Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — ESG Presentation (June 2018)
51 slides from Societe Generale S.a. Class A's sustainability presentation, June 2018
Slide 1: Approach to Sustainability June 2018
SOCIETE GENERALE AP P R O AC H TO S U S TAI N AB I L I T Y JUNE 2018
Slide 2: Contents
CONTENTS INTRODUCTION – GROUP OVERVIEW 1. GOVERNANCE 2. REMUNERATION POLICY 3. CULTURE & CONDUCT 4. CSR VISION 5. HUMAN CAPITAL 6. CYBER SECURITY APPROACH TO SUSTAINABILITY JUNE 2018 2
Slide 3: A European leader relying on a diversified model
I N TR O D U C TI O N - G R O U P O V E R V I E W A EUROPEAN LEADER RELYING ON A DIVERSIFIED MODEL AND CONNECTING EUROPE TO THE REST OF THE WORLD RUSSIA AMERICAS 4% 6% CEE 11% WESTERN EUROPE ASIA - OCEANIA 67% 6% AFRICA 6% % of 2017 Group revenues APPROACH TO SUSTAINABILITY JUNE 2018 3
Slide 4: 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 5: 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 DIGITAL BANK FOR A A WINNER IN THE RACE BETTER CUSTOMER FOR LEADERSHIP IN EUROPE EXPERIENCE DELIVER SUPERIOR, PROFITABLE AND SUST
Slide 6: 2020 strategic priorities
I N TR O D U C TI O N - G R O U P O V E R V I E W 2020 STRATEGIC PRIORITIES GROW FOSTER TRANSFORM RESPONSIBILITY COMPLETE DELIVER ON COSTS REFOCUSING APPROACH TO SUSTAINABILITY JUNE 2018 6
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: 43% women; Nationality: 36% non-French (US/ British, Italian, Spanish, Dutch, Canadian) Competence Broad r
Slide 9: Positively positioned vs European peers on governance indicators
1 – GOVERNANCE POSITIVELY POSITIONED VS EUROPEAN PEERS ON GOVERNANCE INDICATORS SG rank average average Board Diversity #1 100 63 76 Board Independence #1 70 13 41 Board Capture #1 70 57 58 Board Leadership #2 70 30 45 Nominating #3 Committee Effectiveness 60 30 50 Board Tenure #6 60 60 57 Source: S
Slide 10: Director competencies and experience (1/3)
1 – GOVERNANCE DIRECTOR COMPETENCIES AND EXPERIENCE (1/3) Tenure Summary Directors (years) Lorenzo BINI SMAGHI - Mem ber of the Executive Board of the ECB from 2005 to 2011, First appointment : 2014 - Mem ber of the Board of Directors of TAGES Holding (since 2014), Morgan Stanley International (from
Slide 11: Director competencies and experience (2/3)
1 – GOVERNANCE DIRECTOR COMPETENCIES AND EXPERIENCE (2/3) - Chairm an and CEO of Com pagnie de Suez from 1995 to 1997, - Chairm an of the Executive Board of Suez Lyonnaise des Eaux from 1997 to 2001, - Chairm an and CEO of Suez from 2001 to 2008; Chairm an and CEO of Engie from 2008 to 2016, Gérard
Slide 12: Director competencies and experience (3/3)
1 – GOVERNANCE DIRECTOR COMPETENCIES AND EXPERIENCE (3/3) APPROACH TO SUSTAINABILITY JUNE 2018 12
Slide 13: Diversity at Societe Generale
1 – GOVERNANCE DIVERSITY AT SOCIETE GENERALE…. Gender Nationality 43% 36% FEMALE NON- Board 14 57% MALE FRENCH 64% FRENCH members Incl employee representatives 20% 20% 25% NON- FEMALE RETAIL General 100% MALE FRENCH No.14 Management 5 80% FRENCH 25% 25% Gender Equality members 80% BANKING TECHNO- MA
Slide 14: Positively positioned vs peers on diversity
1 – GOVERNANCE …POSITIVELY POSITIONED VS PEERS ON DIVERSITY Gender SG French Banks European Banks 43% 42% 58% 32% Male68% FEMALE FEMALE MALE MALE FEMALE 74% Board 57% MALE 21% 15% 14% FEMALE General FEMALE FEMALE Management/ 85% 86% Executive 79% MALE MALE MALE Nationality 12% 25% 36% NON- NON- NON-
Slide 15: 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
Slide 16: Role of the Board
1 – GOVERNANCE ROLE OF THE 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 th
Slide 17: 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 18: To foster autonomy, collegiality and cooperation
1 – GOVERNANCE ... AND TO FOSTER AUTONOMY, COLLEGIALITY AND COOPERATION Human Audit & Resources & Finance Inspection Communication Compliance General Secretary Risks Corporate Resources & Asia- Innovation Pacific Societe FRÉDÉRIC OUDÉA DIONY LEBOT Generale Chief Executive Officer Deputy Chief Execut
