07 January 2018
To our stakeholders:

I am pleased to confirm that Societe Generale reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Richad Soundardjee
Chief Executive Officer – Middle East

The Group is committed to maintaining and improving the systems and processes that enable it to ensure that human rights are respected in its operations and its human resources management, in its supply chain, and in its products and services.
Societe Generale’s commitments to human rights are guided by the following conventions, standards and initiatives:
■ the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenant on
Economic, Social and Cultural Rights;
■ the Fundamental Conventions of the International Labour Organization (ILO), which cover, in particular, the elimination of forced labour and child labour, discrimination in employment as well as the freedom of association and the effective recognition of the right to collective bargaining;
■ the United Nations Guiding Principles on Business and Human Rights;
■ OECD Guidelines for Multinational Enterprises;
■ the United Nations Global Compact.

In June 2015, Societe Generale and the UNI Global Union signed a global agreement on fundamental human rights and the freedom of association, thereby making Societe Generale the first French bank to sign such an agreement. This agreement applies to all Group entities. It reinforces the commitments made in Societe Generale’s Code of Conduct to respect human rights and recognise fundamental rights in the workplace by making sure employment and working conditions are fair, adopting a zero discrimination policy for work relationships, and complying with all health
and safety regulations. Furthermore, the Group’s commitment to non-discrimination was demonstrated in practical terms in 2016 with the signing of two
international charters:
■ the Women’s Empowerment Principles, under the aegis of the United Nations Global Compact, promoting gender quality at work, both within the company and in its sphere of influence
■ the Global Business and Disability Charter, under the aegis of the International Labour Organization, promoting the inclusion of persons with disabilities in the world of work

Women and Gender Equality

At the Group level, Societe Generale supports the women’s and mixed networks formed within the company that actively and independently help promote gender balance. These networks have more than 2,400 members worldwide,

As at 31 December 2016 the Board of Director is composed of seven women and six men, i.e. 53.88% female or 45.5% excluding the two directors representing the employees in accordance with the provisions of the law of 27 January 2011.
The recruitment and talent attraction policy is adapted to the characteristics of each business line and activity and to the specific regional environment.

In terms of diversity, the Group has made it a priority to promote women and international profiles to positions of responsibility and seats within the Bank’s management bodies. This strategy has been adapted for the different entities, with each one implementing
appropriate action plans to help the Group achieve its goals. A Diversity Board, composed of Executive Committee and Management Committee members, monitors progress on this issue.
Some HR processes are key drivers of progress in gender balance and internationalisation, including:
■ succession plans (see page 46 Group CSR report attached ) that include women and international profiles;
■ diverse Strategic Talent profiles (see page 46 Group CSR report attached): currently 40% are women and 40% international (non-French).
In addition to these priorities, Societe Generale is committed to other aspects of diversity, such as inter-generationality, social inclusion and disability.
A variety of initiatives are implemented locally, depending on the challenges and regulations in the different countries and core businesses (see also Fighting discrimination and promoting diversity, p. 266 of the CSR report attached)).
Development initiatives are under way in various Group scopes, such as the Women in Leadership (WILL) development course designed for female Strategic Talent, participation in inter-company events (JUMP forum, EVE programme), awareness initiatives and training and mentoring programmes at various subsidiaries and branches

