Reporting – BNP Paribas (2019)

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/reporting_on_equator_principles_implementation_2018.pdf
Current EPFI Reporting Year/Period:2019
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: 8

Totals170
Totals170
SectorCategory ACategory BCategory C
Mining1
Infrastructure
Oil & Gas
Power6
Others1
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa17
Asia Pacific
Country DesignationCategory ACategory BCategory C
Designated16
Non-Designated11
Independent ReviewCategory ACategory BCategory C
Yes14
No3

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
1Wind Park AlphaPowerPoland2019
2Energìa Wiatrowa StrzelcePowerPoland2019
3Energy Park 44PowerPoland2019
4Neart na Gaoithe Offshore Wind LimitedPowerUK2019
5Projet Saint-Nazaire (Parc du Banc de Guérande)PowerFrance2019
6Guinea Alumina CorporationMiningGuinea2019

2 projects were not disclosed as per the disclosure conditions specified in Annex B of the Equator Principles

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 6

Totals240
SectorCategory ACategory BCategory C
Mining11
Infrastructure
Oil & Gas1
Power2
Others1
RegionCategory ACategory BCategory C
Americas11
Europe, Middle East & Africa2
Asia Pacific11
Country DesignationCategory ACategory BCategory C
Designated11
Non-Designated14
Independent ReviewCategory ACategory BCategory C
Yes23
No1
Totals240

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 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.