BNP Paribas (2024)
| Signing Date | 24 Oct 2008 |
| Region of Headquarters: | Europe |
| Current EPFI Reporting Year/Period: | 2024 |
| Institutional Reporting: | No Report Available |
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: 35
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | |||
| Infrastructure | |||
| Oil & Gas | 3 | ||
| Power | 20 | 2 | |
| Others | 8 | 2 | |
| Region | |||
| Americas | 19 | 2 | |
| Europe, Middle East & Africa | 8 | 2 | |
| Asia Pacific | 4 | ||
| Country Designation | |||
| Designated Country 4 | 23 | 4 | |
| Non Designated Country | 8 | ||
| Both | |||
| Independent Review | |||
| Yes | 19 | ||
| No | 12 | 4 | |
| Totals | 31 | 4 | |
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
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.
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
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
Total number that reached Financial Close in the reporting period: 0
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 | Project Norther Endurance Partnership | Others | United Kingdom | 2024 |
| 2 | Net Zero Teesside Power Limited | Power | United Kingdom | 2024 |
| 3 | Ash Creek Project | Power | United States | 2024 |
| 4 | Timbermill Wind | Power | United States | 2024 |
| 5 | Empire Wind 1 | Power | United States | 2024 |
| 6 | Bellefield 2 | Power | United States | 2024 |
| 7 | Project Grizzly | Others | United States | 2024 |
| 8 | BESS del Desierto | Others | Chile | 2024 |
| 9 | Project Quillagua | Power | Chile | 2024 |
| 10 | Project Victor Jara | Power | Chile | 2024 |
| 11 | Patagonia III | Power | Chile | 2024 |
| 12 | Project Gabriela | Power | Chile | 2024 |
| 13 | ReNew 300MW solar project | Power | India | 2024 |
| 14 | ReNew 600MW solar project | Power | India | 2024 |
| 15 | Eastern Steel II | Power | Malaysia | 2024 |
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 20
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: 5
| Equator Principles Category | A1 | B2 | C3 |
|---|---|---|---|
| Sector | |||
| Mining | 1 | ||
| Infrastructure | |||
| Oil & Gas | |||
| Power | 1 | ||
| Others | 3 | ||
| Region | |||
| Americas | 1 | 1 | |
| Europe, Middle East & Africa | 2 | 1 | |
| Asia Pacific | |||
| Country Designation | |||
| Designated Country 4 | 2 | 1 | |
| Non Designated Country | 1 | 1 | |
| Both | |||
| Independent Review | |||
| Yes | 1 | 3 | |
| No | 1 | ||
| Totals | 1 | 3 | 1 |
Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.
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.
Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.
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
Total number that reached Financial Close in the reporting period: 0
Project Name Reporting For Project-related Corporate Loans (And Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans)
| No. | Project Name | Sector | Project Location(s) | Year of Financial Close |
|---|---|---|---|---|
| 1 | EcoPro BM CAM Plant | Others | Hungary | 2024 |
| 2 | Shotton Mill | Others | United Kingdom | 2024 |
| 3 | Hyunday meta plant project | Others | United States | 2024 |
| 4 | Sal de Oro Phase II | Mining | Argentina | 2024 |
Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 1
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
1. ROLES AND RESPONSIBILITIES
The CIB ESG Analysis & Expertise (CIB ESG) team is 13-people strong, is independent from the business
lines and systematically reviews projects’ 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. RISK function, in its role as second line of defense on ESG risks as part of the credit process, reviews and can challenge the outcome of the assessment performed by the Business lines and CIB ESG team, including compliance with the EP and Project Category.
2. PROJECT CATEGORIZATION
In order to ensure a consistent categorization of projects based on their E&S risk and impacts, 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, B+, B or C). Within Projects categorized as Category B, there can
be a range in the scale of potential environmental and social risks and impacts. In general terms,
higher risk Category B Project are treated similarly to Category A projects, and lower risk Category B
Projects could be treated in a lighter regime. On this basis, BNP Paribas adopted a Category B+ aiming to
capture higher risk Category B Projects. In regards to due diligence requirements, Category B+ projects
shall strive to meet the standards for Category A projects. If in any case the additional requirements
cannot be achieved for a certain Category B+ project, the business team can contact CIB ESG to
discuss if alternatives can be sought on a case-by-case basis.
3. E&S CONSIDERATIONS IN THE CREDIT PROCESS
An internal procedure to rule the application of EP in BNP Paribas has been drafted by CIB ESG 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 ESG. This ensures that RISK function is involved as second line of defense on ESG matters.