“At BNP Paribas, we have already made a major pivot towards financing the production of low-carbon energies. In the coming decade, the climatic factor will transform the economy more than ever. This is why we intend to go further and faster. All Group entities are committed to this fundamental dynamic. This new phase of acceleration confirms our role as an undisputed leader in the energy transition.”
SUSTAINABILITY
Significantly accelerate the deployment of sustainable finance
With GTS 2025, we are entering a new phase of strong acceleration in our energy transition financing activities. We work alongside our customers to support them in the transition to a sustainable economy, while aligning our portfolios with the commitment to carbon neutrality. BNP Paribas has already made a major pivot towards financing the production of low-carbon energies. In 2022, financing of low-carbon energy production already accounted for more than 55% of our portfolio, compared to 45% for fossil energies. Thanks to the resources mobilised, we will increase the share of the low-carbon energy production to 80% of our energy production financing by 2030. Regarding oil, since 2016, we have stopped providing any financing dedicated to exploration and production projects. In 2030, our remaining financing of oil exploration and production will represent less than €1bn. For gas, we will reduce our exploration-production financing by 30%, by focusing on security of supply and next-generation thermal power plants. BNP Paribas will no longer provide any financing dedicated to the development of new oil and gas fields.
Three strategic drivers and five priority areas
We have defined three strategic drivers to accelerate the implementation of our commitments:
- aligning our portfolios with our commitment to carbon neutrality;
- supporting our customers towards a sustainable and low-carbon economy;
- strengthening our expertise, management tools, processes and governance.
We have also identified five priority areas in line with the 17 United Nations Sustainable Development Goals (SDGs), some of which are priorities for our business: sustainable savings, investments and financing; transition to carbon neutrality; circular economy; natural capital and biodiversity; social inclusion.
The Group’s commitment to sustainable finance in 2022
€87bn
in sustainable loans(1) granted to corporate clients, institutionals and individuals at the end of 2022
€32bn
in sustainable bonds(2) issued for clients at the end of 2022
€223bn
in assets under management in article 8 or 9 funds according to the SFDR(3) at the end of 2022
€44bn
in support to enable our customers to transition to a low-carbon economy(4) at the end of 2022
(1) Amount of loans at the end of 2022 identified as sustainable by an internal classification system, granted by BNP Paribas to its customers. The Group’s transaction classification principles are based on external market standards such as those of the Loan Market Association and the European Taxonomy in Europe.
(2) Cumulative amount at the end of 2022 of all types of bonds identified as sustainable according to the guidelines of the International Capital Market Association (ICMA) issued by corporate clients, financial institutions and sovereign clients, and arranged by BNP Paribas (total amount divided by the number of bookrunners).
(3) Amount of assets under management at the end of 2022 in articles 8 and 9 open-ended funds of BNP Paribas Asset Management, distributed in Europe according to the European Sustainable Finance Disclosure Regulation (SFDR). SFDR identifies funds according to their sustainability potential. The article 8 classification concerns funds declaring that social and/or environmental criteria are taken into account. The article 9 classification means funds with a sustainable investment objective.
(4) Cumulative amount at the end of 2022 of green loans, green bonds and financing identified as contributing to the transition to a low-carbon economy according to an internal classification system (e.g. renewable energies, low-carbon hydrogen, nuclear). This amount covers part of the amounts of the sustainable loans and bonds referred to previously.
Strengthening our expertise in sustainable finance
To best support the transition of its various customers — corporate clients, institutionals and individuals — BNP Paribas has set up highly specialised centres of expertise in sustainable finance. The Low-Carbon Transition Group brings together nearly 200 international experts from various Group entities, and supports major corporate clients in the energy transition around the world. In 2022, BNP Paribas rolled out this initiative for small and medium-sized enterprises in Europe.The Group has also set up an international network of experts in sustainable finance, the NEST (“Network of Experts in Sustainability Transitions”).At the same time, to train and inform all our employees about the challenges of the ecological transition, the Group launched the Sustainability Academy in the fall of 2022. Thanks to the many resources it mobilises — dedicated training courses, change management tools, practical sheets, etc. — this platform gives teams an overview of sustainable finance and strengthens their skills in this area.