BNP Paribas and 4 leading banks commit to global climate goals
BNP Paribas and 4 leading banks commit to global climate goals
We, five international banks with a combined loan book of over €2.4 trillion, believe banks have an important role to play in scaling and accelerating the transition toward a climate-resilient world. From Amsterdam to Abu Dhabi we commit to measure the climate alignment of our lending portfolio, and to explore ways to progressively steer financial flows through our core lending towards the goals of the Paris Agreement.
We, five international banks with a combined loan book of over €2.4 trillion, believe banks have an important role to play in scaling and accelerating the transition toward a climate-resilient world. From Amsterdam to Abu Dhabi we commit to measure the climate alignment of our lending portfolio, and to explore ways to progressively steer financial flows through our core lending towards the goals of the Paris Agreement.
We support the aim of “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development”, which is article 2.1c of the Paris Agreement. To show our support we commit to developing open-source methods and tools for measuring the alignment of lending portfolios with the goals of the Paris Agreement. What’s more, we aspire to then lead the
implementation of these methodologies and tools to actually align our lending portfolios with these climate goals.
This is about more than de-risking. It’s about making a positive impact. We will use a science-based, forward looking approach to financing sector-specific shifts in technology and production processes. Because it’s not where our clients are today, but where they are heading tomorrow. We will design the financial services needed to support our clients’ transition to the low-carbon economy.
Therefore, we commit to finance change, putting our balance sheets to work to progressively align with the Paris Agreement thereby contributing to the ultimate goal of climate neutrality.
Key characteristics of our pledge
Co-createdWe will work together to co-develop the tools and metrics needed to support our contribution, partnering with organisations like the 2 ÌŠ Investing Initiative.
Impact-drivenWe will initially focus on the most carbon-intensive sectors which are key to the transition to the low-carbon economy.
Engagement-focusedWe believe in an engagement-focused approach, which means not simply excluding clients but work with them on their transition.
Sector-specificWe believe that each sector has its own transition pathway. Therefore we will use a sector-specific approach and apply the key strategies necessary per sector.
Forward-lookingTo effectively steer, we believe in using forward-looking data that will give us the insight we need to know where our clients are headed and how we can support the right investments.
Science-basedWe will focus on ensuring that we and our clients are supporting a shift from high- to low-carbon assets in line with science-based scenarios.