2020 Universal registration document and annual financial report - BNP PARIBAS608
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a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas Climate-related issues management summary
7.6 Climate-related issues management summary
BNP Paribas is convinced of the importance of the risks and opportunities related to climate change and incorporates them into its governance, strategy and the management of its risks and opportunities. This chapter presents the main mechanisms and indicators in place in 2020, following
the recommendations of the TCFD (Taskforce on Climate-related Financial Disclosures). As in 2020, a more detailed dedicated TCFD report will be published in the 1st half of 2021.
BNP PARIBAS GOVERNANCE ON CLIMATE-RELATED RISKS AND OPPORTUNITIES
A. THE BOARD OF DIRECTORS OVERSEES CLIMATE-RELATED RISKS AND OPPORTUNITIES
The Board of directors of BNP Paribas determines the Group s strategy, on the recommendation of Executive Management, including for energy and climate-related issues. Four of its members count CSR among their three main areas of expertise (see paragraph Directors knowledge, skills and experience, page 50). More specifically, among these members, Marion Guillou (member of the High Council on Climate under the French Prime Minister) and Pierre-André de Chalendar (author of Our fight for the climate. A decarbonised and growing world, it is possible ) have recognised climate expertise.
Certain specialised committees that assist the Board of directors play a particular role in the supervision of energy and climate issues. In particular, the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) and the Internal Control, Risk Management and Compliance Committee (CCIRC) decide on the appropriateness of BNP s overall strategy and its risk appetite for climate-related issues.
In 2020, climate change was addressed six times by the Board of directors, twice by the CGEN and twice by the CCIRC.
In addition, the Board of directors approves the variable remuneration of executive corporate officers, linked in part to the Group s performance on environmental and social issues, including the fight against climate change.
Lastly, the Board of directors approves the sections on CSR in this Universal registration document and the Annual Integrated Report, including chapter 7.5 on Our environmental responsibility: accelerating the energy and ecological transition.
B. MANAGEMENT IS RESPONSIBLE FOR ASSESSING AND MANAGING CLIMATE-RELATED RISKS AND OPPORTUNITIES
The Executive Committee determines the Group s policy for the management of climate-related risks and opportunities. Jean-Laurent Bonnafé, Director and Chief Executive Officer, is ultimately responsible for the climate strategy for which the Director of Corporate Engagement, a member of the Executive Committee, is responsible as part of his CSR oversight duties.
Throughout 2020, the Group s climate strategy, the implementation of the policy of aligning its loan portfolio with the Paris Agreement and the main associated indicators were discussed regularly at meetings chaired by Jean-Laurent Bonnafé (4 meetings in 2020).
The Corporate Engagement Department, the Risk Function (both represented on the Executive Committee) and the CSR Department are responsible for the operational implementation of the climate strategy.
In addition, the remuneration of more than 7,700 of BNP Paribas key managers is partially indexed to the Group s CSR performance, including energy and climate issues.
