La sélection de Responsible Investing

SELECTION FROM “L’OPINION” NO. 17 - SUPPLEMENT FROM “L’OPINION” NO. 1105 OF 4 OCTOBER 2017 - MAY NOT BE SOLD SEPARATELY The 2015 climate agreement has accelerated the development of sustainable finance. Bankers, businesses, fund managers: everyone is involved. Green finance, the driving force for a new sustainable world

ONU The United Nations’ seventeen Sustainable Development Goals aim to eradicate poverty by 2030.

urope is rallying, and furthermore, greater transparen- Environment that’s how important cy of financial institutions and busi- How can we build a bridge between the matter is! This nesses on the way they take sustaina- asset managers concerned with summer, a group of bility into account in their decisions... “Doing more and better with less” responsible investments and busi- experts from the Eu- A huge programme. has become the new mantra of the nesses working to comply with ropean Commission With sustainable finance, Brus- ESG (environmental, social and in Brussels submitted sels clearly wants to move on from the European Commission, which adopted governance) criteria ? Sustainable its first report on sustainable finance. post-subprime crisis years. “The first a package of measures to this effect finance addresses this concern” EThe goal after six months of work: to wave of European Union reforms was Sustainable finance is the answer. identify ways to enshrine this concept, based on the stability and resilience of It brings together SRI (socially which is still somewhat vague, in Euro- the financial system”, comments the responsible investment), soli- pean law. The commission made about European executive. “The Commis- transform our world”. Between the new mantra of the Commission, which darity financing, green finance fifteen recommendations, including sion now intends to redirect the finan- fight against global warming and the adopted a package of measures to this and, more generally, responsible taking into account considerations cial system so that it can support long- UN’s 17 goals to eradicate poverty and effect almost two years ago. investing. Trillions of dollars are related to sustainable development in term sustainable growth”. combat inequalities, there is no shor- The circular economy means at stake. ratings, the creation of a “sustainabi- The subject has been top of mind tage of good causes. itself has rethinking production and consump- lity criterion” for EU financial legisla- since the Paris climate agreement set ambitious goals for 2030 in terms tion patterns to optimise the use of Muriel Motte tion, the establishment of a standard was signed in 2015 and the adoption of the circular economy. “Doing more natural resources and limit the waste and a European label for green bonds, of the United Nations programme “to and better with less” has become the lll Page II

The BNP Sustainable Future Forum, a key responsible investment event

he 2017 Week of Responsible This Wednesday BNP Paribas is for climate change, Clara Gaymard, Finance (Semaine de la Finance holding the second BNP Paribas Sustai- co-founder of the Raise endow- TResponsable) ends this Thurs- nable Future Forum in Paris. The goal: ment fund, and Bjorn Otto Sverdup, day. Since 2010, it has become the main bring together business customers and head of corporate sustainability at event for promoting initiatives all over institutional investors “to enable them the oil giant Statoil, will share their in favour of sustainable develop- to share and discuss their needs vision of the world of tomorrow and ment in all its forms – crowdfunding to and their goals in terms of sustai- draw up a list of the challenges ahead. make a social impact, solidarity finan- nable finance”, according to Yann Gé- Some 250 fund managers and busi- cing and socially responsible invest- rardin, Head of Corporate and Institu- nesses are expected to attend. ment (SRI). The event has been particu- tional Banking at BNP Paribas. BNP Paribas inaugurated larly important since the Paris climate Participants, which will include the concept of its sustainable fo- agreement was signed in 2015. France Bertrand Piccard, the founder rum last year in . The SIPA PRESS wants to be a world leader in this field, of Solar Impulse, Sir David King, city will again play host to the upco- and it is also one of the priorities of Em- former adviser to the UK govern- ming sustainable future forum on The Paris climate agreement has played a key role in raising manuel Macron’s five-year term. ment and special representative 26 October. awareness of the ecological emergency.