Slide 19: 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 20: Remuneration Policy
2 REMUNERATION POLICY SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 21: Group remuneration policy and principles
2 – REMUNERATION 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 the remuneration of corporate officers, employee savin
Slide 22: Say on pay ex ante 2018 - executive management (1/2)
2 – REMUNERATION SAY ON PAY EX ANTE 2018 REMUNERATION POLICY - EXECUTIVE MANAGEMENT (1/2) A stable remuneration policy, compliant with banking standards and the French governance code: the European CRD4 Directive standards, the AFEP/MEDEF code, and the “Sapin 2” law Reflects experience and responsib
Slide 23: Say on pay ex ante 2018 - executive management (2/2)
2 – REMUNERATION SAY ON PAY EX ANTE 2018 REMUNERATION POLICY - EXECUTIVE MANAGEMENT (2/2) NON-COMPETE CLAUSE For 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 sc
Slide 24: Say on pay ex post 2017 - non-executive Chairman
2 – REMUNERATION SAY ON PAY EX POST 2017 COMPENSATION – NON-EXECUTIVE CHAIRMAN: Since 2015 the fixed remuneration was set at €850,000. 2017 As part of the renewal of M. Bini Smaghi’s term of office, FIXED COMPENSATION € 850,000 shareholders voted in May 2018 in favour of raising his compensation to
Slide 25: Say on pay ex post 2017 - Chief Executive Officer
2 – REMUNERATION SAY ON PAY EX POST 2017 COMPENSATION – CHIEF EXECUTIVE OFFICER 2017 € 1,300,000 FIXED COMPENSATION € 1,305,720 Targets reached giving right to 74.4% of the variable ANNUAL VARIABLE (including €261,144 compensation REMUNERATION payable in 2018 and 69% of quantitative objectives rea
Slide 26: Remuneration of the CEO: comparison with CAC 40 and European institutions
2 – REMUNERATION REMUNERATION OF THE CHIEF EXECUTIVE OFFICER COMPARISON WITH CAC 40 COMPANIES AND FINANCIAL INSTITUTIONS IN EUROPE Global compensations 2017 CAC 40 EUROPEAN FINANCIAL INSTITUTIONS 18,000,000 € 18,000,000 € 16,000,000 € 16,000,000 € 14,000,000 € 14,000,000 € 12,000,000 € 12,000,000 €
Slide 27: Say on pay ex post 2017 - Deputy Chief Executive Officers
2 – REMUNERATION SAY ON PAY EX POST 2017 COMPENSATION - DEPUTY CHIEF EXECUTIVE OFFICERS SÉVERIN BERNARDO SANCHEZ DIDIER VALET CABANNES INCERA 2017 FIXED 800 000 € 800 000 € 766 667 € COMPENSATION 672 998 € 702 438 € 260 544€ Targets reached giving right to variable ANNUAL remuneration: (acquired sha
Slide 28: Process for departures
2 – R E MU N E R A TI O N PROCESS FOR DEPARTURES In 2018 the Board of Directors has processed the departures of 2 Corporate Officers. Didier VALET resigned in March 2018 and the following conditions applied: Absence of any severance pay or non-compete clause relating to his office Acquired portion o
Slide 29: Remuneration of regulated employees
2 – R E MU N E R A TI O N REMUNERATION OF REGULATED EMPLOYEES Change in average remuneration The “regulated” category of staff includes of regulated staff between 2016 and 2017 810 individuals (including Corporate Officers) 750,000 € Employees identified because their -10 % activities may have a sig
Slide 30: Culture & Conduct
CULTURE & CONDUCT SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 31: A common leadership model applies to all staff worldwide
3 – C U L TU R E & C O N D U C T A COMMON ‘LEADERSHIP MODEL’ APPLIES TO ALL STAFF WORLDWIDE 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
Slide 32: 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 33: Accelerating cultural transformation: clear 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 34: Putting litigations behind us
3 – C U L TU R E & C O N D U C T PUTTING LITIGATIONS BEHIND US Societe Generale has long promoted strict principles which form part of its Code of Conduct and comply with the most stringent regulations in this regard, including the UK Bribery and Corruption Act (2011). It joined the Wolfsberg Group
Slide 35: CSR Vision
CSR VISION SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 36: A clear CSR strategy integrated across the SG Group
