FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area in 2020–2021.
Value Assessed: $294B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area in 2020–2021.
Value Assessed: $179B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area in 2020–2021.
Value Assessed: $27.1B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Fossil fuel production companies are defined as those with primary sector of operations in the up-, mid-, and/or downstream segments of fossil fuel production. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $64.5B
Sector Paris Alignment scores for the sectors in which the asset manager has shareholdings. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
| Holding Name | Contribution to Sector Production |
|---|---|
| Engie SA | 29.7% |
| Renew Energy Global PLC | 13.0% |
| Fortum Oyj | 11.6% |
| Azure Power Global Ltd | 4.8% |
| Iberdrola SA | 4.1% |
| Boralex Inc | 4.1% |
| Orsted A/S | 3.1% |
| EDP Renovaveis SA | 2.9% |
| Enel SpA | 2.8% |
| Inter RAO YEES PAO | 2.8% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Stellantis NV | 42.6% |
| Renault SA | 13.6% |
| Bayerische Motoren Werke AG | 6.3% |
| Kia Corp | 5.9% |
| BYD Co Ltd | 5.4% |
| Toyota Motor Corp | 4.7% |
| Ford Motor Co | 3.0% |
| Hyundai Motor Co | 2.4% |
| Volkswagen AG | 2.3% |
| General Motors Co | 2.2% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Coal India Ltd | 86.9% |
| Glencore PLC | 8.4% |
| Jastrzebska Spolka Weglowa SA | 4.7% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Petroleo Brasileiro SA Petrobras | 38.5% |
| TotalEnergies SE | 25.0% |
| NK Lukoil PAO | 6.4% |
| Tatneft' PAO | 4.6% |
| China Petroleum & Chemical Corp | 4.2% |
| Novatek PAO | 3.7% |
| Repsol SA | 2.8% |
| Shell PLC | 2.6% |
| Eni SpA | 2.6% |
| BP PLC | 2.1% |
All equity funds that FinanceMap has identified as being managed by this asset manager. Click through to a fund's profile page to view in-depth analysis.
BNP Paribas appears to be a leader in engaging with companies around climate. The asset manager has several defined climate themes in its climate engagement framework, and states that it is committed to aligning its portfolios with the goals of the Paris Agreement. It does not appear to use milestones to track progress of engagements, but does track successes on voting-related engagements. The asset manager has a clearly defined escalation strategy and has escalated engagements by filing shareholder resolutions at ExxonMobil and Delta in 2021.
BNP Paribas is actively engaging companies to transition in line with the Paris Agreement. For example, its engagements with Iberdrola and PTT Pcl led the companies to improve on climate transition plans and net zero targets. The asset manager is engaging on climate policy influence, including pushing for an evaluation of Delta and ExxonMobil’s lobbying efforts measured against the Paris Agreement. In 2022, it filed climate lobbying shareholder proposals at ExxonMobil, General Electric, and UPS. It is a highly active collaborative engager, leading or co-leading CA100+ engagements with ten companies.
BNP Paribas has described its stewardship governance structure and appears to review stewardship policies and activities. The asset manager has disclosed some companies it is engaging with, including both collaborative and direct engagements. It also discloses all proxy voting data but does not include rationale for voting decisions. BNP Paribas has used shareholder authority to engage companies on climate, including filing Paris Aligned shareholder resolutions as well as opposing management resolutions concerning the approval of financial statements, discharge of the board, or election of directors due to climate considerations.
Insightia data suggests that BNP Paribas has been consistent in supporting AGM resolutions InfluenceMap categorizes as in line with the Paris Agreement, supporting 90.9% in 2019, 88.9% in 2020, 94.9% in 2021, and 100% in 2022.
FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code . The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media; escalation and the shareholder resolution process (filing, voting behavior). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources.
Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. The voting data is drawn from asset managers' disclosures to the US Security Exchange Commission (SEC), asset manager websites (including third-party websites they link to), directly from the asset managers, and through specialist voting data provider Insightia. The full list of resolutions assessed is available here.