4 october 2017 l’Opinion I Responsible Investing

lll Continued from page I market indices, and the issuance of green generated. Whether it concerns fertilisers bonds on behalf of industrial groups, the manufactured from secondary raw materials, is working on an extended offering of green “In the US, green combating food waste, recycling of municipal products, especially on the credit market. waste, innovation in the fields of water and Large financial institutions are themselves energy, or the “repairability” of consumer finance is now moving products, Brussels is in the process of map- ping out the route for the next fifteen years. Not forgetting the crux of the matter, money. “The projects that into traditional finance” The European “package” has also provided for the creation of a platform for supporting currently drive the the financing of the circular economy “which vision of sustainable calities in favour of maintaining the commit- brings together innovators and investors”. ments of COP21. The issuance of a green bond Bringing stakeholders together, with finance are laying by Mid American Energy, subsidiary of Warren equity providers on the one side, businesses Buffet’s group, the benchmark of American on the other, is also the business of . the foundations capitalism, is highly symbolic. This bond is a BNP Paribas has made it a priority goal across to ensure that the signal that green finance is moving into tradi- all issues of sustainability. “We are heading to- tional finance. wards more disintermediation: the customers financial system that we are financing today with the bank’s also becomes social, Does the engagement of public figures balance sheet will be financing themselves influence behaviour ? tomorrow on the markets, says Yann Gérar- promotes solidarity Recently, the shareholder pension funds of din, Head of BNP Paribas’ corporate and ins- and ethical, Exxon Mobil and Occidental Petroleum pushed titutional banking (CIB) entity. The purpose through a resolution at the general meeting, of CIB is to ensure fluidity. For example, we meaning viable against the will of the board of directors, obli- recommend our institutional customers that in the long term” ging them to discuss the impact of a +2° sce- they should invest in sustainable products is- nario on their business model. These share- sued by corporates who are looking to finance DR holders were supported in their approach by themselves on the markets and vice versa”. leading fund managers such as BlackRock and Around the globe, key managers are rated against non-financial criteria by fund Hervé Duteil, Managing Vanguard. This is a totally new event, which increasingly rallying around “green” issues. managers. One after the other, they are fine- Director of BNP Paribas, in charge echoes a certain number of recent statements This summer, GPIF, the colossal Japanese tuning their “sustainable” strategy. On 1 Sep- of Social and Environmental by public figures. Thus, Philippe Hilderbrand, pension fund, with €1.275 billion in assets, tember, BNP Paribas set up a new corporate Responsibility & Social Finance Vice- Chairman of BlackRock, has stated introduced three initial ESG indices into the engagement division, directly represented on for the Americas region that investors now have a strong card to play management of a proportion of the total capi- the Executive Committee. Its role: to define against global warming. Mark Carney, Gover- tal. Approximately 3% of its equity portfolio and implement the internal policy “on eco- What does the sustainable nor of the Bank of England, has warned against is now linked to this indices. That does not nomic development, the environment and finance market represent in the US ? the financial risks related to climate change. sound like much but it is only the beginning. energy transition, social inclusion, regional The American financial market is the These voices are beginning to be heard. promotion, diversity and promotion of res- largest in the world, and that of sustainable pect for human rights.” finance offers considerable potential, even What is BNP Paribas’ position The initiative is far-reaching, and for though it is still behind compared with that on the American market ? Large financial good reason. “Prudential standards and of Europe, which has been very active for We support large businesses in their institutions are equity requirements are not the only solu- around a decade. In the US, this segment has energy transition projects, via bank financing tions to ensure finance does not relive the been dynamic for only three or four years. One or in the structuring of green bond issues for themselves rated crises of 2007 and 2008”, stated Revue of the main obstacles is legal. On the investor example. This is the traditional activity of the against non- Banque as early as 2011. “The projects that side, the concept of fiduciary responsibility is investment bank. We are also innovating: BNP currently drive the vision of sustainable often understood as the search for short-term Paribas completed its first green securitisation financial criteria finance are laying the foundations to ensure profitability. In this context, pension funds, transaction at the start of the year. In the US, by fund managers. that the financial system also becomes social, for example, have long struggled to take non- establishments such as Solar Mosaic help indi- promotes solidarity and ethical, meaning financial factors into account in their analyses, viduals finance the installation of solar panels One after the other, viable in the long term” yet these criteria are the founding principles of on their homes. We have bought their debts @murielmotte t sustainable finance. But things are changing. In and securitised them. This helps to broaden they are finetuning the first half of the year, the US was the country the range of “green” financial products that their “sustainable” issuing the most green bonds with over $22 bil- can be offered to investors. We are also in the strategy Global Green bonds market lion. Apple has already issued two green bonds process of exploring the “social impact bonds” (in billion dollars - 1st august) assigned to energy efficiency projects. Star- market, these loans of which the repayment bucks has also launched a sustainable bond, in is linked to the social performance of the pro- 90 300 order to finance ethical coffee production. The ject being financed. In particular, we comple- In August, a New Zealand pension fund 80 Issuance movement has started. ted our first issuance last year on behalf of the (left scale) 250 joined the Divest-Invest network for disin- 70 State of Connecticut. vestment in fossil fuels. Launched two years Has the election of Donald Trump 60 Cumulative issuance 200 ago, this initiative now brings together over (right scale) and his decision to withdraw the US from What about the private banking 700 global institutions, worth over $5 trillion. 50 the Paris Agreement changed anything ? and wealth management market ? 150 They have to invest their capital elsewhere. 40 That was a catalyst. Just after the presiden- The potential of this market is huge. Over “Asset managers are counting on us to pro- tial election, Bill Gates launched a fund dedi- the next 30 years, $41,000 billion in capital will vide them with investment opportunities 30 100 cated to financing technological innovation be transferred from the baby boomers gene- that are compatible with their priorities”, 20 which contributes to the low-carbon economy. ration and generation X to that of the “millen- comments Amine Bel Hadj Soulami, Head of 50 He was joined by Jeff Bezos, the CEO of Ama- nials”, born between 1980 and 1999. These 10 Research and Sustainables Investments at zon. The former mayor of New York, Michael investors demonstrate a clear intention to have BNP Paribas CIB. The bridge with the finan- 0 0 Bloomberg, also took a stand against Donald a positive societal impact through their invest- cing needs of businesses makes perfect sense. Trump’s decision. Lastly, the “We are still in” ments. Hence why the demand for green pro- 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 In addition to the creation of new ESG stock SOURCE: BLOOMBERG, BNP PARIBAS - 01/08/2017 movement has sprung up, bringing together ducts can therefore only increase. hundreds of businesses, universities and lo- Interview Muriel Motte

