2020 Universal registration document and annual financial report - BNP PARIBAS594

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a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas Our environmental responsibility: accelerating the ecological and energy transition

7.5 Our environmental responsibility: accelerating the ecological and energy transition

In the environmental field, the Group s priorities are as follows:

■ the energy transition and the fight against climate change have been a very important issue for BNP Paribas since 2011, when the Group chose to prioritise the fight against climate change, given its position in the financing of the global economy and in particular the energy sector. In 2020, the Group continued to develop its support for the renewable energy sector. The development of energy efficiency has been deepened through collaborative approaches with many customers, and the Group has developed its offer to help private individuals make their homes more energy-efficient. In 2020, BNP Paribas also carefully studied how the Group can support green hydrogen, i.e. produced from renewable energies, in particular through its active participation in the Hydrogen Council;

■ BNP Paribas also contributes to the development of circular economy by supporting numerous companies in the field, whether or not they are specialists in the subject (from large companies to social and solidarity economy players) and by proposing specific offers related to the circular economy;

■ BNP Paribas is also increasing its actions to help preserve the terrestrial and oceanic biodiversity.

Implemented through actions and positions described elsewhere (see Systematic integration and management of Environment, Social and Governance (ESG) risks, Commitment 3), the Group deploys its environmental responsibility in three complementary areas:

■ commitment 10: enabling our clients to transition to a low-carbon economy respectful of the environment. As a financial player, it is by supporting the clients in their energy and environmental transition that BNP Paribas can have the greatest impact in terms of protecting the environment, tackling climate change and aligning with the objectives of the Paris Agreement;

■ commitment 11: reducing the environmental impacts of our operations;

■ commitment 12: advance awareness and sharing of best environmental practices. The Group takes a broad-based approach towards building collective knowledge and awareness, involving its stakeholders in this process. It is in fact convinced that the energy and environmental transition can succeed if stakeholders work together to bring about the necessary transformation of society as a whole.

In general, BNP Paribas is convinced of the importance of ensuring that post-pandemic recovery plans are in line with, or even accelerate, energy and environmental transition efforts. Thus, Jean-Laurent Bonnafé, as Chairman of the association EpE (Entreprises pour l Environnement), alongside more than ninety French and international business leaders,

issued a call for putting the environment at the core of an economic rebound, published in Le Monde on 5 May 2020(1).

2020 saw numerous tangible contributions of BNP Paribas environmental responsibility:

■ in general, the range of financial products incorporating environmental criteria continues to expand and the issues considered, in addition to the climate and energy transition, increasingly include biodiversity and the circular economy;

■ on tackling climate change:

■ BNP Paribas published its first specific report according to the TCFD recommendations (covering the year 2019) in order to increase transparency on the way in which the Group analyses, takes into account and manages its climate-related risks and opportunities (see Summary of climate-related issues, section 7.6),

■ financing for renewable energies reached EUR 17.8 billion; Overall, BNP Paribas ranked second for the financing of renewable energy projects in the EMEA region and 4th worldwide(2). In addition, at the end of 2020, BNP Paribas had structured and placed EUR 10.8 billion of green bonds,

■ the energy renovation of buildings is a key issue in the energy transition and, in many countries, a major focus of recovery plans. BNP Paribas has been actively involved in the public debate to find ways of facilitating the financing of these renovation efforts and is rolling out appropriate financing offers in several of its markets,

■ on his operational scope (direct emissions, indirect emissions related to energy purchases and business travel), the year was marked by the pandemic which drastically limited business travel, usually a major contributor to the Group s greenhouse gas emissions. BNP Paribas continues to reduce its energy consumption with a 23% decrease in CO2 emissions per FTE at end-2020 compared to 2019, largely due to the reduction in business travel-related emissions. This allowed it to exceed its target of a 25% reduction by 2020 in greenhouse gas emissions, relative to 2012. At the same time, the share of renewables in the Group s electricity supply has risen to 37% of the total in 2020. Lastly, BNP Paribas offsets its residual emissions and has been carbon neutral on its operational scope since 2017. IT resources are one of the Group s most important work tools, and this has been further highlighted during lockdown periods due to the pandemic. BNP Paribas is reviewing the energy and climate impact of digital technology, in order to measure its footprint (taking into account equipment manufacture, its use and end-of-life) and gradually minimise it,

(1) https://www.lemonde.fr/idees/article/2020/05/03/mettons-l-environnement-au-c-ur-de-la-reprise-economique_6038523_3232.html

(2) Dealogic ranking at the end of 2020.