BNP PARIBAS

Rated for year 2017: Neutral

Score: 0

Industry: bank

 

Analysis:

The bank can invest in projects harmful or beneficial to animals. Investment in renewable energies have increased by 29% from € 7.2 to 9.3 billion from 2015 to 2016 (p 458 of 2016 registration document); BNP Paribas has participated in the issue of the 1st French sovereign green bond. We note that the bank’s exclusion list excludes financing projects related to the trading of animals mentioned on the CITES list (p 459 of 2016 registration document).

The bank has signed the Equator Principles where ESG projects are classified by categories A/B/C; A represents the most polluting projects, and C the least. Concerning the bank’s performance related to the Equator Principles, we observe more investment in polluting projects from 2015 to 2016: from 0 category A / 12 category B /1 category C in 2015 to 3 category A/ 14 category B / 0 category C in 2016, so an increase of +3 category A highly polluting projects. But in comparisons with other French banks of the same peer group, since 3 category A projects financed by BNP are still less than 7 projects of category A financed by Societe Generale, 7 category A by Credit Agricole, and 5 category A by Natixis, the BNP Paribas’s score is higher than its competitors.

Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented;
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures; and
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts

BENEFICIAL ASPECTS: wildlife investment exclusion and significant increase of investments in renewable energies

HARMFUL ASPECTS: more polluting projects financed

 

Sources:

BNP PARIBAS 2016 registration document

Equator Principles- number of polluting projects financed by BNP PARIBAS in 2016 per pollution level

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