The Innovation Ambassadors program counting 84 innovative projects submitted from 24 countries worldwide in 2024, shows that innovation can be found everywhere at BNP Paribas Cardif. Discover how BNP Paribas Cardif, in partnership with Orange, enables the processing of claims for phone damage and oxidation in just a few seconds. 

Introduce yourself briefly: country, division, main tasks, personal interests outside the company (e.g., leisure and hobbies)

My name is Tom Thiberge and I’ve been working for BNP Paribas Cardif for 10 years now, having started here on a work-study programme. A few months ago, I joined Karapass, a subsidiary specialising in affinity insurance products, where I manage a data team. My role is to develop and promote our data services and analytics offer from an operational perspective, while steering Karapass towards a resolutely AI-driven approach, meaning an approach where AI plays a central role in decision-making, automation and process optimisation. 

Outside work, I love making pizza and I’m a football fan, a fervent supporter of AS Monaco.

Tell us about your project: its main focus, what is its about, how it came about, and what it will bring to BNP Paribas Cardif. 

Because phones are so central to our lives, we had to offer our customers an immediate solution in the event of a claim. Thanks to AI, we have reduced claims acceptance times from an average of two hours to just a few seconds. Responding in less than five seconds is not only a technological feat, but also a powerful lever for increasing customer satisfaction.

This innovation is based on a score calculated by AI using data from the claim report and the applicant’s history. It allows claims related to broken or oxidised phones to be accepted in a matter of seconds, for fast processing even in the evening or at the weekend.  For more complex claims that cannot be handled by AI, policyholders are automatically redirected toward the traditional process with specialised claims managers. Customers can also choose to be assisted by a claims manager and forgo the automatic approval process.

Implementing this solution in collaboration with our partner Orange illustrates our shared desire to offer an optimal customer experience by providing immediate and effective responses at every stage of the process.

Our determination to be a market maker in the affinity insurance sector is reflected in this solution, which creates value at every level: for our customers, our partners, our employees and for the group.

What did you find most striking/surprising during this project (perhaps you have an anecdote to tell us)? 

The ability to meet our commitments in a very short space of time, despite a dense roadmap. This was made possible by our teams of experts and their exceptional commitment. The success of the project is also due to the commitment of our employees, who have gone beyond the scope of their jobs to ensure that it was successful.

What advice would you give to employees who also want to innovate? 

It is essential for employees to be proactive and able to connect their area of expertise to the industrial processes that have to be integrated. We must always ask ourselves the question of what is the added value of innovation and then provide a concrete answer.

For a project to be successful, I think three essential success factors need to be in place:

•    Innovation must be part of an industrialisable process and provide clearly measurable value, especially for the core business.
•    Teams must be aligned from the design to the delivery stage, and effective, regular exchanges must take place with the sponsor and/or decision-maker.
•    Stakeholders must be committed to delivering a solution.

In January and October 2024, the 8th and 9th editions of the International Analytics Manager Academy (AMA) were held, bringing together 36 new BNP Paribas Cardif participants from France, Europe and Latin America, with many profiles.

Founded in 2018, this ambitious and intensive training in Data Sciences is delivered in partnership with École Polytechnique, under the sponsorship of Stanislas Chevalet, Deputy Chief Executive Officer, Transformation & Development, and Michael de Toldi, Chief Analytics Officer. It’s one of the key measures to support BNP Paribas Cardif’s AI (Artificial Intelligence) transformation.

AMA aims to train our changemakers, leaders of today and of tomorrow, to help them spread the AI culture throughout the company and equip them to ask the right questions and make the right decisions. They can thus leverage AI to boost the creation of strategic value for our partners, customers and employees, serve operational efficiency and contribute to risk reduction.

To achieve these goals, AMA brings both a precise and rigorous understanding of AI, by diving into its technical fundamentals with the best experts at Ecole Polytechnique, and how we create value through AI, by exploring BNP Paribas Cardif’s AI ecosystem with our in-house experts.

In total, more than 140 managers, top managers, talents and key actors of our AI ecosystem, have already been trained in all these subjects thanks to this excellence program between BNP Paribas Cardif and Ecole Polytechnique Executive Education.

