Environmental strategy

The energy crisis of 2021 as well as the global energy mix² that was still 80% based on fossil fuels reminds us to what extent our economies are dependent on these energies. While it is necessary to end fossil fuels, energy must, however, remain accessible to all in order to avoid a social shock and thus reach a just transition. The massive development of low-carbon energies is becoming the indispensable counterpart to disinvestment from the fossil fuel sector.

Finance the low-carbon energy sector

At the end of 2024, financing of low-carbon energies³ by Crédit Agricole amounted to €26.3 billion, an increase of +141% over 2020. Over the same period, financing related to the extraction of fossil fuels fell by -40%.

To develop low-carbon energy, the Group is developing various sustainable financing solutions such as earmarked loans intended to finance projects on environmental themes, or financing indexed to the ESG performance for corporates (Sustainability-Linked Loans). In addition, Crédit Agricole S.A. implemented a Green Bond Framework in 2019 (updated in 2023), serving as a common framework for all Group entities, for their issues of Green Bonds and Green Notes.

Crédit Agricole Transitions & Énergies (Transitions & Energies) finances renewable energy and energy efficiency projects in connection with the Group banks. From 2020 to 2030, the ambition of Crédit Agricole Transitions & Énergies (Transitions & Energies) is to mobilise €19 billion in renewable energy financing provided by Crédit Agricole Group entities in France.

LCL totals €312.2 billion in outstanding loans devoted to financing renewable energy at the end of 2024. Moreover, LCL structures and arranges “impact financing” for its SME and MSE customers, broken down into targeted financing (green and social bonds) and indexed financing (sustainable loans). LCL has made a commitment to reach more than 50% impact financing in the production of corporate loans by 2025.

Crédit Agricole CIB has €17.2 billion in outstanding green loans for renewable energy projects, low-carbon assets, transition projects in various sectors and energy efficiency projects. Crédit Agricole CIB is committed to raising its exposure to low-carbon energy by +80% (upwards revision of the +60% target announced in the Medium-Term Plan) by 2025, particularly in the areas of “green” hydrogen and offshore wind.

Invest in low-carbon energy

At year-end 2024, investments in low-carbon energy represented €6 billion, an increase of +166% over 2020³.

Asset management, institutional investments and customer savings form the core of Crédit Agricole’s low-carbon energy investment plan. They permit the financing of infrastructures and the engagement of individual and corporate customers in projects that contribute to the climate transition.

Crédit Agricole Assurances, a leader in institutional investments, emphasises its goal to be a major player in the energy transition, particularly with continued investments in renewable energy (EnR). In 2024, Crédit Agricole Assurances thus contributed to the financing of installed capacity of 14 GW in EnR via investments and thus achieved its 2025 target one year early. Moreover, since September 2024, Crédit Agricole Assurances has committed to ending investment in new oil and gas infrastructures, and to encouraging operators in the sector to set decarbonisation targets compatible with the scenarios at 1.5°C.

Amundi is accelerating the development of its “Net Zero Ambition” offering with the launch of new investment funds to guide savings towards investment solutions capable of supporting the climate transition of issuers, while offering its customers the means to bring their portfolios in line with their own climate commitments. Its target is to reach €20 billion of assets in impact funds and to have 40% of its ETF range composed of ESG funds. In addition, Amundi enlisted an additional 1,478 corporates at year-end 2024 (compared with 2021) on climate issues: the ESG analysis explicitly requests the publication of a detailed climate strategy based on precise indicators and containing targets for each scope of carbon emissions, as well as the corresponding investment plans.

Responsible savings products that include a climate theme are offered as part of a “Committed and Responsible” range of investment solutions for Retail Banking customers in France. Depending on the case, these products are eligible for life insurance policies, equity savings plans and/or ordinary securities accounts. The Regional Banks also offer their shareholding customers a Livret Engagé Sociétaire account, introduced in October 2022, which allows for investment in sustainable projects, notably for decarbonisation of the property inventory (new housing corresponding to Regulations RT2012 and RE2020, financing of interest-free eco-PTZ loans) and to be informed of the projects supported by their savings.

Become the energy provider of the regions

Formed in 2022, the ambition of Crédit Agricole Transitions & Énergies (Transitions & Energies) is to contribute to the expansion of new renewable energy (EnR) production capacities and promote direct consumption in the heart of the regions.