Xi Jinping’s China bets heavily on renewables

t was the key announcement of the be- of developed countries, is expressing its country threatened by suffocation, at least in Chinese green bonds ginning of the year. On 5 January, China views on environmental issues –, believes its large cities. Used of proceeds Iunveiled a highly ambitious energy tran- that investor demand could be twenty times In mid-September, Beijing surprised the (%) sition plan: $361 billion in investments in higher than the current supply. A new series world again by announcing its intention to Ecological protection renewable energies by 2020, resulting in the of regulatory concessions should boost the ban thermal engines, yet failed to mention and climate change Not specified creation of 13 million jobs. Under the leader- green bonds market, which is in full swing. the timetable. The challenge is enormous. adaptation 1 ship of Xi Jinping, this country which alone The is also working with the 28 million cars are sold every year in China 8 18 Energy saving represents one third of all CO2 emissions, compared with 16 million throughout Europe. confirmed its intention to play a leading role “Due to the size of its market and the subsidies Clean energy 21 Pollution in the preservation of the planet. granted, the country thinks that its manufac- 17 prevention The commitment of the world’s second- “The relaxation turers can establish themselves as the world and control largest economic power has indeed intensi- leaders in electric cars and batteries”, com- 18 17 Ressource fied since the COP21 was signed in 2015. In a of regulation enables mented Dominik Declercq, Beijing represen- Clean transport conservation forum for L’Opinion last month, Yao Wang, tative of the European Automobile Manufac- and recycling a larger number SOURCE : CLIMATE BONDS INITIATIVE & CHINA CENTRAL DEPOSITORY Director-General of the International Insti- turers Association. AND CLEARING CO, 2017 tute of Green Finance in Beijing, and Direc- of businesses “The relaxation of regulation enables tor of the Research Centre for Climate and to access the Chinese a larger number of businesses to access the Energy, highlighted the efforts already under- Chinese green bonds market”, says Frank taken by her country in this area. “The autho- green bonds market” Kwong, head of primary markets at BNP Pa- the growth of the entire green segment”. rities are providing political support for the ribas -Pacific. “Several financial institu- Among the local projects, coal is on the radar development of green bonds. The financing of tions are looking into the possibility of issuing of green bonds. According to the XIIIth five- environmental projects will stimulate growth such loans on the international markets. BNP year plan, 85% of energy will still be fossil- during theXIIIth five-year plan (2016-2020)”, European Investment Bank (EIB) on the in- Paribas recently participated in a transaction fuel based in 2020. “Making coal cleaner and she said. ternationalisation of the green loans market. of this kind alongside the People’s Bank of more efficient is therefore essential”, believes Non-existent in 2015, the green bonds A white paper aimed at strengthening the China. The bank issued a green loan in seve- Yao Wang. In Shanxi province, it is also green market hit $36 billion the very next year. Ma investment framework in China should be ral currencies, aimed at international inves- bonds that will finance the upcoming redeve- Jun, Chief Economist at the People’s Bank published by the end of the year. The timing is tors. The opening up of markets will help to lopment of a mining site. of China, which, unlike the central banks perfect as there is no shortage of projects in a harmonise standards, which will speed up M.M.

