Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change and energy transition
• Data privacy
• Ethics and compliance
• Fair and inclusive workplace
• Customer satisfaction

Environmental Achievements

• €15.4 billion in funding for renewable energy projects in 2018 (a 65% increase in two years)
• Significant reduction in support for high-greenhouse-gas-emission energy sources; no longer financing new coal-fired power stations
• Carbon-neutral for its own activity
• Launched Green Company for Employees program to reduce direct environmental impact

Social Achievements

• €1.6 billion in support for social enterprises at the Group level
• Global agreement with UNI Global Union on fundamental employee rights
• Integration of nine CSR indicators into the remuneration package of 6,750 key employees
• Financial education programs aiming to reach 100,000 young people by 2020
• Support for the inclusion and employment of refugees in Europe (€12.5 million grant for 2016-2021)

Governance Achievements

• Separation of Chairman and Chief Executive Officer functions
• 96.2% of employees received ethics training in 2018
• Board of Directors broadened responsibilities for promoting CSR
• Implementation of a Code of Conduct and 2020 Engagement Manifesto

Climate Goals & Targets

Environmental Challenges

• Low interest-rate environment impacting profitability
• Increasing prudential regulation requiring increased capital
• Technological revolution with emergence of new actors
• Climate change risks
• Social inequality
• Data privacy concerns
• Economic and regulatory changes

Mitigation Strategies

• Digital transformation to improve operational efficiency and develop new revenue streams
• Focus on value-added solutions for clients
• Strengthened cooperation with fintechs and startups
• Integration of ESG criteria into decision-making
• Development of sustainable finance solutions
• Commitment to UN Sustainable Development Goals
• Rigorous risk management policies and procedures

Supply Chain Management

Responsible Procurement

• Responsible purchasing policies

Climate-Related Risks & Opportunities

Opportunities

• Financing renewable energy projects
• Development of sustainable finance solutions

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), UN Sustainable Development Goals, Principles for Responsible Banking

Certifications: ISO 14289-1 (digital accessibility)

UN Sustainable Development Goals

• All 17 UN Sustainable Development Goals

BNP Paribas's strategy is centered around contributing to the UN SDGs through financing and investment in related sectors.

Sustainable Products & Innovation

• Sustainability-linked loans (SLL)
• Green bonds
• Social impact bonds
• ESG indices

Awards & Recognition

• Best bank in the world for sustainable finance (Euromoney)
• Leading European Bank in the 2018 ranking of the Global 100 Most Sustainable Corporations

Environmental Metrics

ESG Focus Areas

• Climate change and energy transition
• Social inclusion
• Responsible growth
• Ethics and compliance
• Diversity and inclusion

Environmental Achievements

• Reduced total greenhouse-gas emissions related to the proper functioning of BNP Paribas per FTE (compared with 2012) by -27.7%
• €15.9 billion in financing for renewable energies
• €9.8 billion in total amount of green bonds placed by BNP Paribas
• Carbon content of kWh financed by the Group reduced to 299 gCO2/kWh

Social Achievements

• Launched various initiatives to support local communities and vulnerable populations (€55 million commitment)
• Launched 'Act for Impact' initiative to support social entrepreneurs
• Partnership with Grameen Creative Lab to promote social business
• Opened L'Ascenseur, a venue supporting young people from disadvantaged backgrounds
• Continued support for microfinance, benefiting over 2 million people

Governance Achievements

• Maintained or improved performance in almost all of the main extra-financial rating agencies
• Became the first CAC 40 company to join the #JamaisSansElles movement
• Strengthened internal control and compliance systems

Climate Goals & Targets

Environmental Challenges

• Moderate global growth, long-term low interest rates, emergence of new competitors
• Increasing complexity of regulations and higher capital requirements
• Uncertainty linked to Covid-19 crisis, environmental issues, protectionism, Brexit
• Climate-related issues, geopolitical risks, public health risks, technological and cybersecurity risks, demographic risk, social issues

Mitigation Strategies

• Activating drivers of transformation (improving operational efficiency, developing new services, diversifying customer solutions, strengthening ethics and compliance culture)
• Developing innovative financing and investment solutions for customers
• Supporting society through voluntary grants and aid plans
• Implementing new customer journeys, optimizing data use, changing operating models, adapting IT systems, developing digital working methods
• Strengthening customer franchises through partnerships

Supply Chain Management

Responsible Procurement

• €10.6 billion in procurement at Group level

Climate-Related Risks & Opportunities

Physical Risks

• Economic effects of environmental and health risks

Transition Risks

• Evolving regulatory environments, growing complexity and disparities in international regulations

Opportunities

• Financing the energy transition, developing sustainable finance solutions

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Principles for Responsible Banking (PRB), Principles for Responsible Investment (PRI)

Certifications: ISO 14289-1 (digital accessibility)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 5 (Gender equality)

BNP Paribas' initiatives are aligned with these SDGs through financing renewable energy, promoting social inclusion, supporting sustainable business models, and fostering gender equality.