With the development of wind and solar energy sources, the model is becoming decentralised through a multitude of small renewable energy producers, creating a new ecosystem supported by various actions designed to:

• Support developers in their need for equity to finance this growth.
• Reinforce the asset financing mechanism in the service of renewable energy producers.
• Contribute directly to the emergence of production assets with the target of holding 2 GW in renewable energy assets.
• Provide an operational solution to supply decarbonated energy that gives priority to renewable energy in the total supply to consumers through the Selfee offering.

¹ “Energy mix” refers to the distribution of the different sources of primary energy used to meet the needs of a given region for electricity productions, but also for transport or production of heat or cold, both for industry and for individuals.
² Outstanding loans linked to low-carbon energy comprising renewable energy sources produced by the customers of all Crédit Agricole Group entities, including loans linked to nuclear energy in the case of Crédit Agricole CIB.
³ Assets of Crédit Agricole Assurances (listed investments managed directly, listed investments managed under mandate and unlisted investments managed directly) and of Amundi Transition Énergétique.

This component of our transition plan is the most ambitious: supporting all our customers – individuals, professionals, corporates, farmers and local authorities – at different stages of their transition pathway towards a sustainable economy, with low-carbon solutions, and supporting society through its transitions.

Interim targets and action plans for the 10 sectors:

To carefully monitor its contribution to the decarbonisation of the economy, Crédit Agricole published its strategy for contributing to carbon neutrality in 2050 on the financing activities through a selection of ten activity sectors representing more than 75% of global greenhouse gas emissions and around 60% of the Group’s amounts outstanding.

In 2022, the Group made a commitment on reduction targets for 2030 in five sectors and announced the end of financing for new oil extraction projects. Then, in 2023, it extended its action to five other key sectors of the economy and announced the end of financing for new gas extraction projects. Finally, in 2024, Crédit Agricole pledged to no longer accept bond advisory mandates from companies involved in fossil fuel exploration and production, except for green bonds or sustainability-linked bonds.

¹ The Group revised this interim 2030 target upwards, from -30% at the end of 2022, and exceeded it in 2023, eight years in advance.
² The variations in the 2020 baseline (24.3 MtCO₂e versus 26.9 MtCO₂e announced in 2022) are explained by the improvement in the data collected as a result of work conducted in 2023.
³ Revenue-Tonne-Kilometre i.e. paid tonne transported/kilometre. 2019 baselines selected to neutralise the effects of the Covid-19 crisis on air traffic.
⁴ Figure at year-end 2023.
⁵ Dead Weight Tonnage by nautical mile i.e. the maximum tonnage that a ship can transport per nautical mile.

These targets and commitments are the subject of collective action to integrate them at the centre of our activities:

• in our offerings: drive the expansion of our services and expertise;
• in our processes: manage carbon as a scarce resource, factored into our budgetary processes, our risk policies and our lending decisions;
• in our reporting: communicating transparently each year on the progress of our decarbonisation pathways.

Solutions to promote energy renovation and renewable energy

For individual customers, the processes designed to finance and support energy efficiency projects address the problem of climate change mitigation first. They also cover adaptation to the effects of climate change, such as higher temperatures, by reinforcing housing insulation.

Crédit Agricole reinforces its actions to raise awareness and provide advice through the formation of the customer advice business lines in particular, and by its range of dedicated offerings. The Regional Banks are heavily involved in their local communities, and are focused being a player committed to taking on local challenges.

Energy renovation via an all-in-one platform

“J’écorénove mon logement” and “Ecorenov’LCL”: Crédit Agricole Transitions & Énergies (Transitions & Energies) offers Regional Banks and LCL an online platform and a range of services to inform, guide, and enable their individual customers’ projects. Open to prospective customers and customers, this service allows them to identify the work to be performed first, estimate the cost, grants and financing needs and to find tradesperson. The advisor then takes the reins, proposing the Group’s various financing offerings.

For its Italian customers, Agos, a subsidiary of Crédit Agricole Personal Finance & Mobility, offers the “Green BEES” digital platform to assess the potential benefits of energy renovation work, including tax deductions, energy savings and the associated reductions in emissions. The platform also offers personalised financing solutions.

Financing offerings for energy improvement work

In France, Crédit Agricole is the leading distributor of eco-PTZs, with a market share of 37.5% as at the end of September 2024. The interest-free eco-loan (eco-PTZ) is a zero-rate loan subsidised by the French government to finance energy improvements on residential properties in accordance with a list prepared by the public authorities. In addition to its efforts to highlight the different formulas of the regulated loan, Retail Banking in France, in late 2024, set up the complementary eco-PTZ that allows customers who have already benefited from an eco-PTZ, but who have not used the full entitlement, to request the additional amount for other work.