The following table outlines the key queries and data sources, which FinanceMap uses to assess financial institutions’ sustainable finance policy engagement. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
BNP Paribas appears to be generally supportive of regulation on sustainable finance, with subsidiary BNP Paribas Asset Management contributing a significant proportion of its policy engagement. In general, engagement from BNP Paribas Asset Management appears to be more supportive on sustainable finance policy than the group-level engagement.
BNP Paribas Asset Management has called for reform to achieve a sustainable financial system and has stated support for limiting global warming to 1.5 degrees. Both BNP Paribas and BNP Paribas Asset Management have also advocated for action to reach net-zero by 2050, participating in a number of investor initiatives advocating to EU leaders and the UK’s Prime Minister in 2020 and to governments in 2021 and 2022. BNP Paribas Asset Management has also advocated for the post-2020 global biodiversity framework to mandate the alignment of financial flows with biodiversity goals. Since 2018, BNP Paribas Asset Management has consistently supported the aims of the EU's Sustainable Finance Action Plan, with some examples of support from other parts of the group including BNP Paribas Securities Services. It has urged the Commission to "accelerate the systemic sustainability transition of the EU financial sector" and called for European institutions to lead the private sector in delivering the goals of the Paris Agreement.
BNP Paribas Asset Management was particularly engaged in promoting the taxonomy in 2018-20. This has included on its website and social media posts. According to minutes accessed through a Freedom of Information request, BNP Paribas advocated for a rigorous science-based taxonomy in a meeting with the European Commission in 2019 and BNP Asset Management continued to do so in corporate reporting in 2021. However, in feedback to the European Commission's consultation on the Renewed Sustainable Finance Strategy and to the European Banking Authority (EBA) in 2020, BNP Paribas opposed the development of a taxonomy of environmentally harmful activities. In response to the Commission in 2021, BNP Paribas also argued for taxonomy disclosures to be phased in and not to be too granular in a first stage. In a 2022 website article, BNP Paribas CIB offered broad support for an Australian sustainable finance taxonomy.
In feedback to the European Commission's consultation on the Renewed Sustainable Finance Strategy in 2020, BNP Paribas supported the verification for the EU Green Bond Standard, and suggested that an ESG label or range of labels targeted to all investors should be established. However, it did not support the development of a broader ESG benchmark by the Commission and suggested minimum standards instead.
BNP Paribas Asset Management has supported clarifying investor duties to include ESG issues and has also strongly advocated for policies which would implement this, including ESG investor disclosure and integrating ESG preferences into suitability assessments. However, in response to the ESAs’ consultation on investor ESG disclosure in 2020, BNP Paribas Asset Management argued against the stringency of the proposed indicators. In more recent 2020 blogs, both BNP Paribas Asset Management and BNP Paribas Securities Services supported the EU’s disclosure regulation. In feedback to the European Commission in 2020, BNP Paribas further supported incorporating adverse ESG impacts into fiduciary duty and considering members’ ESG preferences in pension schemes. In response to the Bank of England on climate change financial risks assessments in 2020, BNP Paribas argued for less granularity in scenario analysis. In a 2022 website article, BNP Paribas Asset Management offered broad support for the Sustainable Finance Disclosure Regulation (SFDR) and MIFID II and engaging clients on their ESG preferences, although it did highlight that these policies were challenges for the industry “given their complexity”.
BNP Paribas Asset Management endorsed a statement to policymakers for an ambitious review of the Non-Financial Reporting Directive (NFRD) in 2020. In a 2021 letter to the SEC, BNP Paribas strongly supported mandatory ESG disclosure, including disclosure on Scope 1, 2, and 3 emissions. However, in its 2022 response to the SEC, it suggested some more flexibility, calling certain aspects "overly prescriptive". It also supported ambitious global climate-related disclosures in response to the International Sustainability Standards Board (ISSB), such as a "double materiality" approach. In response to the European Commission on the Corporate Sustainability Reporting Directive (CSRD) in 2022, BNP Paribas also argued that the disclosure requirements were "overly complex”. BNP Paribas Asset Management advocated for increased ambition to the Canadian Securities Administrators’ Draft Regulation on disclosure of climate-related matters in 2022. More recently, BNP Paribas and BNP Paribas Asset Management have advocated for regulated corporate disclosure around biodiversity in website articles and in joint statements by the financial sector in 2022. BNP Paribas Asset Management has also advocated for disclosure mandatory implementation of the TCFD and 1.5 pathway-aligned transition plans in 2022 and 2021.
