Acting for the ecological and energy transition
Faced with the climate crisis, BNP Paribas believes in its responsibility as the European Union’s largest bank to redirect its financing towards green projects, with the aim of achieving a carbon neutral economy by 2050.
Reorienting financing towards the energies of the future
At the end of September 2023, financing for the production of low-carbon energy(Opens in a new tab) (€32bn, including €28.8bn in renewable energy) was already much higher than financing for the production of energy from fossil fuels (€17,3bn).
The Group aims to reach at least 40 billion euros in credit exposure for the production of low-carbon energy, and mainly renewable, by 2030. At the same time, the financing of oil exploration and production will have been reduced by 80%, and the financing for gas exploration and production by 30%. BNP Paribas no longer provides any financing dedicated to the development of new oil and gas fields regardless of the financing methods. These are two strong markers in the reduction of CO2 emissions, which are supported by BNP Paribas’ numerous actions to help its clients in their transition and the support of green innovation.
“In 2015, when the Paris agreement was signed, financing for the production of low-carbon energy only accounted for a limited part of BNP Paribas' financing dedicated to energy production. By 2030, it will represent 90%. The Bank will have then achieved the majority of its transition in less than 15 years, confirming its position as the leader among international financing actors.”
Jean-Laurent Bonnafé, Director and Chief Executive Officer of BNP Paribas
Helping to preserve biodiversity
The BNP Paribas Group is convinced that its role is to support the transformation of its clients’ and partners’ practices, and to act with non-financial actors who fight for the restoration of nature. As such, the Group has made the choice to further strengthen its commitments in favor of biodiversity, whose erosion presents a major overall risk.
In order to contribute to the protection of our natural capital, BNP Paribas sets up dedicated policies, participates in coalitions and finances actions with a positive impact. Furthermore, by the end of 2025, BNP Paribas will assess all its corporate clients against biodiversity related criteria.
Supporting the ecological and energy transitions in 3 key figures
in sustainable loans and bonds covering environmental and social issues for corporate clients by 2025
in credit exposure for low-carbon energy production, and especially renewable, by 2030
in financing related to the protection of terrestrial and marine biodiversity at the end of 2023
Reducing energy consumption
BNP Paribas supports all its clients in their transition and offers innovative solutions to help them optimise or reduce their energy needs.
At the same time, the Group is continuing its actions to reduce energy consumption in its office buildings worlwide.
Designing responsible products and solutions
Citizens and economic actors have expressed a clear desire to actively support projects – particularly through their savings– that contribute to the preservation of the environment or the reduction of social inequalities.
Providing solutions to save and invest responsibly
BNP Paribas, which already invests in impact companies, encourages these actions by offering its clients responsible investments, including green credits and bonds for large companies and sustainable-labelled funds for institutional and retail investors.
For example, at the end of December 2023, 171 funds from BNP Paribas Asset Management, the Group’s subsidiary in charge of asset management, were certified by a responsible label in France and Belgium. These funds represented nearly 139.5 billion euros in assets under management.
Promoting the circular economy from product design
One of the best ways to preserve our ecosystems and save energy is to break out of the traditional linear life cycle of a product – extract raw materials then manufacture, consume and dispose of the product – to promote the circular economy. By working on usage, sharing, reconditioning or extending a product’s lifespan, the circular economy reduces the consumption of nonrenewable resources, waste generation and greenhouse gas emissions.
BNP Paribas offers its corporate clients more responsible solutions, such as managing the lifecycle of a corporate client’s IT fleet with BNP Paribas 3 Step IT, the joint venture formed by BNP Paribas Leasing Solutions and 3 Step IT, while also investing in many circular economy innovations, most notably through the BNP Paribas Solar Impulse Venture fund.
Participating in the transformation of the financial sector
We finance a number of business sectors, some of which present major environmental, social and governance (ESG) challenges.
Engaging through ambitious financing and investment policies
BNP Paribas has adopted sector policies that define strict ESG criteria, designed to regulate our financing and investments in these sensitive areas.
In line with the United Nations Sustainable Development Goals (SDGs), the Group is thus committed to acting as a catalyst to support the energy transition, to fight against deforestation and to preserve the safety of all populations. Moreover, all our sector policies incorporate ESG criteria to protect the human rights of value chain workers and local communities.
Financing and investment policies
Providing expertise to our clients to address climate and social challenges
In order to best support the transition of its different clients – companies, institutions, individuals – BNP Paribas continues to transform and adapt. BNP Paribas clients benefit from the Group’s cutting edge areas of expertise that come together in dedicated networks and working groups. For example, the Low-Carbon Transition Group, which is made up of nearly 200 international experts dedicated to supporting large companies in their transition to low-carbon, and ‘Act for Impact,’ which supports engaged entrepreneurs.
In addition, the Group’s teams around the world are all trained on the issues and solutions inherent to both climate and social challenges in order to upskill our workforce on the topics of sustainable finance and the environmental transition.
“BNP Paribas, like many players in the economy and society, is now fully mobilised to address the climate emergency. The goal is to find a just transition path that will best help our clients move from the world as it is today to a more inclusive world with less greenhouse gas emissions. This is what the Group has aimed to do by constantly refining its commitments, policies and resources dedicated to implementation, and what the Group will continue to do, alongside its clients and partners, at all stages of this transition.”
Points of view
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