10.10.2017 | Sustainable finance
The social and solidarity economy (SSE) accounts for more than 15 million workers in the European Union. It plays an active role in the social development of territories and places social objectives ahead of revenue targets. To ensure that the SSE continues to grow despite its limited profitability, BNP Paribas supports this movement for meaningful development!
Social economy organizations are defined by their special legal status (associations, foundations, cooperatives, federations, etc.) and governance systems based on the principle of one person = one vote.
Social economy organizations also have a Solidarity component (SSE) when, in addition to their legal status and governance system, they also carry out a mission for the common good (social, societal or environmental objective).
Social entrepreneurship includes organizations (of any legal status, including SARL, SAS and other companies) that not only pursue an explicit and priority mission of social value, but also work towards economic objectives. For organizations with business status, the modernization of the French SSE law of 31 July 2014 now makes it possible to obtain Solidarity Enterprise certification (Entreprise solidaire d’utilité sociale—ESUS), which aims to improve the regulatory framework for SSE and encourage the expansion of this sector.
Microfinance is also a major portion of the Social and Solidarity Economy. It offers financial products (including microloans) to poor populations with the aim of helping them lead productive or income-earning activities.
In France, the Group currently employs 70 dedicated project managers, while similar systems also exist in Belgium and Italy (about 20 project managers in each country). These project managers are specially trained to promote the social and environmental performance of a project, at the same time as the financial performance of a company meeting SSE criteria.
To support and structure this sector, BNP Paribas has developed its own method for measuring the social impact of a social enterprise. This methodology helps quantify the concrete benefits of social entrepreneurship in terms of job creation, permanent housing, waste recycling, etc.
BNP Paribas Asset Management has developed a line of SSI (Social and Solidarity Investment) products. These funds follow the 90/10 rule—90% stocks and bonds selected for SRI (Socially Responsible Investment) criteria, and 10% of shares in French solidarity enterprises. That gives the bank’s customers, as well as its employees, access to savings and retirement products that generate financial and social performance, such as FCP BNP Paribas Social Business France. With this fund, they can invest in social enterprises like Le Relais, Titi Floris, Siel Bleu, French Red Cross, Café Michel and more.
One investment fund we offer our customers is PhiTrust, whose shares have notably helped to provide jobs to 552 workers with disabilities, to create 1,744 workforce integration jobs and to support 26,587 microentrepreneurs in Europe and Africa.
With this wide range of products and services, BNP Paribas offers its customers a chance to contribute to the dynamic growth of the social and solidarity economy all over the world.