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Transcript : Crédit Agricole S.A. - Special Call

06/12/2022 | 15:00

Presenter Speech
Philippe Brassac (Executives)

Okay. I understand we can start. So good afternoon, everyone. I'm really pleased to welcome and to host you within these locations in Montrouge. Very pleased, most of all, to give you -- to try to give you clarity about our climate energy transition policy and try to give you all the explanations you possibly need about our assumptions about our definitions, about our methods used to evaluate and disclose each of our metrics, our figures.

So thank you so much for being present today or being connected. First of all, let me give you the big picture. Let me give you the big picture on the global framework and timetable in which everything we shall comment today will be included. This time table is really singular. We are living in unprecedented discrepancy between this incredible opacity in the short term.

Nowadays, nobody is able to predict inflation, GDP rates simply for the following month. And I am convinced this is a lasting situation for the next few years. And on the other hand, long-term, let's say, 2030 and beyond, that has never been through clearly stated.

So clearly described made explicit at least in terms of expected waste and necessary future. The structural opacity for the short term is naturally due to the accumulation of numerous consequences of at least three global shockwave. First shock wave, the necessary normalization of monetary policy post COVID. Thousands of billions euros are still circulating today within the Eurozone that didn't exist simply at the very beginning of 2020.

To fight against inflation and to protect our currency, ECB needed to increase rates to try to lower debts and reduce leverage. Perhaps a little bit too late and too fast now, but this is absolutely another story. Second shock wave, all the systemic consequences on the economy of this overall, this climatical Russian-Ukrainian war, and notably on prices and now availability of energy and many other commodities.

And this supply chain turmoil will not abate quickly, even if a peaceful outcome were to be found in the coming month. I just like to take an example of an image Repulse in water after a strong impact; third, shock wave, after 30 years of global GDP boost, the natural end of the more and more globalization paradigm, simply because trees do not grow to the sky, simply because the planet is limited.

So an incredible capacity on short term. And on the other hand, when we are looking at what do we have to do to build a sustainable future for 2030 and beyond, clearly, things have never been so clear. The necessary energy transition, of course, on which we shall focus today. The health care challenge too because setups are clearly not at scale today to face aging populations all around us and notably in Europe.

And let me add the social challenge. Our societies can no longer simply add more and more solidarity to the economy. They have to be more directly inclusive. This is not only a political matter. This is obviously a necessity for the stability of the world system. This is how we see the new paradigm. And now let me restate for you why we do consider that our model, our historical development model at Crédit Agricole Group is naturally adapted for this kind of paradigm.

Our model is based on the first axis, regularly extending the scope of our activities to adapt, to adapt to the global range of the financial and patrimonial needs of our customers, loans, savings, insurance, real estate solution and now energy transition and so on, the axis of the relationship model.

But there is a second axis. The second axis is mastering the different business lines we need taking the form of legal entities, not only to serve our universal banks but also to add another level of development through partnerships or external growth in the consolidating world. This is a kind of double development architecture.

Thus, with this architecture, I think that in your head now. you can easily understand why there is no reason for the opacity of the short term to slow down our commercial development. The support of Universal Bank with this global range of solutions is increasing requested by customers for the concrete for the day-to-day needs in an uncertain environment, notably for hedging numerous and diverse risk.

You can also understand why the societal challenges on which we need to invest today to accompany the shift in society are much more opportunities for us than threats or constraints. We financed agriculture one century ago, equipped modest households with banking outcomes in the '50s, helped households become owners of their housing in the '70s and '80s, just for some example, these were clearly both societal challenges and amazing spring boats to our commercial development.

This is the concrete story of the first bank in France, the first bank insurer and the first asset manager in Europe that our predecessors succeeded in building. So now let me focus on this CASA climate workshop. Let me say more concretely CASA energy transition strategy, then if it is more difficult to say. First, we need to move away from caricatures and approximations. This issue can be reduced to quickly lower the brown part of bank's balance sheet.

You must not mistake greening balance sheet for really helping the economy become greener. On the pallet of colors, everybody knows that less of brown doesn't mean more of green. To master to see the global battle field, we need to state the global energy transition equation. Here it is. First, accelerating the advent of renewable energy let us say, the advent of green. And the key word is accelerating because this revolution will naturally occur one day after the exhaustion of fossil energies, but much too late. We need to quicken the pace, let us say, from one century to probably just one decade.

Secondly, accelerating the advent of Green Energy instead of fossil energy and not simply adding green to fossil fuels as it can be expected, for example, in Asia and China for starting point reasons. But to reach these 2 targets between them, we need to master this huge challenge. Let me say this impressive mountain we have to climb altogether by equipping with projects, tools and services using green energies, all of society from large customers to the most modest households. Facing inexplicable concerns regarding synchronicity. Time to market and time to equipment cannot be the same for industrial innovations and day-to-day household equipment.

And as a consequence of the previous point, we shall have to mix and to superpose different generation of offers and products within several cycles of equipment and reequipment. At the end of the day, the global energy transition equation is much larger and complex than a green asset ratio, our public commitment about financing or not financing such energy company. A few comments now on the first branch of the equation, accelerating the advent of green or green energy. Jerome will demonstrate that Crédit Agricole Group is already #1 in terms of green financing after the state, of course, and public structures.

As a symbolic signal of a cultural shift, let me refer to the fact that we were last week, the very first bank in France to disclose a loan a EUR 1 billion loan directly dedicated to the renovation of our nuclear plants. And when we are asked, if we do finance enough green projects, I always answer to the surprise of the people in front of me, yes, unfortunately, why unfortunately because all significant green projects are fully financed. The limit is not our ability to finance but the lack of projects. And let me now comment something perhaps you never rarely hear or read about.

I already explained that the agency was to accelerate the advent of green rather than respecting the natural or the normal pace of such a technological revolution. Concretely, that means that technological obsolescence cycles won't be respected, business models won't stabilize and the supply and demand won't balance out at all times. This transition will be mechanically much more risky than the old paradigm. We do not need any brown penalizing factor in order to convince us to finance green projects. that are not numerous enough, by the way. In fact, we would need a green supporting factor in order not to slow down the shift towards green because of our risk appetite framework.

Perhaps you may have a tendency to mainly focus on the question of ESG commitment compliance, my advice, my modest advice is that you should focus on the classical counterparty risk, too. On the second branch of the equation, massively equipping all of society we have to launch many new offers, we have to structure new activities for tens of million customers and probably for the next 5, 10, 15 and perhaps 20 or 30 years. Naturally, we are not starting from scratch, but we want to accelerate and amplify. And this is why we decided to launch a new business line, Crédit Agricole Transition Energy.

We do expect Crédit Agricole Transition Energy will become what Crédit Agricole Assurance became for insurance activities. But both climate challenges and time to market are much shorter now than compared to 20 years ago. That means that concretely means Crédit Agricole Transition Energy must succeed in 5 years while Crédit Agricole Assurance was allowed to succeed, for example, in 20 years. My most important message about this chapter is that energy transition represents first and foremost, an amazing new potential for commercial development. But mindset must change. ESG doesn't mean constrained or distressed actions for society.

ESG means professionally aligning your own interest with the individual and collective in the rest of your environment. At Crédit Agricole, we call that the magic equation, usefulness and universal chain. There's nothing better as the room map for future. Third and last branch of the equation, specific efforts to decarbonize our portfolios. And this is unfortunately very often the only question which we are asked. We are members of each Net Zero alliance.

Today, we shall give you concrete and precise landmarks regarding Net Zero banking alliance and in particular about our trajectories for the main sectors we significantly financed today. In a nutshell, let me sum up our commitments, we will nearly divide by 2 each carbon emission intensity trajectory by the year 2030. And for fossil sectors, for which we think in terms of volumes and not in terms of intensity, we are restating today and providing more detail on our different policies to summit once again, complete exit from thermal coal by 2030 for OECD and by 2040 for the rest of the world. For oil and gas, we shall reduce our finance emission by 30% for 2030. And specifically for oil because gas is considered by EU as a transition energy, we do not finance new oil exploration projects, and we aim to reduce our upstream outstanding by 25% as soon as 2025.

I hope I was not too long. Two key words to sum up our different policies. We are committed and we are demanding. And only one takeaway message, if I can. We don't want to be either the bank that mainly finance the old world or the bank that prefers to only finance the new world. Definitively, we are the bank that will help society move from the present to the future. Thank you so much for your time. I do apologize because I shall have to join another meeting, but I let you my 3 deputy CEO and a lot of grateful top managers in this room. I hope that this workshop will be a very intensive and very positive and something now Jerome leave you the floor. Thank you so much, and hope to see you soon. Jerome?

Presenter Speech
Jerome Grivet (Executives)

Thank you, Philippe. Good afternoon, everyone. I'll try to develop a little bit more in detail what Philippe just explained as our global strategy regarding climate and climate change and the role we can play in this area. And then I will, of course, hand the floor to the specialists that are going to describe much more precisely the different strategies that we are going to follow going forward.

As Philippe explained, our climate change strategy is working actually on 3 Feed. And I'll try just to give you a few elements to explain a little bit in what those 3 Feed consist. Starting with the acceleration that is needed for the advent of renewable energy. This is, of course, the first axis. And for us, it's not new. Actually, it's been probably 10 or 15 years that we are deliberately investing in green energy sources and financing green energy sources. And we do whatever we can in order to accelerate the advent of those green energy production sources.

This is why because we started early, that we can claim that we are #1 in many aspects in this field in France. This concerns the 3 main I would say, businesses in which we are engaged in our global model. Those 3 businesses are, of course, the financing activities, but also the investment activities and then, of course, the management of our customers' savings. Let me start with the financing activities. We are the #1 in France in the financing of green energy sources. We are the #1 provider from green loans for the customers that want to deploy green energy production capacities. And maybe I can just name a few examples.

The first one is that Unifergie is by far the first private financer of green energy sources. And the second element, which is of course very interesting, is the fact that CACIB has been a pioneer for more than 10 years in the development of the green bond market and continues to be a very active player in this market. Second stream, the investment. we are an investor. We are a significant investor through our insurance activities, and we are also an investor because we hold significant liquidity portfolios.

