BNP Paribas is revising its approach to sustainable finance by prioritizing profitable deals and redefining its definition of sustainability, according to a senior executive. The shift in the bank's corporate and institutional banking (CIB) division aims to balance sustainability with profitability. Constance Chalchat, the division's chief sustainability officer, emphasized the importance of sustainable investments while ensuring investor returns.
The bank's focus remains on investments linked to sustainability and climate change adaptation, aiming to align profitability with sustainability in the long term. Notably, BNP has committed to discontinuing arranging bond deals in the oil and gas sector, demonstrating its dedication to sustainable finance.
Looking ahead, BNP's corporate and institutional bank will concentrate on four core themes: adaptation, transition, conservation, and societal resilience. This strategic shift includes a broader definition of sustainability, encompassing efforts to decarbonize high-emission sectors like cement and steel.
Chalchat emphasized the importance of investments in water, agri-business, and adaptation finance while moving away from exclusion frameworks that undermine entire industries. She highlighted the potential for these investments to deliver financial performance alongside contributing to the resilience of the planet.
Lastly, Chalchat noted a growing investor interest in thematic areas such as renewable energy, water, and health and wellbeing, indicating a positive trend towards sustainable investment opportunities.