4 – 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
4 – 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 Grenelle 2 Law – Article 225 / Duty of Care Bill Green Growth
Slide 38: CSR goals integrated in business development
4 – 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: A bank pioneering responsible finance
4 – CSR VISION A BANK PIONEERING RESPONSIBLE FINANCE A CONSOLIDATED SUSTAINABLE AND POSITIVE IMPACT FINANCE OFFERING Societe Generale is a founding member of the UNEP “Positive Impact Finance Initiative” In November 2017 the Group appointed a member of the Management Committee to direct and acce
Slide 40: Embedding environmental responsibility in client activity
4 – CSR VISION EMBEDDING ENVIRONMENTAL RESPONSIBILITY IN CLIENT ACTIVITY ENERGY EUR100bn contribution to financing the energy transition between 2016 and 2020 : EUR39bn at end- TRANSITION 2017 No new financing of coal-powered electric plants (from January 2017), coal mining (from 2015) or COAL a
Slide 41: Contribution to the sustainable development of Africa
4 – CSR VISION CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT OF AFRICA Societe Generale has been operating in Africa for over 100 years and is a market leader in many key markets : LOCAL the group has a unique position with strong expertise in structured finance, capital markets and international PR
Slide 42: Human Capital
HUMAN CAPITAL SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 43: Strategic priorities of human resources
5 – H U MA N C A P I TA L STRATEGIC PRIORITIES OF HUMAN RESOURCES Transform to Grow Support the Group’s changing businesses by developing the skills that its employees need to adjust to transformations on the banking landscape – Develop employees’ employability through training, learning and the f
Slide 44: Shaping the workforce
5 – H U MA N C A P I TA L SHAPING THE WORKFORCE STRATEGIC WORKFORCE PLANNING FRENCH RETAIL BANKING Mapping available competencies, identifying future needs, In accordance with social dialogue, the transformation of measuring gaps and developing action plans: the French : Retail Banking division
Slide 45: Talent development & succession planning
5 – H U MA N C A P I TA L TALENT DEVELOPMENT & SUCCESSION PLANNING IDENTIFYING STRATEGIC TALENT AND THE NEXT GENERATION OF MANAGERS The group-wide Strategic Talent approach is built around the Leadership Model and aims to identify, develop and retain high-potential employees to prepare the next ge
Slide 46: A targeted attraction policy that builds talent pools
5 – H U MA N C A P I TA L A TARGETED ATTRACTION POLICY THAT BUILDS TALENT POOLS FOCUS ON YOUNG PEOPLE FOCUS ON IT ▪ No. 1 most attractive bank in France for IT profiles ■ Priority recruiting ground for juniors: former SG (2017 Universum ranking) interns, apprentices and “VIE”s * ▪ External initiativ
Slide 47: Gender diversity
5 – H U MA N C A P I TA L GENDER DIVERSITY Gender diversity embedded in all HR processes ▪ Collective agreements with unions on ▪ Charters: UN Women Empowerment equal opportunities and action plans Principles in 2016, UK Women in ▪ Unconscious Bias training for managers Finance Charter end of 2018 ▪
Slide 48: Cyber Security
CYBER SECURITY SOCIETE DEVELOPPONS ENSEMBLE GENERALE LESPRIT D’EQUIPE
Slide 49: Governance of cyber security
6 - 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 50: Cyber security as a foundation of clients' trust
6 - C YB E R CYBER SECURITY AS A FOUNDATION OF CLIENTS’ TRUST AWARENESS AND POLICIES PREVENTION REACTION DETECTION ■ Security Policies ■ Leading solutions for customers: ■ Phishing Campaigns ■ Computer Emergency aligned with SG Cryptodynamic Visa card and Security e-learning Response Team internatio
Slide 51: Disclaimer
DISCLAIMER This presentation contains forward-looking statements relating to the targets and strategies of the Societe Generale Group. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods