558 2019 Universal registration document and annual financial report - BNP PARIBAS

7 a Committed Bank: information ConCerninG the eConomiC, soCial, CiviC and environmental resPonsiBility of BnP PariBas

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Our environmental responsibility: accelerating the ecological and energy transition

7.5. Our environmental responsibility: accelerating the ecological and energy transition

Since 2011, BNP Paribas has put climate change as the priority focus of its efforts, given its position in the financing of the global economy, particularly in the energy sector. The BNP Paribas Commitments for the Environment reaffirmed this proactive approach while making a formal commitment to extend them to biodiversity, water, natural resources and circular economy. 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.

2019 saw numerous tangible contributions of BNP Paribas environmental responsibility:

■ on tackling climate change:

■ funding for renewable energy reached EUR 15.9 billion; BNP Paribas is ranked in 2nd place when it comes to financing renewable energy projects in the EMEA region and is 4th internationally (Dealogic ranking end-2019). In addition, at the end of 2019, BNP Paribas had structured and placed EUR 9.8 billion of green bonds,

■ on the investment side, the Group launched 10 climate indices, raising more than EUR 750 million in 2019. BNP Paribas Asset Management s green funds, which are mainly invested in alternative energies and energy efficiency, had EUR 11.6 billion in assets under management as of 31 December 2019,

■ within its own operations (direct emissions and indirect emissions relating to energy purchases and business travel), BNP Paribas is continuing to cut its energy consumption, with a 5.3% reduction

in CO2 emissions per FTE at end-2019. In 2019, this allowed it to exceed its target of a 25% reduction by 2020 in greenhouse gas emissions, relative to 2012. This was largely due to a more than 12% reduction in business travel in 2019 compared to the prior year (in km/ETP). At the same time, the share of renewables in the Group's electricity supply has risen to 35% of the total in 2019. Lastly, the Group offsets its residual emissions and has been carbon-neutral within its own operational scope since 2017.

■ in terms of biodiversity:

■ the Group is committed to protecting the world s oceans, and in the maritime sector, EUR 1 billion has been earmarked for the environmental transition of ships by 2025,

■ the BNP Paribas Foundation s Climate Initiative programme has been expanded to include biodiversity issues and has become the Climate & Biodiversity Initiative. Since its launch in 2010, the programme has granted EUR 18 million in funding for 27 research projects. It has also raised awareness of climate change and biodiversity issues among employees and the general public through specific events.

■ lastly:

■ the Bank has bolstered its commitment to circular economy, notably by creating the joint venture BNP Paribas 3 Step IT, offering companies an end-to-end management service for their technological equipment at each stage of its life cycle. The Bank has also launched the first exchange-traded fund (ETF) dedicated to circular economy.

Firmly of the view that the energy and environmental transition requires the joint commitment of all stakeholders to succeed, BNP Paribas is a member of several associations or coalitions that seek to promote collective action in favour of the energy and environmental transition:

■ in 2019, Jean-Laurent Bonnafé, Director and Chief Executive Officer of BNP Paribas, became Chairman of the environmental business forum EpE (Entreprises pour l environnement), giving him a public platform for publicising EpE s work and reports;

■ BNP Paribas is also involved in the work of the Hydrogen Council. This brings together leading multinationals in the energy, transport and industrial sectors who share the same long-term vision that hydrogen can support the energy transition.