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

This evaluation is performed by independent

outside consultants prior to setting up financing,

so that the Bank can, if needed, reject a

project that does not offer satisfactory performance

with regard to local standards and

international guidelines such as those of the

OECd.

The consultants’ report appraises each

project’s long-term viability, particularly in

terms of its environmental and social impact,

and this determines the financing decision.

The report’s recommendations are included in

the financial documents, with specific clauses

requiring that the developer implement and

maintain an environmental management plan

that guarantees the project’s compliance with

applicable laws and guidelines.

Dolce vita

BNP Paribas and the Equator Principles

BNP Paribas has joined a number of leading

international financial institutions in deciding not

to adopt the Equator Principles. This decision

stemmed from the realization that adopting these

Principles would add nothing more to the commitments

already undertaken by BNP Paribas

in this field, since the Group’s project finance

operations comply with the same social and

environmental standards applicable to projects

financed by institutions that have adopted these

Principles in their current form.

In addition, the Group’s analysis leads it to

believe that the Principles have a certain number

of flaws, notably the serious risk that there may

be, among some stakeholders, a confusion

between actual project finance operations, in

which the bank is able to negotiate many terms

and conditions for the use of the funds, and

UCB has partnered with Gaz de France to offer the Dolce vita sustainable construction loan, which

allows individuals who have taken out a mortgage loan for a new private house to enjoy very beneficial

conditions for financing their natural gas heating and hot water system. Choosing a gas-fired boiler

can bring down consumption by 20% compared to a standard fuel oil boiler, both saving money and

helping protect the environment.

other forms of financing where the bank does

not have that option. That confusion may be

used by some organizations to blame the adopting

institutions for not applying the Principles to

these other types of financing, even though the

banks concerned cannot impose on borrowers

any obligations to comply with environmental

and social standards in line with the Principles,

or to monitor their per-formance in that respect.

The revised version of the Equator Principles

issued in July 2006 helped clarify the definition

of project finance, but since then experience has

shown that this does not prevent the confusion

described above from occurring. As an example,

one recent operation, which did not take the

form of project finance, is being condemned by

some non-governmental organizations as violating

the Equator Principles.

113

BNP PARIBAS AND ITS STAKEHOLDERS

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