Crédit Mutuel

RATING

SECTOR

Banking

WEBSITE

CONTACT

Address: 88-90 rue Cardinet, 75017 Paris, France

Telephone: +33 1 44011010

Fax: +33 1 4401123

STOCK EXCHANGE

N/A

LISTING

  • Forbes World’s Best Banks 2021 – #667
  • Forbes World’s Best Employers 2020
  • BrandFinance Global Banking 500 (100) By Brand Finance 2021 – #55
  • BrandFinance Global Banking 500 (100) By Brand Finance 2020 – #57
  • BrandFinance Global Banking 500 (100) By Brand Finance 2019 – #63
  • BrandFinance Global Banking 500 (100) By Brand Finance 2018 – #60

EMPLOYEES

82,000

CHIEF SUSTAINABILITY OFFICER

This company does not report this information.

AWARDS

  • Top French bank. “The World’s Best Banks Award 2020” …
  • Best French banking group. for the 8th time.
  • First place. “Palmarès de l’image des banques” …
  • Bank of the year in France. (The Banker magazine – November 2019)
  • Best employer 2021. (Capital magazine – January 2021)
  • Global Compact : GC Advanced level. (November 2020)
 

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Crédit Mutuel

SECTIONS :  Sustainability Targets    Evaluation  •  Key Points  •  Overview

 

Company Activity

Crédit Mutuel is a French cooperative bank, with headquarters in Strasbourg, Alsace. Its slogan is “La banque qui appartient à ses clients, ça change tout!” (“A bank owned by its customers, that changes everything!”).

It is currently run by Nicolas Théry and has over 30 million customers. It is a member of the International Raiffeisen Union (IRU), which is an association of cooperatives based on the ideas of Friedrich Wilhelm Raiffeisen.

 

Company Sustainability Activity

Crédit Mutuel has been engaged in many societal, social, cooperative and environmental initiatives at the local level, particularly with the support of its customer-members.

A collaborative national approach involving the group’s various entities led to the drafting, since 2006, of a national CSR report and an assessment of greenhouse gas emissions.

 

Highlights

Crédit Mutuel fully adheres and defends the seven cooperative principles:

  • Voluntary membership open to all
  • Democratic power exercised by members
  • Economic participation of members
  • Autonomy and independence
  • Education, training and information
  • Cooperation between cooperatives
  • Commitment to the community

Targets

  • Identification and specific monitoring of coal stocks related to their 2020 commitments 
  • Publication of GHG emissions (scope 1, 2 and 3) within the DPEFs of the regional groups
  • Publications on the website of the sustainable finance, making public on the platform commitments and figures of financial actors (2020)
  • Building dedicated to the development of indicators tangible climate change in the consolidated road map and validated in 2020
  • Calculation of the average vulnerability index of their portfolio of physical risk credit, on the basis of the ND-Gain vulnerability indicator, as part of the follow-up to concentration of their exposures by geographical area

Progress

  • Dedicated governance established in 2020:
    • Steering Committee on Climate Risk and CSR
    • Basel 3 Committee (Directors-General)
    • Risk Committee > Board of Directors
  • Signature of the PRB.
  • Identification in 2020 of risks and opportunities in climate risk and publication.
  • Common road map validated in the governance at the end of 2020.
  • Participation in the ACPR stress tests exercises with different types of scenarios, which led to a methodology for modeling trajectories of CO2 emissions from the sectors financed.
  • Mapping of ESG risks in the framework of the EFSD.
  • Self-evaluation initiative of practices from 2020 onwards.
  • Creation of environment and climate-associated action plan.

Certificates

The bank does not disclose this information.

UN Sustainable Development Goals

UN SDGs Compliance

The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals. Although not explicitly stated, Crédit Mutuel has attempted to be compliant with SDGs.

SDG 7: Affordable and Clean Energy

  • Since the end of 2018, BECM has marketed a range of “Transition” financing products that cover environmental protection with the “Energy Transition Loan” to support companies’ transformation in favor of a more responsible economy.

SDG 8: Decent Work and Economic Growth

  • Crédit Mutuel group maintains a social policy of long-term employment. 
  • They enable employees to receive a decent wage, social protection and beneficial mutuals.
  • Furthermore, the group is committed to respecting the conventions of the International Labor Organization (ILO) on respect for freedom of association and the right to collective bargaining, the elimination of discrimination in employment and occupation and the elimination of forced or compulsory labor and the abolition of effective child labor.

