The bank for sustainability
Sustainability is one of the key pillars of our business. As corporate social responsibility becomes an increasingly important factor in our clients’ decision making, Global Markets’ skilled engineers respond with innovative products and services including sustainable equity indices and bonds.
Sustainable bonds are debt securities the proceeds of which are invested in projects designed to bring environmental and/or social benefits.
As of 12 July 2019, we have lead-managed approx. €23.9bn in sustainable bonds, including over €1.1bn in sustainable equity-linked bonds.
Our range of sustainable equity indices offers solutions which aim to help our clients find sources of revenue to meet their environmental, social and corporate governance (ESG) investment goals. Our latest equity strategies offer investors opportunities to take part in the sustainable transformation:
BNP Paribas’ sustainable equity-linked bonds were the first sustainable bonds to link returns to the performance of stocks in Sustainable Equity Indices. We are proud to have partnered with the World Bank and the European Investment Bank to launch sustainable equity-linked bonds, thus combining our bond and equity expertise.
Our recent joint initiative with the World Bank “SDGs Everyone”, raised funds to support the financing of projects that seek to eliminate extreme poverty and boost shared prosperity, and that are aligned with the United Nation’s Sustainable Development Goals (or SDGs).
BNP Paribas Securities Services is a global custodian with $9.4 trillion in assets under custody (as of December 2017). They have launched ESG Risk Analytics, an innovative solution designed to enable our clients to incorporate ESG factors more easily into their investment decision-making process.
Contributing to the UN’s Sustainable Development Goals
In line with the United Nation’s Sustainable Development Goals (SDGs), we aim to contribute to a more sustainable world. Our sustainable solutions participate to the realisation of one or more goals covering the key commitments established by the UN. BNP Paribas plays an active role in underwriting and lead-managing sustainable bonds, whereby the use of proceeds are dedicated to green and sustainable projects.
Economic growth must be inclusive to provide sustainable jobs and promote equality
NWB Bank’s Affordable Housing Bond
BNP Paribas was one of the lead managers of the NWB Bank Affordable Housing Bond, aimed to attract investors that take into consideration the social impact of their investment. With an ambition to raise further awareness of the Dutch social housing organisations (SHO’s) and to initiate further investor interest in social housing in general, NWB Bank issued this bond to finance lending to social housing. The Dutch system, apart from securing housing for those in need, also targets a large group of tenants, like young adults and seniors, who are facing challenges to find affordable living.
PUMA’s CSR driven supplier financing program - CIB
BNP Paribas and PUMA launched an innovative financing program for suppliers to reward social and environmental standards. The innovative structure offers financial incentive for PUMA’s suppliers to improve environmental, health and safety and social standards. This programme covers approximately 300 suppliers worldwide for which pricing conditions are adjusted depending on their E&S rating based on PUMA’s E&S standards (aligned with the IFC performance Standards).
Sustainable Finance Facilities - CIB
On the occasion of the 2017 One Planet Summit, the United Nations Environment Programme (UNEP) and BNP Paribas signed a milestone agreement to establish Sustainable Finance Facilities, collaborative partnerships aimed at raising development capital to drive sustainable economic growth in emerging countries. In this context, the Tropical Landscapes Finance Facility (TLFF), with BNP Paribas being a founding partner, issued its inaugural transaction, to finance a sustainable natural rubber plantation. TLFF aims to bring long-term finance to projects and companies that stimulate green growth and improve rural livelihoods in Indonesia.
Ensuring healthy lives and promoting the well-being for all is essential to sustainable development
CAFFIL (Caisse Française de Financement Local) Healthcare/SFIL Social Bond
With BNP Paribas as a bookrunner, CAFFIL Healthcare has issued a social bond, considered to be the first social or green covered bond from France. The proceeds of this issuance are refinancing loans to public hospitals, aiding the French hospitals in their mission to provide public health services for the whole population, regardless of income, social or financial status.
Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world
RAFI Diversity & Governance Index Series
Research Affiliates is partnering with BNP Paribas, to globally market, distribute, and support the implementation of their Diversity & Governance strategy.
RAFI Diversity & Governance will select stocks based on gender diversity and governance, metrics believed to have a positive contribution to performance and companies’ financial discipline. The strategy uses the proprietary gender leadership diversity methodology developed by LeaderXXchange℠, a change-driven organisation that advises and promotes diversity and sustainability in governance, leadership, and investment.
BNP Paribas is an exclusive provider of structured products linked to the RAFI Diversity & Governance indices, and serves as a counterparty for OTC swaps.
Clean, accessible water for all is an essential part of the world we want to live in
Yorkshire Water Sustainability Bond
BNP Paribas was a bookrunner for Yorkshire Water’s first sustainability bond issued as part of their sustainability framework, which identifies how the supplier will spend money in ways that have an environmental or social benefit. The intention is to use the proceeds to finance and refinance capital and operational expenditure within the following areas:
- Water resources
- Raw water distribution
- Water treatment
- Treated water distribution
- Sewage collection
- Network plus sewage treatment
- Sludge transport, treatment and disposal
Anglian Water Green Bond
With BNP Paribas as an arranger, institutional investors have been given the opportunity to invest in Anglian Water’s Green Bond to finance parts of their environmental investments, delivering significant environmental benefits. The funding generated by the bond will finance investments in their region to secure water supplies for future generations and support their goals of sustainability, carbon reduction, water management or “water recycling” projects with a reduced climate footprint (in terms of energy or water use) and projects helping to adapt to long term impacts of climate change such as flood risk.
Energy is central to nearly every major challenge and opportunity.
Iberdrola Sustainability Linked Loan
BNP Paribas acted as a sustainable co-agent on this sustainable credit deal, the first financing operation linked to goal 7 of the UN Agenda 2030 Sustainable Development Goals (SDGs): affordable and clean energy.
