2020 Universal registration document and annual financial report - BNP PARIBAS610

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a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas Climate-related issues management summary

➤ SOME OF THE MAIN SOURCES OF CLIMATE-RELATED RISKS FOR BNP PARIBAS

Risk family Scope Risk sources Time

horizon Relevant

businesses

Potential significance

of the impact (for the Group) Mitigation action

Transition risks

Within the operating scope of BNP Paribas

Carbon price increase (tax or quotas) applied to BNP Paribas GHG emissions within its operating scope

MT Internal +

Reduction of BNPP s GHG emissions

within its own scope See page 603

Tightening of climate reporting regulations, which would require more time-consuming and resource-consuming reporting tools and processes.

ST Internal + Ongoing reporting reliability process

See page 602

Tightening of environmental standards (e.g. on the energy efficiency of our buildings, on our own fleet of vehicles, etc.) that may require investments to meet the new standards

MT Internal + Reduction of BNPP s energy consumption

See page 602

Customer risk

Credit risk: increase in the price of carbon (tax or quotas) applied to the GHG emissions of our clients, in particular the most emitting ones

MT Financing activities +++

Alignment of the loan portfolio

with the climate objective of the

Paris Agreement (PACTA, etc.)

See page 561 Incorporation of this

component in the credit risk analysis

See page 565

Risk of underperformance of funds that are overexposed to industries or companies that emit high levels of greenhouse gases (carbon tax), that are likely to be subject to increased regulatory pressure or whose activity is expected to decline under climate scenarios

MT

Asset management

for third parties

++

Incorporating ESG criteria into assets

under management See page 565

Risks for BNP Paribas

Risks of loss of market share for the Group, and in particular for its subsidiaries Arval and Leasing Solutions if they do not sufficiently adapt to their customers demand for more environmental products and services (electric vehicles, low-carbon equipment leasing, etc.)

MT

Specialised subsidiaries:

Arval, BNP Paribas

Leasing Solutions,

etc.

++

Development of low-carbon offers

for Arval and Leasing Solutions

See page 597

Reputational risk: risk of damage to the image of the BNP Paribas brand if external stakeholders believe that the Group is not sufficiently active in the fight against climate change.

ST Group ++/+++

BNPP s overall efforts in the fight against

climate change; transparency efforts