And in those 2 areas, we've decided to deliberately angle our investments towards the green energy. This is how now Crédit Agricole Assurance has become the first a private investor in renewable energy capacities in France. It now manages in excess of 11 gigawatt capacities and it has a target to reach 14 gigawatt by the end of the present medium-term plan. And in addition to that, when we manage our liquidity portfolios, we invest more and more of the bonds that we hold in green, social and sustainability bonds. Third area, customer savings, of course, we are a very significant manager of our customer savings through Amundi, for example. And we have also in this area, very significant positions, of course, perfectly respecting the choices of our customers.

And here, again, are a certain number of examples, be it the amounts invested by Amundi directly in AET funds or be it the unit-linked products sold by Credit Agricole Assurance to its customers or LCL impact climate fund. So here is the first aspect. We invest and we finance a lot the development of green energy capacities. Second element, we try as much as we can to help all our customers to organize and finance their own energy transition. We deal with all of our segments of customers, from the individuals and households up to the large corporates and of course, with also the self-employed professionals, the SMEs or the institutional investors.

And we deal with all the different aspects of their own energy transition, i.e., the development of their own access to green energy sources, but also to offer them capabilities to use low-carbon mobility sources as well as to help them renovate their -- the buildings that they use or the building in which they live. And here are many examples of the different initiatives that we've taken in order to promote the transition of all our customers. I will not describe each of these initiatives, but probably most of them are going to be explained a little bit more in detail in the rest of the presentation.

Third point, we move from fossil fuels to green energy sources. And as Philippe explained, we are taking regular commitments in order to accompany the necessary reduction of the proportion of brown energy sources in the global energy mix of the economy. We have committed ourselves through the signing of different Net Zero alliances. It's, of course, the case of the Net Zero banking alliance in which we are engaged, and this is going to be the core of the rest of the presentation. But we have also signed the Net-Zero Asset Manager Alliance, and let me just evoke the fact that Amundi has taken this commitment and therefore, is now committed to manage by 2025, 18% of its funds explicitly aligned with the Net Zero 2050 targets by 2025.

And of course, we have also signed the Net Zero Asset Owner Alliance through which Crédit Agricole Assurance is taking additional commitments in the management of its portfolio of assets. But let me concentrate a little bit on the first of these aspects, which is the Net Zero Banking Alliance. In this regard, we are taking commitments that are going to deal with the 10 most emissive sectors in which we have financing activities. And today, we are concentrating and we are disclosing our targets on the 5 most emissive sectors.

In 2023, we are going to disclose the details regarding the 5 next sectors. Altogether, those 10 sectors, again, represent 60% of all our exposures. So what you will see in the rest of the presentation is that all these commitments are not only, I would say, figures on slide but are going along with a lot of very precise action plans. Regarding fossil fuels, Philippe has given the most important element of our commitments.

Again, these commitments are not new. We are not starting today. Actually, we've started more than 5 years ago in 2015 when we provided our first commitment regarding fossil fuels. And we've said that in thermal coal, we've taken the commitment to end our financing by 2030 in the European Union and in the -- and in the OECD areas and in 2050 -- in 2040, excuse me, in the rest of the world.

And regarding oil and gas, we have already taken quite significant commitments, and we are precising and improving those commitments today. And here on this page, you'll find the main elements of these additional commitments, which can be summarized as follows. First, we are reducing by 30% up to 2030, the CO2 emitted by the financing that we provide to our customers in the field of oil and gas. Second point, we are going to reduce by 25% our global exposures regarding the oil upstream segment by 2025, we are not going to finance any new oil extraction projects.

We are going to conduct every year a precise analysis of all the commitments of our customers in the oil and gas segment in order to allocate our financing priorities and up to 2025. This is going to lead us to allocate 80% of the financing that we are going to provide to the customers of this segment of customers to green projects, our to gas projects. So gas being a transition energy. So here are the main commitments that we are providing that will be described a little bit more in depth in the rest of the presentation. I'm going to stop here for this first part of the workshop, and I'll handle the floor to Eric Campos that is going to precise some elements regarding first Crédit Agricole Transition and Energy, and then he's going to introduce the methodologies that we are going to follow regarding our commitments.

Presenter Speech
Eric Campos (Executives)

So good afternoon, and thank you, Jerome, allow me to take this opportunity to warmly thank the team -- all the teams who have worked to make this first step, which is today presentation possible. It's more than a year of work and much more than a hundred of experts, business leaders and executive directly involved in this project, and you will see the presentation of the different scenario made by the business leaders of the bank.

Transition is a complex pathway, but in order to tackle climate issues, there is necessarily and deep transformation of global energy mixes, clean electricity generation, network infrastructure and end use sectors are key areas for increased investment. Enabling infrastructure and technologies are vital for transforming the energy system. Worldwide part of fossil fuel in primary energy should move down from 80% to 20% within the next 30 years.

Each country will need to design its own strategy, taking into account the specific circumstances in France, for instance, solar, solar energy capacity should increase by 11x in the same period and the energy consumption should decrease by 30%. In this context, our guiding principle of the 2050 Net Zero road map, is that clean energy transition must be fair and inclusive, leaving nobody behind as Philippe Brassac said. The transition to Net Zero is for and about people. In short, we have to accelerate without harshness, but time is against us. Our collective organization is effective and committed as Jerome described, but we expect the context to accelerate with energy crisis and the need for renewable energy, which is becoming more and more under pressure.

Worth noticing that governments are putting in place, trying to put in place, increasingly favorable condition towards the emergence of a low carbon economy. Like financing, energy appears to be the second source of oxygen for a new competitive and sustainable economy. The creation of Crédit Agricole Transition and Energy carries promises of strong growth because it also requires investment and financing capacity, but also governance and proximity to the territories that with the exception of Crédit Agricole, very few private players are able to bring together. Clinical transition and energy is a business line that complements and coordinates the group existing transition ecosystem.

To amplify and better structure our action in this long transition period we have in front of us, it has been created around 3 main missions. First, coordinate the ecosystem; second, support customer energy transition and create added value; and third, become a producer of renewable energy for contributing to accelerate the transition by stepping up local initiatives. Today, as you can see, all the entities are committed to contributing to the construction of a low-carbon economy from local to national or international level through financing or investment tools.

In this set, you can see all the brands involved in building the local bond area, what we called our transition ecosystem. Some examples, Volta, an independent developer and producer of renewable energy with Unifergie and regional banks have signed a partnership to finance rooftop photovoltaic power plants for up to EUR 32 million with partners, 4 regional banks, recently launched Solaron Invest a new financing tool to accelerate the deployment of photovoltaic project in the [indiscernible]4024. LCL supports companies to finance their energy transition in the form of loans or financial guarantee for the development of photovoltaic plants and offshore wind farm, for example, or to enable companies to renew their fit of equipment with more modern, more efficient and more economical solutions. Crédit Agricole Insurance has entered into agreement as Jerome said, to become a European global player in renewable energy. However, we want to keep on improving our capacity in getting better consistency, collective power and therefore, capture market opportunities. To do so, we'll focus on coordinating, stimulating group's action, promoting guidelines and business strategies common to all group entities and sharing expertise knowledge.

We have strong position in certain links in the value chain of transition support for our client. We have describe what we call the value chain of consulting, starting from consulting and diagnostic to the control and the performance follow-up. But we are not present in the first stages, which are essentially technical. We also like sharing between the different stages to offer our customers a comprehensive end-to-end offer from the diagnostic phase to the phase of monitoring the transition road map.

Critical position is strong in financial structuring and financing activities. However, our absence upstream and in certain part of the downstream valuation, exposes us to capturing neither the financial engineering phase nor the financing of the client transition, which is a significant part of the margin in the consulting chain. For several weeks, we are in the close discussion with strategic partners to be able to deliver in Q1 2022 in a single offer or the component to support our customers, starting by SMEs in their Net Zero 2050 trajectory, diagnosis and advice, financial structuring, financing, execution and monitoring of works and monitoring of performance. As Philippe said, the issue is not to green the outstanding, but to support in greening the economy and to support our clients.

We know that the new European CACIB regulation m a large number of companies to monitor and publish their extra financial performance in ESG matters. According to a strict framework are under the control of an independent body. The new extra financial reporting obligations will apply to a much wider scope than before including all companies listed on a European regulated market, but also large European companies not listed. This company will have to work on their own 2050 transition trajectory, and we are preparing to support them on this obligation.

We are active in many sectors of financing -- sorry, sorry, just short. Okay. So to deploy the Net Zero offer, single offer that I mentioned, we will rely on the Hub initiatives launched in June '22 to encourage and facilitate the energy transition of our business, professional and public sector customers. This hub has already been deployed in 8 regional banks and is on the course of being deployed in all regional banks. But in France, the building sector is the second most meter of greenhouse gases. Alone, it accounts for 27% of CO2 emission and nearly 45% of final energy consumption. The building sector, therefore, has a central role to play in achieving carbon neutrality by 2050. While taking concrete actions for the climate, carrying out energy renovation work makes it possible to improve the comfort of housing and reduce the energy bill of French citizen.

That's the reason why we have decided to build and launch a platform, which was launched in November to encourage, facilitate and support customers in the energy renovation of the properties. This e-platform online since November proposed a documentary base on energy renovation, a simulator for recommending the work to be carried out as well as the cost estimate, a national and local subsidy simulator, financing simulator and a directory of certified professionals.

[indiscernible] 4611 is a very interesting thing because we have launched that in October is a saving account proposed to the societe of the Regional Bank of Crédit Agricole. And through this investment, savers financially support concrete action in favor of the climate and the transition to the low economy to achieve agricultural and Agri food transition and also to reinforce the social cohesion. This is a success because this offer launched in October has already succeeded in raising EUR 375 million. As you can see, we are active in the differentiation of this renewable and transition sector, financing, sourcing, producing and distributing.

We are active in these many sectors and few regional banks have also developed know-how in producing renewable energy-based electricity. Crédit Agricole [indiscernible]. Finally, in the recent months, we have set up corporate purchase power agreement, CPPA, with customers. We do not traditionally have access to this type of energy market, LCL and Voltalia, have joined forces around the innovative project to enable large and medium-sized companies among the most sensitive to transition and energy mix issues to benefit from contracts securing their electricity supply in the long term, of renewable origin produced in France and on the basis of guaranteed capacities and prices.