The conditions of the loan are linked to compliance with two sustainability indicators. The first is of a social nature and seeks to guarantee universal access to affordable, reliable and modern energy services. This is therefore in line with the 'Electricity for All' programme, through which Iberdrola has set itself the goal of bringing electricity to 16 million people who currently lack it in emerging or developing countries by 2030.
The second indicator is of an environmental nature and is linked to the installation of new renewable power.
Investments in infrastructure are crucial to achieving sustainable development
Philips Green Innovation Bond
As a Lead Manager, BNP Paribas supported the May 2019 issuance of Royal Philips Green Bonds. The net proceeds are allocated towards innovation in the environmental friendliness of Philips’ products and production processes. The key areas of their focus are energy efficiency, packaging, hazardous substances, weight, circularity, and lifetime reliability.
There needs to be a future in which cities provide opportunities for all, with access to basic services, energy, housing, transportation and more
Société du Grand Paris Green Bond
BNP Paribas acted as a lead manager on the issuance of the Société du Grand Paris Green Bond issue. The net proceeds were exclusively dedicated to finance the Grand Paris Express transport network and the construction of new train lines around the Paris area. The intention is to provide access to safe, affordable, accessible and sustainable transport systems for all and improving road safety, notably by expanding public transport, while simultaneously curbing CO2 emissions
ICADE Green Bond
BNP Paribas acted as a bookrunner for the ICADE Green Bond issuance. The proceeds will be allocated towards investments in construction and/or renovation of Green Buildings as well as Investments in energy efficiency and energy transition projects. The Green Bond provides a positive contribution to efforts to improve the environmental impact of the real estate market in France, by promoting several measures that will reduce GHG emissions and improve resource efficiency.
RATP Green Bond
BNP Paribas acted as a bookrunner for the RATP Green Bond issuance, dedicated to low-carbon and sustainable transport. The proceeds are allocated to finance investment projects that would contribute to energy transition and climate-change mitigation, pollution prevention, natural resources preservation and other sustainable objectives.
Responsible consumption means taking the environment into account when designing products and recycling them
Paprec Green Bond
BNP Paribas acted as bookrunner for the Paprec Green Bond issuance. The net proceeds of the Green Bond will be used to refinance recycling projects. This includes the refinancing of assets that contribute to the optimisation of the recycling process and the refinancing of acquisitions of companies with the primary responsibility of waste collection, waste recycling or waste-to-energy, contributing to the improvement of the recycling capacity.
Climate change is a global challenge that affects everyone, everywhere
THEAM Quant Europe Climate Carbon Offset Plan
BNP Paribas Asset Management in collaboration with BNP Paribas Global Markets has launched the first UCITS fund with a carbon offset mechanism. The Fund aims to have a positive impact on climate change through the use of carbon credits (voluntary carbon market), from the Kasigau Corridor REDD+ project of Wildlife Works in Kenya to offset the carbon footprint of the equity investment.
BNP Paribas has a recognised expertise in European Trading Scheme (ETS), a fully established market. BNP Paribas entered the carbon rights trading market 10 years ago offering its clients a diverse array of products and services.
As Voluntary Carbon Markets are progressively emerging, BNP Paribas Global Markets can assist clients in offsetting their carbon emissions.
Agence Francaise de Development Climate Bond
BNP Paribas was the lead manager on an AFD climate bond issuance. The climate bond proceeds will fund development projects with climate co-benefits. The climate co-benefit refers to either mitigation of greenhouse gas emissions, adaptation to climate change, and support for the implementation of climate change prevention policies.
European Investment Bank Climate Awareness Bond
BNP Paribas acted as a bookrunner for the EIB Climate Awareness Bond. This issuance supports renewable energy and energy efficiency projects around the globe. These lending projects include, but are not limited to, renewable energy projects such as wind, hydro, solar and geothermal production; and energy efficiency projects such as district heating, co-generation, building insulation, energy loss, reduction in transmission and distribution and equipment replacement.
Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss
BNP Paribas Global Markets aims to mobilise significant resources to finance sustainable forest management and provide adequate incentives to developing countries to advance such management, including for conservation and reforestation
We are collaborating with Reforest'Action, our reforestation partner as part of our sustainable finance offering. We combine our socially responsible investment offer with tree planting around the world with Reforest'Action, our partner in reforestation as part of our commitment to sustainable finance.
Founded in 2010, Reforest’Action is a company which allows individuals and companies alike to plant their forest and make a real difference in climate and biodiversity. Since the company’s inception, Reforest’Action has planted more than 3 million trees with the help of 1,000 companies and 100,000 citizens and helped improve the living conditions of over 30,000 people worldwide.
Revitalise the global partnership for sustainable development
SDGs Everyone Initiatives
In March 2017, the World Bank (International Bank for Reconstruction and Development, IBRD) and BNP Paribas partnered to promote the United Nations SDGs through an investment solution. The World Bank issued bonds that for the first time directly linked returns to the performance of companies advancing global development priorities set out in the SDGs, including gender equality, health and sustainable infrastructure. The return on investment in the bonds is directly linked to the stock performance of companies included in the Solactive Sustainable Development Goals World Index.
In November 2015, the European Investment Bank (EIB), BNP Paribas and Vigeo announced the launch of Tera Neva, a sustainable investment solution allowing investors to align their financial objectives with their energy transition goals.
Green Growth Bond
In 2015 BNP Paribas Global Markets partnered with the World Bank to develop “Green Growth Bonds”. Offered to the public across different countries in Europe this product allows investors to benefit from the growth potential of an equity index while at the same time, support projects with a positive impact on climate change, financed by the World Bank.