactivity and accessibility, and the bank s responsiveness to customer needs. Based on the positive results, the project was rolled out across the entire network at the end of More than employees in eight Regional Banks trained in Customer Relationship 2.0 in relationship commitments taken collectively by all the Regional Banks in the interests of their customers and members. SELLING PRODUCTS TRANSPARENTLY Compliance at the heart of the customer interest On 1 July 2010, the Group set up a system of training and testing the business knowledge of employees responsible for informing or advising customers about financial instruments. Employees working to prevent risk In 2004 the Group introduced a compliance manual, which was revised and updated in In 2012, a compliance e-learning course was made available to make sure that employees assimilate these rules effectively in their respective areas. The course contains different modules tailored to the Group s main business activities (retail banking, corporate banking, asset management, insurance, etc.). Fraud prevention is also a component of CSR. Training was introduced in 2012 to make employees aware of the different types of external fraud. A unique relationship embodied in relationship commitments In 2012, Crédit Agricole launched a far-reaching programme to place customer satisfaction and the customer interest at the heart of everything it does. Thirteen relationship commitments in five areas were made collectively by all the Regional Banks in the interests of their customers and members: customer relations, reward for loyalty, after-sales service, modular, personalised product and service packages, recommendation index. Three initial commitments were implemented in 2012: impartiality, transparency and cooling-off period. For the customer, each commitment translates into a tangible, lasting benefit. For the Group, these commitments reward customer loyalty, bring added benefits to the relationship and encourage an improved after-sales service. Avec le MEMO * nos produits n ont pas de secret pour vous. MEMO* tells you everything you need to know about our products. TRANSPARENCY Loyalty in commitment Crédit Agricole has chosen to make transparency a top priority commitment to its customers. We undertake to provide them with clear, suitable information, including memo sheets that set out the benefits and risks of the product or service they are buying. About sixty memos sheets have been drawn up and distributed to customers explaining the bank s dayto-day products and services in areas such as loans, insurance and savings products. The relationship managers also have a sales-aid tool to help them explain the practical aspects of transparency and its benefits. They can therefore make an effective contribution to the bank s duty to provide customers with clear information CORPORATE SOCIAL RESPONSIBILITY REPORT 13

10 OUR ECONOMIC RESPONSIBILITY INSIGHT REING ON THE CUSTOMER INTEREST, A COLLECTIVE COMMITMENT What was the initial purpose of the Customer Relationship 2.0 project? Our research showed that we had gradually become distanced from our customers core concerns. At the same time, we had become aware internally that some banking/customer relationship models had become obsolete. The customer is the driving force behind our business and must therefore lie right at the heart of the bank s operations. This refocusing exercise is moving us further towards a rationale of mutual interest based on a shared benefit. What did the project consist of in concrete terms? We structured our approach around three values embodied in the Group Plan: closeness, listening and loyalty. But these values cannot simply be dictated from on high. We put them to the test in the field to see how they could be applied in practical terms, particularly during the key times that forge the bank/customer relationship. For eight months, the relationship managers at eight Regional Banks tested the approach at three strategic points in the relationship, namely the initial welcome, the meeting and the courtesy call. They tested body language changes, listening empathetically to better understand needs whilst putting the customer s interest above that of the bank. For example, proposals were systematically accompanied by alternative options and advice to guide customers whilst leaving them free to make their own choice. The same approach was taken during the courtesy call: the purpose of the call is no longer a hard sell but a genuine offer of service. What were the initial results of this test phase? We validated three principles. We could see that both the relationship managers and branch management understood the value of the approach, because they had made it their own. We used satisfaction surveys to analyse what the customers felt about it and the result was highly positive as witnessed by the progress in our recommendation index scores. Lastly, we measured the direct impact of the approach on our revenue. Based on the results, we began to roll out the approach more widely through a training programme which will continue into In early 2014, all 39 Regional Banks will be using the approach. In what way is this symbolic of a new corner turned by the Group in terms of customer satisfaction? We are going back to the Group s underlying