· BNP Paribas Cardif will invest an additional five billion euros in activities with a positive environmental and social impact, bringing its total commitment to 11.5 billion euros by the end of 2024
· The insurer is also accelerating application of its socially responsible investment policy for all its assets under management
At year-end 2019, in France, BNP Paribas Cardif’s 6.5 billion euro portfolio of positive impact investments included 3.7 billion euros in green investments, exceeding the target of 3.5 billion euros it had set for 2020. As a long-term investor, BNP Paribas Cardif is now strengthening its responsible investment policy and its commitments to financing the energy transition.
BNP Paribas Cardif, which in particular manages savings for clients of BNP Paribas retail networks and independent investment advisors, aims to expand its approach focused on generating both investment performance and positive impact on society and the environment.
Positive Impact Investments: an additional 5 billion euros by end 2024
BNP Paribas Cardif has announced a commitment to increasing its positive impact investments by one billion euros a year between now and the end of 2024 through:
· Green bonds that finance projects with environmental objectives: mitigation of climate change, adaptation to climate change, preservation of natural resources, preservation of biodiversity and pollution prevention and control;
· SDG Bonds[i], which finance projects that contribute to the UN Sustainable Development Goals;
· Environmental theme funds to finance the energy transition, energy efficiency, sustainable food and agriculture, waste management, etc.;
· Employment theme funds: workplace well-being, job creation, inclusion, etc.;
· Social theme funds: education, sustainable mobility solutions, customer satisfaction, social and solidarity economy, etc.;
· Real estate assets that have obtained environmental performance certification or conformity with recognized standards, and/or which have a positive impact on employment or society in general.
In France, within the BNP Paribas Cardif general fund, these investments totalled 6.5 billion euros at 31 December 2019, an increase of 31% compared with the previous year[ii].
With its new target, the insurer will reach 11.5 billion euros in positive impact investments by the end of 2024, an increase of nearly 77% in five years.
Responsible investment policy
In France, BNP Paribas Cardif manages savings for its policyholders via a general fund that totalled 123 billion euros in assets under management at 31 December 2019. All the directly held assets in this general fund have been evaluated against environmental, social and governance (ESG) criteria.
BNP Paribas Cardif also proposes unit-linked investment vehicles for its policyholders, representing approximately 40 billion euros in France. At year-end 2019, BNP Paribas Cardif had 6.7 billion euros invested in unit-linked vehicles qualified as Socially Responsible Investments, including 4.3 billion euros in investments certified SRI by independent organizations[iii].
Definitive calendar for divesting investments in coal
Since 2018, BNP Paribas Cardif has ceased all financing for power generation businesses whose coal-fired power accounts for over 30% of their total installed power generation capacity, as well as mining businesses that derive more than 10% of their revenues from coal-fired power generation.
Aligned with the accelerated timeframe announced by the BNP Paribas group, BNP Paribas Cardif will complete its exit from financing for all mining, exploration and electricity generation businesses involved in the thermal coal sector no later than 2030 in OECD countries and by 2040 worldwide.
· Responsible investing is a broad term that encompasses investments that are screened against Environmental, Social and Corporate Governance (ESG) criteria, socially responsible investments (SRI), as well as impact investments.
· Socially responsible investing (SRI) applies specific ESG criteria, including thematic approaches or exclusions. Certain SRI funds receive certification.
· Impact investing has a narrower scope since it must be possible to show that the project financed has been selected for its potential for having a positive and measurable social and environmental impact.
Read more about BNP Paribas Cardif’s CSR strategy and information on reporting under article 173 of the French Energy Transition for Green Growth Law on bnpparibascardif.com
[i] Bonds linked to indicators that contribute to the UN Sustainable Development Goals (SDG).
[ii] BNP Paribas Cardif changed the scope of its positive impact investments in 2019 compared with 2018. This scope no longer includes funds that apply ESG criteria without clearly identifying the positive impact.
[iii] Independent organizations managed in several European countries issue these labels and regularly review their evaluations.