In 2020, BNP Paribas supported the incorporation of ESG risks but warned against mandatory prudential treatment in response to the Commission. In a consultation response to the Bank of England in 2020, BNP Paribas also argued for less granularity on the assessment of the impact of climate change in banks and insurers. In response to the European Banking Authority’s (EBA) proposal on ESG risks in 2021, BNP Paribas cautioned that the number of proposed templates was too complex and against the disclosure of Scope 3 and exposure of carbon-intensive firms. In a website article in 2022, BNP Paribas CIB offered broad support for efforts to introduce climate-related financial risks into regulation in Australia. Also in 2022, BNP Paribas Asset Management supported the integration of climate risks into scenario analysis as part of Solvency II. However, in response to the EBA in 2022 on the introduction of environmental risks into a prudential framework, BNP Paribas cautioned that regulatory efforts should focus on risk management and not disincentivise financing the transition. In a meeting with the Office of the Comptroller of the Currency (OCC) in 2022, BNP Paribas was one of the representatives of the Bank Policy Institute (BPI), which highlighted “challenges they foresaw in implementing certain of the draft Principles” referrin to the OCC’s draft Principles for Climate-Related Financial Risk Management for Large Banks.
BNP Paribas has disclosed all relevant policy positions in the EU, but does not appear to disclose in other regions, such as US and Canada. However, subsidiary BNP Paribas Asset Management has clearly disclosed all sustainable finance policies relevant to its operations. The group level disclosure lists trade association memberships without any further details on indirect policy engagement, while BNP Paribas Asset Management has clearly described trade association memberships, with positions taken by the company within the trade associations and ability to shape policy positions. Disclosure on direct and indirect policy engagement appears to be more fragmented across the rest of the group.
InfluenceMap’s methodology for assessing lobbying on sustainable finance policy closely follows InfluenceMap’s established methodology on climate policy engagement, which is used extensively by investors, including via the Climate Action 100+ investor engagement process. Our full methodology can be found here.
Under our assessment of sustainable finance lobbying, InfluenceMap considers engagement on all financial policies which intersect with climate and/or other sustainability issues. The analysis takes into account both the engagement of the financial institution and the activities of industry associations they hold membership of.
InfluenceMap’s methodology covers seven publicly available data sources, searching for evidence of engagement and corporate positioning since 2017. To determine the policy issues within the scope of the analysis, InfluenceMap breaks down sustainable finance policy engagement into a series of subcategories, or 'queries'. These are designed to cover high-level issues relating to the importance of sustainable finance, as well as more specific areas of sustainable finance policymaking. InfluenceMap’s research process searches for evidence of an organization's engagement with each sustainable finance policy issue, across each of the data sources.
The following table outlines the key queries and data sources, which FinanceMap uses to assess asset managers' corporate engagement programs. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party.
In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of May 2023, Jean-Laurent Bonnafé is a member of the board at the EBF
Jean-Laurent Bonnafé (Director and Chief Executive Officer, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is a member of UK Finance which is a national association member of EBF
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of May 2023, Jean-Laurent Bonnafé is a member of the board at the EBF
Jean-Laurent Bonnafé (Director and Chief Executive Officer, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is a member of UK Finance which is a national association member of EBF
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, Jean Lemierre is on the board of the IIF
Jean Lemierre (Chairman of the Board, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, Jean Lemierre is on the board of the IIF
Jean Lemierre (Chairman of the Board, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, Jean-Laurent Bonnafé is a board member at BPI
Jean-Laurent Bonnafé (Director and Chief Executive Officer, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas Bank of the West is a member of BPI.
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, Jean-Laurent Bonnafé is a board member at BPI
Jean-Laurent Bonnafé (Director and Chief Executive Officer, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas Bank of the West is a member of BPI.
