LENDING: TRANSITION TO A LOW-CARBON ECONOMY CECILE MOITRY BNP - - PowerPoint PPT Presentation

SUSTAINABLE CORPORATE LENDING: TRANSITION TO A LOW-CARBON ECONOMY

GREEN FINANCE CONFERENCE BUDAPEST, NOVEMBER 2019 BNP PARIBAS CECILE MOITRY

FRAMEWORKS ARE IN PLACE…

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Banks and regulators are playing catch up

1951 1968 1972 1979 1989 1990 1992 1992 1992 1995 1997 2000 2005 2005 2007 2011 2015 2017 2017 2017 2018 The Nature Conservancy (NGO) Club of Rome UN Environment 1st World Climate Conference CERES: NGO IISD UNFCCC UNEPFI Sustainalytics WBCSD Kyoto Protoco & Global Reporting Initiativel CDP Worldwide Creation of C40 Climate Leadership PRI Grenelle Environnemnt Sustainability Accounting Standard Boards COP 21 One Planet Summit NGFS - Network for Greening Financial System FC4S - International Network

• f Financial Centre for Sustainability

PRB

2016 UN SDGs 2019 EU Taxonomy

… AND A COLLABORATIVE ENVIRONMENT TOO

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Governments, corporates, the financial sector, and civil society now work together to determine how to move the capital required to transition towards a low carbon and socially responsible economy.

ISSUERS INTEGRATE SUSTAINABILITY INTO FUNDING PROGRAMMES INVESTORS INTEGRATE ESG INTO THEIR PORTFOLIOS

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Access differentiated investor base, with possible pricing advantage to reward transparency

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Positive public relations message

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Market solution to social and regulatory pressure to demonstrate responsible behavior

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Finance their larger sustainability goals and transition their business

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Greater transparency into the products use of proceeds

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Funding Green/Social projects

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Meeting commitments as signatories of the PRI

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Reporting on climate impacts of fixed income investments to their end asset owner

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Financial and reputational risk mitigation

2°C SCENARIO 17 GLOBAL GOALS FOR 2030 12,000+ CEOS COMMIT TO SUSTAINABILITY REGULATORS COLLABORATE WITH PRIVATE SECTOR TO SET GUIDELINES FOR DEFINING SUSTAINABLE FINANCE INVESTORS COMMIT TO INTEGRATING ESG IN PORTFOLIO DECISIONS

THE KATOWICE COMMITMENT

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5 INTERNATIONAL BANKS, INCLUDING BNP PARIBAS When leading banks teamed up in pledge to align lending portfolios with global climate goals

The Katowice Commitment reflects the pledge made by ING, BBVA, BNP Paribas, Société Générale and Standard Chartered in aligning their loan portfolios with global climate goals. With a combined loan book of €2.4 trillion, the banks committed to measure the climate alignment of their lending portfolios, aim to steer them towards the well-below two- degree goal of the Paris Agreement.

EU TAXONOMY: WHAT WE KNOW SO FAR?

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UNEPFI PRINCIPLES FOR RESPONSIBLE BANKING

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BNP PARIBAS AS A FOUNDING BANK A framework for a sustainable banking system, helping the industry to demonstrate how to make a positive contribution to society

The Principles for Responsible Banking were publicly launched by their 30 Founding Banks on September 2019. It represents more than USD47 trillion in assets coming from 130 banks from 49 countries. They are accelerating the banking industry’s contribution to achieving society’s goals as expressed in the Sustainable Development Goals and the Paris Climate Agreement. This Framework provides 6 principles, key steps for its implementation and a reporting and self-assessment template, which guide bank’s transparency and progress on their impacts.