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Photo : VÉRONIQUE ORMEZZANO.

INTERVIEW : VÉRONIQUE ORMEZZANO, GLOBAL HEAD OF OFFICIAL INSTITUTIONS COVERAGE, CORPORATE & INSTITUTIONAL BANKING, BNP PARIBAS

In what way are the green bond issues for the World Bank innovative?

In partnership with BNP Paribas, the World Bank launched several green bond issues, whose performance is linked to an equity index (Ethical Europe Equity) composed of companies selected according to SRI criteria. These issues are highly innovative in that they allow institutional and individual investors to benefit both from the growth potential of an equity index as well as guaranteed capital, while supporting projects financed by the World Bank and aiming to reduce the effects of climate change.

What opportunities do they open up?

They create opportunities both for investors and for issuers. For customers, the success of this product’s distribution in our Belgian network suggests that we have created an excellent impact-investment product likely to appeal to a broad audience and thus promote SRI. For investors, this product allows supranational issuers such as development banks to expand their investor base beyond the traditional buyers of conventional green bonds, whose yields are lower.

MORE ABOUT… GREEN BONDS

Since August 2014, five new-generation green bonds have been structured by BNP Paribas for the World Bank (for a total of $265 million). They have been sold on the French, Belgian, Swiss and German markets.

ELECTRICITY MIX FINANCED BY BNP PARIBAS

LESS FOSSIL ENERGY, MORE RENEWABLES

When measuring its indirect emissions (scope 3 of the GHG Protocol), the Group in 2014 calculated the electricity mix of electricity producers it finances by distinguishing different sources: fossil fuels (gas, coal, oil), nuclear, renewables (hydraulic, solar, wind). Result: according to the International Energy Agency (IEA) benchmark data, BNP Paribas is “ahead” of the global mix. With 59.5% fossil sources compared with a global average of 68% and with 23.3% of renewable sources compared with 21.2%, the electricity mix financed by the Group is less exposed to fossil fuels and emits less CO2. These percentages were calculated on a sample that, at the end of 2014, corresponded to 2/3 of the Group’s exposure in the electricity sector.

GLOBAL ELECTRICITY MIX ELECTRICITY MIX FINANCED BY BNP PARIBAS
COAL 40.4% 23.5%
GAS 22.5% 28.2%
HYDRAULIC 16.2% 15.8%
WIND, SOLAR AND OTHER RENEWABLES 5% 7.5%
NUCLEAR 10.9% 17.2%
OIL 5% 7.8%

ENVIRONMENTAL RISKS

A ROBUST MANAGEMENT SYSTEM

BNP Paribas is a signatory to the Equator Principles, which are designed to ensure that major projects financed or advised by banks are developed responsibly. Twenty-six such projects were analysed in 2014. Also, the Group has financing and investment policies for the most sensitive sectors: coal-fired power generation, nuclear, palm oil, paper pulp, mining industry and bituminous sands. Each project or company in these sectors undergoes rigorous analysis of its environmental performance; those which are too risky are refused.

Logo : Equator Principles.

481 TRANSACTIONS REVIEWED BY THE CSR TEAM WITH REGARDS TO SECTORAL POLICIES in 2014 including 240 in particularly environmentally sensitive sectors.