values that had slightly escaped us. We implemented the programme by drawing on the relationship commitments made by all the Regional Banks. All employees and managers were involved, not only in the branch network but also throughout the entire Group to ensure that everyone became a relay for the project. We will continue to foster the approach and evolve it by developing digital channels that promote accessibility of information to encourage a true lasting relationship. PIERRE-LOUIS AUFORT Head of Distribution, Regional Banks Division, Crédit Agricole S.A. IMPARTIAL ADVICE Respect for the customer interest There is no financial incentive for Crédit Agricole s relationship managers to propose one product rather than another. They are paid according to their experience and skills, which encourages them to listen and provide impartial advice. Their relationship with the customer is one of equality and trust. At no time can they put their own interests above those of the customer. Bonuses are related to targets set in advance. quality commitments that define the customer relationship promise made by LCL: a personalised relationship, transparency, the right to change one s mind, the right to an unforeseen event, responsiveness, availability, after-sales service and reward for loyalty. Nos conseillers n ont pas d incitation financière à proposer un produit plutôt qu un autre*. Our relationship managers have no financial incentive to propose one product rather than another.* (* In the same product category: loans, savings, etc.) LCL, recognition in all its forms Since 2008, the Group s second retail bank, LCL, has made a number of commitments to its customers through the Contrat de Reconnaissance (Recognition Contract). The contract makes customer satisfaction the central pillar of the relationship and recognises that each customer is different by proposing customised solutions. It promises a relationship manager who knows and understands the customer s needs and rewards loyalty through specific benefits. LCL Centricité Clients, launched in 2011, reinforces the Contrat de Reconnaissance approach. It is based on the customer s voice initiative which involved analysing what customers said, their complaints, efficiency reports and feedback to relationship managers in order to propose improvements in line with the expectations expressed on a day-to-day basis by various customer groups: individuals, small businesses and companies. In 2012, LCL responded to key customer expectations by facilitating access to the bank and providing better listening skills, clarity, transparency and follow-up in the business relationship and the products and services proposed. For example, customers who express dissatisfaction are systematically called back to analyse and deal with their comments. Similarly, LCL offers close support in certain situations by developing specialised after-sales services (succession and probate, mortgages, etc.) CORPORATE SOCIAL RESPONSIBILITY REPORT 15

11 COOLING-OFF PERIOD 30 days to change your mind Customers have thirty days to change their mind about a product or service. This goes well beyond the 14-day period required by law, giving customers the chance to really take their time over their decision and to change their mind without having to give any reasons. HAVING A CLEAR LOBBYING POLICY CRÉDIT AGRICOLE S.A. COMMITS TO RESPONSIBLE LOBBYING PRINCIPLES TO GUARANTEE EFFECTIVENESS AND THE CONTINUED TRUST OF ITS STAKEHOLDERS. 30 days after signing the contract to change your mind. Offer reserved for individual customers and limited to once per product per year. Contact your branch for information about the products covered, the terms and conditions and any restrictions that apply. TRAINING OUR PEOPLE TO AIM FOR EXCELLENCE IN THE RELATIONSHIP With customer satisfaction and support as our priorities, we strive to provide quality advice by training our people to listen carefully. Several training courses have been developed so that everyone even those who are not in front-of-house jobs understands that the customer always comes first. Entities providing this training have also decided to make it part of their FReD action plans. For example, Crédit Agricole S.A. has set up an immersion programme in the field for its employees, to make them aware of what the customer relationship really means. This helps them to be more attentive and provide expert solutions that better meet the requirements of the operational business lines and serve the customer-centric universal banking business. Crédit Agricole Consumer Finance also provides its relationship managers with training designed to improve the customer relationship through more active listening and the ability to provide advice that enhances the value of the dialogue. LOBBYING CHARTER Three types of commitment Commitment to transparency and compliance: clearly identify interest representation, implement best practices, require third parties to comply with the same commitments, abide by codes of conduct and regulations, etc. Commitment to information and communications: build arguments based on reliable data, publish key public positions, etc. Commitment to the internal network: organise activities transparently, ensure that the people responsible for the business have the right level of skills, report