4 ENVIRONMENT AND RESPONSIBLE PURCHASING Entrepreneurial spirit to serve the carbon programme To reduce its greenhouse gas emissions, Societe Generale has adopted an incentive structure that relies directly on the creativity of its teams. In 2011, the Group became one of the first banks to institute an "internal carbon tax", currently €10 per tonne of CO2 emitted. The money raised from each business line is used to finance internal environmental efficiency initiatives. This system generated enthusiasm among employees in 2013: of the 53 projects submitted, 28 were selected, receiving a total amount of €2.6 million. As a result, the Group's subsidiary in French Polynesia will now switch to solar power for 85% of its energy consumption, while a hundred branches in France can receive a device to detect excess water and power consumption. These projects represent a 1% decrease in the Group's greenhouse gas emissions. In 2014 the budget allocated to such internal initiatives will be raised to €3.2 million. After achieving carbon neutrality in 2012 (not including Rosbank), Societe Generale is seeking a 26% decrease in its CO2 emissions and a 24% decrease in its power consumption relative to 2007, the baseline year. 1,500 suppliers, representing €3.4 billion in purchases, have been invited to undergo a CSR evaluation conducted by EcoVadis, an independent consultant, since 2011 €4.7 million in purchasing from the protected sector "Responsible Supplier Relations" Label recognising the Sourcing division’s CSR strategy Responsible purchasing: giving small businesses a chance With €5.9 billion overall in 2013, Societe Generale's sourcing represents a major economic force. The Group has implemented its responsible purchasing policy in three ways: economically, with a major commitment to SMEs; socially, through increased use of the protected sector (companies that employ disabled workers); and environmentally, by taking part in efforts to reduce the Group's carbon footprint. In 2013, 60% of the Group's purchases in France were made from small and medium businesses, nearly 1,000 suppliers were assessed on CSR and €4.7 million in purchases were made from the protected sector. Societe Generale signed France's SME compact in 2007 and the CDAF charter (charter governing relations between major companies and SMEs) in 2010, and was awarded the Responsible Supplier Relations label, which recognised the implementation of a continuous improvement process and reciprocal trust framework with respect to suppliers, particularly small businesses. The Group seeks to develop strong partnerships with SMEs, such as with the five that currently form the MGF (Maintenance Globale Façade) consortium. MGF beat nationwide companies to win the RFP launched by the Group's France network in 2007 to replace its branches' signs when it changed its corporate visual identity. To avoid penalising small businesses that could not invest in the necessary tools or be competitive on their own, Societe Generale had encouraged them to form an ad hoc consortium of companies. Today, revenue for the five members of MGF totals €25 million. 58 I SOCIETE GENERALE 2013-2014 more than
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