In fact, the market for produce renewable energy will run on a new paradigm. In France, energy production is roughly centralized, intense and distributed. Nuclear power plant can produce high-power between 900megawatts to 1,400 megawatts per plant on a few acres of land. Switching to solar energy means occupying more space for less relative energy. To obtain the equivalent of a few acres occupied by 1 gigawatt nuclear power point, power plants, sorry, it's necessary to occupy 1,000 acres of solar pharma or RESA 1,000 pieces of land scattered over the territories, each producing 1 megawatt.

And of course, covering the short circuits. The road map for the development of renewable energies, therefore, require respect and cooperation with local ecosystems and the specificities of each territories. This new model of energy production, bringing producers closer to consumers suits our organization perfectly. We believe in becoming a strong player in this new energy model. We are, therefore, going to embark of CPPA for our business and professional customers, backed by renewable energy power plants that will finance or for which we hold the production contracts.

We will rely on a few banks to launch experiments on a regional scale. And then, if successful, we will cautiously deploy on the national scale. To sum up, this new business, Crédit Agricole Transition and Energy will improve, we try ambition to improve group coordination in this huge transformation step forward. We're able to create value for the brand and an additional one for the group's entities. Of course, we will be supported by external growth to accelerate the time to market and develop new expertise. We'll have a consulting and commercial P&L. We'll be able to better understand the nature of risk by improving our knowledge of customer transition pathway.

We will not finance and invest but we will contribute to the origination of green assets, which could remain on the balance sheet of the entities of the group or we will accelerate the originate to distribute model as well. Bye. Thank you.

Presenter Speech
Unknown Executive (Executives)

Actually I was looking for the mouse, but okay, this will change automatically. Do you have the time table as Jerome and Philippe said, it's a long journey because all the business have joined the Glasgow Alliance initiative. So you will have -- I mean, you have the time table well described from October. Crédit Agricole Insurance has disclosed the commitment, followed by Amundi. And of course, we are today and we are presenting as we have started to do so, the Net Zero banking alliance with the 5 sectors. June 2023, we'll have the presentation of Crédit Agricole Insurance. And then end of the year, we will disclose the 5 other sectors and probably other things in order to update the commitment or the information. So here, you have the presentation. Just to sum up, 10 sectors, we'll present -- I mean, we have presented fossil fuel and automotive roughly it was in June.

So we'll present -- I mean, the business leaders will present the 5 sectors. And as you can see, fossil fuel automotive, power and cement are quite usual on the presentation but we have decided to present the commercial real estate with a complex sector. And I think that we're not so much to present this sector. So -- it's a quite innovative, and we will be followed next year by the 5 other sectors. Okay. Okay. So -- 2 slides about the methodology, I would like to insist on.

First, we have used the Net Zero 1.5 scenario as a reference, the one coming from the International Energy Agency. We, of course, have decided to include all the greenhouse gas emission. So the metric is on the CO2 equivalent. And it's calculated whether on absolute emission for oil and gas or physical intensity for the 4 other sectors and the 5 to follow. We have submitted to the science-based target initiative in October '22. In accordance -- will the commitment 2016 commitment. We use the PCAF methodology. I don't know if you know well the PCAF methology is, of course, benchmarkable because it's used by a lot of peers. But -- it's based on the [EVIC] is the value of the company, so the value can evolve.

That's why we have a volatility of the calculation, of course. And we will try to estimate the volatility in order to compare year-to-year. We use internal data when available or external data. And due to the quality of data, we issue a PCAF score depending on the trust that we have based on the data we have. So -- we will -- I mean sometimes, but we will precise the percentage of the proxy that we have used, but it's totally comparable with our peers. We have put -- I mean we have taken into account all the method, all the international standards to be clear and benchmarkable.

Next. So yes, a slight adjustment is interesting, a slight adjustment. Oil and gas absolute emissions. First, commercial real estate we have taken into account the CRREM scenario. The Net Zero scenario is not so detailed in particular, if we want to go into the country details. And since there is some big gaps between countries, we have decided to take the CRREM scenario, but it is validated by ADAM, which is the national institution in France. So it's fully on line with Net Zero, but much more precise. Automotive and Oil & Gas, we have included the Scope 3 mission, of course, because they represent the majority of emission. And on automotive, you know that in automotive, usually, the peers take into account the corporate lending and the OEM financing only.

And we have decided to add the consumer finance and the leasing, which is, of course, I mean, more detail and, of course, more prudent. So all the target and action plan are prepared by the business leaders, totally in line with risk people with financial people. It's a huge project at the group level because we have regrouped all the business and all the support of the group to be totally in line risk business and financial. And before presenting the different sector, I'm giving the floor to my colleagues, I would like just to make a very short statement regarding the route of Net Zero.

The route of Net Zero is a path not necessary The Path. There are hypotheses and key uncertainties, notably concerning the role played by Bioenergy, by carbon capture and behavioral changes. The path to Net Zero emission is narrow. Stay on it requires immediate and massive deployment of all available clean and efficient energy technology. I would like to give an example of what I said. In the Net Zero emission pathway, the world economy in 2030 is some 40% larger than today, but uses 7% less energy. A Measured worldwide push to increase energy efficiency is an essential part of this effort, resulting in the annual rate of energy intensity improvement, averaging 4% to 2030, about 3x the average rate achieved over the last 2 decades.

This global pathway requires all government to significantly strengthen and then successfully implement their energy and climate policy. This is very important to put in place the frame because, of course, the Net Zero we'll present is totally sensitive on different measures and the equation is very complex. But to start, I will give the floor to Nicolas, which is the first sector will present oil and gas. We have a short video each time, 4x and then the presentation. Please welcome NICOLAS CHAPIN, who is Head of Global Coverage Organization for CACIB

Presenter Speech
NICOLAS CHAPIN (Executives)

Thank you, Eric. So as highlighted in this slide, oil and gas represents slightly more than half of the total primary energy supply. And therefore, today fundamental to ensure investor access to affordable and secure energy. However, they represent more than 40% of total greenhouse gas emissions through their production and mostly through the consumption by end users. In order to achieve Net Zero by 2050, the world must reduce its consumption of fossil fuels, including oil and gas, and therefore, a very significant step-up investment into low carbon and renewable energy.

The International Energy Agency, as assumed it's Net Zero by 2050 scenario, a 30% reduction of CO2 emissions from oil and gas by 2030, as an accelerated growth of renewable energy will reduce demand for oil and gas. Oil and gas is a strong business franchise for CACIB, a bit of modest size for the group Crédit Agricole. It represents only 1.3% of the group's exposure at default and less than 1% of its revenues.

CACIB, as already stated, is already engaged into aligning its lending activity with the IEA Net Zero scenario. We have committed to reduce our financing exposure to upstream oil by 20% by '25 versus 2020. To disengage from nonconventional fossil fuels, and to not finance in the oil and gas project in the Arctic. We recently announced our commitment to reduce CACIB's finance emissions linked to our oil and gas client portfolio by 30% by 2030 versus 2020, in line with the reduction in oil and gas emissions assumed by the IEA in their Net Zero by 2050 scenario. This commitment builds on our oil upstream exposure reduction commitment, which we are today, Stepping up to 25% by 2025 from our previous 20% reduction commitment. I wish to highlight the ambition embedded into our 30% finance emissions reduction commitment. As it applies to all hydrocarbons and the whole industry value chain from upstream to downstream from extraction to refining through pipeline transportation.

Today, we're pleased to share with you our 2020 baseline of finance emissions linked to our medium and long-term financing of oil and gas clients against which our trajectory to achieve a 2030 target will be practically measured and communicated. Such finance emissions amounted as of the end of 2020 to 26.9 million tons of CO2 equivalent. About 80% of these emissions were Scope 3 emissions linked to the use of oil and gas by end users, which is in line with the global industry.

About 95% of our total oil and gas finance emissions are linked to producers, whether they are international majors, national oil and gas companies or exploration and production specialists. We are, therefore, committing today to reduce the finance emissions linked to our oil and gas client portfolio from 26.9 million tonnes in 2020 to 18.8 million tonnes in 2030.. Our action plan. Our action plan to deliver a commitment will require pulling on multiple levers. As previously communicated, stepping up the reduction of our upstream oil exposure, steering our lending activity with our oil and gas clients towards achieving a lower carbon intensity of our loan portfolio.

This will apply to a client mix through the value chain, our transaction mix as well as the nature of the assets we would finance directly or indirectly. This is, in particular, reflected in our commitment that over the 2023 to 2025 period, at least 80% of our asset-based financing and advisory services for clients in the oil and gas sector, be related to CACIB's green framework or natural gas.

Prioritizing clients, which are strongly committed to the carbonized through their investments in low carbon and renewable energy as well as those who are our aspire to be leading their peer group in carbon reduction ambitions. And thereby are acting as catalysts of change for the industry. Finally, reducing our activity with our exit from clients, which are not aligned or are not adapting the policies and ambitions fast enough.

As of the end of 2021, oil and gas finance emissions had already reduced by about 10% versus 2020. From the dynamic management of oil and gas client portfolio only. Notably, the exit from our U.S. reserve basin activity, which was decided in January 2020, and which we will be finalizing by the end of 2022. So this year. Going forward, we will seek a more rapid action on our oil-related emissions, while we will pursue a more gradual approach on natural gas. Thank you. This concludes my presentation on the CACIB Net Zero commitment for the Oil & Gas sector.

Presenter Speech
Eric Campos (Executives)

Thank you. Thank you, Nicolas. And now we move to the power with one short video before the presentation.

[Presentation]

Presenter Speech
Eric Campos (Executives)

Please welcome DANIELLE BARON, who is the Global Head of Structured Finance for CACIB.

Presenter Speech
DANIELLE BARON (Executives)

Thanks, Eric, and good afternoon, everyone. So first, perhaps do I have the power -- no pun intended. There we go. Thank you. So first, perhaps a little bit of context. In 2021, the electricity sector still contributed 25% of worldwide greenhouse gas emissions, mostly through Scope 1 emissions, mostly through coal and some gas.

And yet today, we find ourselves with solar and wind being amongst the most mature and cheapest sources of electricity generation. So this is a relatively recent phenomenon that the levelized cost of energy of these technologies is, in fact, cheaper than coal or gas. So the issue isn't around the technology. It's around the deployment of the technology and the speed at which we can deploy it. Today's electricity accounts for about 20% of the final global energy consumption. And over just the next 8 years, the IEA Net Zero scenario projects that this will have to increase to 28%, with an investment pace to give you an idea of $1.3 trillion annually by the end of this decade.

