Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• impact on the natural environment

Three key success factors

COST CONTAINmENT

In a bid to offer the best possible services at

the most competitive prices, cost containment

is a key factor in the Group’s strategy of profitable

growth. Efforts to limit consumption are

in line with manage-ment control objectives.

Environmental indicators have rounded out

the management criteria used by the Group’s

procurement function. The measurement and

analysis of CO 2 emissions helps identify the

principal discrepancies among entities and enables

consumption to be streamlined.

ENVIRONmENTAL

RISk mANAGEmENT

Environmental risks are integrated into the analysis

of credit and operational risks. In its credit

risk man-agement policy, the Group recognises

that it must identify environmental risks, and

defines specific adaptations for certain business

lines. The rating policy for Corporate Financing

provides a framework for factoring environmental

risk data into rating models.

Diversification of commitments by industry

remained at a healthy level, with no further concentrations

of risk arising in 2006 (see detail

in the Registration document). Operations in

the Energy & Commodities sector correspond

mainly to financing granted in respect of commodity

trading, which is usually highly structured

and secured by collateral.

The Utilities portfolio, which mainly includes

companies producing and distributing electricity,

is re-viewed every six months. Commodity

financing commitments (production and international

trade) are also reviewed on a regular

basis.

The Internal Control and Risk Management

Committee of the Board of Directors met four

times in 2006, reviewing the Bank’s loan book

and its breakdown by industry and region. It

was informed of the opin-ions issued at the Risk

Policy Committee meetings held on a regular

basis by Executive Management to review risks

on specific issues, particularly commitments in

emerging markets and commodity financing.

A RESpONSIBLE AppROACh

TO fINANCING ANd SERVICES

Project finance

When the financing of large-scale projects is

considered, the due diligence stage includes

an audit of the social and environmental consequences

of the project by a recognised expert in

the field. This audit assesses the environmental

impacts and how they may affect the viability of

the project.

112

BNP PARIBAS AND ITS STAKEHOLDERS

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