BNP Paribas (2020)

Adoption Date: 24 Oct 2008
Country of Headquarters: France
Region of Headquarters: Europe
Current EPFI Reporting Year/Period: 2020
Institutional Reporting: Link to Report

 

Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association 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: 1

Sector
Mining
Infrastructure
Oil & Gas
Power
Others 1
Sub-Total 1
Region
Americas
Europe, Middle East & Africa 1
Asia Pacific
Sub-Total 1

Project Finance Transactions

Total number that reached Financial Close in the reporting period: 5

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure
Oil & Gas 1
Power 3
Others 1
Region
Americas
Europe, Middle East & Africa 1 4
Asia Pacific
Country Designation
Designated Country4 3
Non Designated Country 1 1
Independent Review
Yes 1 1
No 3
Totals 1 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. See list of Designated Countries.

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 Country(s) Year of Financial Close
1 Bina-Istra d.d. Others Croatia 2020
2 Björkvattnet Wind Farm Power Sweden 2020
3 Fécamp Power France 2020
4 Fujairah F3 IPP Power United Arab Emirates 2020
5 Project Quadran Power Poland 2020

Project-Related Corporate Loans

Total number that reached Financial Close in the reporting period: 3

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure
Oil & Gas 1 2
Power
Others
Region
Americas
Europe, Middle East & Africa 1 1
Asia Pacific 1
Country Designation
Designated Country4
Non Designated Country 1 2
Independent Review
Yes 1 2
No
Totals 1 2
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. See list of Designated Countries.

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: 3

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 project’s E&S impacts and its 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 Categorization Tool (CAT), a project categorization tool developed internally by BNP Paribas. Based on a project’s potential risks and associated impacts, the tool suggests a category (A, higher risk B, B or C).

The internal Equator Principles application procedure has been drafted by CIB CSR in collaboration with the business lines concerned and validated by senior management. This procedure is also referenced in the associated credit policies, to ensure that all staff is aware of the associated requirements. To address the changes brought by EP4, the procedure was updated in 2020 and a final version validated by October 1st 2020.

The procedure enables 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.

The E&S risks and associated impacts of Category A (high sensitivity) projects are systematically discussed during the credit committee, and with participation of CIB CSR. This ensures that RISK function is involved as second line of defense on ESG matters.

In 2020, BNP Paribas developed a new e-learning module on the Equator Principles implementation, scope of application and associated due diligence. This e-learning is available to all staff worldwide, with communications being sent to the regional CSR points of contact, to guarantee it reaches all relevant teams. By April 2021, 75 BNP Paribas employees have completed the module.

Further information can be found in BNP Paribas´EP Implementation Report available here.