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, Olivier Osty is vice-chair of the board of AFME
Olivier Osty (Head of Global Markets, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Olivier Osty is on the board of AFME
Olivier Osty (Head of Global Markets, BNP Paribas)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, Olivier Osty is vice-chair of the board of AFME
Olivier Osty (Head of Global Markets, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Olivier Osty is on the board of AFME
Olivier Osty (Head of Global Markets, BNP Paribas)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is a member of SIFMA
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, Robert Hawley is on the board of SIFMA.
Robert Hawley (CEO of CIB Americas, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is a member of SIFMA
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, Robert Hawley is on the board of SIFMA.
Robert Hawley (CEO of CIB Americas, BNP Paribas)
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
As of February 2022, BNP Paribas Asset Managers is a corporate member and BNP Paribas Securities Services is an associate member of EFAMA
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
BNP Paribas Investment Partners is a member of EFAMA
InfluenceMap Data Point on Corporate - Influencer Relationship
As of February 2022, BNP Paribas Asset Managers is a corporate member and BNP Paribas Securities Services is an associate member of EFAMA
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
BNP Paribas Investment Partners is a member of EFAMA
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is a member of EuropeanIssuers (last checked, May 2023)
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is a member of EuropeanIssuers (last checked, May 2023)
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, BNP Paribas is a Strategic Partner member of the MFA
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, BNP Paribas is a Strategic Partner member of the MFA
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, BNP Paribas is a member of Insurance Europe
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, BNP Paribas Cardif is a member of Verbond van Verzekeraars in Nederland which is a national association member of Insurance Europe.
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, BNP Paribas is a member of Insurance Europe
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, BNP Paribas Cardif is a member of Verbond van Verzekeraars in Nederland which is a national association member of Insurance Europe.
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
As of February 2023, BNP Paribas Asset Management France, BNP Wealth Management and BNP Paribas Fortis are members of Invest Europe
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
BNP Wealth Management, BNP Paribas Fortis and BNP Paribas Capital Partners are members of Invest Europe
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
BNP Paribas Fortis and BNP Paribas Capital Partners are members of Invest Europe
InfluenceMap Data Point on Corporate - Influencer Relationship
As of February 2023, BNP Paribas Asset Management France, BNP Wealth Management and BNP Paribas Fortis are members of Invest Europe
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
BNP Wealth Management, BNP Paribas Fortis and BNP Paribas Capital Partners are members of Invest Europe
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
BNP Paribas Fortis and BNP Paribas Capital Partners are members of Invest Europe
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, BNP Paribas Asset Management is a member of the Investment Association
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2023, BNP Paribas Asset Management is a member of the Investment Association
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is an associate member of Japanese Bankers Association
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is an associate member of Japanese Bankers Association
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is an associate member of Japanese Bankers Association
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
BNP Paribas is an associate member of Japanese Bankers Association
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, BNP Paribas Asset Management is a member of the IIGCC
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Helena Viñes Fiestas (Global Head of Stewardship and Policy, Deputy Global Head of Sustainability, BNP Paribas Asset Management) was a board member of the IIGCC
Helena Viñes Fiestas
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of February 2022, BNP Paribas Asset Management is a member of the IIGCC
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Helena Viñes Fiestas (Global Head of Stewardship and Policy, Deputy Global Head of Sustainability, BNP Paribas Asset Management) was a board member of the IIGCC
Helena Viñes Fiestas
BNP Paribas's board of directors incorporates climate-related issues into corporate strategy, and appears to have direct oversight over its implementation. It has assigned clear climate-related responsibilities to senior management and board-level committees. There are clear processes to ensure senior management is involved in implementing and managing climate-related issues and strategy, and BNP Paribas is transparent in reporting around this. For example, it discloses how often climate issues were raised in Board or Board Committee meetings and what was discussed.
BNP Paribas has clearly defined the risks and opportunities it considers to be relevant to its business over different time horizons, and across various business areas, including real estate, corporate banking, asset management, and insurance. In its 2020 CDP Response, it clearly described the processes used to determine which risks and opportunities could have a material financial impact on the organization.
The organization has provided some examples of how it has considered the impact of climate-related risks and opportunities on its corporate strategy in its TCFD and CDP reporting, which include descriptions of the responses it has had to the risks identified.