II l’Opinion 4 october 2017 Responsible Investing

Linking loan interest rates “Sustainable finance to CSR performance can be done is an existential question

hat are sustainable businesses? Puma’s suppliers”, she explains. With a global “They are resilient businesses that presence, the bank is helping Kering, a subsi- for banks” Wcreate economic value, healthy eco- diary of the group, to move its approximately systems and strong communities”, explains Dr 300 external manufacturers and suppliers Tima Bansal, Professor of Strategic Manage- towards a production that is more respectful of Yann Gérardin, is BNP Paribas Head ment at Western University (Ontario). “These all stakeholders. of Corporate and Institutional Banking businesses survive external crises because Another innovation: linking a bank loan’s they are closely with sound economic, social interest rate to a borrower’s “CSR” perfor- How do we define sustainable and environmental systems”. mance. In April, the Dutch group Philips finance simply? Whether out of conviction or under pres- launched what may become a new trend. It is to see finance as one of the levers for sure from their environment, all business Under the leadership of ING, the banking pool transforming our societies and our econo- owners are looking to produce in a greener, including ABN Amro, Bank of America mies into a “carbon-free” world. It is to play more socially responsible way. Many of them Lynch, BNP Paribas and Citi, agreed that the our part in fulfilling the UN’s 17 goals to trans- are recruiting a “CSR manager”, and sur- interest rate applied to a €1 billion loan granted form our world. And it is to incorporate in our rounding themselves with experts in order to to Philips would depend on the annual impro- decisions and in our advice to our customers achieve this goal. Innovative start-ups, specia- vement in the group’s “sustainable” goals, all the major societal issues, from human list consultants, rating agencies... there is no measured by an external agency. rights to the protection of the environment, shortage of “tutors”. “We can also provide “green” investments via diversity and the reduction of inequalities. The banks, themselves committed to for corporate cash flows. We can offer solu- financing sustainable development, are also tions to optimise the management of fleets of What has become essential for banks? developing tailor-made solutions for their cor- company vehicles or support to a group in Sustainable finance should be seen in the porate customers. “A year ago we launched, the search for good suppliers to build its new global context of the transformation of the with Puma, the sporting goods manufacturer, low-carbon registered office”, Caroline Pez-Le- banking industry. I was nominated in 2014, a an original financing programme that aims to fevre continues. “It is by innovating with our few years after the crisis, when the difficulties reward its suppliers’ compliance with social clients that we make a difference”. in the CIB [editor’s note: corporate and insti- DOMINIQUE RAULT and environmental standards”, says Caroline In terms of financing sustainable deve- tutional banking] industry were crystallising. Pez-Lefevre, joint head of corporate monito- lopment, the world knows no borders. BNP On the one hand, these activities were highly In concrete terms, does sustainable finance ring for the Europe, Middle east and Paribas was recently joint bookrunner for the destructive of value for the shareholder. On transform the banking business model? Africa zone BNP Paribas CIB. “This issuance in of a green bond by the In- the other hand, numerous scandals on va- It contributes to the transformation. Once programme offers financial dian Rural Electrification Corporation (REC). rious markets (the Libor, the foreign exchange again, the “post-crisis” central theme is how to incentives for Puma’s supply With the $450 million raised, the public market etc.) had come to the fore in the years reconstruct a bank that inspires confidence wi- chain businesses to improve operator is going to finance projects in solar, 2011-2013. It was necessary to reconstruct a thout destroying value for the shareholder. We their standards in all areas wind, biomass, water and waste manage- dual model: the financial model by recreating rely on three levers of cultural transformation: of CSR. In concrete terms, the ment. Investors kept coming back for more: value for shareholders, and the ethical mo- the first is more ethical behaviour towards all International Finance Corpo- the transaction was nearly 4 times over- del by improving banking behaviour vis-à-vis our stakeholders. The second is digital trans- ration (IFC), an independent subscribed. Muriel Motte customers, markets and society. At the same formation. This is essential if we want to sup- entity, has established a @murielmotte t time, it was also necessary to give new mea- port our customers on the long term. At the rating scale. Puma rates ning, internally, to our profession. Employees start of the year, we reinforced our ambition its suppliers according were shaken by the loss of financial bench- in this area as part of our 2020 development to this model and the Caroline Pez-Lefevre, plan. And the third lever is sustainable finance. bank applies differen- joint head of corporate monitoring This lever goes well beyond the issuance of tial tariffs according to for the Europe, Middle east and green bonds or the transformation of energy the score achieved by Africa zone BNP Paribas CIB. “In a few years, groups alone. All our customers, whether bu- behaviour has sinesses or institutions, are concerned about sustainable development, for instance Coca- STEVENS FRÉMONT changed within the Cola and Pepsi, on the origin of the water they business. Everything consume, Starbucks on the conditions of pro- duction of its coffee… Fund managers them- is more collaborative, selves are concerned, as they are increasin- Asset managers gly being asked to report on the “sustainable and more respectful development” of the capital they manage. In of others” this context, it was necessary to help our em- are going green ployees, who are on the front line with busi- ness and institutional customers, understand heir substantial financial leverage the Solactive Sustainable Developments Goal marks, and by the bad reputation suffered these issues very quickly. Every month, we makes them key to the success of the World index, which enables managers to be by the whole industry. All heads of corporate provide an update on the initiatives in all our T“transformation of the world” the UN exposed to those fifty companies contributing and institutional banks worldwide were loo- business lines and in our three regions (Ame- wants. Asset managers have their ambassa- the most to the United Nations’ 17 sustainable king to reconstruct this dual model. ricas, Asia, Europe - Middle-East - Africa). As dor, Philippe Hilderbrand, Vice Chairman development goals. bankers, we often have two points of contact of BlackRock. Responsible for $5,7 trillion “The indices are one way to meet the At what stage is BNP Paribas these days: the chief financial officer and the under management, his commitment is expectations of our customers”, comments CIB’s transformation? head of sustainable development, generating clear. “There is every reason Amine Bel Hadj Soulami. “We The financial plan has been painful to im- new forms of working relationship in order to to believe that investors can no are also the world’s second plement. The world has changed, and finan- better include this issue. The banking relation- longer act without taking into most active bank in terms of cial resources have become scarce. It was ne- ship is changing, and we are only at the begin- account the issues of climate issuing green bonds. Our goal cessary to optimise them and schedule a one ning of the adventure. change”, he stated quite clearly is to extend this offer to all billion euro reduction in costs. Today, we are last year. classes of assets, such as credit gaining market share from competitors, but What role do you intend to play Taking into account ESG (envi- for example.” Not forgetting we have to work very hard to be profitable. on this market? ronment, social, governance) the specific offer of BNP Pari- However, it is becoming increasingly complex After the crisis, a number of European criteria is now a major concern bas Securities Services, which to get teams on board on a strictly financial competitors drastically reduced their finan- for fund managers. “The UN’s ensures the safekeeping of ma- project. This is also why sustainable finance cing and activities. In 17 goals have become the uni- nagers’ assets. “Thanks to this is a question of sur- 2014, the pressure was extremely high in this versal language with regard service, our customers have a vival for the banks regard. It was necessary to focus on the busi- Dedicated to protection of the planet”, DR better understanding of the ESG in the long run. nesses or on the large institutional investors to BNP Paribas declares Amine Bel Hadj Sou- Amine Bel Hadj ratings of the securities they You need a project, that manage European savings. Doing both lami, Head of ESG Research Soulami, Head have in their portfolio. We can levers of ethical and at the same time no longer seemed possible. Having joined BNP and Investment at BNP Paribas of Research and then help them redirect their in 1987, Yann Gérardin cultural transforma- My vision was rather to develop a socially res- CIB. The approach of investors Sustainables investments to one or other of has spent his whole tion to restore pride ponsible and fully integrated CIB within BNP remains diverse. Some exclude Investments at their priorities”, he continues. career with the bank. and meaning to our Paribas by building a bridge between these whole sectors (arms, tobacco, BNP Paribas CIB. “Our pivotal position between Having created the activity. Three years two types of customers. Why ? Because we are alcohol, etc.) from their port- institutional investors and our bank’s equity derivatives ago, I asked 800 CIB heading towards more disintermediation: the folios; others believe that they can change corporate clients gives us a unique and clear business, this HEC and senior executives customers that we are financing today with Paris gra- things from the inside by being shareholders insight into what they are both looking for in duate rose through the for their long-term the bank’s balance sheet will be financing of these companies. Non-financial rating is the context of their challenges in terms of sus- ranks before joining BNP vision of financing themselves tomorrow on the markets. CIB’s emerging. Awareness-raising is widespread.” tainable finance.” Paribas’ executive com- and investment aim is to ensure fluidity between the expec- A global survey conducted in the spring M.M. mittee in 2011. In 2014, he activities. I questio- tations of both these segments of customers. by BNP Paribas of 461 managers reveals that was appointed Head of ned customers, BNP For example, we suggest to our institutional 80% of them already take ESG factors into ac- CIB which he is commit- Paribas board mem- customers that they invest in sustainable BNP Paribas : #2 Global green bonds ted to restructuring. This count in the products they market or in their division, which consists bers and regulators products issued by those businesses that are investment techniques. “The reinsurer, Swiss Bookrunner 2017 YTD of corporate and institu- on the same subject. looking to finance themselves on the mar- Ré, has just announced that the benchmark # of deals Volume tional banking activities, All of them aspired kets. And vice versa! And it is because we are indices for its management will now include (USD eqv mn) covers 30,000 people on to a socially res- one of the few European banks to have retai- ESG criteria”, highlights Neven Graillat, res- 1 - CACIB 21 4,221 three continents. ponsible CIB, mea- ned an overall framework that we are able ponsible for SRI investment solutions at BNP 2 - BNP Paribas 16 3,492 ning a bank with to provide this link. Finally, we are proud to Paribas. “This concerns almost $130 billion in 3 - Citi 16 3,415 impeccable conduct vis-à-vis customers and have organised last year in Singapore the first assets, which is a very strong signal”. 4 - JP Morgan 19 3,187 markets. This also includes sustainable deve- conference on the theme of sustainable deve- ESG indices are precisely BNP Paribas’ 5 - Societe generale 10 3,135 lopment to which younger employees are par- lopment. The second conference is currently speciality. The bank has already created 6 - BALM 14 2,926 ticularly sensitive. In a few years, behaviour taking place in Paris. The Sustainable Future well over ten of them, notably the Tera Neva 7 - HSBC 20 2,796 has changed within the business. Everything Forum brings together business customers range to support energy transition. “They 8 - BARC 9 2,601 is more collaborative, and more respectful and institutional investors and enables them have helped raise more than €4 billion in 9 - 8 2,332 of others. We are light years away from the to share and discuss their needs and their four years”, states Neven Graillat. Last year 10 - SEB 13 2,179 stereotypes depicted in films on “pre-crisis” goals in terms of sustainable finance. his team obtained the exclusive licence of SOURCE: ENVIRONMENTAL FINANCE - 30/08/2017 finance. Interview Muriel Motte