such as UAE with :
• December 2016 : Partnership with Dubai Women Business Council to support the business women community and female entrepreneurs of Dubai (training/events/conferences)
• March 2017 – Key panellists at Best Practices Forum at Dubai Chamber of Commerce
Forum to showcase the success stories of Private and Public Sectors within the region focussed on the specific theme of Gender Parity and Diversity and Inclusion.
• April 2017 Societe Generale invited to participate to the National dialogue at King Faisal Center in Riyadh KSA on women issue . Societe Generale to advocate the WEPs.
• April 17 Key panelists at PE FORUM 2017 Panel “Equal Opportunities for Women in Finance”
• May 17 Key panellists at UNGC 2nd anniversary - Panel Women Empowerment Principles.
Hosted by Dubai Land Department conference for the second anniversary of the United Nations Global Compact Network UAE.
• Juin 17 - CSR action for women in Dubai
Societe Generale Middle East Donates Supplies to a Ladies Labour Camp-
Through this initiative, Societe Generale helped them maintaining their dignity and improve their assimilation in the wider community by raising awareness and increasing the adoption of good hygiene.
• September 2017 Launch of “THE CIRCLE” Financial Literacy Program by Societe Generale Dubai for Women at Dubai chamber of commerce ( with DBWC)
Experts at the bank shared their knowledge about economy and finance in order to support women in their understanding of the regional economy dynamics, but also in their business. The audience was made up of women, individuals and entrepreneurs members of the DBWC: http://www.cpifinancial.net/news/post/42767/societe-generale-middle-east-launches-financial-literacy-club-for-women
• October 2017 Key panellist at Women SME conference 2017
Round table by SG : the importance of the Financial Literacy
• October 2017 – conference By Societe Generale and the French Business Council to promote the WEPs in the French community. “How can Women Empowerment Principles (WEPs) greatly contribute to your business success”
With the participation of High senior management form Socite Generale Paris Sylvie PREA, Director of Corporate Social Responsibility (CSR) Société Générale Group And Anne-Catherine ROPERS, Head of HR for Global Banking & Investor Solutions, Société Générale Group

• HR Policy on Maternity leave: From 65 days half full paid/half paid TO 65 day full paid + the possibility to extend for 3 months unpaid .

The Group is committed to maintaining and improving the systems and processes that enable it to ensure that human rights are respected in its operations and its human resources management, in its supply chain, and in its products and services.
Societe Generale’s commitments to human rights are guided by the following conventions, standards and initiatives:
■ the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights and the International Covenant on
Economic, Social and Cultural Rights;
■ the Fundamental Conventions of the International Labour Organization (ILO), which cover, in particular, the elimination of forced labour and child labour, discrimination in employment as well as the freedom of association and the effective recognition of the right to collective bargaining;
■ the United Nations Guiding Principles on Business and Human Rights;
■ OECD Guidelines for Multinational Enterprises;
■ the United Nations Global Compact.

FIGHTING DISCRIMINATION AND PROMOTING DIVERSITY
The Group’s diversity policy aims to fight against preconceptions and to create a culture of inclusion (see p. 51, Promoting team diversity).
Guarding against discrimination during recruitment, in particular, is one of the points that have been subject to continuous monitoring within the Group since 2013. To this end, sample checks are carried out to verify that job advertisements do not contain any discriminatory terms, that candidates are assessed on the basis of objective criteria that are commensurate with the position to be filled and that rejection letters do not contain any discriminatory terms.
HEALTH, SAFETY AND WORKING CONDITIONS
The Group continually monitors the possibility of any risks liable to affect the health and safety of its staff, throughout the world. It conducts campaigns and takes action at the hyper-local level to offer practical responses to the needs and concerns of the populations affected. Particular attention is paid to the prevention of psycho social risks (see p. 50, Focus on the prevention of psycho-social risks) and, more generally, to working conditions via the Life at Work programme (see p. 49, Caring about employees' wellbeing at work)

In the 2016 financial year, the Group’s recruitment broke down as follows:
■ 16,283 permanent contracts, including 56.9% women;
■ 10,458 fixed-term contracts, including 68.7% women.
■ In France, Societe Generale recruited:
■ 4,151 permanent contracts (of which 2,831 for Societe Generale SA in France);
■ 4,656 fixed-term contracts (including work-study contracts)
(as per CSR repport attached)

Societe Generale complies with the E&S laws and regulations in force in the countries in which it operates and with the applicable international E&S conventions and agreements.
Societe Generale also adopts and respects the values and principles enshrined in the following international conventions and agreements:
• the Universal Declaration of Human Rights and associated covenants (namely, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights);
• the main Conventions of the
• the UNESCO International Labour Organization;
Convention concerning the Protection of the World Cultural and Natural Heritage;
• the OECD Guidelines for Multinational Enterprises. Moreover, Societe Generale has adopted and supports the following voluntary best practice initiatives:
• the UNEP Finance Initiative;
• the Equator Principles.
Formalized in a Directive signed by the Chief Executive Officer and applicable to all activities, the E&S General Principles constitute a global framework based on the Group’s institutional commitments and its regulatory obligations.

