SFIL Annual financial report 2018

Management report I 1 41 Annual Financial Report 2018 SFIL Management report Report on corporate governance Consolidated financial statements in accordance with IFRS Annual financial statements in accordance with French GAAP Shareholders’ Meeting of May 29, 2019 General information SFIL renewed its partnership with TIH Business, whose founder also set up «Restaurants dans le noir» to promote business services provided by disabled freelancers. SFIL is a member of the Handeco Pas-à-Pas network, which works to encourage the use by companies of shel‑ tered employment service providers staffed by people with disabilities. Lastly, the system implemented at the Bank provides for an internal alert procedure, a training plan for all employ‑ ees (in particular the Executive Committee, executives and exposed personnel), risk mapping and a tailored internal control system. 3.3 – SUBCONTRACTING AND SUPPLIERS Consideration of social and environmental issues and subcontracting in the purchasing policy, and taking into account suppliers and subcontractors’ social and environmental responsibility in the Group’s relations with them SFIL chooses its suppliers and subcontractors very carefully. Its purchasing policy stipulates that the Company promotes sustainable and socially responsible purchasing whenever its various constraints allow. SFIL notably uses sheltered employment sector companies. In 2016, SOTRES 92, a dis‑ abled persons employer, provided SFIL with workers for paperless document production. The listing of SFIL’s suppliers and any subcontractors they use takes into account the CSR certifications obtained. Meanwhile, the ratings that SFIL’s internal supplier evalua‑ tion campaigns produce reflect its perception of these sup‑ pliers’ socio-ethical practices, as evidenced through their service provision. Lastly, SFIL’s framework agreements remind its suppliers of the tax and social legislation and statutory labor provi‑ sions in force as regards the performance of services. SFIL regularly carries out the required checks pursuant to these obligations. 3.4 – FAIR PRACTICES Anti-corruption initiatives The SFIL Group operates today in an ecosystem where the requirements for preventing and combating corruption have intensified and are coupled with growing demands from for‑ eign regulators. The SFIL Group’s activities fall within the scope notably of US and UK extraterritorial laws. SFIL’s shareholders on the one hand and its banking partner banks on the other fall within the direct scope of the Sapin II law applicable under French law. For these reasons, as a public development bank with domestic and now international operations, SFIL has chosen to factor corruption risk into its organization, alongside rep‑ utation risk, operational risk and financial risk. As such, SFIL attaches particular importance to fighting this threat, both within the Company itself and in the context of the projects in which it takes part. The effectiveness of the corruption prevention system is central to the Bank’s concerns. Indeed, SFIL, which itself does not fall within the scope of the Sapin II law, nevertheless opted to implement addi‑ tional compliance measures in line with those required by 3. Societal information 3.1 – TERRITORIAL, ECONOMIC AND SOCIAL IMPACT OF THE COMPANY’S ACTIVITIES Impact on employment and regional development In 2018, SFIL employed an average of 388 people under per‑ manent, temporary, work-study and internship contracts at its two office sites in Issy-les-Moulineaux (370 employees) and Lyon (18 employees). 3.2 – RELATIONSHIPS WITH THE PERSONS OR ORGANIZATIONS WITH INTERESTS IN THE COMPANY’S BUSINESS 3.2.1. The conditions for dialog with such persons or organizations SFIL has provided: •  Financing for the training of 36 work-study employees with 16 higher education institutions. •  Financing via the 2018 «learning tax» of: –– 4 schools: Montluçon – Lycée général Albert Einstein; Marly – Lycée professionnel François Mansart; Hirson – Lycée Frédéric et Irène Joliot-Curie – Les Abymes – Lycée Chevalier de Saint Georges. –– 4 higher education institutions: ENSAE, ENSIMAG, ESSEC, « Ecole d’économie de la Sorbonne ». –– 4 associations promoting diversity: PASSEPORT AVENIR, INSTITUT TELEMAQUE, « Ecole de la seconde chance », LADAPT RHONE – ESAT Hors-les-mur. 3.2.2. Partnership and patronage activities SFIL continued to support upper secondary schools located in disadvantaged areas via the “High School Innova‑ tion Campus”, part of its corporate patronage agreement entered into with the Collège de France to promote equal opportunities and social diversity. This program developed by the Collège de France first focuses on high-school stu‑ dents registered in institutions located in disadvantaged urban and rural areas. The goal is to enable students to demystify their relationship with academic knowledge, have confidence in themselves at a key moment in their educa‑ tion in which they must project themselves into the future and make career choices. SFIL has also formed various other partnerships to encour‑ age diversity and equal opportunity, in particular with the Télémaque association, which promotes access to cul‑ ture for young people from underprivileged backgrounds through sponsorship by SFIL employees. Since 2013, SFIL has participated in the Campus l’Envol project with its partner La Banque Postale. L’Envol was set up to support the schooling every year of 150 talented and deserving young people from modest backgrounds in both rural and urban areas, by coaching them individually from high school to entry into a high-level selective channel for further education or employment anywhere in France, including its overseas departments. SFIL is thus a member of Club Être Entreprises, which was created to promote the employment of disabled people and lobby public authorities on diversity issues.