regularly on actions and initiatives to General Management or the Board of Directors special committees. Scan this code to download the lobbying charter (French only) IMPLEMENTING BEST PRACTICES As a major banking and financial player, Crédit Agricole S.A. is keen to voice its opinions to the French and international regulators on the impacts of their decisions. However, we wish to conduct this activity in full transparency with all stakeholders and implement best practices in such matters. We have therefore published a lobbying charter, the first so far for a French bank. Drawn up in 2013, it governs the bank s lobbying practices and applies to Crédit Agricole S.A. and all its entities. Why lobby? The Group sees its lobbying activities as a contribution of experts and practitioners to the political and technical debate. Through our size and broad business mix, we are able to call on a wealth of experts capable of taking an overarching view of financial and banking issues and their complexity. This helps us to provide the national and European legislators, as well as legislators at the highest global level such as the G20 through the Financial Stability Committee, with a well-argued opinion on the impacts of their decisions. Priority on integrity of practices Registered since 2009 on the European Union s Transparency Register, Crédit Agricole S.A. has undertaken to adopt the Code of Good Conduct applicable to interest representatives, specifying the fundamental principles that guide and govern its professional relations with the institutions of the European Union. Crédit Agricole S.A. now also relies on its Lobbying Charter. Our lobbying team comprises nine people, including three specialists in European public affairs based full-time in Brussels. The Public Affairs Department of Crédit Agricole S.A. is also supported by a public affairs officer in each of its subsidiaries. A closely supervised mechanism Lobbying priorities, positions and key messages are regularly reported to the bank s management committees. The internal code of conduct has a specific chapter on the rules for giving business gifts or other benefits so as not to compromise the recipient s independence or impartiality. Subject to strict internal and external audit rules, the Public Affairs Department s budget is analysed in accordance with the Finance Department s usual budget processes CORPORATE SOCIAL RESPONSIBILITY REPORT 17

12 OUR ECONOMIC RESPONSIBILITY LISTENING TO OUR CUSTOMERS COMPLAINT RESOLUTION AT SOFINCO Sofinco, a Crédit Agricole Consumer Finance brand, published a customer complaints charter on its website in Customers have transparent access to the complaint resolution process and information about Sofinco s ten commitments on complaints resolution, response periods, avenues for redress, etc. MOST GROUP ENTITIES HAVE ALREADY TAKEN ACTION TO BETTER UNDERSTAND THEIR CUSTOMERS EXPECTATIONS AT EACH STAGE OF THE RELATIONSHIP. A PROACTIVE APPROACH TO DELIVERING IMPROVED SERVICE. KEY DATE customer recommendation index first measured in all markets. MEASURING SATISFACTION For several years, most Group businesses, from retail banking and consumer finance through to insurance and leasing, have developed their own barometers and/or surveys to measure customer satisfaction. Results are analysed at each key stage of the relationship or product life cycle. They help to prioritise actions geared towards improving customer satisfaction. Listening to our customers Each Regional Bank conducts satisfaction surveys to obtain a more in-depth understanding of its customer relationship. These regional in-branch surveys are conducted by Crédit Agricole S.A. among branch network customers in all markets (individuals, companies, small businesses, farmers). CRI, a demanding business index The customer recommendation index (CRI) is a true indicator of service level that complements traditional measurements and goes beyond a simple satisfaction sentiment. Through the annual survey conducted in all markets, this overall synthetic indicator measures how loyal customers are to their bank based on whether or not they would recommend it to others. The CRI was first measured in 2012 across all markets, at national and regional level. It is now used by many Group entities both in France (Regional Banks, LCL, Crédit Agricole Consumer Finance, BforBank) and abroad (Egypt, Ukraine, Poland, Italy and Germany). It is also being introduced in other Group entities. COMPLAINTS Dissatisfied customers want a quick answer, clear and transparent information and, where necessary, their problem to be dealt with and resolved. In consumer finance, Crédit Agricole Consumer Finance has established a complaints resolution process for complaints considered to be sensitive; they are dealt with by special units, each covering a specific scope of responsibility. All complaints are followed up and, as part of a continuous improvement in processes, complaints committee meetings are held in association with the business line managers. INSURANCE: CUSTOMER SATISFACTION Predica, the Group s personal insurance subsidiary, already has a process for monitoring customer satisfaction. An annual customer satisfaction survey has also been rolled out for two of its other subsidiaries, Caagis and CACI. AIMING FOR EXCELLENCE IN THE RELATIONSHIP The quality of the customer relationship is embodied in one crucial issue: how complaints are handled. Crédit Agricole Assurances, LCL and Crédit Agricole Leasing & Factoring have opted to include complaints resolution in their FReD action plans for 2012: Crédit Agricole Assurances has made commitments as regards measuring and improving the time taken to deal with customer complaints for its various entities, LCL uses new complaints management tools, soon to be completed by reporting processes, Crédit Agricole Leasing & Factoring is about to roll out its customer complaints resolution process throughout the entire entity CORPORATE SOCIAL RESPONSIBILITY REPORT 19

