I ETHICs & GOVERNANCE CORE SUSTAINABILITY GOVERNANCE FRAMEWORK STAKEHOLDERS’ PROTECTION STAKEHOLDERS’ RELATIONS Arval’s sustainability governance charter describes the organisation, the missions, the key principles regarding the roles and responsibilities of various internal stakeholders, and the framework for relationships with external parties. It also details the policies for performance monitoring and reporting. The charter draws on the BNP Paribas Group governance and company engagement framework, applying it as appropriate to Arval’s business model. + + + + Customers (ESG assessment, Sector policies, NPS 4 ) Suppliers (Sustainable sourcing charter, assessment, dedicated committees) Community (Philanthropy, partnerships and sponsoring) Customers (ESG assessment, Sector policies, NPS 4 ) Suppliers (Sustainable sourcing charter, assessment, dedicated committees) Community (Philanthropy, partnerships and sponsoring) Administrative, management, supervisory bodies (Board of directors, Executive committee, Sustainability steering committee) Sustainability organisation (Corporate sustainability office, Countries sustainability managers and champions) ESG risk framework (Risk identification study, Double materiality assessment, Risk mapping, CSR control plan) Sustainability performance incentive schemes Extra-financial commitments framework Administrative, management, supervisory bodies (Board of directors, Executive committee, Sustainability steering committee) Sustainability organisation (Corporate sustainability office, Countries sustainability managers and champions) ESG risk framework (Risk identification study, Double materiality assessment, Risk mapping, CSR control plan) Sustainability performance incentive schemes Extra-financial commitments framework Ethics (Code of conduct, Ethics whistleblowing system, Diversity charter, Greenwashing guidelines, GDPR 1 ) Well-being and social protection (NPE 2 , Social Dialogue) Transparent information (CSRD 3 ) Ethics (Code of conduct, Ethics whistleblowing system, Diversity charter, Greenwashing guidelines, GDPR 1 ) Well-being and social protection (NPE 2 , Social Dialogue) Transparent information (CSRD 3 ) (1) General Data Protection Regulation (2) Net Promoter Employee (3) Corporate Sustainability Reporting Directive (4) Net Promoter Score + + Stakeholders’ protection Ethics • The Code of Conduct sets out the rules of conduct that apply to all BNP Paribas activities and employees, including Arval’s workforce. It addresses different areas including the protection of customer interest, financial security, market integrity, conflicts of interest, professional ethics, respect of colleagues, commitment to society and the fight against corruption. The Code is available in 20 languages and is accessible online. • Arval’s ethics whistleblowing system is governed by the BNP Paribas framework. It allows employees and all stakeholders to report, in good faith, crimes, offences, threats, serious harm to the public interest, serious violations of international standards or violations of the Group’s Code of Conduct. When a material breach is identified, Arval undertakes appropriate remediation and evaluates the effectiveness of the actions taken. • The Diversity Charter is the reference document for all entities, fully involving Arval in the inclusion of its employees and addressing five key pillars: gender equality, inclusion of people with disabilities, multiculturalism, intergenerational diversity, and sexual orientation. It is implemented in each entity with support from a dedicated Corporate Human resources team. • Communication guidelines have been issued to avoid greenwashing in Arval’s published communications. • The protection of personal data policy, in line with BNP Paribas framework, includes a process for identifying, qualifying and assessing risks related to personal data processing activities impacting individual customers and end-users and employees. A series of organisational and technical measures are provided and implemented to prevent and manage these risks. Well-being and Social Protection • Net Promoter Employee (NPE) scores are measured through regular Pulse Surveys, which are conducted to understand employee engagement, adherence to the company’s strategy, and perception of management, as well as to measure employees’ satisfaction and well-being at work. • Social dialogue is essential for BNP Paribas and its subsidiaries, including Arval, to ensure that the interests and rights of employees are integrated into the overall strategy. This commitment is reflected at the European level through committees promoting social dialogue and at a global level through Group-wide agreements. Transparent Information • Arval is subject to the CSRD and discloses its sustainability strategy and governance, its material ESG impacts, risks and opportunities, detailing the relevant policies, actions, targets and performance. This report is audited for limited assurance by third party auditors. Core sustainability governance framework Administrative, management and supervisory bodies • The Board of Directors is Arval’s governing body. It leads the strategy with a long-term perspective, aiming for sustainable growth, and acting in the interest of Arval and its stakeholders. • The Executive Committee is Arval’s supreme steering body. It meets