REGIONAL CONFERENCE ON THE INVESTMENT PLAN FOR EUROPE Ljubljana Slovenia, 22nd April 2016

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1 REGIONAL CONFERENCE ON THE INVESTMENT PLAN FOR EUROPE Ljubljana Slovenia, 22nd April 2016 Solutions for investing in transport Investors' expertise for project financing CDC s Responsible Investor Approach & Climate Finance Policy Caisse des Dépôts et Consignations - European & International Public Affairs Pierre Menet - Adviser

2 Caisse des Dépôts et Consignations at a glance French Public Financial Institution established in 1816 French public entity Highly protected legal status Unique governance model involving executive and legislative power Performs public interest missions granted by law and serving the general interest to support public policies and stakeholder in community policies which it contributes to with the relay over the territories Major long term institutional investor Rated Aa2 by Moody s and AA by S&P and Fitch 0% risk weighting for bank adequacy purpose / Liquidity coverage ratio : level 1 / Eligible ECB Public Sector Purchase Programme Internationally presence through its subsidiaries : employees in 60 countries of which in France 2

3 CDC s Responsible Investor Approach & Climate Finance Policy A Responsible Investor Approach The Caisse des Dépôts Group is a significant institutional investor. The Public institution and its financial subsidiaries namely CNP Assurances and Bpifrance are investing in diversified assets, mainly on the developed markets. These activities are conducted within a long-term and Responsible Investor s approach, relying on three pillars: 1. ESG criteria integration for all of its investments decisions 2. Shareholder engagement over the long term (monitoring of key ESG issues in investee companies) 3. Exclusion in case of non-respect of French and international law s major applicable requirements Caisse des Dépôts Group Climate Finance Policy released in December 2015 Building on the targets and commitments announced at the UN Climate Summit, climate action from investors, bankers and insurers has increased tremendously. The financial sector has a major part to play in supporting the rise of a low-carbon economy enabling to limit temperature increase to 2 C investors are committed to climate action covering 30 billion of assets. Portfolio decarbonization is on track. Measuring assets carbon footprint must become common practice. The CDC Group commits to integrate climate change in its asset management decisions, and to exert its influence in order to promote the transition to a low carbon economy by dedicating 15 billion to direct green investments until 2017by deciding a 20% decarbonization target, covering the totality of its listed shares portfolio, amounting to 55 billion. 3

4 Focus on Caisse des Dépôts Group Climate Finance Policy (1/2) FINANCE THE ENERGY AND ENVIRONMENTAL TRANSITION (EET) Caisse des Dépôts facilitates the transition to a resilient and low carbon economy by channeling capital towards low carbon projects: Sustainable city and mobility projects, Renewables energies production, storage and smart network, Energy efficiency solutions for the real-estate and the industry, Companies operating in the green energy and environmental sectors. The Group pledges to devote 15bn to dedicated financings between 2014 and Those funds will be used in particular as follows: About 10 billion euros on green loans to public local authorities and to social housing organizations Nearly 4 billion euros by Bpifrance for the EET companies From the beginning of 2014 to September 30th 2015, Caisse des Dépôts Group has allocated nearly 6bn in favor of the low carbon economy, including 4 billion euros worth of loans and investments in French territories by Caisse des Dépôts. RESTRICT FINANCING TO THE COAL EXPOSED ASSETS Caisse des Dépôts will implement from now on a policy restricting financing thermal coal-exposed assets (exceeding the thresholds of 20% of the turnover for the mining sector and the utility sector) The Caisse des Dépôts Group pledges not to finance new energy production capacities based on coal. 4

5 Focus on Caisse des Dépôts Group Climate Finance Policy (2/2) DECARBONIZE PORTFOLIOS Real-Estate Investments: Caisse des Dépôts will reduce by 38% its fully owned real-estate portfolio s energy consumption between 2010 and Infrastructures investments: In 2016, a new infrastructure strategy will be defined in favor of infrastructure assets that concur to a low carbon economy. The strategy will based on a methodology assessing the greenhouse gas emissions created or avoided by the CDC s infrastructure investments. Listed Equity and Bonds : Party to the Montreal Pledge on carbon, Caisse des Dépôts is committed to measure, publish and reduce its portfolios carbon footprint. The Group is setting a carbon footprint reduction goal of 20% per thousand euros invested in its directly held listed equity portfolios for the 2014 to 2020 period. If voluntary emissions reduction by portfolio companies proves insufficient on the middle course, the Group will reallocate its portfolios in order to reach its reduction target. REINFORCE SHAREHOLDER ENGAGEMENT ON CLIMATE AND ENERGY ISSUES Foster better transparency and environmental performance within portfolio companies. In particular, the Group expects portfolio companies to: set an ambitious middle course climate strategy define quantitative targets for greenhouse gas reduction on a significant scope of corporate activities set up a tailored governance By steering its entire financial strategy towards a low carbon future, the Caisse des Dépôts Group insures its global alignment with its public interest mission. 5

6 APPENDIX 6

7 CDC Affiliates & Strategic Shareholdings 7

8 CDC International Presence Independently of the presence of the operational subsidiaries, the Caisse des Dépôts group ensures an institutional presence internationally. Caisse des Dépôts is a stakeholder in community policies which it contributes to with the relay over the territories. Caisse des Dépôts is developing bilateral and multilateral relations with partner institutions which allow for the promotion of long-term investment and the development of investment projects in France and abroad, particularly in projects relating to the energy transition. Promotion of long-term investment In 2013, Caisse des Dépôts became a founding member of the European Association of Long-term Investors. This association allows for the undertaking of joint actions in order to highlight the investor model with public stakeholders and the European Union. Caisse des Dépôts contributes to the work of the European Parliament Intergroup on Long-term Investment and re-industrialization which was implemented at the start of the election of the European Parliament in Public investment stakeholder in Europe European Strategic Investments Plan: Caisse des Dépôts has been active since the start of this initiative from the European Commission. The Group wants to be a stakeholder for the implementation of the Juncker Plan for re-launching investment and contributing to its deployment in the French territories. Marguerite Fund: Caisse des Dépôts is one of the investors brought together in the Marguerite Fund which combines the contributions from public institutions (CDC, KFW, CDP, etc.) to create investments in Europe. The first achievements were put into operation from 2014 and the investment programme will be completed in Therefore 700mn will ha.ve been invested to finance over 10bn in projects 8

9 Long Term Investors Club & Association Forum Mondial des Caisses des Dépôts 9