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BNP Paribas (2019)
| Signing Date | 24 Oct 2008 |
| Region of Headquarters: | Europe |
| Current EPFI Reporting Year/Period: | 2019 |
| Institutional Reporting: | Link to Report - Link to Additional Report |
Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the EP website.
Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.
Project Finance Advisory Services
Total number mandated in the reporting period: 0
Project Finance Transactions
Total number that reached Financial Close in the reporting period: 8
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | 1 | ||
| Infrastructure | |||
| Oil & Gas | |||
| Power | 6 | ||
| Others | 1 | ||
| Region | |||
| Americas | |||
| Europe, Middle East & Africa | 1 | 7 | |
| Asia Pacific | |||
| Country Designation | |||
| Designated Country 4 | 6 | ||
| Non Designated Country | 1 | 1 | |
| Both | |||
| Independent Review | |||
| Yes | 1 | 4 | |
| No | 3 | ||
| Totals | 1 | 7 | |
1
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
2
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
3
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
4
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment.
Project-related Refinance & Project-related Acquisition For Project Finance
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Project Name Reporting For Project Finance (And Project-related Refinance & Project-related Acquisition Finance For Project Finance)
| No. | Project Name | Sector | Project Location(s) | Year of Financial Close |
|---|---|---|---|---|
| 1 | Wind Park Alpha | Power | Poland | 2019 |
| 2 | Energìa Wiatrowa Strzelce | Power | Poland | 2019 |
| 3 | Energy Park 44 | Power | Poland | 2019 |
| 4 | Neart na Gaoithe Offshore Wind Limited | Power | United Kingdom | 2019 |
| 5 | Projet Saint-Nazaire (Parc du Banc de Guérande) | Power | France | 2019 |
| 6 | Guinea Alumina Corporation | Mining | Guinea | 2019 |
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 2
Under EP4, project name reporting is required for Project Finance transactions that have reached Financial Close and encouraged for Project-Related Corporate Loans that have reached Financial Close.
Project-Related Corporate Loans
Total number that reached Financial Close in the reporting period: 6
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | 1 | 1 | |
| Infrastructure | |||
| Oil & Gas | 1 | ||
| Power | 2 | ||
| Others | 1 | ||
| Region | |||
| Americas | 1 | 1 | |
| Europe, Middle East & Africa | 2 | ||
| Asia Pacific | 1 | 1 | |
| Country Designation | |||
| Designated Country 4 | 1 | ||
| Non Designated Country | 1 | 4 | |
| Both | |||
| Independent Review | |||
| Yes | 2 | 3 | |
| No | 1 | ||
| Totals | 2 | 4 | |
1
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
2
Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.
3
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
4
Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment.
Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans
This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Project Name Reporting For Project-related Corporate Loans (And Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans)
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 6
Under EP4, project name reporting is encouraged for Project-Related Corporate Loans that have reached Financial Close and required for Project Finance transactions that have reached Financial Close.
EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.
Implementation of the Equator Principles
BNP Paribas considers that environmental & social (E&S) due diligence is an integral part of the regular due diligence conducted for project-related transactions. Business lines therefore remain essentially in charge of applying the EP process as they are the ones who know best the transactions and the clients.
The CIB Corporate Social Responsibility (CIB CSR) team reviews and monitors the application of the EPs (among other tasks). The CIB CSR team is 9-people strong, is independent from the business lines and acts as a second pair of eyes to systematically review the proposed categorization. Its level of involvement in the overall EP implementation process for a specific project depends on the type of E&S risks and associated impacts.
In order to ensure a consistent categorization, all relevant business lines worldwide must use the Sustainability Assessment Tool (SAT), a categorization expert system licensed from PwC, and customized for BNP Paribas. Based on a project’s potential risks and associated impacts, the tool suggests a category (A, B, or C).
Internal Equator Principles application procedures, validated by senior management, have been drafted by CIB CSR, in collaboration with the business lines concerned. These procedures are also referenced in the associated credit policies, to ensure that all staff is aware of the associated requirements.
These procedures enable the early detection of sensitive projects (i.e. that present significant E&S risks) so that they can be brought to the attention of senior management prior to any firm commitment. Business lines are then able to engage with the client on environmental & social aspects early in the financing process.
Category A (high sensitivity) projects are systematically subject to an ad-hoc committee, building on the existing internal processes. This committee involves representatives from the relevant business lines, functions (Risk, Compliance, Legal, etc.), and from CIB CSR, and is intended to obtain senior management approval on the type of environmental and social risks associated to such projects.
In 2015, BNP Paribas commissioned an external provider to develop an e-learning module covering key aspects of Equator Principles implementation. This e-learning is made available to all staff within the teams potentially working on transactions subject to the Equator Principles. So far, 547 BNP Paribas employees have completed the module. The EP e-learning is currently being updated to reflect the changes in EP IV and the evolvement of our internal ESG risk assessment framework.