Congratulations to all participants for their efforts and proactivity and also to all the employees who contributed to these editions by organizing conferences and sharing their expertise and experiences.

The Analytics Manager Academy will be back for a 10th edition!

• BNP Paribas Cardif is making it easier for people living with HIV to obtain insurance. 
• The insurer continues to facilitate access to insurance coverage, taking into account the latest advances in HIV treatments.
• This initiative is part of a comprehensive approach taken by BNP Paribas Cardif for more than 15 years, embodying its commitment to provide insurance coverage for vulnerable segments of the population under optimal conditions. 

BNP Paribas Cardif, a major player in creditor insurance, has announced that, effective 1 December 2024, its creditor insurance policies sold in France will be accessible to people living with HIV  who are on treatment, without any premium surcharge or exclusions. Eligibility applies for people whose viral load is undetectable when they subscribe the insurance coverage and for loans of up to one million euros. 

To mark World AIDS Day, BNP Paribas Cardif reaffirms its commitment to more inclusive insurance coverage, announcing a major advance that facilitates access to creditor insurance for people living with HIV in France. 

Creditor insurance guarantees repayment of a loan in the case of death, disability, incapacity to work and/or job loss. Strengthening protection for borrowers in France, regardless of their health status, is essential. For more than 15 years BNP Paribas Cardif has demonstrated an active commitment to making insurance more accessible, simpler and easier to understand thanks to products and coverage options that reflect the actual situations of policyholders who suffer from certain pathologies. This approach, which is based on taking the latest medical advances into account, has already led to concrete measures that make it easier to obtain creditor insurance for people who suffer from asthma, Parkinson’s disease, gestational diabetes or tetraplegia, for example. In 2023, this same approach was introduced to benefit people with inflammatory bowel diseases (IBD) such as Crohn’s disease and ulcerative colitis.

In France, some 180,000 people  currently live with HIV. Many of them face a host of hurdles when they try to obtain creditor insurance. To address this situation, BNP Paribas Cardif is announcing a change in its fee policy: effective 1 December 2024, people living with HIV who are on treatment and whose viral load is undetectable at the time they take out the creditor insurance will benefit from fees without premium surcharges or exclusions for loans of up to one million euros . In France in 2021, 93% of people who have been diagnosed with HIV and are treated with antiretroviral therapy, had an undetectable viral load .

This initiative goes beyond the criteria set by the AERAS agreement to further facilitate access to creditor insurance for people living with HIV who receive regular treatment, which in particular prevents transmission of the disease and protects the immune system achieving an undetectable viral load. 
The AREAS agreement, which ensures that people living with HIV can obtain insurance at standard fees, currently includes the following stipulations:

• An undetectable viral load one year after the beginning of treatment; 
• A CD4 count ≥ 500/mm3 and an undetectable viral load in the 12 months prior to the insurance subscription; 
• The duration between the beginning of treatment and the end of the creditor insurance policy may not exceed 35 years;
• A maximum loan coverage term capped at 25 years.

To enable someone living with HIV to pursue their life plans and enjoy broad access to creditor insurance without any premium surcharge or exclusions, BNP Paribas Cardif is simplifying eligibility criteria, retaining only undetectable viral load at the time the insurance policy is subscribed, applicable for loans of up to one million euros. 

Thanks to this initiative, BNP Paribas Cardif continues its mission of making insurance more accessible by proposing simpler and more inclusive solutions that better support its policyholders. 

The Innovation Ambassadors program, counting 84 innovative projects submitted from 24 countries worldwide in 2024, shows that innovation can be found everywhere at BNP Paribas Cardif! 
Learn more about how BNP Paribas Cardif in Brazil has cracked into a new CPI market, offering affordable credit protection for elderly customers who want to carry out their projects, and ultimately making insurance more accessible.

Introduce yourself briefly: country, division, main tasks, personal interests outside the company (e.g., leisure and hobbies)

I’m Luciano Benicio, Commercial Director for Banks at BNP Paribas Cardif in Brazil. My responsibility is to win new partnerships in this sector and develop existing ones, like BRB (Regional Bank of Brasilia) and digital banks such Neon and PagBank. 