Crédit Agricole is developing a wider and clearer range of loans related to the transition: the aim is to propose an alternative to customers who are not eligible for the eco-PTZ or who wish an additional amount to finance all types of energy renovation projects or the purchase of energy transition equipment.

Crédit Agricole Personal Finance & Mobility launched an “Éco-rénovons” range of offerings and services on the French market in order to support the national housing renovation challenges by working alongside professionals in the housing sector and their customers.

Assistance in the climate transition of SMEs and corporate customers

For this customer segment, Crédit Agricole has established a CSR commercial process. Within this framework, an “ESG Interview Guide” serves the goal of initiating the strategic dialogue from the viewpoint of the transitions, identifying the levers to assist customers in the Corporate, local Communities and social housing markets. Among other initiatives:

At the end of 2024, at the Regional Banks, a “Pro Transition Interview Guide” was made available to advisors. This guide is designed to assess the CSR maturity of customers through a number of questions. The answers are taken into account when granting loans, with an additional question related to the financed project. In addition, the targeted transition loan offering that exists in the market for corporates is now offered for SMEs, as of 2025.

In 2024, Crédit Agricole Transitions & Énergies (Transitions & Energies) and its strategic partner R3, in which it is a major shareholder, launched consulting and solution offerings in the three main transition areas: CSR, decarbonisation and energy performance. Intended for MSE-SME and large corporates, the offerings allow end-to-end assistance in line with the degree of maturity of the company, from diagnosis to strategy development and implementation. Its ambition is to encourage corporates to transform themselves, by developing concrete solutions to help them act effectively and sustainably.

“LCL SmartBusiness” supports the climate transition of entrepreneurs and SME customers, by relying on various specialised partners, ranging from advisory services to the implementation and management of solutions to support these customers in their energy transition. Environmental investments are also offered in the LCL Trésorerie Pro range.

Solutions promoting low-carbon mobility

The Group’s businesses lines are developing a range of products and services to promote low-carbon mobility.

Retail banking in France offers more advantageous rates than the standard scale for the purchase of vehicles emitting less than 50 g of CO₂/km, bicycles and MPDS (motorised personal mobility devices) and recharging stations. The retail banking networks in France also offer insurance policies that encourage the purchase of electric vehicles, car-sharing and drivers with low annual mileage.

Crédit Agricole Personal Finance & Mobility (CAPFM) has set itself the global target of financing one in two new vehicles with a hybrid or electric engine, and one in three new vehicles with a 100% electric engine by 2025.

To support this ambition:

• Its specialised brand Agilauto delivers turnkey mobility solutions to Retail Banking’s individual, SME and corporate customers in France, through rentals with a purchase option and long-term car rental offerings. Agilauto has also launched a rental-to-purchase offering starting at €99 a month for new vehicles or those less than five years old, as part of the system introduced by the French government in early 2024.
• CAPFM is developing partnerships with electric vehicle makers: CA Auto Bank with Lucid in Germany, the Netherlands and Switzerland, and with Dongfeng in Italy. Still with regard to electric vehicles, this entity also established a new partnership with BYD in Spain, and is preparing to expand its partnership with Tesla to ten countries. Creditplus, the German subsidiary of CAPFM enhanced its electric mobility offering with Herkules Motor and Horwin. Finally, in China, GAC Sofinco, a CAPFM joint-venture with GAC Motor, China’s fourth largest auto manufacturer, financed 30% of new electric vehicles in 2024.

This third component of our transition plan stems from the first two: it is the phasing-out of fossil fuel financing, which we are monitoring both in terms of financing granted and financed emissions (our customers’ CO₂ emissions).

To achieve this, we have adopted an industry pathway – regularly updated in the light of scientific studies – which targets a -75% reduction in emissions financed between 2020 and 2030, i.e. twice as quickly as the International Energy Agency’s Net Zero 2050 scenario. This policy requires a selective approach to be taken for energy companies, focusing on support for our customers engaged in the transition and essentially supporting low-carbon diversification.

We have also stopped financing any new fossil fuel extraction projects.

