2020 Universal registration document and annual financial report - BNP PARIBAS 595
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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
■ it should be noted that several independent players view BNP Paribas actions in the fight against climate change very positively: EcoAct ranked BNP Paribas as the best company in the CAC40 in terms of it climate reporting performance in 2020; the NGO ShareAction considers BNP Paribas to be the best European bank for its contribution to climate risk management;
■ in terms of biodiversity and the circular economy:
■ the BNP Paribas Foundation, through its programme, Climate & Biodiversity Initiative, supports the 9 winning projects of its fourth call for projects launched in 2019, addressing various issues related to the interactions between climate and biodiversity,
■ the Bank has strengthened its offering, in particular by offering its customers green bonds and sustainability linked loans (SLL) related to circular economy and biodiversity.
COMMITMENT 10: ENABLING OUR CLIENTS TO TRANSITION TO A LOW-CARBON ECONOMY, RESPECTFUL OF THE ENVIRONMENT
The Group supports its customers, individuals, companies and investors, in the transition to a low-carbon economy, more respectful of the environment, including greater incorporation of preservation of biodiversity and the principles of the circular economy. To this effect, it uses several levers to cater for their specific needs.
HELPING TO FINANCE THE ENERGY AND ENVIRONMENTAL TRANSITION
Increased support for renewable energy
As at end-2020, financing for the renewable energy sector amounted to EUR 17.8 billion. This brings the Group closer to its target of EUR 18 billion at the end of 2021, one year ahead of schedule.
Overall, BNP Paribas ranked second in financing renewable energy projects in the EMEA region and 4th worldwide (Dealogic ranking at the end of December 2020).
Among the achievements of the year, the teams contributed to the financing of the Fécamp wind farm in France, a 500 MW project and 71 turbines, for EUR 2 billion. BNP Paribas was the financial advisor for this transaction, which will provide green electricity to over 700,000 people.
In Abu Dhabi, BNP Paribas was the bookrunner for the largest solar project in the world, Al Dhafra PV2, which will have a production capacity of 2 GW. This project will cover 20 km2 in the desert and is led by EDF Energies Renouvelables and Jinko.
In the United States, the Geysers Power Company project enabled the Group to refinance a portfolio of 13 geothermal energy projects for a total of 725 MW in California.
Lastly, in a more local way, the teams financed three bio-gas development projects in 2020 in France, thus making it possible to inject biomethane into the gas network and help farmers upcycle their agricultural waste.
A major player in green bonds and more broadly positive impact bonds
In 2020, BNP Paribas was the second largest player in the green bond market. (green bonds) according to Bloomberg, with EUR 10.8 billion as bookrunner for its clients. The Group is present in the full range of bond issues that finance its clients transition to a sustainable economy, with the following examples of achievements in 2020:
■ Green Bond: Volvo Cars, a car manufacturer, asked BNP Paribas to be the advisor to establish a green financing framework. Volvo Cars thus raised EUR 500 million to finance an investment in the production of electric vehicles with a sales target of 50% of electric vehicles and 50% of hybrid vehicles in 2025;
■ Sustainable Linked Bond: the luxury brand Chanel called on BNP Paribas to issue bonds worth EUR 600 million. These are linked to specific objectives such as a 50% reduction in carbon dioxide emissions of Chanel by 2030, or the ability to use 100% renewable electricity by 2025; a first in this sector;
■ Transition Bond: Cadent, the largest gas distributor in the United Kingdom, issued a EUR 500 million bond, aligned with the European taxonomy of sustainable finance. These funds will be dedicated to modernising gas networks, to renewable energies and to sustainable mobility;
■ finally, the sustainable bond market is expanding into new areas such as biodiversity and the circular economy. For example, BNP Paribas participated in the Republic of Chile bond issue, whose purpose is to preserve biodiversity and protected areas both on land and at sea.
