Scientific consensus on biodiversity degradation

Biodiversity faces severe threats, with about 1 million species at risk of extinction due to human activities, as reported by IPBES in 2019. The deterioration impacts not only ecosystems but also human well-being, affecting poverty, hunger, health, water, cities, and climate (linked to SDGs 1, 2, 3, 6, 11, 13, 14, and 15). BNP Paribas acknowledges these threats and the urgent need for action from all sectors, including financial institutions.

Financial sector’s role in biodiversity preservation

BNP Paribas recognises its responsibility in addressing biodiversity risks. For over a decade, it has integrated criteria on deforestation and biodiversity into its financing policies, especially for sectors like agriculture, forestry, and palm oil. Through policies like the No Deforestation, No Peat, No Exploitation (NDPE) standard, BNP Paribas guides its clients in high-risk industries, aiming for improved traceability and transparency in supply chains.

BNP Paribas’ biodiversity impact framework

Relying on the IPBES framework, BNP Paribas evaluates its biodiversity impact across key pressures: land and sea use, direct exploitation, climate change, and pollution. This structured approach enables the bank to monitor and reduce its environmental impact through various levers, including exclusion policies and targeted support.

Biodiversity integration in BNP Paribas activities

The bank takes several steps to minimise biodiversity-related impacts across its activities:

• Client engagement: BNP Paribas actively engages clients, promoting sustainable practices through tools like green bonds and sustainability-linked loans. The bank’s financing for renewable energy projects reached €17.8 billion in 2020, supporting biodiversity and climate goals.
• Investment strategies: BNP Paribas steers investments towards biodiversity-focused funds, targeting initiatives aligned with SDGs 14 and 15, covering marine and terrestrial biodiversity.
• Innovative Financing: For emerging markets, BNP Paribas collaborates on blended finance models, combining public and private funds to support agroecology and reforestation.

Addressing land and sea use change

Land use changes, such as deforestation, drastically affect biodiversity. BNP Paribas excludes projects in ecologically sensitive areas like the Amazon and Cerrado, aiming for zero deforestation by 2025. To combat habitat loss from urban expansion, BNP Paribas Real Estate promotes biodiversity in its projects, using tools like the BiodiverCity label and incorporating green infrastructure to support urban resilience.

Reducing direct exploitation of natural resources

Overexploitation, particularly in fishing, contributes to biodiversity loss. BNP Paribas has adopted a position on ocean protection, promoting sustainable practices among clients in the fishing industry and avoiding financing for harmful activities, such as bottom trawling over 800 metres. The bank also supports projects focused on coral reef restoration, including a $500 million Global Fund for Coral Reefs, which BNP Paribas co-founded.

Climate change as a priority

Climate change, a major biodiversity threat, has been BNP Paribas’ environmental priority since 2011. The bank aligns its credit portfolio with the Paris Agreement, phasing out high-emission sectors and increasing renewable energy investments. Additionally, it manages its carbon footprint, sourcing 75% of its electricity from low-carbon sources in 2020 and offsetting emissions through carbon credits.

Pollution reduction initiatives

BNP Paribas addresses pollution through various policies, including restrictions on single-use plastics within the organisation and its asset management division’s circular economy-focused funds. Furthermore, it stopped financing the tobacco industry in 2017, acknowledging the pollution caused by cigarette butts, which are a leading plastic waste type globally.

Transversal actions and partnerships

BNP Paribas builds partnerships to advance biodiversity preservation, participating in initiatives like TNFD (Taskforce on Nature-related Financial Disclosures) and funding R&D projects through the BNP Paribas Foundation. To support knowledge-sharing, the bank engages stakeholders and promotes biodiversity awareness among its employees, with programmes like “We Engage” and community events.