4 october 2017 l’Opinion III Responsible Investing “We have attracted more foreign “Green bonds investors thanks to green bonds ” issuances Manuel Fresno Castro, times fewer than air transport. Adif a positive reception on the market, which aren’t Managing Director of Administrador is therefore fully committed to was indeed the case. Our aim was to de infraestructuras ferroviarias (Adif ) the protection of the environ- to raise €500 million, and we ultima- whimsical” ment and the sustainable eco- tely achieved €600 million, at an dif is the operator in charge of ma- nomy and we are constantly attractive interest rate. Thanks to naging the Spanish rail network. looking to reduce our carbon this bond we have attracted a num- Vincent Chapel, “A The green bonds issue that we footprint. Our bankers there- ber of foreign investors: Only 21% CEO of Helvetia Environnement carried out last July is the first of its kind by fore encouraged us to issue a are Spanish, 36% are German, Aus- a public company in Spain. The €600 mil- green bond, in line with our trian or French, and 11% come from e are the market leader in waste lion raised will contribute to our programme strategy. After the signing of Nordic countries. Of them, 45% management in Switzerland of investments, which includes both the the Paris Agreements, it see- are “green” investors. This success is “Wand currently have a turnover construction of new high-speed lines and med logical for us to call upon a obviously very encouraging. We hope of 140 million Swiss francs. Having acquired the maintenance of the existing network. French bank to support us to carry out our next green the former assets of in our country at Spain has the second largest high-speed rail in this transac- bonds issuance in the the start of the year, our group has practically network in the world and we plan to invest tion. The pres- first half of 2018. doubled in size. BNP Paribas and €5 billion over the next five years. The green ence of BNP While the finan- helped us perform this external growth tran- bonds should be able to provide half of our Paribas, cial aspect is saction. Various refinancing solutions were financing needs. an expert important, presented to us, from which we decided to Rail transport is by far the least pollu- in green green bonds issue a green bond. Firstly, because we had ting of all forms of transport. Per passenger bonds, are part of a reached sufficient size to carry out a bond is- per kilometre, it generates 13 times fewer led us to global stra- suance (in Switzerland, the minimum amount