Outside of BNP Paribas Cardif I practice running and like all Brazilians, I´m passionate about football, and follow Flamengo, the biggest and most famous team in Brazil.. I also like to read and study topics related to economics, demographics and behavioral finance. Finally, I really like to watch movies and go to the beach with my family.

Tell us about your project: its main focus, what is is about, how it came about, and what it will bring to BNP Paribas Cardif. 

Well, the initiative is basically the increase of the age limit for CPI from 70 years old to 80 years old in BRB (Regional Bank of Brasilia).  Iin Brazil it´s really new and innovative.
Since the beginning of the operation in 2023, we have been discussing opportunities beyond what was already planned in the Business Plan. One of the opportunities identified was when they showed us a relevant part of their credits were given to the clients 70+, which were not protected by the previous insurer. 

We very quickly evaluated the opportunity, including using fresh information from our new demographic census (2022), where the aging nature of our population is made perfectly clear.
Besides, we negotiated with BRB that we would just approve the product with less commission, considering the inevitable raise of client value. So, for this product, we reduced commission at the same rate we were expecting the client value increase.

We had a lot of benefits: GWP increase; on top of what was planned on the BP. Moreover, the product is a perfect example of our culture, based on making insurance more accessible and with higher Client Value. Finally, we´ve just started to spread this initiative to other partners. 

What did you find most striking/surprising during this project (perhaps you have an anecdote to tell us)?

I would like to underline the importance of diving into the partner’s business—this case was a great example. BNP Paribas Cardif is in São Paulo, but BRB’s headquarters is in our capital Brasília (1000 km away). In 2023, I actually spent more days inside the BRB office than in São Paulo!

I’m always visiting branches and talking to managers, holding meetings with teams from different areas and looking for opportunities to improve and grow the business. In one of these meetings with the lending team, they made a comment about the volume of loans for people 70+ and that they were made without CPI. 

They brought up this point with little hope that Cardif would take up the challenge of protecting these operations. However, I brought the opportunity to Cardif and in less than 90 days the product was implemented. 

The bank was impressed with Cardif’s agility, and this is a clear case that shows how proximity and investigation always generates new opportunities.

What advice would you give to employees who also want to innovate? 

Innovation requires courage, resilience, a good communication strategy and strong arguments to convince others. That’s why we must be even deeper in the analysis of facts and data to build an innovative solution. 

That´s why I really like to ask questions to data. With well-structured questions, data takes great pleasure in bringing us good answers. After all, it is questions that move the world and transform it continuously.

Finally, this answer reminds me of two of my favorite books that exemplify the way I think about Innovation that could inspire our community: Originals – How Non-Conformists Move the Rooms (Adam Grant) and Fact Fullness – Ten Reason We´re Wrong About the World (Hans Rosling)

BNP Paribas Cardif pursues commitments to align investment portfolios with carbon neutral trajectory by 2050 and reports on 2023 progress 

BNP Paribas Cardif pursues commitments to align investment portfolios with carbon neutral trajectory by 2050 and reports on 2023 progress 

With regards to the reduction of the carbon footprint of its investment portfolios and its contribution to alignment with the objectives of the Paris Agreement, BNP Paribas Cardif has committed to:

Reduce the carbon emissions footprint (Scopes 1 and 2¹) of its directly held equity and bond portfolios by at least 23% between end 2020 and the end of 2024.

At the end of 2023 the carbon footprint of this portfolio continued to significantly decline, reaching 31 tCO2 per million euros invested, representing a reduction of 51% compared with end 2020.

The reduction recorded between 2022 and 2023 was due in particular to more precise modelling of carbon emissions data by companies within different sectors by the data provider , in particular transformation and electricity distribution².

Source : S&P Trucost Market Intelligence

Reduce the carbon intensity (scopes 1 and 2³)  of directly owned office properties by at least 12% between 2020 and 2030.

At the end of 2023, carbon intensity continued to decrease, reaching 9.5 kgCO2e/m²/year, representing a decrease of 23% compared with end 2020.