SDG 11: Sustainable Cities and Communities

  • Social and mutualist responsibility (SMR) is part of the DNA of Crédit Mutuel Alliance Fédérale. Its aim is to achieve a balance between sustainable development, ethics and rational economics. BECM strives to be a responsible player at the economic level, to support and boost the economy and regions through a local presence and responsible management.

SDG 12: Responsible Production and Consumption

  • In September 2020, BECM participated in the “Eco clean up week” campaign led by Crédit Mutuel Alliance Fédérale during European Sustainable Development Week. The aim was to reduce its digital footprint by deleting unnecessary or obsolete files and emails. It forms part of Crédit Mutuel Alliance Fédérale’s goal to reduce its carbon footprint by 30% as part of the 2019-2023 Strategic Plan. 
  • In 2020, BECM also continued its policy of limiting the number of printers and printing needs, both internally and with customers. Paper purchases for support functions are made from companies that employ disabled workers. Crédit Mutuel Alliance Fédérale took part in the PAP50 Barometer of the paper policies of the 50 largest banks and insurance companies conducted by Riposte Verte, and came fourth in the ranking and first among the banks. The criteria included paper consumption, the percentage of sustainable paper purchases and recycling.

SDG 13: Climate Action

  • Credit Mutuel committed to an exit of coal financing by 2030, the group CM Federal Alliance has developed a sectoral policy enabling operational application.
  • Crédit Mutuel Arkéa also commits to an exit.
  • Crédit Mutuel also took strong climate commitments and has strengthened and developed its sectoral policies in 2020:
    • sectoral coal policy
    • sectoral policy on unconventional hydrocarbons
    • sectoral mobility policy
  • The firm publishes a sectoral mobility policy.

SDG 16: Peace, Justice and Strong Institutions

  • The firm commits to the guarantee of principles of integrity and honesty between the company and its stakeholders, in particular its customers and competitors.
  • It includes areas of action as diverse as the fight against corruption, responsible policies, communication and fair competition, promotion of societal responsibility in the value chain, and policies against money laundering.
  • The Commission specifies that the prevention of the risks of non-compliance within the group shall include the following domains:
    • Financial security (combating money laundering)
    • Embargoes, restrictive financial measures
    • Business practices and customer protection (including protection of personal data)
    • The fight against corruption
    • The prevention of conflicts of interest
    • Market integrit

SDG 17: Partnerships for the Goals

Secondary SDGs3, 4, 5, 9, 10

Evaluation

Crédit Mutuel has adopted several sustainability strategies and has received notable awards for its business model.

Despite having few certificates and listings, the company produces a comprehensive report with targets and goals for reducing their carbon emissions and fighting for human rights. However, its targets are non-specific with no detailed plan on how to achieve them. 

They also have policies in alignment with the UN Sustainable Development Goals. Although not explicitly stated, Crédit Mutuel has attempted to be compliant with SDGs.

In addition, Crédit Mutuel has made strides to promote sustainability in terms of its involvement with the fossil fuel industry.

Crédit Mutuel had the largest drop in fossil fuel financing, with a 100% decline from $19 million in 2016 to zero in 2020, according to CNBC. The company has invested a total of $284 M since the adoption of the Paris Agreement.

While its divestment from fossil fuels is noteworthy, Crédit Mutuel’s targets and progress are mediocre at best. They do not explicitly comply with the UN SDGs, nor do they have any sustainability-related certificates.

For these reasons, Crédit Mutuel has been rated a C

Analyst Outlook: Positive

Crédit Mutuel is pursuing sustainability as a firm in the banking industry. Their transparency is paramount along with their ambitious goals to reduce CO2 emissions and fight for human rights. 

The bank can receive a higher rating with more specific and measurable targets, sustainability certificates, and disclosing detailed progress KPIs.

Key Points

Other involvements as a responsible company:

  • The UN Global Compact (or Global Compact) – Confédération Nationale du Crédit Mutuel (CNCM) and par le Crédit Mutuel Arkéa,
  • COP – Communication On Progress – CNCM
  • COP – Communication On Progress – Crédit Mutuel Arkéa
  • Signatory to the Paris Pledge – Fédéral Finance Gestion, Crédit Mutuel Alliance Fédérale and Crédit Mutuel Asset Management
  • Signatory to the Decarbonize Europe Manifesto  – Shift Project (Nicolas Théry, Chairman of Confédération Nationale du Crédit Mutuel, and Xavier Lépine, Chairman of La Française).
  • Signatory to PRB (Principles for Responsible Banking) – CNCM
  • Signatory to the Appel national des entreprises en faveur de la sécurité routière (national pledge by companies to promote road safety during work-related travel) – CNCM
  • The Crédit Mutuel group is also a member of ORSE and Comité 21
 
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