13 OUR ECONOMIC RESPONSIBILITY HELPING PEOPLE COPE HOW DO WE HELP PEOPLE IN SOCIAL OR FINANCIAL DIFFICULTIES? WE HAVE SEVERAL MECHANISMS TO HELP PEOPLE WHO HAVE SUFFERED A MISFORTUNE OR TO SUPPORT THEM DURING DIFFICULT TIMES. personal micro loans granted since 2007, including 611 in Pascal Jouin, Points Passerelle adviser at Normandie Seine Regional Bank. POINTS PASSERELLE 65 Points Passerelle in 29 Regional Banks, a network of 120 advisers and more than 580 support volunteers (Crédit Agricole elected representatives and retired employees), 9,000 people helped, including 5,800 who have managed to sort out their finances through social solutions (70%), financial solutions (20%) and tailored advice, all in all, more than 50,000 people have received support since the first Point Passerelle was set up in SUPPORTING PEOPLE IN DIFFICULTIES Unemployment, bereavement, divorce... one quarter of all French people suffer financial difficulties or misfortune of some kind, which can easily lead to exclusion. Setting up Points Passerelles to help avoid exclusion Created by Crédit Agricole in 1979, the Points Passerelle system relies on the involvement of 29 of its Regional Banks to help psychologically, socially or financially vulnerable people get back on their feet. Primarily a place where people can go for advice, immediate help and ongoing support, it proposes social and financial solutions in partnership with the social services. The support system covers all potential solutions from contacts with the legal or social services through to help with budgeting or, if necessary, granting loans to help socially and financially vulnerable people get back on track. Helping the advisers to help Crédit Agricole Assurances, in association with the Regional Banks and the Fédération Nationale du Crédit Agricole, has drawn up memo sheets with practical advice on insurance issues to facilitate support: for example, formalities in the event of bereavement, building up rainy-day savings when money is tight, death and funeral insurance, etc. Microcredit to the rescue Other products are available in the retail banking networks to help certain customers in difficulties, such as the Prélude package, the Prêt Coup de Main or personal microcredit to provide a banking service to people who cannot get credit through the usual channels, whilst controlling their budget. Loans for job creators The Regional Banks work with local initiatives or forge partnerships with business start-up support associations such as Adie, to help create jobs and combat exclusion in their local regions. To support individual business start-ups or finance social enterprises specialising in inclusion through the economy, some Regional Banks also work with networks such as France Active, Boutiques de Gestion, Entreprendre or decentralised organisations such as business incubators. HELP FOR CAREGIVERS Convinced of the vital role played by family or volunteer caregivers for people needing long-term care, Crédit Agricole Assurances (CAA) made a commitment in 2010 to finance associations that provide support for caregivers, regardless of the dependent person s age, illness or disability. In the space of three years, almost 40 associations across the country have benefited from this support. In 2013, CAA launched a third call for projects, with a total endowment of 300,000. And not just in France In Italy, Cariparma offers products to help struggling people, such as the Very Young Person package designed to help young people achieve their dreams. Cariparma also has a programme called Cariparma si può (with Cariparma, yes, you can), which helps customers cope during difficult times thanks to repayment deferrals, preferential interest rates and advances on salary or unemployment benefits. Prevent and support Crédit Agricole Consumer Finance sees credit as a growth driver that meets a social and economic need. When reviewing loan applications, it uses a statistical evaluation system to assess repayment ability as well as traditional solvency measurements. Crédit Agricole Consumer Finance has also created a customer support agency, a new milestone in its strategic plan to prevent over-indebtedness. The agency s role customers and prospective customers made aware of long-term care issues in the Regional Banks since the launch of Predica s Vers l autonomie package in Predica, a subsidiary of Crédit Agricole Assurances, is the market leader in long-term care insurance CORPORATE SOCIAL RESPONSIBILITY REPORT 21