The reduction of carbon intensity was significant in 2023. This was due in part to energy efficiency campaigns for buildings, leading to a reduction in energy consumption, and to a downward revision of carbon emission factors associated with electricity.

Source : Internal Data and BNP Paribas Real Estate Property Management

BNP Paribas Cardif has made a commitment to reduce the exposure of its investment portfolios (directly held equity and bond portfolios) to industries with the highest levels of greenhouse gas emissions, in application of BNP Paribas Group sector exclusions. This will lead to a definitive exit from the thermal coal value chain by 2030 for EU and OECD countries, and by 2040 in the rest of the world.

The trajectory of BNP Paribas Cardif’s investment portfolios is in line with the expected agenda.

BNP Paribas Cardif has also made a commitment to reduce the carbon intensity of its investment portfolios linked to power generation. The target is to achieve an emission intensity of under 125 gCO2/kWh by the end of 2024 for power generation activities held directly in equity and bond portfolios. This target is aligned with the Net Zero Emissions scenario developed by the International Energy Agency (IEA) for power generation.

At the end of 2023, carbon intensity continued to decline, reaching 121 gCO2/kWh. 

This reduction for the emission intensity of power generation activities in the portfolio was due primarily to an increase in the share of green bonds in this sector⁴.

Source : Asset Impact⁵ and International Energy Agency

BNP Paribas Cardif also continued to make investments with a positive impact on the environment and will allocate at least 800 million euros by 2025 to investments that contribute to the energy transition and initiatives with an environmental theme. This commitment encompasses investments in sectors that involve environmental protection, including the energy transition, energy efficiency, waste recycling and the preservation of biodiversity. 

In 2023, BNP Paribas Cardif allocated 1.1 billion euros to investments that contribute to the energy transition and initiatives with an environmental theme, notably through financing via green bonds.

Finally, BNP Paribas Cardif continued its shareholder engagement with some of the companies identified by the Climate Action 100+ initiative as the most emitting. This initiative, joined by the insurer in October 2021, is part of the BNP Paribas Group’s climate strategy and BNP Paribas Cardif’s responsible approach. 

¹ 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 and assess the impact of its investment portfolios across all three scopes.
² S&P Trucost Market Intelligence
³ Reduction of carbon intensity of office properties also includes the electricity, heating and air-conditioning consumption of tenants.
⁴ Green bonds issued by electricity producers are used in particular to fund the creation of renewable energy capacity. During power generation (Scope 1), renewable energies do not emit greenhouse gases. In the calculation methodology, these green bonds benefit from a 90% ‘discount’ on the issuer’s carbon intensity.
⁵ Asset Impact | Asset-based data solutions for climate action (gresb.com)

BNP Paribas Cardif has been present at the ChangeNOW 2024 edition. The event took place over three days, from 25 to 27 March, bringing together innovative solutions and influential change-makers who are tackling our planet’s greatest challenges to take action together. ChangeNOW builds bridges and creates opportunities for thousands of key agents of change, as part of an inspiring event focused on action. 

The event featured exhibitions, conferences, workshops and an LEX (Learning Expedition Tour), addressing subjects such as biodiversity, the sustainable transition and the development of innovative initiatives for the common good. 

Antoine Sire, Head of Company Engagement at BNP Paribas, took the floor during the session on “Financing the transition: Can we still make the shift?”

Nathalie Doré, Head of Impact and Innovation at BNP Paribas Cardif, took part in the conference entitled “How can large corporations effectively support impact start-ups?” This initiative has enabled these start-ups to make their voices heard and thus identify their needs and the ways in which major groups can support them. Beem Energy, a French start-up that produces its own energy and that has received support from BNP Paribas Cardif via the C. Entrepreneurs Fund with Cathay Innovation, was also present at the conference. 

Shemine Asmina, Venture Capital Lead, Europe and Latin America, was on the jury of the panel tackling the subject of “Health”.

To find out more about BNP Paribas Cardif‘s actions  to have a positive impact on the environment and society, visit our CSR page.

Committed to providing the best possible support to the most vulnerable people, BNP Paribas Cardif launched in 2023 a Social Action Fund intended to its clients who are in a situation of fragility.

Who is this aid for?