Monitoring the energy mix of Crédit Agricole Group between 2020 and 2024

Targets monitored by Crédit Agricole S.A. for several years

• June 2019: roll-out by the Group of its climate strategy aimed at gradually reallocating its financing and investment portfolios in line with the temperature targets of the 2015 Paris Agreement, and commitment to a phase-out of thermal coal by 2030 and 2040, depending on the country.
• From 2020: implementation of the climate policy in sector thermal coal policies within the entities, continued financing of renewable energy and acceleration of responsible investment policies.
• In 2021: commitment made by the Group to help achieve carbon neutrality by 2050 by joining the four Net Zero initiatives for the financial sector.
• 2022 and 2023, strong acceleration of the climate strategy: launch of Crédit Agricole Transitions & Énergies (Transitions & Energies), decarbonisation commitments made for eight sector financing portfolios by 2030 in order to contribute to carbon neutrality by 2050.
• 2024: end of the support of conventional obligations emissions by corporates operating in the extraction and production of oil and gas, and a new commitment of Crédit Agricole Assurances: 50% reduction in the carbon footprint (in equivalent tonnes of CO₂/€M invested) of the investment portfolio of listed stocks and bonds and direct real estate between 2019 and 2029 (vs -25% announced in 2022).

The loss of biodiversity is the other great challenge facing humanity. According to a study of 163 sectors by the World Economic Forum, one-half of global GDP (US$44,000 billion), is moderately or highly dependent on nature and its ecosystem services. Now, 75% of land ecosystems and 66% of marine ecosystems are severely degraded. Financial institutions have an essential role to play according to the United Nations Convention on Biological Diversity (CBD, 1992). Taking action in support of nature and biodiversity is therefore essential to Crédit Agricole’s environmental strategy.

Statement on biodiversity and natural capital

Published in 2023, this first statement confirms the approach of Crédit Agricole S.A. to biodiversity and natural capital based on scientific work. It identifies five priorities to address this significant issue.

1. Assess the material impacts and risks related to the loss of nature on our activities: Crédit Agricole S.A. has undertaken to define potential indicators, tools and methods related to biodiversity and natural capital.
2. Integrate nature and biodiversity criteria into sector-specific policies: at the level of financing and investment portfolios.
3. Mobilise financial resources for activities that benefit nature: Crédit Agricole S.A. acts through its financing, investment and insurance products. The Group also promotes projects to raise awareness of biodiversity among its employees and support its customers.
4. Support collective actions to counter the decline in nature and ecosystem services: Crédit Agricole S.A. works with national and international coalitions to better understand the impacts and risks of the degradation of nature and biodiversity. It also seeks to better understand the opportunities to contribute to its protection, conservation and restoration.
   In 2023, Crédit Agricole S.A. became co-chair of the Principles for Responsible Banking (PRB) Nature Target Setting Working Group of the United Nations Environment Programme Finance Initiative (UNEP FI). This working group brings together 36 banks worldwide. Its main aim is to develop an initial guide of recommended targets for banks that is aligned with the Kunming-Montreal Global Biodiversity Framework.
5. Reduce our operating footprint and promote biodiversity: Crédit Agricole S.A. is tackling its potential direct footprint on biodiversity and natural capital by protecting and promoting biodiversity on its campuses.

Strengthen our sector-specific policy on deforestation

Crédit Agricole S.A. publishes its sector-specific CSR policy on deforestation, an initiative to promote biodiversity and natural capital. Approved by the Board of Directors in October and published in December 2024, along with its Application Guide for Group entities, it is intended to guide their financing and investments in order to engage and support our customers whose activity is at risk from deforestation.

A faithful reflection of the most proactive regulations in this area, this ambitious and proactive policy sets the Group apart through the number of commodities covered, its broad scope, and the possibility of setting an early target date for implementation for the most at-risk counterparties.

Aware of the impact on the environment of its own operations, Crédit Agricole is continuing its efforts to reduce the greenhouse gases associated with its operations. Its main areas of action are: energy consumption, operation of buildings, sustainable IT, and business travel.

Target for 2030: 100% renewable electricity on all French and international sites

In the operation of the buildings, energy-saving actions reduced the greenhouse gas emissions of Crédit Agricole S.A. by 69,000 tCO₂eq between 2019 and 2024, corresponding to an investment of more than €20 million in 2024 for the Evergreen and SQYPark campuses. Energy-efficiency renovation for the buildings is planned on these two campuses in the Ile de France region between 2025 and 2027, representing an investment of nearly €60 million.

The Group deploys sustainable IT through energy optimisation in the operations of the data centres and a reduction in the carbon footprint of the information systems. Environmental accounting (GreenPact) was established to manage the low-carbon transformation of the Group’s information systems by coupling the approaches of sobriety and eco-efficiency, the promotion of best practices and the end-of-life management of IT equipment.

In business travel, the Group’s business travel policy limits the use of aircraft to flights longer than four hours. The fleet of operational and service vehicles is electrified and charging stations are installed on the site for employees. Between 2019 and 2024, these actions reduced Crédit Agricole S.A.’s greenhouse gas emissions from business travel by 26,000 tCO₂eq.