14 OUR ECONOMIC RESPONSIBILITY Crédit Agricole Solidarité et Développement in 2012: projects financed for almost million. SUPPORT FOR FARMERS is to help customers even in cases of severe misfortune. It takes care of customers who show signs of vulnerability and assesses their entire personal and financial position using diagnostic tools. This in-depth analysis, based on a 40-minute interview, is used to propose appropriate solutions to get them back on track, either through an internal solution or by referral to a partner, depending on how their debt is structured. Crédit Agricole Consumer Finance also contributes to agreements on voluntary recovery of consumer finance debts, in conjunction with consumer associations and the Association Française des Sociétés Financières. Coping with dependency and health problems Health and ageing have become critical issues in today s society and Crédit Agricole Assurances has therefore developed long-term care packages to provide, for example, an extra financial benefit in the event of partial or total dependency or home care services. To make sure that struggling people can gain access to basic insurance services, the Group has developed an entry-level life insurance package and also makes it easier for people who have or have had a serious health problem to get insurance. ORGANISATIONS TO HELP PEOPLE COPE The LCL Foundation helps vulnerable and struggling people After several years of philanthropy initiatives, LCL decided to unite, develop and diversify its action within a corporate foundation. Created in July 2012, the LCL Foundation works in two areas: first, support for children, young people with family, emotional, educational or social problems and women in difficulties, and second, health through medical research. LCL already partnered several associations and organisations including France Parrainages (formerly Centre Français de Protection de l Enfance), and the Fédération pour le Recherche sur le Cerveau et Mécénat Chirurgie Cardiaque. Apart from financial support, the Foundation may also donate assets and services, make premises available and carry out awareness actions. Crédit Agricole Solidarité et Développement combats exclusion The Group founded Crédit Agricole Solidarité et Développement (CASD) in 1983 to extend and develop the outreach actions already taken by the Regional Banks. CASD supports economic and social inclusion programmes for people in difficulties in France, in order to combat all types of exclusion. Its commitments include helping vulnerable people to find jobs and housing, and providing young people with training. Other than these programmes, CASD also takes action in developing countries, encouraging agricultural activities, trade and commerce, meeting basic needs (water, health and education) and, with the partner NGOs in the field, providing support for people hit by natural disasters. The Grameen Crédit Agricole Foundation in 2012: finance packages approved totalling 44.6 million, microfinance institutions funded in countries serving 1.7 million active borrowers, including 87% women and 85% rural customers. Crédit Agricole helps its historical clientele to weather tough times. Cattle, sheep and goat farmers were a particular focus in The cold snap in the spring also affected fruit growers in many areas of France and autumn flooding in several areas caused severe damage to crops. The Regional Banks helped struggling farmers by providing cash facilities (cash loans, deferred repayments or debt consolidation) and made an active contribution to implementing government aid packages. CRÉDIT AGRICOLE LEASING & FACTORING FINANCES A NURSING HOME IN DIJON GRAMEEN CRÉDIT AGRICOLE FOUNDATION An initiative set up jointly by Crédit Agricole S.A. and Professor Yunus, 2006 Nobel Peace Prize laureate, the Grameen Crédit Agricole Foundation supports the development of microfinance institutions in developing countries by providing loans, guarantees, equity investments and technical assistance. Its main priorities are the poorest countries, particularly in sub-saharan Africa, and agricultural and rural institutions. The Foundation also invests in social businesses, whose role is to give the very poor access to basic goods and services. It intends to broaden this activity through the Grameen Crédit Agricole Fund, an investment fund specialising in social business. In 2012, the Foundation strengthened its commitment to agricultural micro-insurance and played an active role in promoting responsible microfinance to combat poverty and financial exclusion. Crédit Agricole supports farmers hit by flooding. A major player in financing regional public-private partnerships, Crédit Agricole Leasing & Factoring signed an agreement in 2012 for the design, construction, financing and maintenance of a property complex comprising a 90-bed nursing home, 35 studio apartments, two company homes and the head office of Dijon s municipal organisation responsible for care of the elderly. The project, which will cost a total of 12 million over 30 years, was financed in syndication with the Champagne-Bourgogne Regional Bank and will be built and maintained in partnership with the Vinci group. Work is scheduled for completion in Autumn Professor Muhammad Yunus, 2006 Nobel Peace Prize laureate, founder of Grameen Bank, with Jean-Marie Sander, Chairman of Crédit Agricole S.A. and the Grameen Crédit Agricole Foundation CORPORATE SOCIAL RESPONSIBILITY REPORT 23