It is obvious that this transformation of the electricity sector will have to happen at an accelerated pace. I think Philippe mentioned earlier that the keyword is acceleration, and I couldn't agree more. Consequently, for the power sector, we have the honor of not having a Net Zero target for 2050, but we have a Net Zero target of 2040. So our pace is even faster than everybody else's in the power sector. So how is Credit Agricole preparing for this accelerated transition? Right. So first off, we spent the last 6 months working to establish baseline from which we could begin to measure our footprint and our progress.

In 2020, our baseline year, we were financing 45 terawatt hours of electricity production, 50% of which was through low carbon generation. At this time, we already had one of the lowest carbon intensive portfolios of our peers, at 224 grams of CO2 equivalent per kilowatt hour. This is due to several factors. First was our early commitment to renewables. We financed our first wind farm in 1997. Second was an acceleration of our investment in this asset class, which was a business opportunity as well as a strategic direction that the bank wanted to go in, and that was accelerated over the last 10 years. And finally, our stringent coal policy, which we announced in 2016 and updated again and reinforced in 2019.

Going forward, our Net Zero ambitions in the power sector will be measured as a function of emission intensity. We will calculate this as grams of CO2 equivalent per kilowatt hour, and this encompasses both CACIB and Unifergies portfolios. So you may want to know that the combination of CACIB and Unifergies accounts for about 95% of Crédit Agricole's total finance emissions in the power sector. So moving on to our targets. one sec -- there we go. Sorry, targets.

Proud to announce that our commitment to reduce the emission intensity of our financing to power generation by 58% from 224 CO2 equivalent per kilowatt hour, which as I said, was already best-in-class to 95 grams of CO2 equivalent per kilowatt hour from 2020 to 2030 and -- this is very ambitious, and I think we should be clear about that. It's 31% below the 2030 target of 138 CO2 equivalent per kilowatt hour that you see there. for the IEA Net Zero scenario. It's also 42% below the recently updated scenario because the IEA has just published its world energy outlook in October. And in that outlook, they have updated that figure up to 165 grams.

So now we're 42% below that figure. And we are 71% below the figure of $325 for the stated policy scenario. So this confirms a great deal of conviction on the part of Crédit Agricole to accelerate the energy transition but also reflects our confidence that we will be able to continue to accompany our clients and to grow our portfolio and to lead and to continue to lead, I should say, really because we are a leader in this sector worldwide, and we're confident that we'll be able to continue to do that. Okay. Action plan. So what are we implementing in the terms of strategy. So first, at the client in risk strategy, which is evolving which is adapted to accelerate our support for both renewable developers, so new companies, new corporates that appear on the renewable scene.

We've already been onboarding them and we are adapting our credit policy to onboard more and, of course, to accelerate our investment in renewable power generation. We're scaling up our financing of offshore wind, such as Hornsea 2, which is an example that we have here, which we're very proud of. And as a good example of the bank in all of its places, supporting the energy transition and in supporting new transactions and new ways of decarbonizing the electricity supply chain.

And then finally, we're strengthening our advisory teams dedicated to energy transition, including expansion of our teams in France as well as in London, New York and Asia, positioning ourselves as a leading adviser to our clients will, of course, allow us to accompany them in their transition. But it also is going to enable Crédit Agricole to stay at the forefront of technological and market developments.

In addition to the reduction of our financing of thermal electricity, we'll be guided by the disengagement from coal, which we've already mentioned on various occasions and higher selectivity of power plants that we finance with the gas-fired power plants that we finance. Our focus on gas going forward is really going to be to replace coal-fired power plants or secure grid balancing services, okay?

So we're going to reduce, let's be clear. We're going to be reducing our exposure to these plants, and we'll be focusing on their role in the transition going forward. We also look to seek the possibility of hydrogen combustion in those technologies and also retrofitting carbon capture solutions where credible and where appropriate.

Overall, we're going to prioritize clients which are strongly committed to decarbonization of their activities and their investments and reduce our activity and exit clients that we do not believe share our strong ambitions. We'll be relying on our local presence as well as our global expertise in power markets in order to deliver on this strategy. Thank you.

Presenter Speech
Eric Campos (Executives)

Thank you, Daniel. So let's move to the third sector, which is commercial -- the commercial real estate, sorry, with a short video.

[Presentation]

Presenter Speech
Eric Campos (Executives)

Please welcome Olivier Nicolas, LCL, Deputy CEO.

Presenter Speech
Olivier Nicolas (Executives)

Good afternoon. Thank you, Eric. As you can see, real estate, both residential and commercial, are responsible for 20% of energy consumption. And as a consequence, also responsible for significant part, sorry, of CO2 emissions. Energy consumption comes mainly from heating and cooling. And that's why the building installation, the energy mix change and also the energy efficiency are the key factors to reduce emission in the real estate sector. Today, I'll speak only about commercial -- commercial real estate because it's the only part we address today and residential real estate will come next year, as Sean said. What does commercial real estate represent at Crédit Agricole at retail level, combining regional banks and LCL, CA Group has a very important, very large penetration rates on small, medium and large corporates.

And this position gives to Crédit Agricole, major role. This is generally partner for the main partner for real estate financing. So we do that with loans traditionally, but also by leasing with Crédit Agricole leasing and factoring. If we look at -- sorry, if we look at CIB level, Credit Agricole, CIB is a major actor in structure in real estate, structured finance, # 2, and is also, as you know, active internationally.

That's for financing topics, but we -- beyond financing, Crédit Agricole is also present on all the value chain for investment and property management with Amundi and with development with Crédit Agricole Immobilier. As you can easily understand, this why and leading position of Crédit Agricole on real estate -- commercial real estate sector, do oblige Crédit Agricole to actively address the decarbonization challenges of this sector.

Eric said at the beginning that commercial real estate, it's a quite complicated sector, complex sector for several reasons. First of all, available data's for -- are not very granular, are not very accurate, not so much as we could wish. And another level, at public level, now at client level and by the way, at bank level. Another point to have in mind is that commercial estate sector emissions aggregate, in fact, a lot of very, very value, I could say, heterogeneous situations, depending on geography, behind geography, it's also the reflection of the energy mix of each country, but also the edge, the type and the use of the building. And the small picture can illustrate this point with huge discrepancies between, for example, real estate building office building in France and health care in Spain is nearly one to obtain metrics factor.

Another point to have in mind is that International Energy Agency, IEA metrics and targets, in fact, doesn't fit properly to the profile of the EUR 26 billion of commercial real estate portfolio that we want to put under the light today and that will consolidate our commitments. That's why we need to find a more appropriate and challenging referential and this referential is the following. To fix the first point, we will use the PCAF metrics because it's at this time, the most accurate referential. That is for the starting point of 2020. And to fix the entire media point, it's not the arrival point, as you know, but intermediary point of 2030.

We will use CRREM scenario and Net Zero scenario totally compliant, fully compliant with the 1.5 degree scenario of SBTI. All of that said, we can summarize our commitments as follow. We will reduce the intensity of our emissions of building emissions for 40%, coming from nearly 46 kilogram per square meter per year to 28 kilogram per year and per square meter. That's the way we will to follow. We want to follow. As Eric said also, we m obviously adapt these targets if CRREM scenario will change and its possibility we keep in mind for the future. Our action plan or how we will do to reach this objective.

First at all, we will significantly improve the data collection and the quality of the data because for this sector, it's very, very important to make a collectively huge progress. Second point, the group will adapt its commercial and risk policy with new guidelines with energy-linked covenants and price incentive and also prioritization regarding the quality of buildings we will finance. We have, in fact, already some very precise objectives for CACIB, for example. We fixed -- which fix green and dark green building exposure objective by 2030. And also LCL, even if it's expressed differently, LCL plans to originate EUR 4 billion of low carbon buildings from now to 2030, and LCL began to challenge very aggressively CO2 emission of buildings before granting any new financing.

Third point we will use, we will make leverage on regulation, for example, in France, Décret tertiaire, that will help our clients to take into account all the progress they have to do. We consider that the Décret tertiaire, for example, in France, we'll do half all the way we want to make by ourselves, but it's a quite interesting level to use. And at the end, the group wants also to develop turnkey all-in-one NZ solution, combining in one end technology solutions. That means self-production of energy, connected buildings, geothermic and so on.

And on the other hand, financing solution directly or indirectly. This point is, to my mind, very interesting because it makes a bridge between what Eric said before with Crédit Agricole Transition Energy. And it's exactly what we want to do. That means make connection relation between technology, advice and also financing solution because both are very, very tightly linked. That's the end. And what I want maybe to say to finish is that we are very convinced that this holistic approach, combined with some calculation we make on the dynamics of our credit portfolio, amortization, new loans and so on, make us very confident and optimistic on the capacity on the achievement of the objectives we have mentioned by creating new business and also by improving quality of our portfolio, risk quality and environmental liquidity. Thank you very much.

Presenter Speech
Eric Campos (Executives)

Thank you, Olivier. Let's move to the #4, which is the automotive sector, with a short video. It will be the last one.

[Presentation]

Presenter Speech
Eric Campos (Executives)

Please welcome Vincent Carré, who is Head of Group Mobility Services, Crédit Agricole Consumer Finance.

Presenter Speech
Vincent Carré (Executives)

Thank you, Eric. Very happy to be with you today and to present all my colleagues from CACIB and Crédit Agricole leasing and factoring involved in the automotive business. So the target of this first, I'll just remind you how much we are involved in automotive, you know that we directly finance automakers and retailers through CACIB. And you can see here on the right of the slide, our engagement in automotive corporate financing. But we also finance directly customers, B2B, B2C through clinical consumer finance and critical leasing and factoring. And you can see here also our engagement that have more than EUR 44 billion. As for all its activities, Crédit Agricole is strongly committed to reduce its emission and the intensity of our carbon footprint in the automotive business.

The first target that we have already engaged is to -- for '25 and is to finance on green vehicle out of 2, green, meaning electric or hybrid in total in 2025. This target very easy to understand, very easy to be appropriated by the teams. We will be now completed by a more global target on emission as we are going to see now. So on the left of the slide, we see today the repartition of our financing. We see that we are, of course, very strong in France more than 400,000 cars financed, but our presence is more international with very strong activity in Europe, 1 million car financed through Crédit Agricole leasing and factoring and Crédit Agricole Consumer Finance, but also a very strong worldwide presence outside Europe with both CACIB present in many countries and our joint venture in China with GIC, which is the third Chinese automaker. You can see that at the top left of the slide that we have calculated our emissions that are at 190 grams CO2 equivalent per kilometer today. And you can see on the right that this emission carbon footprint is already better than the very ambitious IEA scenario.

