The green hedge to strengthen corporate commitment
BNP Paribas Fortis now offers corporate customers who wish to strengthen their commitment to greater sustainability to hedge their interest rate risk by moving from a variable interest rate to a fixed interest rate with “green” conditions. The idea is to motivate customers to respect their environmental commitment, failing which they are required to pay an additional premium that is then devoted to a sustainable project. A first green hedge was carried out in Belgium in 2020 with a Corporate Banking customer.
Antoine Sire,
Head of Company Engagement
Awareness of environmental and social issues is driving the company to make a profound transformation.
In this perspective, we are progressively aligning the entirety of our loan portfolio with the objectives of the Paris agreement. We are using the Paris Agreement Capital Transition Assessment (PACTA) methodology, developed conjointly with four other international banks. We are also supporting and applying the recommendations of the Task Force on Climate Finance-related Disclosures (TCFD), in order to increase transparency around the management of climate risks. In 2020, BNP Paribas issued its first reporting with the Poseidon Principals(1), which evaluate CO2 emissions generated by loans granted to maritime transportation. These advancements have been recognized by extra-financial ratings agencies, who have ranked us among the world leaders in terms of CSR with scores well above the average for banks(2). These rankings commend not only how we measure our own impacts, but also the commitments we have made to limit them and to accelerate the transition of our society towards more sustainable models.
(1) Launched in June 2019, the Poseidon Principles constitute a new global framework for the responsible financing of vessels: they aim to reduce the carbon emissions generated by shipping by 50% by 2050.
(2) See more details on non-financial ratings on pages 72-73.
Concrete sustainable mobility solutions for all
In order to become the European leader in sustainable mobility, Arval, an expert in
long-term vehicle leasing and new mobility solutions, has set itself ambitious CSR targets. With a fleet of 500,000 electrified vehicles by 2025, a reduction of the CO2 emissions of its global fleet by 30% and a carbon neutral balance sheet, Arval intends to support customers in their energy transition by offering alternative and responsible means of mobility wherever it operates.