2018 Registration document and annual fi nancial report - BNP PARIBAS528
7 A COMMITTED BANK: INFORMATION CONCERNING THE ECONOMIC, SOCIAL, CIVIC AND ENVIRONMENTAL RESPONSIBILITY OF BNP PARIBAS
7
Our economic responsibility: fi nancing the economy in an ethical manner
Strengthening respect for h uman r ights
In 2018, BNP Paribas reinforced its analysis mechanism for stakeholder consultations and consent for projects fi nancing , notably by adopting a general approach to all populations which respects the Free Prior and Informed Consent (FPIC) principle.
Pursuant to the application of the French Duty of c are law, the Bank has developed a specifi c identifi cation approach for its clients in the riskiest activities and located in the riskiest countries in terms of human rights. On this topic, a strengthened dialogue mechanism with these clients is in the deployment phase (See Duty of care: 2018 BNP Paribas vigilance plan, section 7.6) .
After revising its sector policy for the defence sector, the Group withdrew from the tobacco sector and became a founding member of the Tobacco- Free Finance Pledge, launched in September 2018. This commitment includes 105 signatories and 38 supporters representing USD 7,000 billion in assets under management, USD 1,890 billion in corporate loans and USD 180 billion in insurance premiums.
Measures to combat deforestation and protect biodiversity
BNP Paribas is committed to fi ghting deforestation and to protecting biodiversity through several sector policies, including those governing agriculture, palm oil, and wood pulp manufacturing, and through its commitment to several multi-stakeholder initiatives. In 2018, the Group undertook the following measures to strengthen its commitment:
■ strengthened its criteria in the palm oil sector whereby its customers must protect High Carbon Stock (HCS) forests;
■ signed the Cerrado Manifesto, a voluntary commitment made by BNP Paribas Asset Management, aimed at preventing deforestation in the Brazilian tropical savannah;
■ joined act4nature, an initiative launched by the French think tank EpE to promote biodiversity (see Commitment 10: Partnering with our customers in the transition to a low-carbon economy);
■ contributed to the development of the Global Biodiversity Score methodology within the context of its participation in the B4B+ business club launched by CDC Biodiversité.
With these measures, along with those begun in previous years, such as Zero Net Deforestation commitment by 2020, the Group has been acknowledged as one of the leading financial institutions by The Global Canopy Program, an international forest protection NGO.
UPHOLDING THE EQUATOR PRINCIPLES ON PROJECT FINANCING As signatory to the Equator Principles along with 93 other fi nancial institutions worldwide, and in its role as fi nancial service provider and advisor, BNP Paribas works with its customers to identify, assess, and manage the environmental and social risks and impacts linked with major industrial and infrastructure projects. According to these principles, the negative impacts of these projects on communities, ecosystems or the climate must be avoided or minimised, mitigated and/or offset. Projects graded A present signifi cant risks and systematically involve an external review; those graded B present more limited risks; and those graded C present minimal or no risks. Since end-2017, under the initiative of BNP Paribas and 9 other member banks, the Equator Principles Association is reviewing key topics such as social impacts and Human Rights (FPIC Free Prior and Informed Consent), as well as designated countries and applicable standards. This extensive updating work should be completed in mid-2019 with the publication of the revised version of EP4 .
2011 2012 2013 2014 2015 2016 2017 2018
Number of transactions concerned in the year 30 13 21 26 17 23 8 17
Number of grade A transactions in the year 5 2 3 6 1 2 1 3
Number of grade B transactions in the year 20 10 13 18 15 21 7 14
Number of grade C transactions in the year 5 1 5 2 1 0 0 0