The Social Action Fund is an exceptional financial aid reserved for insured customers who have subscribed to a loan insurance contract or a protection insurance contract (death, incapacity, disability) and who find themselves in a fragile situation.

In the case of a rare disease, this assistance may also be granted to the insured’s spouse or child, if it turns out that it is one or the other who is affected (and not the insured him/herself). 

What are the benefits of the Social Action Fund?

This exceptional financial assistance can take two forms:

• Payment of a lump sum in the event of a claim or serious event not covered by the policy’s guarantees.
• Payment of various expenses related to the insured’s situation: travel and accommodation costs for dedicated medical centers, costs related to the purchase of a medical device, psychological support, assistance in returning to work, or in the case of a child suffering from a rare disease, partial payment of the expenses related to a personal educational assistant, etc.

How does it work?

Benefits are granted by the decision of the Social Action Fund Commission, which meets once a month. Decisions are discretionary, taken on a case-by-case basis after examining the file and the insured’s personal situation. Financial assistance is granted only once in the life of the contract.

To apply for this aid, the client will log on to the Cardif.fr page, complete the application and provide the documents proving the state of fragility. 
 

• New fund benefits from synergies of BNP Paribas’ diversified model: close collaboration between BNP Paribas Asset Management, BNP Paribas Corporate & Institutional Banking and BNP Paribas Cardif.
• Complementary expertise combines to offer comprehensive financing solution to projects and players involved in energy transition and climate change mitigation.
• Fund aims to support energy transition projects across continental Europe; EUR 500-750m targeted from institutional investors, three investments already secured.

BNP Paribas announces the launch of BNP Paribas Climate Impact Infrastructure Debt, an initiative supported by the aligned commitments of BNP Paribas Asset Management (‘BNPP AM’), BNP Paribas Corporate & Institutional Banking (‘BNPP CIB’) and BNP Paribas Cardif to finance climate change mitigation.

Managed by BNPP AM’s Private Assets division, BNP Paribas Climate Impact Infrastructure Debt is structured as a Luxembourg Reserved Alternative Investment Fund (‘RAIF’) and classified as Article 9 under SFDR.  The fund is targeting EUR 500-750 million from institutional investors, including BNP Paribas Cardif’s seeding commitment. It will have an investment grade profile and is expected to allocate to transactions in continental European countries, supporting energy transition projects that are in line with its investment philosophy by focusing on renewable energy, clean mobility and the circular economy, including new sectors such as batteries, hydrogen and carbon capture.

Three investments have already been secured for the fund, with financing for a low-carbon energy producer, a green-sourced district heating platform and a portfolio of onshore wind farms.

The collaboration within the BNP Paribas Group will ensure unique and scalable origination from both the wider market and internal origination teams. Sourcing capability will benefit from the market-leading origination capabilities of BNP Paribas CIB’s Low Carbon Transition Group, with more than 200 dedicated investment professionals advising on and originating low carbon assets and an annual global origination in excess of EUR 20 billion, together with BNPP AM’s track record of investment in infrastructure and sustainable finance.

Karen Azoulay, Head of Real Assets at BNPP AM Private Assets, comments:
“Since the establishment of our Private Assets investment division, environmental solutions have been a key strategic focus.  The launch of Climate Impact Infrastructure Debt confirms this and marks a significant step forward in our ongoing efforts to support financing the transition to a low carbon economy and offering our clients BNP Paribas’ unique origination capacity within this asset class.”

Olivier Hereil, Deputy CEO for Asset Management at BNP Paribas Cardif, comments:
“As a responsible investor, we are proud to collaborate on the launch of Climate Impact Infrastructure Debt. Echoing BNP Paribas Group’s energy transition policy, our conviction at BNP Paribas Cardif is that it is essential to manage policyholders’ savings with a long-term perspective by combining financial performance with a positive impact on society.  This new investment is part of our commitment to allocate an average of EUR 1 billion per year to positive impact investments by the end of 2025.”

Khoi Anh Berger Luong, Head of Real Assets for EMEA at BNP Paribas CIB, comments:
“Benefiting from our powerful integrated bank model, this new fund is further evidence of our accelerating low carbon expertise buildout in support of our corporate clients.  It offers a differentiated strategy to financial institutional investors to deploy their capital in the transition of the real economy.”

