Reporting – BNP Paribas (2020)

Adoption Date:24 October 2008
Country of Headquarters:France
Region of Headquarters:Europe
Institutional Reporting Hyperlink:https://group.bnpparibas/en/group/corporate-social-responsibility
Current EPFI Reporting Year/Period:2020
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: 1

SectorTotal
Sub Total1
Mining
Infrastructure
Oil & Gas
Power
Others1
RegionTotal
Sub Total1
Americas
Europe, Middle East & Africa1
Asia Pacific

PROJECT FINANCE TRANSACTIONS

Total number that reached financial close in the reporting period: 5

Totals140
Totals140
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas1
Power3
Others1
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa14
Asia Pacific
Country DesignationCategory ACategory BCategory C
Designated13
Non-Designated11
Independent ReviewCategory ACategory BCategory C
Yes11
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
1Bina-Istra d.d.OthersCroatia2020
2Björkvattnet Wind FarmPowerSweden2020
3FécampPowerFrance2020
4Fujairah F3 IPPPowerUnited Arab Emirates2020
5Project QuadranPowerPoland2020

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 3

Totals120
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas12
Power
Others
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa11
Asia Pacific1
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated12
Independent ReviewCategory ACategory BCategory C
Yes12
No
Totals120

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 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 at: https://group.bnpparibas/uploads/file/2020_equatorprinciplesimplementationreport.pdf