BNP Paribas Cardif announces new commitments to align its investment portfolios with carbon neutrality trajectory, setting initial milestones by 2025

 

The BNP Paribas Group, a founding member of the Net-Zero Banking Alliance, announced a commitment in 2015 to align greenhouse gas emissions from its activities with the objectives of the Paris Agreement. Building on the Group’s commitments to fight global warming, BNP Paribas Cardif, the insurance subsidiary of BNP Paribas Group, which joined the Net-Zero Asset Owner alliance in 2021, is today announcing new near- and medium-term commitments. 
 

BNP Paribas Cardif is making concrete commitments1 to: 

  • Reduce the carbon footprint of its investment portfolios:

- Reduce the carbon footprint of directly held equity and bond portfolios by at least 23% between end 2020 and end 2024 (a 53% reduction was already achieved between 2017 and 2020).

- Reduce the carbon intensity of directly owned office properties by at least 12% between 2020 and 2030 (a 32% reduction was already achieved between 2011 and 2020).

  • Reduce the exposure of its investments portfolios to fossil fuels:

- Complete a definitive exit from thermal coal in keeping with a previously announced calendar, by 2030 for EU and OECD countries and by 2040 worldwide. 

  • Invest to support the energy transition: 

- Allocate at least 800 million euros annually to investments with a positive impact on the environment. 

  • Engage in dialogue with companies and asset managers.

 

BNP Paribas Cardif is today announcing several commitments in order to achieve carbon neutral and support a trajectory aligned with the 1.5°C global warming threshold.  BNP Paribas Cardif is committed to:

  • Reducing the carbon footprint of its investment portfolios and contribute to respect for the Paris Agreement:

By reducing the carbon footprint (Scopes 1 and 22) of its directly held investment portfolios (equities and bonds) by at least 23% between 2020 and end 2024. This objective will be reviewed every five years until 2050. BNP Paribas Cardif has already made significant progress in reducing its carbon emissions, and reduced its carbon footprint by 53% between 2017 and 2020.



 

By reducing the carbon intensity (Scopes 1 and 23) of directly held office properties by at least 12% between 2020 and 2030. A reduction of 32% was already achieved between end 2011 and end 2020.


 

  • Reducing the exposure of its investment portfolios to industries with the highest levels of greenhouse gas emissions in application of BNP Paribas Group sector policies. 

This will lead to a definitive exit from thermal coal by 2030 for EU and OECD countries, and by 2040 in the rest of the world.


 

  • Continuing to invest in assets with positive environmental impact: 

By allocating at least 800 million euros annually between the present and 2025 to investments with a positive impact on the environment. This covers investments in environmental protection activities such as the energy transition, energy efficiency, waste recycling and reuse and preservation of biodiversity.

In 2021, BNP Paribas Cardif invested in BNP Paribas Asset Management’s BNP Paribas Climate Impact fund, which supports the adaptation to climate change and the mitigation of its effects by investing in small and mid-cap companies. These companies must achieve at least 50% of their turnover in one of the areas related to climate change such as renewable energies, energy efficiency, water treatment, pollution control, waste management or environmental services.
 

  • Engage in dialogue with companies and asset managers.

This objective will be pursued in particular through the Climate Action 100+ initiative, which the insurer joined in 2021, along with BNP Paribas Asset Management. This initiative is aligned with the BNP Paribas Group’s climate strategy and the environmental responsibility approach of BNP Paribas Cardif. The insurer has long engaged in dialogue with  the companies in which it is a shareholder, seeking to encourage these businesses to more deeply embed Environmental, Social and Governance criteria in their strategies. 
 

 

1.Worldwide scope, excluding unit-linked investment vehicles and excluding minority interests in joint ventures. 

2.As there is currently no standard methodology for measurement of Scope 3 emissions,  BNP Paribas Cardif places priority on implementing Scope 1 and 2 objectives to align with the Alliance, while continuing to measure the impact of its investment portfolios across all three 3 Scopes.

3.Reduction of carbon intensity of office properties also includes the electricity, heating and air-conditioning consumption of tenants.