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In 2014 BNP Paribas formed a partnership with the World Bank to launch green growth bonds. Linked to the BNP Paribas-designed Ethical Europe Equity Index, these investments allow clients to benefit from growth of an equity index and, at the same time, support projects with a positive climate impact financed by the World Bank.
The bonds have been a success, raising $450 million through 10 transactions in more than 10 countries in Asia Pacific, EMEA and the Americas. The issues drew in institutional, private banking and other investors.
This impressive initiative was one of the reasons BNP Paribas wins one of the Euromoney Achievement in CSR awards. The bank has recently redoubled efforts to bring CSR into the heart of its business.
“There was a need to get CSR back to the core,” says Laurence Pessez, head of CSR at the bank. “The staff need to be proud of what we are doing on a day-to-day basis.”
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There was a need to get CSR back to the core. The staff need to be proud of what we are doing on a day-to-day basis
Laurence Pessez |
Nowhere is this more clearly displayed than in the inclusion of a CSR performance variable into the compensation scheme for the top 5,000 managers at the bank.
The US investigation and settlement over dollar-denominated transactions that contravened the International Emergency Economic Powers Act and the Trading with the Enemy Act led to several changes at the bank. These included establishing of a new ethics committee, composed of members of the bank’s senior management alongside external advisers.
The bank acknowledges its mistakes, but says its commitment to CSR is not new. The BNP Paribas Foundation celebrated its 30th anniversary last year. Since 1984 the foundation has managed more than 300 cultural programmes, 40 research programmes and in excess of 1,000 social and educational initiatives.
In 2014 nearly 4,000 projects were implemented with a budget of €40 million.
Last year BNP Paribas’s Global Credit Policy was revised to integrate environmental, social and governance requirements in assessing clients’ performances.
Furthermore special policies were put in place to cover these sensitive sectors: defence, palm oil, pulp and paper, mining, nuclear, oil sands, coal-fired power plants and food.
The bank’s commitment to supporting the transition to a low-carbon economy is clear. Not only were internal targets for reducing greenhouse gas emissions met early, the bank has played a part in more than 100 renewable energy projects.
