Responsible financing

The mining sector supplies resources which have a major impact on the development of most economic sectors. The world’s population is increasing. It as a key factor in the growing demand for resources, especially combined with the growing expectations of developing countries as to advanced infrastructure as well as the high quality of products and services. Resources are being depleted and it is becoming increasingly difficult to extract them. A balanced approach to the mining sector needs to give careful consideration to the environmental, social and governance risks associated with the sector. The CSR policy towards the mining sector defines the requirements for mining companies and projects which wish to cooperate with the Bank. The policy states additional criteria for mining enterprises and mining projects.

As a significant financial institution, Bank BNP Paribas recognises the validity of the five major challenges and threats to the security of the EU as defined by the European Council: terrorism, the proliferation of weapons of mass destruction, conflicts in regions, failing states and organised crime. Illegal arms trafficking, especially the illegal sale of small arms, is a key factor in four out of the five threats.

While the Bank recognises the right of states to defend themselves and to protect their own national security, it is also conscious of the particular risks connected with the Defence and Security Sector.

The defence and security provisions listed in our policy apply to weapons (including controversial weapons), military equipment, dual-use goods, internal repression, and internal security and police. The policy defines a set of principles and guidelines regarding the Defence and Security Sector which must be followed by all organisational units of the Bank.

The demand for paper products will increase in the coming decade, which will affect global development. In connection with the wood pulp production process, the Bank has noted that heavy industry has a great impact on the environment (including water, soil and air pollution), but also on the health and safety of those employed by the industry and surrounding communities. Based on the paper production chain, shareholders believe that the greatest impact can be exerted at the level of forest management and wood pulp production. The Bank’s CSR policy focuses on these two stages.

The development of palm oil plantations may adversely affect local communities, climate change and the ecosystem. However, such issues depend primarily on the method of oil production. As a financial institution, the Bank wants to support responsible producers who apply sustainable development practices in the palm oil production sector. Therefore, we refrain from financing or investing in enterprises which activity contribute to deforestation (loss of diversity, intensification of adverse climate changes, etc.) or in enterprises which violate the rights of local communities.

As a financial institution, the Bank offers its products and financial services to government units which support development of non-military nuclear energy. The Bank believes that the international community and countries which plan to develop nuclear power or build new power plants need to act in accordance with the requirements of safety and population protection, as well as environmental protection. The Bank’s CSR Policy aims to ensure that the projects financed by the Bank in the nuclear energy sector are properly monitored in terms of mitigating social and environmental impact.

Agriculture is a key sector in terms of employment opportunities and GDP. It provides livelihoods for millions of people, both in developed and developing countries. Investing in agriculture is one of the most effective strategies to reduce hunger and promote sustainable development. However, without proper management, the development of agriculture could have adverse effects on local communities, ecosystems or climate change.

Bank BNP Paribas supports the agro-food sector and therefore provides a wide range of financial products and services for entities in this industry. The offer is addressed to highly responsible farms and processing companies, whose goal is to provide consumers with healthy and safe products while ensuring that the supply of food for future generations remains unthreatened. Therefore, we do not finance or invest in enterprises whose agricultural practices do not meet the requirements of sustainable development or which destabilise the market of basic agricultural goods.

Bank BNP Paribas is highly involved in the energy transformation. Our goal is to contribute to the reduction of carbon dioxide emissions. This aim is reflected in the Bank’s loan portfolio and steps taken to reduce the environmental impact of its operations.

Therefore, Bank BNP Paribas has developed a coherent policy on financial products and services for the oil and gas industry in the field of unconventional oil and gas. Oil production from unconventional resources currently accounts for c. 10% of global oil and gas production. This percentage is expected to increase because unconventional oil and gas currently account for 55% and 44% of renewable fuel resources, respectively.

The negative impact of unconventional production can be mitigated by implementing the best practices which have been developed. BNP Paribas assesses resources and projects for various unconventional sources of oil and gas, in line with the best practices of the industry. Thus, we determine the real, specific impact of such projects.

In 2017, the BNP Paribas Group made a global decision to discontinue financing and investing in the tobacco industry, including manufacturers, planters and wholesalers whose main operations are tobacco-related. Since 2018, in line with the decision of the Group, the Bank has been implementing the exit process from financing the tobacco sector.

The new financing and investing regulations result from the BNP Paribas Group’s commitment to financing the economy while maintaining a positive impact on all stakeholders.

In addition, since 2020, Bank BNP Paribas has ceased funding for the fur farming sector, thus implementing restrictions which had been gradually introduced since 2017.