Supporting the development of the circular economy by improving the identification processes for the companies which operate in this domain and offering them appropriate financing
Terms of the action or commitment
The subject is considered strategic by BNP Paribas, which has identified it among the 5 priorities presented in the Sustainable Business Development Plan integrated into the Group’s 2022-2025 strategic plan (see presentation of the Group’s annual results of 5 February 2021 available Here).
Our approach is therefore to support our clients in the development of a more circular business model and to engage in dialogue with those who present high stakes.
This process also requires to train people internally, to share a clear definition of circular economy within the Group and to work on the measurement.
Levers mobilized for circular economy (according to Ademe)
Implementation timeline
Starting year
2018
Ending year
2030
Main actors mobilized
Internal actors
CSR Department, Leasing Solution, Domestic Markets, CIB, PF, Real Estate, Risk
External actors
/
Geographic area
Worldwide
Photo / Video
2022 follow-up of the action
Date of follow-up
April 25th 2022
Methods of validation of the follow-up
Internal validation
Status of the action
In progress
Completed
a) Results
Achieved
Partially achieved
Not achieved
b) Numerical / Qualitative information
Cancelled
Explanations
Comparison with the projected pace in the last publications
Keeping up with the times
In advance
Delayed
In 2020 and 2021, training courses were carried out for business lines on the definition of Circular Economy and related opportunities for BNP Paribas. The group also participated in the work of UNEP-FI to develop a methodological guide for banks to set energy efficiency and circular economy targets. BNP Paribas will test this guide for 2022 and 2023 on a specific scope of its credit portfolio.
For BNP Paribas the challenge is above all to support the customers in their integration of circular economy activities. At the same time, the Group seeks to make progress in its own operations. For example:
– the Bank has strengthened its offer, in particular by offering its clients green bonds (for example for Carrefour) and sustainable linked loans (for example for M&S) based on the achievement of specific and measurable sustainability objectives related to the circular economy;
– BNP Paribas Asset Management offers investors a range of investment products related to the circular economy. Assets related to this thematic range on the circular economy amounted to €665 million at the end of 2021, demonstrating the attractiveness of this subject for investors (individuals and professionals).
The subject is considered strategic by BNP Paribas, which has identified it among the 5 priorities presented in the Sustainable Business Development Plan integrated into the Group’s 2022-2025 strategic plan (see presentation of the Group’s annual results of 5 February 2021 available Here).
Our approach is therefore to support our clients in the development of a more circular business model and to engage in dialogue with those who present high stakes. Thus, the deployment of the ESG Assessment in June 2021 has helped systematize ESG (Environmental, Social and Gouvernance) analysis in the credit process. This assessment, which strengthens already existing tools, integrates ESG* criteria in the same way as other parameters in the assessment of the counterparty’s profile. It covers elements of assessment relating to environmental and climate performance. The related questionnaires specific to each sector helpconsider the issues and challenges of climate transition linked to their activity. This allows us to integrate circular economy questions into the assessment.