In 2016 the Group reaffirmed its commitment to fighting climate change by establishing a climate strategy that is consistent with the international goal of limiting global warming to 2 °C.

The application of these principles is incorporated into the existing decision-making processes with regard to both knowing the client (Know Your Customer process-KYC) and transaction assessment, depending on the significance of the E&S risks.

In 2016 the Group reaffirmed its commitment to fighting climate change by establishing a climate strategy that is consistent with the international goal of limiting global warming to 2 °C.

The application of these principles is incorporated into the existing decision-making processes with regard to both knowing the client (Know Your Customer process-KYC) and transaction assessment, depending on the significance of the E&S risks.

A set of sector and cross-sector E&S policies supplements the E&S General Principles. They specify the standards that the Bank wishes to apply to sensitive sectors as well as to certain cross-sector issues. The E&S policies now cover 12 sectors in which the Group plays an active role :
Biodiversity / Palm Oil / Oil&Gas - Alternative liquid & Gaseous Fuel / Civil Nuclear Power / Shipping / Defense / Forestry & forest Products / Agriculture, Fisheries & food / Dams & Hydro-power / Thermal Power,Coal-fired power / Renewable energy Mining
(details available on https://www.societegenerale.com/en/measuring-our-performance/csr/responsible-finance )
In 2016, five sector policies were updated in order to implement the operational roll-out of the Bank’s commitments in terms of climate and energy transition.
It is important to note that the coal fire thermal power sector policy was updated in 2016 to reflect SG’s decision to stop all new financing for coal-fired thermal power plant.

In order to enable the implementation of these E&S commitments (E&S General Guidelines, sector policies and Equator Principles), the Group established several procedures defining the identification, assessment, and treatment of E&S impacts associated with transactions or clients to whom the Group provided financial services and aims to ensure that all the Group's entities implement the commitments taken in an integrated and coherent way. Compliance with these procedures helps minimize the reputation and credit risks related to Societe Generale’s E&S issues.
The E&S policies are public and accessible on the Group's website : https://www.societegenerale.com/en/measuring-our-performance/csr/responsible-finance

The Group also successfully launched its second positive impact bond in September 2016, in line with the 2015 Manifesto on Positive Impact Finance of the United Nations Environment Program. Societe Generale played a leading role in this latter initiative by identifying the environmental and social impacts of its activities and reducing them in compliance with international best practices.

Societe Generale is determined to act with integrity and in compliance with the applicable laws in all its activities. Several policies developed at the Group level include provisions that directly or indirectly uphold human rights. A notable example is the Code of Conduct (see p. 11, Code of Conduct), in which Societe Generale undertakes to respect human rights and to comply with the rules laid down by the ILO.
The same applies to policies and processes developed by Societe Generale in connection with its obligations to combat money laundering, terrorist financing and corruption.

Code of Conduct
The Group has adopted a set of strict guidelines and rules of conduct. The Code of Conduct, which was updated in 2016, is the cornerstone of professional ethics at Societe Generale. It promotes respect for human rights and the environment, the prevention of conflicts of interest and corruption, the fight against money laundering and the financing of terrorism, respect for market integrity,data protection, proper conduct with regard to gifts and invitations and responsible sourcing.
These rules go beyond the minimum statutory and regulatory requirements, especially in certain countries whose laws and regulations do not meet the Group’s high ethical standards. The Code of Conduct is available and applicable to all Group employees, irrespective of their level of responsibility, and to all managers. It also details the procedure for whistle-blowing in certain situations where this is appropriate, and reiterates the principle of protection for whistle-blowers. This Code of Conduct is available on the Group’s website: https://www.societegenerale.com/en/about-us/responsibility/compliance

Societe Generale has adopted policies and procedures governing compliance with national and international anti-money laundering standards. These policies and procedures apply to all branches and subsidiaries of the Societe Generale group throughout the world.