• Sustainable finance

Energy financing: the transformation of BNP Paribas’ business model is accelerating, as confirmed by several rankings

For BNP Paribas, the year 2023 was marked, by a simultaneous acceleration of financing for the production of low-carbon energy, and the shift away from financing for the production of fossil fuels. This has allowed the Group to advance the timing for some of its objectives.

A majority of financing for low-carbon energy 

On February 1st 2024, BNP Paribas published its annual results, which show a very strong acceleration in the financing of low-carbon energies: the stock of credit exposures to low-carbon energy production now accounts for 65% of the Group’s total stock of credit exposures to energy production. In 2023, a commitment was made to reach 80% low-carbon in the Group’s financing for energy production. This target has now been advanced by two years to 2028. For 2030, the goal is now 90%. When we look back at 2012, the share of low-carbon energy in BNP Paribas’ financing for energy production was around 10%. In September 2022, the share of low-carbon financing exceeded 50%, and this movement continues to accelerate.

This graphic shows, since 2012, the decline in the stock of credit exposures to fossil fuel production compared to the significant rise in the stock of credit exposures to low-carbon energy production, representing 65% of the Group’s stock of credit exposures to energy production at the end of September 2023. For 2030, the goal is now 90%.

Weight of fossil fuels and low-carbon energies in BNP Paribas credit exposure energy production

Low-carbon: low-carbon energies are those with little or no greenhouse gas emissions. This category includes renewable energy and nuclear energy.

A significant acceleration in 2023

Between the end of September 2022 and the end of September 2023, BNP Paribas increased its stock of low-carbon credits by 3.8 billion euros, bringing the Group’s total financing for low-carbon energy (essentially renewable) to 32 billion euros. Simultaneously, the Group is continuing its path of reducing financing for the most emitting energy sources, in line with its commitments, with a 6.4 billion euros reduction in the stock of fossil fuel loans in one year.

BNP Paribas is no longer a major player in fossil financing

To reduce the fossil portion of its portfolio, BNP Paribas significantly reduced its production of new loans to the oil and gas sector in 2023. For example, as of the end of 2023, the ratio of financing flows granted by BNP Paribas to oil and gas extraction and production companies compared to financing flows to renewable energy projects was 1 to 11.

According to Dealogic, out of the 256 billion dollars granted by the global banking industry to the oil and gas sector, BNP Paribas’ market share is now 0.3%. Previously, and up until 2020,  it had fluctuated between 2% and 3%.

Lastly, BNP Paribas has not participated in any bonds in the oil and gas sector since mid-February 2023.

“In order to measure the extent of our commitment and trajectory, it is necessary to understand that we are about a portfolio of multiannual loans granted in previous years, the repayment of which will continue to extend over several years. In order to achieve the objectives for 2028 and 2030, set in 2023 and 2024, new loans produced today need to start incorporating them. 
This is a major transformation for the Bank, based in particular on the Low Carbon Transition Group, an international team of 200 specialists dedicated to low-carbon energy and corporate decarbonization.”

Antoine Sire

Head of Company Engagement at BNP Paribas

World’s best bank for sustainable finance in 2023

BNP Paribas’ policies show an active and ambitious commitment that has been recognized by several market rankings. In 2023, Bloomberg has reported that for the second consecutive year, banks generated more profits on financing low-carbon energy than on oil and gas. With BNP Paribas confirming its leadership: in 2023, the Group devoted more than 24 billion dollars of financing, placing itself at the top of the ranking of major banks. While much remains to be done by financial institutions in financing the energy transition, these figures confirm BNP Paribas’ commitment and its strong acceleration in this area.

Additionally, the same year, Euromoney awarded BNP Paribas the title of "World's Best Bank in Sustainable Finance”.

“European banks led the transition, with BNP Paribas at the top of the ranking”   BLOOMBERG, January 2024

Updated and measurable progress toward our commitments

To follow the Group’s progress in meeting its sustainable finance commitments, a page has been created. It includes the major CSR indicators of BNP Paribas, updated each year.

Discover the Group’s CSR trajectories

Key figures

N° 1

worldwide for ESG bonds and loans according to Dealogic

The Group is also the world leader for the second consecutive year for  ESG bonds and loans according to Bloomberg.

65 %

This is the share of the energy financing stock in 2023 dedicated to low-carbon energy, most of which is renewable

The target of 80% of low-carbon financing, initially set at 2030, is advanced to 2028; by 2030 it will be 90%.

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