And of course, we are going to keep this trajectory and to remain under the IEA scenario for 2030, which means we are going to reduce our emission in automotive business by 50% in 2030, which is very ambitious, but this is a target that we think we can achieve.

Very important once again when we calculate both our current footprint and our target we take into account the full scope of our emissions. We take OEM financing, we take, of course, retail financing, we take everything, which is something that all our peers do not do today. So if we look now at the action plan and maybe the most important message for us today is to tell you that this carbon reduction footprint is today more for us an opportunity or the risk an opportunity because we are confident that we can achieve in the same time, this reduction by -- while keeping our profit at the same level. And our action plan, which is very complete is designed to develop our business, consolidate our profit and achieve the reduction of our emission. We are very confident that we can achieve these 2 legs in the same time, but we can be profitable and reduce the emissions.

First, because there is a global movement that is engaged in automotive business and especially by our partner, Stellantis our strong partner Stellantis. So we will benefit from this global movement, especially in the growing leasing market that will increase again a lot pushed by the higher price of electric cars. And by the high demand for service. And you have noticed that in the last month, we have really consolidated our presence in leasing.

First, with the strong partnership with Stellantis and the creation of a European leasing company. Second, with the takeover of FCA Bank at 100%, that m give us a leasing tool available in 18 European countries. And third, with the launch of Agilauto in France, that will distribute its leasing products through all our agencies in Crédit Agricole [CASCO] and LCL. The second reason why we are so confident it is because we have already contracted partnerships with 100% electric automakers, the strongest example being Tesla, which is today, our partner. And we have also other examples like MG, for example, 100% electric and soon VinFast, and this 100% electric automakers will help us to reach our targets.

In addition, we have already contracted 3 additional partnerships with 100% electric OEMs. It's too soon to announce them here, but they will be announced in the coming months. and they will solidify our trajectory and our -- in reducing the emissions. And finally, the third reason of our confidence is because we have launched, and we will launch several green and innovative services that are going to support both business and carbon footprint reduction. A few examples that are on the slide, first for Crédit Agricole Consumer Finance.

We have developed, for example, electric car sharing with our subsidiary, DRIVALIA in 3 Italian cities, Roma, Torino and Milano, with more than 1,000 cars. And soon, DRIVALIA will also saw 100% electric cashing in early '23. We have launched in France some eco leasing solutions for electric cars at EUR 1200 per month for both new cars and used cars, and we go on this strategy. This was in '22. And in '23, another example, we launched electric car sharing this time for rural territories, supported by our cash regional in order to bring also electric mobility outside of the cities in territories that need additional mobility. A very important example also for Crédit Agricole leasing and factoring that was announced last week, which is the partnership with Michelin and the development of Vatia that will help us to provide for light heavy vehicles some full offers of electric cars and charging solutions and that will help us also to achieve our objective.

As a conclusion, I would say that to reach this ambition, we will be, of course, very faithful to our values and we will support, encourage, help all our automotive partners to make the electrification challenge, a big success for us and for them. But however, this target is so important for us that if one of these partner endages our road map for '25 and 2030, we will consider, of course, the possibility to cancel the partnership to reach our target. Thank you for your attention. And Eric, the floor is yours.

Presenter Speech
Eric Campos (Executives)

Yes. Thank you, Vincent. So please welcome Tanguy, who will present the cement sector plus insights on shipping, aviation and steel.

Presenter Speech
Tanguy Claquin (Executives)

I'm very happy to be here. So I will present 2 -- 3 sectors, actually, which are quite hard to abate as we call them, the first one being cement. Cement is a very important sector. It's a very small exposure at CACIB level. But it's a very important sector because cement is something that we cannot avoid. We need cement in order to build low-building materiality in housing. We need cement in order to build a low-carbon infrastructure. That's the first reason why it's important. Second reason why cement is very important because it's a super highly-intensive sector. So very high carbon intensity for small exposure. And it's a very hard sector to abate as we call it. It's a very hard cycle to decarbonize because most of the emissions are stemming from the chemistry of cement, which means the need that we have to decarbonize clay in order to produce clinker.

And so the technology in order to do that is not that easy. So in fact, the technology that we need to use in order to decarbonize cement is the reduction of the clinker to cement ratio. It's a bit technical, the carbon capture and storage, the electrification of the processes. Against that backdrop in a situation where very few banks have published a target on cement.

We have decided that Calicol to have an ambitious approach. So we look at the cement industry with Scope 1 and 2. We also look at it in a growth approach. We mean that we take into account all carbon emissions, including those coming from the fossil waste. And then on that basis, we have taken the commitment to reduce our footprint by 20% by 2030.

So we measure it in intensity as for other factors. So we are going to make it from 671-gram of CO2 per tonne of cement to 537 million-gram of CO2 per kilogram of cement produced. Again, Scope 1 and 2 and growth, which means that we are not there directly comparable to the Net Zero scenario, but the calculation are close to what the trajectory is showing us that we should reach. What are we going to do in order to achieve that? We're going to engage and we already have a very strong dialogue with our clients in that space in order to make sure that they have the same trajectory as we do and they invest in that space.

We're going to support them in their investment in that space. And we are going to steer if necessary, our cement portfolio in order to reach this trajectory. So we think that there are not so many banks right now having committed in that space. And what we add as a commitment is that by 2025, we will review this target because we think that it can go further, it can go faster, but we need to have a dialogue with our clients in order to be able to review this target, which we'll do in 2025. And -- So that's for cement. There are 3 other sectors that we have taken a very different approach.

This is shipping, aviation and steel. As for cement, those are very difficult sector to decarbonize hard to abate as we call them, those are absolutely necessary sector also for the for the economy, think about steel, we will not manage local on transportation, railways without steel. We will not manage to have low carbon buildings without steel either. Again, those are sectors where the decarbonization is not easy for shipping and aviation, we need new motorization. We need new fuels, we need new technologies. And that's solution that are not completely at scale for the moment. That's the case also for steel. We need hydrogen. We need new processes. We need to decarbonize the steel making, which is not obvious right now. For those sectors.

We, therefore, have less clarity than other about the scenario that we will adopt. What is the speed at which we m decarbonize the sector, first thing. Second thing, we don't have always the right data in order to measure our decarbonization or to steer our decarbonizatoin. Think about steel, for instance, in the steel industry, one of the key lever is our capacity to know how much scrap m be used by our clients, and those are data that are not reported at the moment. So for those 3 sectors, we have taken a bit I would say, in line with the collaborative approach and cooperative approach of Crédit Agricole. We have taken the view that we will work with the industry, so with our peers and with our clients in order to find what are the right data and what are the right scenario that we should adopt.

So we have created together with other, what is called the Poseidon Principle, which is an industry initiative, gathering a few banks, but also gathering data specialists in order to see what is the right data is the right trajectory in this industry. Crédit Agricole was one of the co-founder of this initiative, which is managed by a consulting firm called RMI for Rocky Mountain Institute . We are doing exactly the same in the aviation space, where we are leading the same type of initiative with the intent to create the same working group gathering the industry from a banking perspective and from an industry perspective.

And we have joined in September last year, the sustainable steel principle, which is built exactly under the same approach gathering the key banks financing steel as well as steel industry bodies. Because we are engaged into those collective approaches, we have decided that we will postpone the publication of our commitment to 2023 because those alliances are working toward those dates. So bear with us and we'll publish in 2023 for all the sectors. That concludes my presentation.

Presenter Speech
Eric Campos (Executives)

Thank you Tanguy, . So -- and thank you -- thank you very much to all the speakers. You have a global wrap-up in this picture with the -- I mean, we have separated voluntary -- the top, which is on absolute emission on oil and gas and there is the 4 sectors in relative intensity. So roughly speaking, except maybe the cement, we are about 30% to 60% of decreased emission, or intensity in between, I mean, 2020 to 2030. And I give the floor to Jerome for the conclusion.

Presenter Speech
Jerome Grivet (Executives)

Maybe just a few words of conclusion before going to the Q&A session. The first point is, of course, that this presentation, all the action plans that we've presented to you today and all the action plans that are going to follow with the next sectors that we are going to publish next year are perfectly in line with the financial targets of our medium-term plan. Even more, actually, these strategies are going to support the capacity that we have to meeting our financial KPIs in 2025. There will be pluses and minuses, of course, as compared to the previous set of activities. But all in all, what we are sure of is that all these initiatives will require more financing efforts from our side thus generating more revenues. In addition, we are taking initiatives that are going to -- that are designed to help our customers to handle their own energy transition, and this is going to generate fees for us. So all these elements are going to support our revenue generation capacity and will offset any possible negative elements that this transition may give rise to simply because any transition is possibly leading to some downturns and some drawbacks. Second important point and even more important point, I would say, all these strategy, all these climate strategy that we've presented to you is perfectly in line with the group strategy with the group's medium-term project, which is, again, let me repeat it, to work every day in the best interest of the society and of its customers.

So clearly, what we are doing here is aligned with what we think is our mission, our task in supporting the economy and supporting the society. Third element. These elements are going to be very demanding for the group, very demanding for the teams. You've seen these commitments, which are very strong, very aggressive. You've seen the action plans, which are very coherent.

All these will require a lot of effort from our teams. And then the fourth point is maybe that I will go back to the starting point earlier in the afternoon. I've told you that all these elements we are not the beginning of our story, of our history with regards the energy transition because we've started indeed more than 10 years ago to take some initiatives in order to develop our support to the financing of clean energies and so on and so forth.

This presentation this afternoon is not the end either first, because we still have 5 sectors to present to you next year, and we will indeed have other meetings in order to give details on those 5 new sectors. But what we are sure of is that we will need also to permanently adapt what we've presented to you to the evolution of technologies, to the evolution of customer behaviors to the evolution of regulation.

And so it's clear that we will have lots of opportunities going forward to continue to discuss together on this very important so I would say, stimulating challenge to play our role in terms of helping the economy and the society to this energy transition. So thank you for your attention, and I think that we can go now to the Q&A session. Clotilde, how is it going to go?