Séverine Mateo, Global Head of BNP Paribas’ Low-Carbon Transition Group, comments:
“Combining BNP Paribas’ origination, distribution and investment capabilities within low carbon transition is perfectly aligned with the Group’s strategy to accelerate the transition to a lower carbon and more sustainable economy.

BNP Paribas Cardif pursues and expands commitments to align investment portfolios with carbon neutral trajectory by 2050 

BNP Paribas Cardif has made a new commitment for decarbonisation of its investment portfolios and will reduce the emission intensity of the power generation sector in its portfolios. The target is to achieve an emission intensity of under 125 gCO2/kWh by the end of 2024 for power generation activities held directly in its equity and bond portfolios. This target is aligned with the Net Zero Emissions scenario developed by the International Energy Agency (IAE) for electricity generation. A 48% reduction was already achieved between the end of 2017 and the end of 2022. 

BNP Paribas Cardif, which joined the Net-Zero Asset Owner Alliance in September 2021, is at the same time reporting on its alignment progress, conform to its commitments made last year in 2022. 
With regards to the reduction of the carbon footprint of its investment portfolios and its contribution to alignment with the objectives of the Paris Agreement, BNP Paribas Cardif has committed to:

Reduce the carbon emissions footprint (scopes 1 and 2¹) of its directly held equity and bond portfolios by at least 23% between end 2020 and end 2024; 

• At the end of  2022, the carbon footprint continued to decline, reaching 48 tCO2 per million euros invested, representing a reduction of 24% compared with end of 2020, aligned with the requisite trajectory. 

Reduce the carbon intensity (scopes 1 and 2²) of directly owned office properties by at least 12% between 2020 and 2030.

• At the end of 2022 the carbon intensity of this portfolio was stable compared with the end of 2020. We continue to pursue targets to reduce energy consumption within the framework of France’s tertiary sector decree. The greenhouse gas emissions of our buildings will be reduced accordingly.

BNP Paribas Cardif has also made a commitment to 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 the thermal coal value chain by 2030 for EU and OECD countries and by 2040 in the rest of the world.

• BNP Paribas Cardif continued to adhere to this agenda in 2022. 

BNP Paribas Cardif also continued to make investments with a positive impact on the environment and will allocate at least 800 million euros annually between now and 2025 to investments that contribute to the energy transition and initiatives with an environmental theme. This commitment encompasses investments in sectors that involve environmental protection, including the energy transition, energy efficiency, waste recycling and the preservation of biodiversity. 

• In 2022, BNP Paribas Cardif allocated nearly 2.4 billion euros in investments that contribute to the energy transition and positive impact on the environment, notably through financing via green bonds.

In addition, BNP Paribas Cardif continued to engage in dialogue with companies. 

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

_{¹As 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 and assess the impact of its investment portfolios across all three scopes.
²Reduction of carbon intensity of office properties also includes the electricity, heating and air-conditioning consumption of tenants.}

BNP Paribas partners with Banque des Territoires and the European Investment Fund to launch a new marketplace initiative: a fund to support the rollout of Impact Bonds across the European Union

• Three years after launching the very first Social Impact Bonds fund in France and the European Union, and in line with the recommendations of the Cazenave Report, BNP Paribas is launching a second fund, BNP Paribas European Impact Bonds Fund 2. The new fund, with a target size of €70 million, aims to intensify the development of the Impact Bond market in the European Union.  
• Three strategic investors have joined forces to create the fund: Banque des Territoires, part of Groupe Caisse des Dépôts, the European Investment Fund (EIF) and BNP Paribas Cardif, the Group’s insurance subsidiary.
• Managed by BNP Paribas Asset Management, the fund will finance projects that have a positive impact on society or the environment, promoting innovation in public policy while generating savings in government budget.
• 10 projects structured by BNP Paribas have already been chosen to be financed by this new fund.
• To mark the fund’s launch, BNP Paribas is today bringing together project leaders, investors and representatives of the public authorities at L’Ascenseur in Paris (4th arrondissement), home to the first coalition for equal opportunities. 