Sustainable Products & Innovation

• Sustainability-Linked Loans (SLLs)
• Green bonds
• Social bonds
• ClimateSeed platform

Awards & Recognition

• World’s Best Bank for Corporate Responsibility (Euromoney, 2019)
• Most Innovative Investment Bank for Climate Change and Sustainability (The Banker 2019)
• Top bank in Vigeo Eiris 2019 rankings
• A rating in MSCI ESG Ratings 2019
• A- rating in Carbon Disclosure Project rankings 2018
• Included in Corporate Knights’ 2020 ranking of the 100 most sustainable companies

Environmental Metrics

ESG Focus Areas

• cutting carbon emissions
• managing assets responsibly
• boosting stakeholders’ awareness to achieve positive change

Environmental Achievements

• Launched the European Impact Property Fund (EIPF), aiming to reduce CO2 emissions by 40% across the entire European portfolio over the next decade.

Social Achievements

• Improved tenants' comfort, encouraged soft mobility, promoted waste sorting and ensured access to people with disabilities.
• BNP Paribas Diversipierre OPCI earned France’s SRI label in 2020.

Governance Achievements

• Established ESG roadmaps with KPIs for ESG funds, defining prioritized ESG criteria and improvement methods.
• 70% of funds open to subscription to investors will be classified as “Sustainable” under SFDR by 2022, rising to 90% by 2025.

Climate Goals & Targets

Environmental Challenges

• Improving the ESG performance of existing assets.

Mitigation Strategies

• Best in Progress investment approach focusing on meticulous improvement of existing assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy transition
• Biodiversity
• Social inclusion
• Gender equality
• Responsible investing and financing

Environmental Achievements

• Reduced total greenhouse-gas emissions related to the proper functioning of BNP Paribas per Full-Time Equivalent (compared with 2012) by – 53.3%
• Increased financing for renewable energies to €18.6bn
• Placed €22bn in green bonds
• Mobilized €244bn in corporate financing contributing to the energy transition and to sectors considered as contributing directly to the achievement of the 17 United Nations Sustainable Development Goals (SDG)

Social Achievements

• Launched the MonDemain platform to help customers prepare for retirement
• Launched BNL Abito, a digital ecosystem providing home-related services in Italy
• Supported the Whitaker Peace & Development Initiative (WPDI) education and entrepreneurship programs
• Mobilized €358,753 to NGOs fighting gender-based violence
• Allocated €20m to provide scholarship students with access to loans without a guarantor

Governance Achievements

• Improved gender diversity in senior management positions (32% women)
• Strengthened the Group’s Code of Conduct
• Launched the Conduct Journey training modules to promote ethical behavior

Climate Goals & Targets

Environmental Challenges

• Geopolitical crisis in Ukraine impacting energy prices and international trade
• High inflation affecting essential goods
• Potential for stagflation and increased unemployment

Mitigation Strategies

• Mobilized quickly to ensure the safety of employees in Ukraine and provide banking services
• Supported partner charities and organizations
• Activated the BNP Paribas Foundation’s Rescue & Recover Fund

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Climate catastrophes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Financing low-carbon technologies
• Investing in sustainable infrastructure

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The Group's activities contribute to several UN Sustainable Development Goals, particularly those related to climate action, responsible consumption and production, and gender equality.

Sustainable Products & Innovation

• Eco-responsible credit cards
• My Carbon Footprint service
• GreenUp expense management tool
• Insurance for reconditioned electronics

Awards & Recognition

• Top Employer Europe 2022
• World’s Best Bank for Sustainable Finance
• World’s Best Bank for ESG Data & Technology
• 7th global bank in the 2022 ranking of the 100 Most Sustainable Companies

Environmental Metrics

ESG Focus Areas

• Climate change and energy transition
• Human rights
• Responsible investments and financing
• Business continuity
• Ethics and compliance

Environmental Achievements

• In 2022, financing of low-carbon energy production already accounted for more than 55% of our portfolio, compared to 45% for fossil energies. By 2030, the Group aims to transition over 80% of its financing activities towards the production of low-carbon energy.
• Reduced the carbon footprint of its investment portfolios by 53% between 2017 and 2020 (BNP Paribas Cardif).
• In 2022, BNP Paribas was ranked #1 worldwide in green bonds (equivalent of €18bn).