Answer
Clotilde L'Angevin (Executives)

Yes. Thank you, Jerome, and thank you, everyone. So we're going to start with the questions from the room for the people who are here. And then after that, we're going to move on to the questions that we're receiving on the Internet. But please go ahead. We're going to struck with Jacques Gaulard. And I think there's going to be a microphone that's going to come to you right now.

Answer
Eric Campos (Executives)

And my key role will be to handle the floor to the guys who are the colleagues that are going to answer the questions.

Question
Jacques-Henri Gaulard (Analysts)

It was mind-blowing congratulations because that's really crazy. But anyway, 2 questions. There are so many, but there are 2 really. First of all, just for the sake of clarity. You didn't mention any of the revenue targets in the plan -- or given by the division during the medium-term plan. Does it mean that will have an impact on their revenues individually? Or overall, do they maintain their own revenue count that they had is the first, I would say, question.

Then we had some outstandings, which is very helpful to some sectors commercial real estate, ex Amundi, power and cement, I don't think we had the exposures in billion. So I was just wanted to clarify why that was and if we could have the number? And lastly, maybe really out of curiosity, how do you treat the data, which is considerable in there? And also maybe intra-group with Jean-Jacques team at Amundi. If you're dealing, for example, with a listed oil and gas company, no name needed. How does that -- how do you coordinate and how does that -- how is it put together?

Answer
Eric Campos (Executives)

Let me start by trying or giving you a very brief answer on the first question actually. We aren't changing any of our financial targets for 2025. You know that we are committed to the global figures and to the global KPIs. And if we manage to reach them differently than what we initially foreseen or forecast that's good enough. So we continue to target the same figures for 2025. And -- we think that definitely, the breakdown by business line is going to be more or less unchanged, but what we are sure of is that all this is providing new business opportunities for us. Maybe on the figures of the outstandings, Tanguy, maybe I think the question was figures regarding the exposures on cement, shipping and commercial -- and commercial real estate. So commercial real estate, you have the figures?

Answer
Jerome Grivet (Executives)

Yes Exactly Starting with Olivier.

Answer
Olivier Nicolas (Executives)

commercial real estates Outstanding at this time is EUR 26 billion on CACIB, LCL, CALAF, Vitalia.

Question
Jacques-Henri Gaulard (Analysts)

Then cement?

Answer
Jerome Grivet (Executives)

Cement, the figure is much smaller actually. Cement is less than EUR 1 billion. And then the last sector on which power. So maybe, Daniel?

Answer
DANIELLE BARON (Executives)

Yes, in the slide, 11, EUR 0.2 billion exposure on renewable energy, not total power, just renewable energy to be precise.

Answer
Jerome Grivet (Executives)

Okay. And maybe, Eric, on data.

Answer
Eric Campos (Executives)

Yes. I mean the organization of the project was quite clear. So we distribute the game of the -- I mean, the structure the rules, the principles and then each entities has worked on their -- I mean, data. We don't exchange data if it was your question, but we respect the same rules. And then each entity has provided all the figures in order to consolidate. And this is very interesting as a project I said because -- we have the action plan entity by entity and not the kind of top down approach. It's a real bottom-up approach, which is more operational for us.

Answer
Clotilde L'Angevin (Executives)

Guillaume, maybe. Can you say everyone your name and your company.

Question
Guillaume Tiberghien (Analysts)

It's Guillaume Tiberghien from BNP Paribas Exane. I've got 2 questions. The first one is about the [indiscernible] associate. How do you sell it to your customers? And what sort of remuneration do you offer them? And is it designed to become a massive source of deposit inflow? Or is it more a side product? And the second question relates to oil and gas slide where you explained that it's 1.3% of your exposures but only 0.9% of the revenues. And I'm a little bit surprised because that's a Group Crédit Agricole, which includes mortgages. Mortgages are less risky, so they should have less capital. So I'm surprised that the activity that maybe consumes a bit more than average capital is much less profitable in terms of revenue margin?

Answer
Jerome Grivet (Executives)

Maybe I can start with the last question. Bear in mind, Guillaume, that at group level, and it's even more the case at CASA level, only a small or a minority part of our revenues come from the balance sheet directly. At group level, it's around -- a little bit less than 50%. At CASA level, it's 35%. So of course, we have lots of revenue sources that don't depend on the size of the credit exposure. So that may explain the slight difference between the 1.3% and the 0.9%. And this is the last time to gather information regarding the [indiscernible] associate.

Question
Guillaume Tiberghien (Analysts)

So I have a friend in the room. So it's a 0.7% on average for the [indiscernible] and is proposed by the regional bank to the society? So I know you have seen on the screen.

Answer
Unknown Executive (Executives)

Mutual shareholders.

Question
Tarik El Mejjad (Analysts)

Tarik El Mejjad from Bank of America. So I have one question actually. I mean, thank you for the presentation. I mean lots of acronyms I had to Google some of them, which is not different from the banking sector, I guess. No, I mean, my main question is this is really a lot of work for you, and it's quite intensive. It's a lot of sectors, very granular. It's almost counterparty based actually review. So how do you track how you actually been on track of your commitments by contra party, especially if the conterparties don't give you enough information or how they're doing into the transition. That reminds me like for the SMEs, for example, risk weighting, how -- what rating you'll give in terms of risk because they don't have enough data. So how do you deal with that? And -- and in terms of you managed more cost because you need experts you need. Are you -- I mean, I suppose it must be very heavy for the dev divisions to have more stuff dealing with that and gathering the work. So it looks quite clossal work. What's -- I mean, how do you deal with that?

Answer
Jerome Grivet (Executives)

I'm looking at all my CACIB colleagues because they are very much involved in this data collection exercise. So maybe, I don't know, Tanguy Danielle or maybe you want Xavier to have a global, no?

Answer
Xavier Musca (Executives)

Yes, it's a lot of work. This is of data collection. Indeed, what we have done at CACIB that the team in charge of this is working in the front office side because in fact, we are also discussing that on a daily basis with our clients. I think this type of question, the carbon footprint of our client, the trajectory, the alignment with the same type of scenario that we have. This is the core of the discussion that we have with them. So it doesn't mean that there is less work, but at least this is pretty aligned with what we are doing also on the business side.

Answer
Jerome Grivet (Executives)

But maybe in addition toTanguy answer, which relates on what is taking place at CACIB, this issue of data gathering is a very global issue that we need to tackle globally for the group, and we invest a lot, and we have a lot of people working on this because actually, this is needed for the sake of the projects that we've presented this afternoon, but this is also more and more needed for reporting reasons, we have the green asset ratio that we need to publish. We have the Pillar 3 information that we need to update regularly. So we have all these reporting constraints that require more and more granular and more reliable data. So we are going probably to end up adding to our normal data collection on a name-by-name basis, some additional elements regarding all these energy transition issues. Maybe if I can add, you know that the regulation, the CSLD rules will oblige the company above 250 staff to publicize in 2024, starting in 2024, their transition path more or less. So you're right. The problem is on the nonlisted company. Listed company, we have enough, let's say, information and certified information. And in 2024, we'll have a more complete picture of the company. But of course, you're right. It's a huge task.

Answer
Clotilde L'Angevin (Executives)

Maybe Giulia.

Question
Giulia Miotto (Analysts)

Thank you for all this data it's very helpful. I guess my question goes back to the ECB climate stress test. And the ECB was very critical or at least that's how we read it towards banks in general, saying that they're not ready for the transition, they don't have enough data, et cetera. When you speak with the ECB, what is your feeling on your feedback? Like do you think this is what the ECB wants to see or there is a further step up off on the data and the level of detail that you need for the ECB to be happy.

And how does this translate ultimately in capital requirements, if at all?

Answer
Jerome Grivet (Executives)

The angle of the ECB is a little bit different from this one because actually, what they're trying to track is the risks that we take, not taking into account properly the climate change. So actually, what the stress test was all about, what risks are we taking with the present exposures that we have, considering the risk and the certainty of the climate change. So this is not exactly with that kind of presentation that we can completely answer their requests. Clearly, it goes into the right direction. And so it's a permanent dialogue. But the angle of the ECB again, is really to assess our risks regarding the consequences for us for our present exposures of the climate change, not really the efforts that we make in order to push for the transition.

Answer
Unknown Executive (Executives)

But if you allow me, I would tend to say that the judgment plants by the ECB is to a certain extent a bit severe because as it was said, we have a problem of data as our clients are not providing us with the appropriate data, at least the smallest one. So indeed, in order to make this simulation that the ECB is requesting we should have a complete set of data, and it's obviously difficult. The other element, which is for me a bit, if you allow me, unfair, or not compete to justify is that when you are looking at the balance sheet today, it encompasses obviously, what we have done in the past, and we have taken risks, which obviously are linked to the society as it was 2 years, 3 years earlier and the production system that it worked.

And obviously, what we're trying to present today is rather how sales as we encourage the society and the industrial system to evolve towards greener energy. So obviously, that's explained in part the fact that the ECB is saying, in my view, well, we are, well, not completely satisfied with what we have found. But indeed, I would have been surprised that they would have considered that they had a perfect preparation of the banks. for all the reasons we have explained. And I think that the fact that next year -- in 2 years' time, we will have at least for the biggest companies and the listed one more detailed picture about the way they will evolve, m help us also to have a better assessment of the risk.

Answer
Clotilde L'Angevin (Executives)

Mathew? We're going to get the microphone up to Matthew Clark from Mediobanca.

Question
Jonathan Matthew Clark (Analysts)

Matt Clark from Mediobanca. So a question on, I guess, the audit process for these green commitments, where when you lend and you have covenants then as a check against the financial information that your customers give you have third-party audit accounts that come in once a year and more frequently. Could you maybe talk about what the equivalent process is for these green transition promises in our test stations that your clients are giving you? Is there a risk that you are vulnerable to clients saying everything is okay, ticking all the boxes and then further down the line, it turns out that there has been exaggeration or even fraud on behalf of your clients because this is a developing framework.

Answer
Jerome Grivet (Executives)

Tanguy is going to provide some...

Answer
Tanguy Claquin (Executives)

Of course, there are a number of sectors where we rely on the commitment taken by the clients. True. And so we will have to monitor that on a yearly basis. And so in fact, we will put in place early monitoring and it's going to be even done more frequently than that in order to see if what we have anticipated our clients will do will be done at the pace that we have planned. But it's true that in this transition, they are technological risk, execution risk that are not only at our level. We will have to manage that collectively together with the client, but that's not something new. I mean we monitor our client activity more frequently than 5 years in time.

