BNP Paribas Decides to Rethink How it Defines Sust
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Posted On: 01/28/2025 4:38:14 PM
BNP Paribas Decides to Rethink How it Defines Sustainable Finance
A senior executive at BNP Paribas revealed recently that the bank was focused on reimagining what it considered sustainable and reevaluating sustainable finance to center on profitability. BNP Paribas is a French multinational universal bank and financial services holding firm that provides global financial services and solutions in a changing world.
This announcement comes after the bank distanced itself from ESG, following unsatisfactory returns from investments.
Constance Chalchat, chief sustainability officer at the firm’s corporate and institutional banking division, explained that this move would help make sure that sustainable finance didn’t compromise profitability. Chalchat added that the bank was focused on maintaining investments tied to a sustainable future and supporting societies and firms in adapting to climate change, while ensuring returns for investors.
Opponents of ESG in the U.S. have also gained momentum following President Donald Trump’s return to the White House. In his first few days back in office, Trump has challenged different ESG areas like diversity. Just last week, he accused JPMorgan Chase and Bank of America of not offering banking services to conservatives.
The need for energy security following Ukraine’s invasion by Russia and mounting pressure from conservative groups in America has also seen many big banks reevaluate their approaches to climate finance. In the last couple of weeks, different financial institutions in America have exited climate coalitions like the Net Zero Banking Alliance. This includes Bank of America, Wells Fargo, Morgan Stanley, Citi and Goldman Sachs.
Over in Canada, TD Bank Group, the National Bank of Canada and BMO also left the coalition. This has seen campaigners criticize the institutions as worry that the sector has abandoned its commitment to act on the fossil fuel industry increases.
It should be noted though that BNP is still a member of the alliance.
The bank remains focused on aligning its business with the objectives of the Paris Agreement, having already announced in 2024 that it’d cease being party to bond deals with the oil and gas sector. In the coming days, the company’s corporate and institutional bank will center on societal resilience, conservation, transition and adaptation. This is in addition to promoting investment opportunities where it envisions both financial success and beneficial impacts on the society and earth.
Further, BNP will expand its definition of sustainability to include efforts to decarbonize sectors that are huge emitters like steel. This will require it to increase investments in fields like agri-business and water while casting aside exclusion frameworks that leave out whole industries.
The back-pedaling of major banks notwithstanding, the ESG movement is alive and well given the rate at which more companies like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are embracing and implementing ESG practices in their operations.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
A senior executive at BNP Paribas revealed recently that the bank was focused on reimagining what it considered sustainable and reevaluating sustainable finance to center on profitability. BNP Paribas is a French multinational universal bank and financial services holding firm that provides global financial services and solutions in a changing world.
This announcement comes after the bank distanced itself from ESG, following unsatisfactory returns from investments.
Constance Chalchat, chief sustainability officer at the firm’s corporate and institutional banking division, explained that this move would help make sure that sustainable finance didn’t compromise profitability. Chalchat added that the bank was focused on maintaining investments tied to a sustainable future and supporting societies and firms in adapting to climate change, while ensuring returns for investors.
Opponents of ESG in the U.S. have also gained momentum following President Donald Trump’s return to the White House. In his first few days back in office, Trump has challenged different ESG areas like diversity. Just last week, he accused JPMorgan Chase and Bank of America of not offering banking services to conservatives.
The need for energy security following Ukraine’s invasion by Russia and mounting pressure from conservative groups in America has also seen many big banks reevaluate their approaches to climate finance. In the last couple of weeks, different financial institutions in America have exited climate coalitions like the Net Zero Banking Alliance. This includes Bank of America, Wells Fargo, Morgan Stanley, Citi and Goldman Sachs.
Over in Canada, TD Bank Group, the National Bank of Canada and BMO also left the coalition. This has seen campaigners criticize the institutions as worry that the sector has abandoned its commitment to act on the fossil fuel industry increases.
It should be noted though that BNP is still a member of the alliance.
The bank remains focused on aligning its business with the objectives of the Paris Agreement, having already announced in 2024 that it’d cease being party to bond deals with the oil and gas sector. In the coming days, the company’s corporate and institutional bank will center on societal resilience, conservation, transition and adaptation. This is in addition to promoting investment opportunities where it envisions both financial success and beneficial impacts on the society and earth.
Further, BNP will expand its definition of sustainability to include efforts to decarbonize sectors that are huge emitters like steel. This will require it to increase investments in fields like agri-business and water while casting aside exclusion frameworks that leave out whole industries.
The back-pedaling of major banks notwithstanding, the ESG movement is alive and well given the rate at which more companies like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are embracing and implementing ESG practices in their operations.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
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