Reporting – BNP Paribas (2017)

Adoption Date:24 October 2008
Country of Headquarters:France
Region of Headquarters:Europe
Institutional Reporting Hyperlink:https://group.bnpparibas/en/group/corporate-social-responsibility

https://group.bnpparibas/uploads/file/bnp_paribas_reporting_on_equator_principles_implementation_for_the_year_2017.pdf
Current EPFI Reporting Year/Period:2017
EPFI Reporting in Compliance:Yes

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 above.

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: 9

Totals171
Totals171
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas11
Power61
Others
RegionCategory ACategory BCategory C
Americas51
Europe, Middle East & Africa11
Asia Pacific1
Country DesignationCategory ACategory BCategory C
Designated151
Non-Designated12
Independent ReviewCategory ACategory BCategory C
Yes171
No

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

No.Project NameSectorHost Country Name/ Project LocationYear of Financial Close
1Coral South FLNGOil & GasMozambique2017
2Cricket Valley Energy CenterPowerUSA2017
3CPV Fairview, LLCPowerUSA2017
4Sweihan PV ProjectPowerUnited Arab Emirates2017
5Hickory Run Energy StationPowerUSA2017
6AES Alamitos Energy, LLCPowerUSA2017
7AES Huntington Beach Energy, LLCPowerUSA2017
8AES ES Alamitos, LLC & AES ES Gilbert, LLCPowerUSA2017
9PT MEDCO E&P Malaca - Block A AcehOil & GasIndonesia2017

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 2

Totals020
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas
Power1
Others1
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa2
Asia Pacific
Country DesignationCategory ACategory BCategory C
Designated11
Non-Designated1
Independent ReviewCategory ACategory BCategory C
Yes1
No1
Totals020

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

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 10-people strong, is independent from the business lines and acts as a second pair of eyes to systematically review the proposed categorisation. 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 categorisation, all relevant business lines worldwide must use the Sustainability Assessment Tool (SAT), a categorisation expert system licensed from PwC, and customised 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, 511 BNP Paribas employees have completed the module.

Further information on BNP Paribas’ implementation reporting is provided in their report for the year 2017 available at :

https://group.bnpparibas/uploads/file/bnp_paribas_reporting_on_equator_principles_implementation_for_the_year_2017.pdf