Impact Bonds are a financing tool based on a unique collaborative model between the public, private and social and solidarity economy (SSE) sectors, aimed at generating innovative projects with a positive impact on society or the environment. These impact experiments are deployed by project leaders and pre-financed by investors. The pre-financing is reimbursed by the government if the predefined impact objectives are met. This method of financing enables the large-scale development of effective solutions built on the ground, close to the needs of beneficiaries, focusing on prevention and innovation, in support of public policies while enabling public authorities to avoid certain social and economic costs.

With a target size of €70 million, the BNP Paribas European Impact Bonds Fund 2 includes strategic investors such as: 

• Banque des Territoires, which has been involved in Social Impact Bonds in France since they first emerged in 2016, 
• the EIF, which is providing substantial support for the development of Social Impact Bonds in Europe and France, and 
• players wishing to promote societal innovation in regional areas, such as BNP Paribas Cardif, whose approach is part of an average overall positive impact investment objective of €1 billion per year between 2019 and 2025.

Drawing on the expertise and resources of these private investors attentive to societal impact, the new fund will roll out an investment strategy geared towards fostering solutions that address social needs and environmental challenges, in particular the just transition. In France, it will fund projects approved by the Ministries of Labour, Employment and Integration, Economy and Finance, and ADEME, in key areas such as the professional inclusion of disadvantaged young people, the social reintegration of former prisoners or persons with disabilities, the circular economy and the prevention of food waste. 

“Banque des Territoires is delighted to be subscribing to this new fund, which stems from an ambitious marketplace initiative. It will promote social innovation in the regions and, as such, is perfectly aligned with Banque des Territoires’ priority mission of social and regional cohesion for more inclusive regions.”

Christophe Genter, Head of Social and Territorial Cohesion Department, Banque des Territoires.

10 projects have already been selected for funding by the BNP Paribas European Impact Bonds Fund 2:

• to help more than 1,500 refugees, vulnerable youth and people with disabilities find lasting employment or take a training course leading to a qualification;
• to avoid more than 16,000 tonnes of CO2 emissions;
• to reuse more than 5,000 tonnes of waste.

 “The EIF has been involved in the development of Social Impact Bonds since 2015, first in the UK, then in Finland for the integration of refugees, in the Netherlands for the reinstatement of soldiers, and in France for the alternative to incarceration for homeless and mentally ill people. In keeping with its principles, the EIF has also supported several Impact Bond fund managers in France and Sweden, directly and indirectly investing a total of €75 million in Impact Bonds. With the BNP Paribas European Impact Bonds Fund 2 and the support of the InvestEU programme, the EIF is confirming its aim of working towards a more sustainable market by supporting a team with expertise in the structuring and follow-up of Impact Bonds.”

Roger Havenith, Deputy Chief Executive, EIF.

To manage this fund and promote project origination, BNP Paribas aims to leverage the experience gained from the pilot fund launched in 2019 with its subsidiary BP Paribas Asset Management, an expert in impact investing and the management of solidarity funds managing €2.7 billion in this asset class, and with the Group team dedicated to structuring Impact Bonds. This €10 million pilot fund was fully invested in three years, via eight projects focusing on child protection, fighting school dropout, combating homelessness among young people classified as NEET (not in employment, education or training) and preventing falls among the elderly, in France, Belgium and the Netherlands.  Some of the project leaders’ innovations have already prompted changes in public policy. 

Overall, since 2016, 17 Social Impact Bonds (SIBs) structured or co-structured by BNP Paribas have been signed in Europe, in a total amount of €51 million. BNP Paribas has invested nearly €22 million in these SIBs.

“Impact Bonds help accelerate the development of projects that make a genuine contribution to better inclusion of vulnerable populations and to preserving the environment. Since 2016, BNP Paribas has acted as both structurer and investor in Impact Bonds, and we are delighted to continue creating the right conditions for their development alongside committed and prominent investors. Impact Bonds will play an increasingly important role in the coming years to support actions in favour of a fair transition.”

Antoine Sire, Head of Company Engagement, BNP Paribas.