to share relevant information for the management of Arval’s activities and to decide the strategic directions to be taken. • The Sustainability Steering Committee, coordinated by the Chief Sustainability Officer, is responsible for monitoring sustainability performance and, activity indicators, while coordinating cross-functional projects on sustainability issues, such as the decarbonisation of the vehicle leasing business. The roles of these bodies, along with additional committees (internal control, risk, credit) are detailed in Arval’s CSRD disclosure. Sustainable performance incentive schemes Arval’s Chairman and Chief Executive Officer receives variable remuneration that incorporates CSR criteria. This includes annual variable remuneration with objectives relevant to the CSR challenges of the Arval Beyond strategic plan and the Group’s loyalty plan. In addition, Arval aims for 100% of Country General Managers to have relevant ESG objectives linked to their remuneration. Sustainability Organisation • Corporate Sustainability Office, led by the Chief Sustainability Officer, who is member of Arval’s Executive Committee, plays a pivotal role in defining the sustainability strategy and ensuring its deployment across all entities and functions. • Sustainability Managers and Champions are assigned in most Arval entities. The community is composed of more than 40 members and is animated by the corporate sustainability office. Their role is to adapt and apply Arval’s sustainability targets & priorities in their perimeter, structuring and leading governance, and tracking and reporting performance. Within this community, the +Impact Makers group is composed of people fully dedicated to the subject, based in the countries with the most significant activity for Arval, and contributing to local change management. ESG risk framework refers to the risk identification and assessment processes applied in Arval, integrating the controls in place to secure implementation of processes relevant to major identified risks. It consists of: • An annual risk identification study (RISK ID) designed to encourage anticipation, and to promote a forward-looking approach to severe but plausible risks for Arval, in which ESG is one of the risk drivers covered. • The double materiality assessment conducted as part of the CSRD disclosure, which identifies material ESG impacts, risks and opportunities. • The annual risk mapping exercise performed by each function in every Arval entity, providing a detailed view of risk levels, including ESG risks, based on historical incidents and findings, while evaluating the residual risk considering the procedures, plans and controls in place. • The CSR control plan, ensuring that key ESG risks in Arval’s relationships with stakeholders are well managed. Commitments • The Extra-financial commitments framework ensures that each voluntary and public commitment made by Arval complies with BNP Paribas’ corporate social responsibility strategy, and monitors the compliance of actions and performance with these commitments. Values in Stakeholders’ relations Customers & End-users • Arval applies BNP Paribas sector policies relevant to its business model to ensure that the Group’s Corporate Social Responsibility values and priorities are upheld across the value chain. In 2024, a new ESG assessment process, integrated into the credit review, was introduced to evaluate the ESG maturity of large corporate customers and to reinforce their alignment with BNP Paribas Groups’ values through a controversies analysis. • Arval measures the satisfaction and recommendation rates (Net Promoter Score or NPS) of its corporate customers through continuous monitoring of the various commercial channels it manages. It also takes the greatest care in handling complaints and is committed to identifying dissatisfaction expressed via social networks. In addition, Arval measures driver satisfaction through surveys conducted after most vehicle events. Suppliers & Partners • The BNP Paribas Sustainable Sourcing Charter, which applies to Arval, outlines the Group’s ethical principles and ESG commitments shared with suppliers. Attached to Arval service agreements, it draws on the UN Global Compact’s core principles - covering human rights, working conditions, environment, and anti-corruption – and Guiding Principles on Business and Human Rights, which define corporate human rights responsibilities. • Supplier assessments are carried out using a structured questionnaire including ESG-weighted during tenders. The outcome of this questionnaire has a predefined weighting in the sourcing selection criteria. Moreover, Arval has initiated on-site ESG audits by third parties in some countries for its preferred network garages. • All new activities undergo an assessment that integrates ESG criteria. Dedicated committees define and agree the framework to optimise any ESG opportunity and mitigate impacts and risks. Community • Arval’s philanthropy, partnership and sponsoring framework ensures that all relevant initiatives are compliant with BNP Paribas due diligence measures. This policy sets out the framework to prevent corruption and reputational risk, identifies the means and themes for philanthropy, and governs the organisation of BNP Paribas’ 1 Million Hours 2 Help initiative, to which Arval employees contribute.