Question
Jonathan Matthew Clark (Analysts)

Sure. But how practically do you do that? I mean, if you're worried about your clients' financial resources in order to contact the balance that's in the bank, et cetera, if you're concerned about a clients CO2 emissions? How do you audit that to make sure that that's...

Answer
Tanguy Claquin (Executives)

As we've said it, actually, our customers enter the listed ones and the biggest one are going to be obliged to publish audited information regarding their own CO2 emissions and their own commitments to the transition. So starting on the data of 2024, we will have audited data from our customers. In addition to that, our own figures, so our own performances on the trajectory between 2022 and 2030 for the different sectors in which we've published commitments. These are going to be audited by our own auditors.

Answer
Clotilde L'Angevin (Executives)

E

Having to say Between ourselves, but I can -- yes. I think one thing to say is that obviously, the quality of dates going to evolve over time. and we're trying to be as transparent and honest with you about that in these presentations. There will be volatility just in the methodology itself. And there are going to be sectors which we're going to have to republish, we're going to have to reupdate as we go along, right? I think real estate is for me to central example where the reporting for real estate in France is actually very good in the scheme of things in terms of how clearly reporting is done in terms of carbon footprint per square meter.

It is less good in a lot of other markets where we operate. So we have to take proxies and our engagement are based on proxies. And as those markets evolve and move forward, we will update our data, and that is the best we can do and are undertaking to you is to do the best that we can do.

Answer
Unknown Executive (Executives)

The European regulation is helping us a lot because in 2024, we'll not talk about only a listed company, but also the big company nonlisted. And this is very important for us. They m be certified. And then we m be certified due to the European regulation. -- in what we call the Non financial performance report on an annual basis.

Question
Unknown Analyst (Analysts)

So this is Ben [indiscernible] from Goldman Sachs. So I wanted to ask, how are you thinking about balancing client relationships involved in, so to speak, the old economy. So supporting your clients involved in coal and oil, which are clearly necessary for energy to facilitate the green transition. So I see one of your targets is disengagement from clients involved in coal power for a 2030 to 2040 phase out. So if you have coal clients coming to you with a 10-year project, are you already saying no to those? Or do you see those as necessary in the green transition?

Answer
Unknown Executive (Executives)

Exactly, maybe.

Answer
Unknown Executive (Executives)

Would you repeat the example.

Question
Unknown Analyst (Analysts)

10-year plus.

Answer
Unknown Executive (Executives)

The role we are applying are, in fact, a bit more detail that what we have presented. What we are saying is that, first of all, if someone is a core developer. So if it is clear that he wants to increase his coal production, we will not make any business with it. Second, if you have a company which is not aligned with the objective, depending whether it's a -- not country or non-city country. not company or not company, if it's not aligned.

And if it doesn't have a clear commitment to exit from coal, we will not make business with them. If he has a public commitment and if it is not above 25%, we will accept to make business with them. We have added to that something which is also important, which is a principle of segregation because the real issue is very often that you have groups and that occurs mainly in Asia, in which you have a lot of activities, which are very different. And among these activities, you could have one specific subsidiary which is, for example, green. And in that case, we will accept to lend to this subsidiary provided that the company is able to prove that the financing we provided them with is completely segregated. Therefore, that we are not financing coal. And conversely, if we are in a situation in which -- in a group, which is generally having diversified activities, which happened very often again in Japan and in Korea. When there is one subsidiary which is developing call or which is massively I would say, call intensive. We m be able to finance the company, again, provided that they are able to trust the fact that -- to trace the fact that the money we are providing them with is not going in this company. We have to be clear on coal, we have entered into a process, which is a process of ban. But that is in accordance with the recommendation of all the international institutions and our government because there is a willingness to exit from coal. That's different from oil, from gas because we do not consider that the same rule have to apply in the case of oil and in the case of gas. And we even make as we have demonstrated that a difference between oil and gas.

As you know, gas is considered as a transition energy by the EU. So -- and there are obviously considering the situation today with Russia. The need to accept some investments in gas. So we try to distinguish between those 2 sources of energy, which has made on for IFU. If the question is, do we consider that we have to continue to finance coal? The answer is no. unless there are clear commitments from the company, which is working with us.

Answer
Clotilde L'Angevin (Executives)

Flora from Jefferies.

Question
Flora Benhakoun Bocahut (Analysts)

Flora Bocahut from Jefferies. I have 2 questions I wanted to ask. The first one is, thank you also for me, for all the data. It's very granular, very detailed. And then to some extent, what's complicated for us from the outside is to compare with peers because the data differ from one bank to the next.

So the question I wanted to ask you on this is, from your standpoint, knowing what you commit to having reviewed your portfolio, looking, I suppose that what peers have announced, what are the 2, 3 elements that you would highlight that, in your view, you do best-in-class here in terms of commitment and differentiate Crédit from other banks and not just the French, but European banks. And the second question is on the residential real estate, which you say you will discuss in 2023. Obviously, it's a large part of the portfolio. Why do you want to discuss it later? Is it because you like the data today? Yes. Any comment on that front?

Answer
Unknown Executive (Executives)

Yes, I m ask maybe Erik to provide some more detail. But on the first question, of course, it's very difficult to compare what we propose to what our peers propose. But actually, we've tried as much as possible to rely on recognized standards in order to account for the commitments that we are taking. So on those -- on the basis of those standards for what they're worth, we are able to compare what we propose to what our peers propose.

And I think that -- from this point of view, we are not so badly placed to say the least.

Answer
Eric Campos (Executives)

I can maybe share with you the ambition that we had in the beginning. First is to say this is not a constraint, it's an ambition; second, we don't want just to green the outstanding, but we want to have, I mean, 2 axes. One is to support the client in order them to win their economy. And then us as a consequence to green the outstanding. And the angle of client was very important. Opportunity, client base are the 2 for me, the 2 drivers of what we are working for. Then it's not an excel sheet, let's say, expert task that we have done. It's a huge transversal project in the group in order to empower the business lines to integrate the climate in the core of their own strategy. And this is -- I strongly believe that this is what we have used in. Then you can compare, and we have, I mean, precise the figures, the perimeter, the focus. And the last, maybe a snapshot with the gram kilowatt with the kilo by square meter and so on and so forth.

For us, this is comparable. This is comparable.

Answer
Unknown Executive (Executives)

And then when it comes to -- excuse me, [indiscernible], just on residential real estate, it's clear that we -- it's very difficult because we lack data and data is the heart of the matter in this -- from this point of view.

Answer
Eric Campos (Executives)

Yes. Sorry, if I may, [indiscernible] residential real estate, since the method that we have chosen is the bottom-up method for working on real estate, we have to work with all the regional bank one by one. So we have 39. So this is a huge task that we have in -- Yes, but LSS is already involved in the -- but now we have to involve the regional bank. That's the reason why on agriculture sector, we follow the same method. So it's 39 projects, let's say. Xavier, maybe.

Answer
Unknown Executive (Executives)

No. On the comparison with others, I m not do the comparison because it would be, I would say, inelegant on them, to understand what I'm thinking to fund. But the issue is not one. What I really want to say is, first of all, we are not presenting you something which is static. We are not saying those are our commitments. And then bye-bye, we'll come back in 2029 or in 2030, and we will see. In fact, as we are trying to demonstrate to you, we are engaged in the process. And we have even the fact that this process is complex, is difficult. Why is it complex and difficult because we like data. In some cases, we like methodology. -- we lack -- there are a lot of uncertainties on technologies. In cement, for example, some of our clients are not yet completely aware on the way they will themselves act in order to meet the targets, et cetera, et cetera. So it's work on process. And the only thing we want to communicate to you is not that we are the best at the highest level, and we stop, but rather that we engage into a long-term process which is progressive. We will cover next year, 5 new sectors. And you can imagine the intensity of work, which is needed, and I take -- you offer me the opportunity to thank very much all the teams in our bank, which have spent a lot of time, a lot of effort in order precisely to go through all these elements.

And we will progressively improve the data, the methodology and cover a broader range of sectors. So again, what we want to communicate to you is not that we are the best statically, but at least that we are the most serious in a long-term process in which there is a clear direction, and this direction is to produce more -- well, to favor the production of more green energy and progressively reduce our carbon footprint. And that's, in my view, is a key message. Another remark, which is maybe not politically correct, some of the banks today which have made some commitments in the past. Some withdrawing the commitments they have done and they are going the reaction. So you have to only -- not only to measure the progress we are doing but also, well, the retractation from others. Thank you.

Answer
Clotilde L'Angevin (Executives)

Pierre Chedeville from CM-CIC.

Question
Pierre Chedeville (Analysts)

Just my question is a perfect follow-up about what -- because when we look at -- I'm not a specialist of climate change, of course, but we understand that globally, there is a direct correlation between GDP growth and energy consumption. And we also know that fuel will not be replaced by renewable in a short time, actually. So my question is, a, if all banks in the in the world where as we use as you are as you want to be, wouldn't be -- can you imagine what could be the impact on the worldwide GDP growth at the end of the day? And I was thinking about Mr. [indiscernible], who recently said in a public conference with the turn of humor. Well, when a French bank leaves my office saying he will not go -- it m not going to finance any more my extraction project. I don't care because the day after, I have 5 Japanese banks and 5 American banks. So it's not a problem for me. So -- from a global point of view, of course, you can be proud of your targets. And it's, of course, very virtuous. But first of all, can you measure the impact that it can have on the growth because at the end of the day, if you listen to [indiscernible], et cetera, if you move very fast, on decreasing fossil energy, you will have necessarily an impact on GDP growth. And when I'm listening all the banks with all their objectives, I think that they are thinking about attractively in abstraction. The all decreased fuel had a very good pace, but no impact on growth. And it's like -- it's a little bit like IFRS 7. It will change but no impact. And my second question is more micro.

And my second question, and I have another question. I had a conversation with Jacques Ripoll last year or your last Investor Day, and I was a little bit surprised compared to what said Philippe Brassac because Jacques Ripoll told me the exact contrary, you said, I don't have a lack of projects. I have too many projects to finance. And he said my problem is that I don't have the team to address all these projects, and I know you have ambitions on that. And I would like to have a little bit more color regarding your agenda on recruitment in terms of teams, in terms of calendar, expertise, what do you want in what expertise do you want to invest regarding these projects? in the [indiscernible] until 2025, for instance.