CO2 emissions than road transport, and 16 hope for te gy.” is 50 million francs). Also, the low interest rates were a real incentive for the issuers. Finally, DR our shareholders wanted Helvetia Environne- ment to call on capital that is in line with the “green” corporate project we are developing. The team at BNP Paribas really encou- raged us to issue a green bond. It was the first transaction of its kind conducted by a private “Commit to projects which lead to company in Switzerland! Our bankers have been a positive link between our aspirations of being a stakeholder in the new green eco- a more sustainable environment” nomy, and those of investors. We were also very surprised by the very Luc Minguet, Purchasing Director regard is controlled at the highest level of the ture and to produce energy. As the primary positive reception of investors to the topics of the Michelin group company; an MPR committee meets every customer of the natural rubber industry, we of sustainable investment. It was our first quarter under the chairmanship of our CEO, are particularly committed to its sustainable market transaction and we have discovered ustainable development issues Jean-Dominique Senard. management. a world of finance that is really attentive to have been an integral part of Michelin is very active across its entire Beyond this example, Michelin’s ap- these issues. The investment was com- “SMichelin’s growth strategy for supply chain in promoting a sustainable proach aims to be global, which means that pleted in less than an hour last June, many years. supply chain. An important area is our com- we want to work with committed partners and the transaction was oversubscri- The Group mitment to the production of sustainable who adhere to our values. For the purcha- bed 1.6 times. We raised 75 million officialised natural rubber in collaboration with several sing department, these values must there- francs which will also be used to its social NGOs. Indeed, the rubber tree is an ideal fore be shared by all of our suppliers. BNP finance future development pro- and envi- “organic” product. Cultivated properly, it Paribas is a longstanding financial partner jects. In the future, if we turn to ronmental offers high yields and provides local employ- of the Michelin Group. It is a very active the bond market again, it will defi- principles ment as it has to be tapped every day. Rub- bank on sustainability issues. With its global nitely be via a green bond. I think in an “MPR” ber production uses virtually no fertilisers presence, BNP Paribas does not hesitate to that in this area, it is good to stay (Michelin or insecticides. It does not impoverish the commit itself to the financing of on course. You do not issue a Performance soil, but instead protects it from erosion. In sometimes complex pro- green bond on a whim. and Responsi- addition, it is a carbon sink. A plantation of jects, which present signi- This corresponds bility) charter, one hectare of mature rubber trees captures ficant social and envi- to a voluntary published in 2002 more than 200 tons of carbon over the entire ronmental challenges, a approach in fa- and updated in lifetime of the tree, which is comparable to commitment which corres- vour of a more 2012. Our ap- primary forest. Finally, trees at the end of ponds exactly to the ex- sustainable proach in this their life can be used both to create furni- pectations of our Group.” world”.

