2020 Universal registration document and annual financial report - BNP PARIBAS 565
7 A COMMITTED BANK: INFORMATION CONCERNING THE ECONOMIC, SOCIAL,
CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS
7
Our economic responsibility: financing the economy in an ethical manner
A COMPREHENSIVE ESG RISK MANAGEMENT SYSTEM FOR PRODUCTS AND SERVICES PROVIDED BY THE GROUP
➤ REINFORCEMENT OF THE GROUP S ESG RISKS MANAGEMENT SYSTEM
CSR Sector Policies: Palm oil, Wood pulp, Agriculture, Coal- red power plants, Nuclear,
Unconventional Oil & Gas, Mining, Defence
Global Credit Policy (for Corporate & Retail clients)
Restriction of activity lists
Questionnaires linked to the French law on the Corporate
Duty of Care
Specic Credit & Rating policies; Rating Adjustment
for CSR Matters
Dedicated CSR Tools for Businesses:
- CIB CSR Screening Grid - IRB Tool
Asset Management: ESG criteria for collective
investment funds/institutional
mandates
Ad-hoc CSR Recommendations:
Advice on specic transactions
Equator Principles/Projects
Industry Research CSR Tools:
1. Guide for CSR Assessment 2. Sector mapping: - Sensitivity - Key issues
CS R se ns iti vi ty
Sector / Policy level
RISK APPETITE FRAMEWORK
CODE OF CONDUCT
KYC
Company level Transaction level
In accordance with its ESG risk management system, BNP Paribas takes ESG criteria into account in its decision-making processes:
■ these criteria are included in the Know Your Client (KYC) process and in 22 specific credit and rating policies;
■ in questionnaires allowing an in-depth analysis of companies active in countries and sectors identified as sensitive in terms of human rights and respect for the environment. These grids are an addition to the ESG risk management system already applied by the Bank (including sector-specific policies, CSR screening and specific credit policies).
■ lastly, the deployment of an ESG action plan (see chapter 2.4 Internal control Risk and permanent control) enables an even more in-depth integration of extra-financial issues into all our products and services.
Finally, throughout 2020 BNP Paribas has boosted training on ESG risk management systems for the financing business lines and control functions (Risk and Compliance). In addition to the e-learning of the CSR sectorial policies available in 8 languages, 12 digital sessions were organised to strengthen understanding of ESG risks and the associated management tools. In this way, the Group s CSR Function has trained 668 people from sales and RISK teams. Since 2012, more than 35,000 employees have taken e-learning modules on the sectoral policies.
Integrating ESG criteria into assets under management
2020 is marked by the strengthened deployment at BNP Paribas Asset Management (BNP Paribas AM) of its Global Sustainability Strategy launched in 2019, putting sustainable development at the heart of its investment decisions. Sustainable investing and its application to BNP Paribas AM s management processes are based on the consideration of ESG issues in investment strategies, the exclusion of certain sectors, commitment and dialogue (stewardship), responsible business conduct and a long-term outlook. BNP Paribas Asset Management s three-year roadmap sets targets for the energy transition, environmental protection, equality and inclusive growth.
In this context, BNP Paribas AM has:
■ strengthened its coal policy with exit dates for the coal industry in Europe and in the OECD area by 2030 and in the rest of the world by 2040 in line with the Group;
■ increased its commitment to respecting biodiversity and natural capital by announcing, with three other financial institutions, the development of a tool for measuring the biodiversity impact of investments.