Answer
Unknown Executive (Executives)

No. Thank you very much for these questions. I think that Daniel wants to answer the second one. I don't know this is Mr. Ripoll, who he -- really. No, that's a is a friend, obviously. And we have very good memories of his participation to Crédit Agricole.

On the first question, you allow me to make maybe 2 remarks. The first thing is that we are financing Total. We m continue to finance Total. We have no difficulty in doing that. First of all, that has to be very clear. Second, what we're trying to do is not to say to Total, we'll stop having any relation with you. but rather through notably what we have said, the fact that we m finance in the investment, Total and the likes, we will finance 80% of projects which are turn towards electricity and gas. What we're saying is that those companies will have to evolve and in fact, evolves in the direction of having more gas, more electricity, less oil. And that's precisely the strategy, which is applied by our friend from Total. So I don't see any contradiction between what we're saying and what Patrick [indiscernible] is doing. The second thing is that -- you asked me -- well, to a certain extent, you are putting into question the appropriateness of our approach in a global context and whether it will support growth, et cetera, et cetera. Well, I am fundamentally a democrat and we are all democrat. We're listening what our political masters are telling us. What are they telling us? And what we are doing here is just trying to align the strategy of the bank with what the French government and more globally, Europe is telling us.

And not only them, but other governments are taking the same direction. So I am not here and we do not consulate would be appropriate for us to say the governments, the EU, the whole society is willing us to go in one direction. I m not respect that. I will go in the opposite direction. Maybe some other banks will do that. but we are considering that our role is to be in accordance with society with the general spirit, which is in the society at the moment. And therefore, we are trying to align our policies with these social requirements.

Question
Pierre Chedeville (Analysts)

Maybe [indiscernible] -- that will m have an impact on the stock price.

Answer
Xavier Musca (Executives)

But we are considering, and that's maybe the most important part -- in fact, we are not -- you are looking at the issue only if you allow me, on the punitive and [indiscernible] parts. We have exactly the opposite view. We do consider that what is happening today with the era in the U.S. with the Green Energy plants in the EU is a unique opportunity for a bank like [indiscernible] because what are we good at? We are good at financing infrastructure, and there is a tremendous need for infrastructure. We are good at financing energy, all what we think about is a revolution in the energy sector. So CACIB is talking about CACIB, but we could say the [indiscernible] or Crédit Agricole. CACIB was historically -- is historically excellent in financing energy. Energy sector is changing. What should we say?

We'll stay with the old bird? Or should we say we are very proud and very hungry to go towards the new world and to make money with it. I think that for our shareholders, it's a good new. It's a good -- and I think that Daniel will tell you, Nicolas, that we are not embarrassed with opportunities of financing projects, et cetera, et cetera.

Question
Pierre Chedeville (Analysts)

Maybe one last point on this question. As Eric said when he presented the global methodology that we are following, actually, all the trajectories that we've provided for each sector is aligned with the official AIE -- IEA, okay. You got scenario, which means that this is compatible with a scenario in which the growth is kept positive, whilst the global warming is maintained at 1.5 degrees. So of course, you can believe or not this scenario. But I think this is the best available scenario that we could use, and we are absolutely coherent with this scenario. Maybe on the team issue, is that Daniel, go ahead.

Answer
DANIELLE BARON (Executives)

So look, again, in my spirit earlier being perfectly transparent when we started looking at these trajectories at first, I had a little bit of a okay? And then we started building up bottom up. What we have in our portfolio, what we are targeting. And then you start looking at policies going out in Europe. You look at the inflation reduction act. You look at the price of electrolyzers or batteries, and you start to build a picture where you can, in fact, see -- or the falling cost of offshore wind, for example, which has been a huge market for us. We are not lacking in projects. I do think historically, France has been a very competitive market, and we have been #1 in France.

So I think speaking to Philippe's comment is that -- this has been a very competitive market right here, our home market. And obviously, we are very big in France. So that's fair enough. But I do think that the policies that are changing, we're finally doing our first offshore wind deals in France as well, is going to lead to an acceleration, and I'm feeling quite confident because we're #1 that we'll be able to maintain that position here but also that we're going to be able to grow significantly overseas in this sector where we already have a very well-established presence. So we have power professionals in 13 countries. And they are long in the tooth experienced in the energy sector exactly Xavier was saying, and we have been growing our teams.

So they have expanded recently. We are continuing to invest in them in the MTP. This has been taken into account. And we are beefing up everywhere in France, of course, but also, as I said in fact in my presentation in London and New York and in Asia. So I'm fairly confident that we have a lot of opportunities. And I think that also our history in oil and gas is going to give us a leg up as well in the green molecule revolution, which we've invested in as well. So we were one of the first banks to focus on hydrogen. We have several advisory mandates today. You don't see the results of those yet because they're advisory, and we have yet to bring financing because it's a brand-new sector.

But I think it's a very good example of the dynamic nature of our teams of what we're investing in and the bank is backing us in terms of those investments. So I'm feeling quite confident, Xavier is smiling at me, I think, because he did say that Americans tend to be quite confident in this is perhaps proof positive. But I do believe in the teams, and I believe in our ability to deliver this.

Answer
Eric Campos (Executives)

Thank you, [indiscernible]. And I think that both LCL, CACF and CALF and the other financing entities of the group, which are involved in this presentation could exactly state the same thing.

Answer
Clotilde L'Angevin (Executives)

We have more than 300 people who are virtually here, but we don't have 300 questions. We only have 10 minutes left. So I'm going to select a few questions. One, in particular, can you elaborate on your commitment in favor of electric mobility supply chain, in particular, regarding the role of the bank in the battery supply chain. We had about that just previously maybe for the maybe for [indiscernible].

Answer
Unknown Executive (Executives)

Okay. So the question is more about batteries than on the Sorry.

Answer
Clotilde L'Angevin (Executives)

Yes.

Answer
Unknown Executive (Executives)

So our first commitment, of course, is to deliver more and to finance much more, many more electric cars, okay? In terms of battery financing, we are going to, of course, to support as much as we can the supply chain, when needed, there are a lot of projects that are currently implemented in France. And we play our role as a banker to support these projects if needed. I speak about the projects, for example, developed by Stellantis or by Renault, and we will play just a role of bankers if we need to. But our commitment today is really focused on what is complex and what is complex is to sell and to finance more electrified vehicles on the market. And it's really the point where we are pushing at the moment.

Answer
Clotilde L'Angevin (Executives)

There's another question, maybe 2 together. How is Crédit Agricole's climate strategy and progress overseen by the senior management, the Board or other executive management members? And there's another related question, which is -- but we've talked about it a little bit already. Will we report regularly on our progress towards our climate strategy and what would be the platform for this reporting.

Answer
Unknown Executive (Executives)

But I think the commitment of Philippe himself, who introduced the meeting plus Xavier, Olivier and myself here attending the meeting and actually overseeing the preparation since many, many months of this workshop is illustrating the fact that the general management and the governance of the group is fully involved. So I think it's not really useful to elaborate more on that one. When it comes to the reporting, actually, we're now committed to report regularly on the advancement of those trajectories. So m have different opportunities. But I can tell you that on a yearly basis, at least, we'll be able to give you an update on where we stand with regards to old commitments. And as I said, and I think that Daniel also talked about it, talked about it, we m also have to update you on the evolution of the methodologies that we follow.

Answer
Unknown Executive (Executives)

Yes. If I can add something we will report on the nonfinancial performance report on a yearly basis, and it m be certified.

Answer
Eric Campos (Executives)

Yes, in the universal registration document and the extra financial performance declaration every year. Look at it it's 80 pages, it's great.

Answer
Unknown Executive (Executives)

Another question also from Sustainalytics. How does Crédit Agricole consider the social perspective while working on its climate strategy to ensure a just transition. I think that we have proved some examples such as the ones I mentioned on the rural area for electrification of car. On -- regarding the houses, so we m have an approach, we m be -- I mean it m be very inclusive. So of course, it's part of the game and -- when we talked about transition, I mean we don't have to be too harsh on the transition.

So it's very progressive. And for instance, we have a lot of action on the I would say, on the specific zone of friends, for instance, when we issue social bond, we cover specific areas which has been identified because they are above the unemployment rate of France, and we have specific action in order to try to -- I mean, I mean, to be as equal as we can in terms of offer, in terms of services and the affordability of the product of Crédit Agricole when Philippe Brassac talked about universality to be universal, natively universal means that for all the services that we offer, we try to cover all these affordability from the client perspective. So it's native in the business of Crédit Agricole.

And maybe one last question regarding nuclear energy. Is it considered transitional energy or green energy for you? And can you maybe give a few words on what your policy is for investment in nuclear energy.

Answer
Eric Campos (Executives)

I think Philippe Brassac addressed this issue in his initial presentation because he stated that we were the first bank to publicly claim that we had granted a very significant financing to DF in order to help the [indiscernible], which is the renovation of the nuclear plants in France. So clearly, we consider and -- we're not the only one. It's part of the taxonomy alignment. We consider that nuclear is an energy, which is not renewable strictly speaking. It's absolutely green and no not emitting any CO2. So it's definitely an emission. An energy that is very important in the new mix that is going to take place going forward. So clearly, no doubt about that.

Answer
Unknown Executive (Executives)

It was the last question. It is excellent that is the last question because what does it mean Net Zero 2050. So we have to have a look on the hypothesis of the 2050 scenario, the 2050 scenario which is the scenario we follow. The nuclear is part of the game of the green game. So we do have 2 energies increasing. Very -- I mean, with a huge pace of increase, it's renewable energy. I encourage you to have a look on that, and the slightly increased up to 16%, if I may, if I remember well, is the nuclear energy.

So nuclear energy is part of the green game. Regarding the gas, the gas is the fossil energy, but the usage of the gas could be considered as a technology as a transition power.

Answer
Eric Campos (Executives)

So this was the last question, and that's the last answer. Thanks to everyone of you for participating on this -- to this workshop. And I think we are going to talk again about these issues going forward. Thanks a lot.

Answer
Clotilde L'Angevin (Executives)

Thank you, gentlemen.

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