DR DR

Open forum Laurence Pessez, CSR Director of the BNP Paribas group Contributing to the construction of a sustainable future

The United Nations’ 17 sustainable we identified which sectors we were BNP Paribas is striving to be the bank the transition. At the start of 2016, BNP development goals aim to end poverty financing and which ones were for energy transition. This is reflected Paribas took the landmark step of reducing by 2030 at the same time as protecting contributing the most to the 17 sustainable in a strong commitment to supporting its support for fossil fuels, starting with the planet. Owing to its global reach and development goals. The non-financial businesses that make changes in terms of coal, an energy source that is the largest

as a bank, BNP Paribas has a decisive role energy. With €9.3 billion of outstanding emitter of CO2. At the same time, the Group to play in contributing to this collective credit to renewable energies at the end is taking action on its own emissions and

effort. Our social and environmental of 2016 worldwide, and a goal of €15 billion has committed to neutralising its CO2 responsibility approach enables us “In 2016 and 2017, by 2020, BNP Paribas has financed or emissions associated with its operations by to participate in the construction of a BNP Paribas was named by advised on projects totalling the end of 2017 via an ambitious reduction sustainable future. over 7.6 GW of installed programme. This approach is founded on The Banker magazine as capacity. The Group Recognised by the non-financial four pillars: financing the economy the most innovative bank also confirmed rating agencies – Carbon Disclosure in an ethical manner, promoting the its position as Project, Robecco SAM, Sustainalytics, development and commitment of our in the world in terms of leading bank for FTSE – BNP Paribas appears in several employees, being an active player in climate and sustainable the financing of major sustainable development rankings society, and finally combating climate offshore wind such as the Global 100 Most Sustainable change. development action” power in Europe, Corporations in the World by Corporate For example, in order to combat and is one of the Knights. In 2016 and 2017, BNP Paribas was poverty, microfinance is a powerful world’s three named by the The Banker magazine as the lever for inclusion of people usually rating agency Vigeo-Eiris supported us in leading players in most innovative bank in the world in terms excluded from the traditional banking this endeavour: in total, 16.6% of our loans the “green bonds” of climate and sustainable development system: it enables them to undertake contributed purely to the achievement field. Also, by 2020, action. entrepreneurial microprojects that of the sustainable development goals €100 million will These recognitions encourage us to go improve their standard of living. in 2016. BNP Paribas is the only bank be dedicated further every day in the construction of a In 2016, BNP Paribas financed around to have a quantified target for to innovative more sustainable society. We want more thirty institutions for a credit amount contributing to these goals, a practice start-ups that than ever to have a positive impact on our of €250 million, indirectly benefiting recognised as exemplary by the UN. contribute to stakeholders through the commitment of over 300,000 people. Also last year, Another lever for action, accelerating our 190,000 employees.

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DR IV l’Opinion 4 october 2017