Sustainable Finance

We are at the service of our customers and the world in which we live.

In a context of rapid urban growth and global warming, economic and political actors must act together to promote economic growth that is fairer, more ecological and more respectful of human rights.

For several years now, BNP Paribas has been particularly keen to ensure that its activity has a positive impact on the world around it, both in terms of the Group’ own functioning and the products and solutions offered to customers.

Thus, in 2011, the BNP Paribas Group confirmed for the first time its desire to participate in building a sustainable future. From then on, it made strong commitments, framing its activities around global principles and initiatives that promote low carbon finance. This proactive policy is based on a strong conviction that the global energy transition represents a hotbed of opportunities for the Group as well as for the global economy.

In accordance with the UN Sustainable Development Goals, the Group has based its CSR policy on four pillars, including environmental responsibility, which translates into three fundamental climate commitments:

  • Partnership with our clients in the transition to a low carbon economy
  • Reduce the environmental impact of our operations
  • Awareness raising and sharing of best environmental practices

 Being sustainable means moving forward collectively towards the future

Innovative financial products

Supporting businesses

Offer a sustainable economic model

In the longer term, BNP Paribas intends to contribute, through all of its businesses, to a more sustainable economic model. We are convinced that the best solutions to help economies recover and prosper, while respecting human and environmental ecosystems, will notably come from innovative financial products that support the energy transition and help build a more inclusive world.

Towards the energy transition

For its part, BNP Paribas is implementing a strategy to support the energy transition and continues, in this perspective, to expand its offer in sustainable finance. Thus, solutions such as Green Bonds and Sustainability Linked Loans (SLL), which are based on incentive ESG (environmental, social and governance) criteria, closely contribute to promoting renewable energies, strengthening the protection of biodiversity and to support companies in their energy transition.

BNP Paribas signatory of the Net-Zero Banking Alliance

BNP Paribas has included the pursuit of positive environmental impacts in its ‘company purpose’ and intends to make sustainable finance a major driver of its next strategic plan. The Group is convinced that achieving the objectives of the Paris Agreement requires the mobilisation of the entire financial system.

Thus, in line with its commitments to fight climate change, BNP Paribas has joined the Net-Zero Banking Alliance (NZBA) launched today by the United Nations Environment Programme Finance Initiative.

Along with other financial sector coalitions (the Net-Zero Asset Owner Alliance and the Net-Zero Asset Managers Initiative), the NZBA is part of the Glasgow Finance Alliance for Net-Zero created at the initiative of Mark Carney – former governor of the Central Bank of England and pioneer in climate finance – for the next COP26.

NZBA members commit to:

  • Align greenhouse gas emissions arising from their credit and investment for own account activities with the path required to achieve carbon neutrality in 2050 (temperature increase limited to 1.5° C);
  • Build on credible transition scenarios published by recognized bodies (IPCC, IEA);
  • Focus on the most greenhouse gas emitting sectors and playing a key role in the transition to a carbon neutral economy;
  • Set interim targets, no later than 2030;
  • Annually publish their progress and the associated action plans.

Roll back the financing of fossil fuels

The Group is committed to aligning its financing and investment activities with the scenario of the International Energy Agency (IEA), which aims to keep global warming below 2 ° C by the end of of the century.

To this end, the Group has notably taken the following decisions:

  • It will no longer do business with companies whose main activity is the exploration, production, distribution, marketing or trade of oil and gas from shale and / or tar sands.
  • It will not finance projects which mainly concern the transport or export of oil and shale gas or oil from tar sands.
  • It will not fund oil and gas exploration or production projects in the Arctic.
  • It will reduce its support for coal mines and coal-fired power generation
  • It will end its financing and investment activities concerning manufacturers of tobacco products, as well as producers, wholesalers and traders whose income comes mainly from tobacco.

Minimize the carbon risk

To fight carbon pollution and promote a more sustainable economy, the BNP Paribas Group has decided to:

  • Gradually introduce an internal carbon price to assess the resilience of its credit portfolio to climate change
  • Measure, understand and regularly publish the carbon footprint of assets managed in third party accounts by BNP Paribas, in accordance with the Montreal Carbon Pledge of which BNP Paribas Asset Management is a signatory
  • Reduce the carbon footprint of assets managed in third-party accounts by BNP Paribas, in accordance with the Portfolio Decarbonization Coalition, of which BNP Paribas Asset Management is a signatory
  • Strengthen carbon risk awareness actions within companies operating in the oil and gas industries, in which the Group invests as a third party
  • In 2017, BNP Paribas Asset Management measured and published the carbon footprint of more than 180 equity funds in its portfolio (compared to 100 equity funds in 2016), i.e. 51.5 billion euros. This initiative responds to the challenges of the Montreal Pledge signed by both BNP Asset Management and BNP Paribas Cardif.

Achieve carbon neutrality

At the end of 2017, BNP Paribas achieved its carbon neutrality objective. BNP Paribas is committed to becoming carbon neutral in terms of CO₂ emissions from its own operations, through three complementary initiatives:

  • Reduce its direct CO₂ emissions (25% reduction target by 2020), through an active policy of promoting energy efficiency in its buildings and data centers, but also by optimizing business travel.
  • Use only low carbon electricity in countries where it is available.
  • Offset CO₂ emissions that cannot be directly avoided or reduced, through partnerships with benchmark organizations.

Establish strategic partnerships

with key stakeholders

To encourage more responsible behavior, BNP Paribas acts outside its ecosystem to lead or guide eco-responsible initiatives. This requires the signing of agreements and partnerships with international organizations in order to guarantee the development and sharing of best practices for the environment.

  • On July 10, 2018, BNP Paribas joined act4nature, launched by “Enterprises for the Environment” (EPE), which aims to encourage companies to protect, enhance and restore biodiversity.
  • BNP Paribas joined Bill Gates’ Breakthrough Energy Coalition in December 2017. The coalition aims to accelerate the implementation of clean energy innovations.
  • The BNP Paribas Foundation supports or develops two sponsorship programs for the benefit of climate research: the Climate Initiative and the One Planet Fellowship.
  • The Group has established a partnership with the United Nations Environment Program, with the aim of creating collaborative partnerships to mobilize the capital necessary for sustainable economic growth in emerging countries. The partnership aims to mobilize $ 10 billion by 2025.
  • BNP Paribas has also joined forces with several international events to stimulate action and awareness-raising around environmental protection and global warming.

For BNP Paribas, serving as a bank for the economic development of the 21st century means taking action to accelerate the energy transition.