• Sustainable finance

BNP Paribas is developing a wide range of solutions to support the agri-food sector's transition

Published On 13.11.2024

The agri-food sector plays a crucial role in meeting today’s environmental challenges. The growing pressure exerted by global food security, climate challenges, water needs and biodiversity loss are forcing the agri-food sector to reinvent itself, with controlled and more responsible production - essential conditions for becoming one of the key links in carbon storage, the preservation of soil and, more broadly, the environment.

Supporting agricultural transition: the expert's wager 

To support the agri-food sector in its transition, BNP Paribas is constantly working to find reliable and more sustainable financing solutions. By definition, this is a holistic approach in partnership with all the players in the sector, from the smallest producer to the major food retailer. “We finance every link in the chain, from individual farmers and cooperatives to major players in the agri-food and retail sectors ” confirms Sarah Colombié, ESG Agriculture and Food expert in BNP Paribas’ CSR Department and an agricultural engineer by training.

The relationship between the Group and the agricultural sector is not simply a traditional banking relationship, from lender to borrower. In reality, this is a genuine ‘win-win’ collaborative relationship, in which the Group encourages innovative and virtuous agricultural practices by forging partnerships with the major players in the sector. In addition, BNP Paribas can draw on the agronomic skills of a dedicated team in Poland and the expertise of the Group to provide customers with the best possible support. This sector is receiving particular attention, with agriculture included for the first time in BNP Paribas’ latest Climate Report, published in May 2024.


The challenges of sustainable agriculture: the complexity of measuring impact 

Measuring the environmental impact of agriculture is much more complex than measuring that of industry. “Unlike a factory or a car, whose CO2 emissions are easier to quantify, agriculture is diffuse, extensive and encompasses a wide range of crops” points out Sarah Colombié. Its impact on the environment extends beyond greenhouse gas emissions. Agriculture can play a key role in preserving biodiversity and can improve soil quality using regenerative cultivation techniques. This sector has the capacity to produce renewable energy through methanisation, solar energy and wood energy. It can also store carbon in the soil with appropriate practices, which can offset some of its emissions.

Supporting the transition: a strategic challenge 

For BNP Paribas, supporting the ecological transition of the agri-food sector is not just a commitment to the environment, it is also a long-term strategy designed to ensure the future of the businesses it finances. “A client who is not concerned about the sustainability of its supply chain will ultimately be a more vulnerable client” warns Sarah Colombié. BNP Paribas has therefore decided to support the agri-food sector from a number of different angles: renewable energies, biodiversity and soil conservation, water management, animal husbandry and welfare, etc. The different approaches are mutually enriching and complementary. 

« A client who is not concerned about the sustainability of its supply chain will ultimately be a more vulnerable client »

Sarah Colombié, ESG Agriculture and Food expert in BNP Paribas’ CSR Department.

Opting for regenerative agriculture: the example of McCain 

Regenerative agriculture is at the heart of the Group’s strategy to support the sector’s transition. This type of agricultural model, which is based on ecological principles designed to restore the soil, contrasts with conventional, intensive farming practices, which can have deleterious effects. It offers a sustainable solution to the challenges posed by climate change.

Potato specialist McCain has enlisted the help of BNP Paribas to promote crop rotation among its growers in Poland. McCain is committed to procuring 100% of its potatoes from regenerative agriculture by 2030. To achieve this, growers must follow precise specifications, and BNP Paribas offers these farmers tailored financing solutions as well as support to help them meet the targets set by McCain’s guidelines. 

What is regenerative agriculture?

Regenerative agriculture is an approach to farming that aims to restore and improve soil health, biodiversity and ecosystems, while producing food. It is characterised by practices such as permanent plant cover, the reduction or elimination of tillage, the use of cover crops, crop rotation and the integration of animal grazing. 

Its goal? To create sustainable farming systems that sequester carbon, increase climate resilience and support long-term soil fertility.

Encouraging just transition with ISLF+ contracts: the case of Mûre 

In collaboration with the JuST Institute, set up in 2022 with the support of BNP Paribas, the Group is developing and rolling out ISLF+ - Inclusive & Sustainability-Linked Financing.

Its role? To help inclusive finance actors around the world support their clients, in particular, by setting environmental, social and just transition targets to give them access to reduced interest rates.

A perfect illustration of the JuST Institute’s collaboration: BNP Paribas recently signed a major ISLF+ contract with Mûre to help it meet its environmental and social objectives. This “resto-farm” is based on a short circult model where food production is valued in its restaurants. This ISLF+ will encourage farms in the Seine-et-Marne region to produce fruit and vegetables using methods that generate less greenhouse gases, to label their crops as AB (Agriculture Biologique) organic and to ensure their farm workers are paid more than 110% of the minimum wage. 

Testing solutions in the field: focus on the partnership with HECTAR

Always on the lookout for innovation, the Group also relies on specialist partners. BNP Paribas has entered into a 3-year partnership with HECTAR, an incubator for agricultural innovations designed to help farmers make the transition to a more sustainable lifestyle.

HECTAR is a pilot farm, started in 2019. Its aim is to ensure the renewal of the farming community and enable the next generation to be trained in sustainable practices. HECTAR is testing more virtuous farming solutions and offering farmers ways to be both profitable and responsible in their activity. The farm thus plays a key role as an accelerator, identifying and testing practices that can then be rolled out on a large scale.

Improving biodiversity measurment through partnerships with Naturalis and Synature  

Through this partnership with the HECTAR pilot farm, since June 2024, BNP Paribas has been financing the Swiss start-up Synature which has developed acoustic solutions for measuring biodiversity by placing recording devices in fields to listen to and very precisely measure wildlife activity. This could prove to be extremely useful for understanding the impact of insects on pollination, finding out which species are present in the areas being monitored, and comparing the monitored areas based on differing environments and practices (for example, the presence and/or absence of ponds, hedges, and forests) to determine factors that or favorable or unfavorable to biodiversity. In order to test its solution, Synature has installed its devices directly on HECTAR’s farmland.      

At a time when the debate on biodiversity is becoming increasingly important for financial institutions – and most notably with the recent COP16 which took place in Cali, Columbia – BNP Paribas had already taken initiative to protect and restore biodiversity and took an important step by signing an agreement with Naturalis back in 2023. This long-term partnership enables research to be funded and scientific measurements to be obtained to facilitate financial and business decision-making.  

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