The organization uses climate scenarios to discuss the resilience of its business strategy; however, it is unclear if it has tested the resilience of its business strategy across a robust range of climate-scenarios, including those consistent with a 2°C or lower warming.
BNP Paribas uses clear risk management processes to identify and assess climate-related risks, which are transparently reported on. It determines the relative significance of climate-related risks in relation to other risks using a materiality matrix and stakeholder feedback. It also uses risk management processes and systems to manage climate-related risks across the group, including a risk scoring process. It appears to have comprehensively integrated climate-related risks into its overall risk management system.
BNP Paribas is transparent about the key metrics used to measure and manage climate-related risks and opportunities. It has also incorporated the management of material climate-related risks into senior management remuneration policies.
The organization discloses Scope 1, Scope 2 emissions data and has some relevant Scope 3 emissions disclosure, including calculating its Scope 3 portfolio impacts using a carbon footprint methodology. In addition, it is "interested" in the PCAF reporting initiative; however, it does not appear to have committed to disclosing in line with this methodology at this stage.
In April 2021, the bank was announced as a founding member of the UN convened Net Zero Banking Alliance. This commit builds on its existing targets and efforts around decarbonizing its financing activities, exiting the thermal coal sector, and reducing its exposure to unconventional hydrocarbons. In May 2022, it announced a series of financed carbon emissions intensity reduction targets for three key sectors: power generation (a reduction of at least 30% by 2025), upstream oil and gas and refining (a reduction of at least 10% by 2025), and automotive (a reduction of at least 25% by 2025). It has used the IEA Net Zero Scenario as a pathway, and the targets apply to its lending portfolios.
BNP Paribas has set an exit deadline for the thermal coal sector of 2030 in OECD countries and 2040 globally. Additionally, it no longer accepts new customers deriving more than 25% of their revenue from thermal coal. It also engages with existing customers in the coal power sector to assess their alignment with its exit deadline and has begun excluding firms based on this criteria.
BNP Paribas is reducing its credit exposure to oi and gas exploration and production by 12% by 2025 as part of its effort to transition its financing activities in line with the goals of the Paris Agreement. BNP Paribas has set exclusionary policies that limits its financing of specific natural gas projects or require clients to meet due diligence criteria; however, the organization appears to otherwise participate in unabated natural gas financing. The organization appears to have a similar position on oil investments.
The entity has a nuclear financing policy that supports an increase in nuclear to support reducing the carbon intensity of the energy mix and requires clients to meet international safety standards.
BNP Paribas appears to be aligning its energy financing portfolio with the IPCC guidance between 2020-2050 across fossil fuel technologies to support the transition to a renewables-based energy system. In addition, it is actively expanding its financing of renewables and has developed a variety of green finance tools to support the ecological and energy transition.
FinanceMap’s Climate Governance and Policies analysis assesses statements financial institutions (FIs) are making on how they are incorporating climate issues into their decision-making and operations using FinanceMap’s matrix methodology. This methodology is adapted from the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and guidelines, Net-Zero Banking Alliance (NZBA) or equivalent Glasgow Financial Alliance for Net-Zero (GFANZ) initiative reporting, and IPCC and IEA technology statements. The TCFD provide guidance on 11 recommendations across four areas which are reflected in our matrix: Governance, Strategy, Risk Management, and Metrics and Targets. Additional benchmarks have been introduced to strengthen the ambition of scoring criteria in the assessment of targets, which are supplemented by guidance from the NZBA or equivalent GFANZ initiatives.
Additionally, Science-Based Policy (SBP) benchmarks are used to measure alignment of an FIs technology positions with the science of climate change. These benchmarks are applied to an FIs internal policies on technologies including coal, oil, gas, nuclear, and renewables and also assesses its engagement with broader climate and energy policy issues such as advocacy on the role and importance of different strategy types in the future energy mix.
For each TCFD recommendation and technology, FIs statements are applied to a five point scoring scale ranging from +2 to -2, measuring alignment with the relevant benchmarks. The detailed scores for this FI are displayed below within each matrix cell.
The following table outlines the key queries and data sources, which FinanceMap uses to assess financial institutions climate governance, targets and policies. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
Open PDF file of Data Source
Open PDF file of Data Source