Social Achievements

• Launched the Sustainability Academy in the fall of 2022 to train employees on sustainable finance.
• Launched the “Ambition 1,000 mentors” programme, resulting in 953 mentors in 2022 (1.7% of employees in France).
• Supported 1,035 local associations in priority urban areas through the “Projet Banlieues” program, benefiting 900,000 people.

Governance Achievements

• Revised its objectives upwards for the three pillars of the Growth, Technology, Sustainability 2025 plan.
• Maintained a CET1 ratio of 12.3% in 2022.
• Three committees (Strategic, Infrastructure, and Regulatory) were working to strengthen the integration of sustainable finance issues into the Group’s strategy.

Climate Goals & Targets

Environmental Challenges

• The war in Ukraine and its economic repercussions.
• An energy crisis leading to increased prices and supply chain disruptions.
• High inflation and rising interest rates.
• Climate change and biodiversity loss.

Mitigation Strategies

• Activating the BNP Paribas Foundation Emergency & Development Fund to support affected populations.
• Launching a new phase of strong transition acceleration in low-carbon energy production financing activities.
• Implementing a proactive approach to risk management.
• Deploying the GTS 2025 strategic plan to address challenges related to growth, technology, and sustainability.

Supply Chain Management

Responsible Procurement

• Responsible procurement is mentioned as a material topic.

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, SFDR

UN Sustainable Development Goals

• Various SDGs are mentioned, particularly those related to climate action, responsible consumption and production, and partnerships for the goals.

Initiatives are aligned with the UN's 17 Sustainable Development Goals.

Sustainable Products & Innovation

• Arval Connect for fleet management
• Energy renovation offers
• Impact bonds

Awards & Recognition

• Top Employer Europe
• World’s Best Bank for Sustainable Finance
• World’s Best Bank for ESG Data & Technology
• Bank of the Year
• Bank for Sustainability
• Net-Zero Progression of the Year – EMEA

Environmental Metrics

ESG Focus Areas

• Climate change and the energy transition
• Ethics and compliance
• Human rights
• Responsible investments and financing
• Business continuity
• Data confidentiality and security
• Social inclusion

Environmental Achievements

• Accelerated shift of energy production financing towards low-carbon energies (reached 65% by end of 2023, targeting 90% by 2030)
• World leader in ESG bonds and loans in 2023 (US$62.5 billion)
• Exceeded target of €4 billion in financing for companies contributing to the protection of terrestrial and marine biodiversity by 2025

Social Achievements

• Launched BNP Paribas Mobility brand to unite cross-functional initiatives on mobility
• Continued support for microentrepreneurs through Adie partnership (30-year collaboration, €210 million in loans)
• Launched inclusive & sustainability-linked financing (ISLF+) with JuST Institute, providing initial financing to three MFIs

Governance Achievements

• Strengthened governance system for sustainable finance with three dedicated committees
• Published Climate Report detailing climate-related strategy, risks, and opportunities
• Maintained high extra-financial ratings from FTSE Russell, S&P Global, and Moody's

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability and conflicts impacting global economy and client projects
• Access to robust ESG data for measuring and reporting progress
• Acquisition of sustainable development skills by all teams
• Cyberattacks and data security threats

Mitigation Strategies

• Providing support and advice to clients navigating economic uncertainty
• Investing in data science platforms and creating an environment for generative AI experiments
• Developing employee skills through Sustainability Academy and Digital, Data & Agile Academy
• Implementing robust risk management and internal control systems, including a charter for responsible AI use

Supply Chain Management

Responsible Procurement

• Commitment to responsible procurement practices

Climate-Related Risks & Opportunities

Physical Risks

• Climate change impacts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Financing low-carbon energies
• Development of sustainable products and services

Reporting Standards

Frameworks Used: CSRD, TNFD, SFDR

Certifications: LEED Platinum, WELL Platinum

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through sustainable finance, social inclusion programs, and biodiversity conservation efforts.

Sustainable Products & Innovation

• Sustainable financing solutions
• BNP Paribas Mobility initiatives

Awards & Recognition

• World's Best Bank for Sustainable Finance (Euromoney)
• One of the 100 Most Sustainable Companies in the World (Corporate Knights)