BNP Paribas S.A. Class A · EURONEXT:BNP
BNP Paribas S.A. Class A — ESG Presentation (February 2016)
18 slides from BNP Paribas S.A. Class A's sustainability presentation, Feb 11, 2016
Slide 1: The Green Bond Market: Where Are We, and Where Next?
THE GREEN BOND MARKET WHERE ARE WE, AND WHERE NEXT? CORPORATE & INSTITUTIONAL BANKING Corporate Social Responsibility
Slide 2: A Product Whose Time Has Come?
A PRODUCT WHOSE TIME HAS COME? FINANCING THE TRANSITION TO A SUSTAINABLE WORLD The capital markets are central to financing the two big challenges of today: 1 . Energy transition: keeping the growth in global warming to no more than 2 degrees above pre-industrial levels 2. Meeting the United Nations
Slide 3: Green Bonds – What and Who?
1 GREEN BONDS – WHAT AND WHO? February 11, 2016| 3
Slide 4: Green Bonds – Environmental, Social or Both?
GREEN BONDS – ENVIRONMENTAL, SOCIAL OR BOTH ? “GREEN” BONDS Energy Waste Management Pollution Control Water Treatment Transport “SOCIAL” BONDS Agriculture Building…. Housing for elderly Food security improvement Microfinance Education and youth… “ESG” BONDS Homecare projects Social housing meeting w
Slide 5: Green Bonds – Introduction
GREEN BONDS– INTRODUCTION WHAT KIND OF SUSTAINABLE OR GREEN BOND? GREEN BOND SUSTAINABILITY BOND CLIMATE AWARENESS BOND EYE BOND (EDUCATION, YOUTH, EMPLOYMENT) ESG BOND (ENVIRONMENTAL , SOCIAL , GOVERNANCE) The market operates on the basis of a self-labelling system with no standardisation on defini
Slide 6: Green Bonds – Towards a Common Approach
GREEN BONDS – TOWARDS A COMMON APPROACH No universally accepted definition of a Green Bond. However, market participants are largely finding common ground on 3 basic requirements: Environmental, Social, Commitment on Use of Structuring and reporting Governance (“ESG”) Proceeds process performance of
Slide 7: A Growing Green Bond Market
A GROWING GREEN BOND MARKET LABELLED GREEN/SUSTAINABLE BOND ISSUANCE BY CURRENCY 50 Issuance vol per yr Cumulative Issuance vol 120 (USD bn) USD bn CHF NZD 45 100 40 BRL ZAR 35 80 30 CAD AUD 25 60 20 GBP SEK 40 15 10 EUR USD 20 5 0 0 Total 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Bl
Slide 8: Green Bonds – Who Has Issued?
GREEN BONDS – WHO HAS ISSUED? 8,000 USD mn FIG Corporates Municipalities SSA 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: Bloomberg, BNP Paribas, Dec-31 2015 February 11, 2016| 8
Slide 9: Green Bonds – Use of Proceeds
GREEN BONDS – “USE OF PROCEEDS” USE OF GREEN BOND PROCEEDS BY SECTOR (%) Climate Agriculture & Adaptation, Forestry, 3.9% 4.3% Waste Management, 6.2% Energy, 38.3% Water, 9.7% Transport, 10.2% Buildings & Industry, 27.5% Source: Use of green bond proceeds, Climate Bonds Initiative, ‘Bonds and Climat
Slide 10: Overview: Investors
2 OVERVIEW: INVESTORS February 11, 2016| 10
Slide 11: Worldwide SRI Assets Under Management: +61% from 2012 to 2014
WORLDWIDE SRI ASSETS UNDER MANAGEMENT: +61% FROM 2012 TO 2014 According to the latest Global Sustainable Investment Alliance (GSIA) study… SRI assets represented in 2014 ~ 30.2% of the professionally managed assets in the main regions of the world (US$21.4trn), vs 21.5% in 2012 Canada: 4.4% (US$945)
Slide 12: What Guides the Investor?
WHAT GUIDES THE INVESTOR? Any investment strategy that factors in both financial returns and social good Risk mitigation, which may be Financial (e. g. stranded assets; labour unrest; environmental disasters) Reputational (garment industry abuses; child labour; agricultural commodity trading) Social
Slide 13: Socially Responsible Investing – Regulatory Drivers
SOCIALLY RESPONSIBLE INVESTING – REGULATORY DRIVERS SOCIAL AND REGULATORY PRESSURE COMBINING TO CHANGE BEHAVIOUR France published guidelines for reporting of ESG factors fund managers’ portfolios and created a government-backed SRI labelling system. FSB sets up task force to get firms to disclose cl
Slide 14: Sustainable Capital Markets – Drivers
SUSTAINABLE CAPITAL MARKETS – DRIVERS “What gets measured, gets managed” February 11, 2016| 14
Slide 15: Where Next?
3 WHERE NEXT? February 11, 2016| 15
Slide 16: Opportunities & Challenges – The Market
OPPORTUNITIES & CHALLENGES – THE MARKET Opportunities Challenges Strong impetus to responsible Perceived burden of issuing a green behaviour bond in terms of admin and cost Austerity constrained public sector Lack of funding advantage needs to crowd in private investors The “darkest green” investors
Slide 17: Market Overview and Outlook for 2016
MARKET OVERVIEW AND OUTLOOK FOR 2016 GROWTH EXPECTED TO BE STEADY, WITH DIVERSIFICATION INCREASING Issuer diversification is increasing; new supply from financial institutions and local authorities Diversification by jurisdiction and rating is a major trend Strong efforts by China to tackle their en
Slide 18: Disclaimer
DISCLAIMER BNP Paribas is incorporated in France with Limited Liability. Registered Office 16 This report is not, and should not be construed as, an offer document or an offer or Boulevard des Italiens, 75009 Paris. solicitation to buy or sell any investments. No BNP Paribas Group Company accepts BN