RepoRt on - BNP Paribas

compliance
in the environmental field as in other
areas, the group requires compliance
with the most demanding standards, be
they legal, regulatory, or internal.
guidelines on the technical regulations
applicable to managing buildings
in france are issued to facilities
managers. for international operations,
these guidelines are drafted on the basis
of the most stringent regulations in all
countries where bnP Paribas operates.
construction and renovation projects
are approved using these guidelines,
and the buildings of newly acquired
companies are audited.
currently, all group entities in france
collect and recycle electronic equipment
through producers, distributors,
brokers and recycling companies. the
process relies on a system that measures
this equipment.
effective internal control
bnP Paribas continuously strives to meet
the highest standards of ethical behaviour,
compliance, risk management
and internal controls. within a changing
banking environment characterised
by increasing regulatory requirements,
the global group compliance (cg)
function, whose director reports directly
to the chief executive officer, has broad
powers throughout the group.
the general inspection unit’s social and
environmental methodology, which was
updated and reinforced in 2008, allows
it to assess the extent to which audited
entities apply group environmental
standards and procedures. reporting
directly to the chief executive officer,
the general inspection unit is completely
independent in applying this
methodology across the entire group
without limitation. its audits supplement
the checks already performed by entity
managers.
Key success
factors
cost containment
efforts to limit consumption are crucial
to successful sustainable development
policies. cost containment makes it possible
to offer clients the best services at
the best price.
environmental indicators and the monitoring
of materials flows supplement
the management criteria used by the
group’s procurement function. the
measurement and analysis of energy
consumption helps identify the principal
discrepancies among entities and enables
consumption to be streamlined.
environmental risk
management
environmental risks are included in the
analysis of credit and operational risks.
the group’s general lending policy
states that identifying environmental risks
is part of the risk management process.
for certain business lines, specific adjustments
are defined. the ratings policy for
corporate financing specifies arrangements
for integrating environmental risk
data into ratings models.
diversification of commitments by industry
remained at a healthy level in 2009,
with no further concentrations of risk arising
during the year (see the registration
document, note 4d to the financial
statements). operations in the energy
& commodities sector mainly consist of
financing commodities trading, which
is usually highly structured and secured
by collateral. the commodity financing
portfolio — as regards both production
and international trade — is reviewed
on a regular basis. the utilities portfolio,
which mainly includes electricity production
and distribution, is reviewed
every six months.
78 <strong>RepoRt</strong> on CoRpoRate SoCial and enviRonmental ReSponSibility
project finance
A business requiring specific expertise
when considering financing for largescale
environmentally-sensitive projects,
the due diligence stage includes an audit
of the social and environmental consequences
of the project, performed by
a recognised expert in the field. this audit
identifies the environmental impacts
and how they may affect a project’s
viability.
the audit is performed by independent
consultants prior to any financing
arrangements, so that the bank, if
needed, can reject a project that does
not offer satisfactory performance with
regard to local standards and international
guidelines such as those set forth
by the oecd. if financing is granted,
the consultant’s recommendations are
included in the project’s financial documents,
and the developer must implement
and maintain an environmental
management plan that guarantees the
project’s compliance with applicable
laws and guidelines.
corporate and investment banking
takes special care to ensure that corporate
clients comply with environmental
regulations when operating in non-eec
countries within europe.
compliance with and promotion
of the equator principles
the equator Principles set a benchmark
in the financial sector for identifying and
managing the social and environmental
risks of project financing activities.
they are based on general sector-specific
criteria and are developed by the
international finance corporation (ifc),
the private-sector arm of the world
bank. bnP Paribas officially signed up
to the equator Principles in 2008, and
plays an active role in several related
working parties alongside other financial
institutions. these working parties
deal with climate change, the scope
of intervention, relationships with ngos
and governments and future issues for
the equator Principles. in october 2009,
bnP Paribas was elected by member
institutions to the steering committee.
bnP Paribas has implemented the
equator Principles in its project financing
activities. staff is directly responsible
for complying with the Principles,