2012 Registration document and annual financial report - BNP Paribas

7ARESPONSIBLE BANK: INFORMATION ON BNP PARIBAS’ ECONOMIC,SOCIAL, CIVIC AND ENVIRONMENTAL RESPONSIBILITYEnvironmental responsibility: combating climate change7Since March 2011, BNP Paribas has visited and maintained a dialoguewith eight companies in Southeast Asia, who represent around 18% ofthe world’s palm oil production and more than 15% of its plantations.The Group’s financing and investment policy for the paper pulp sectoris based on the FSC (Forest Stewardship Council) and PEFC (Programfor Endorsement of Forest Certification Schemes) standards that certifythe sustainable management of forests whose timber is used to producepaper. BNP Paribas encourages producers and traders to adopt thesestandards.In application of its paper pulp policy, in September 2011 the Groupplaced on its watch list a major paper pulp producer that was failing toadhere to the criteria of the sector policy. This company was ultimatelyremoved from the Group’s financing and investment universe in 2012,because it did not take convincing steps to fall in line with BNP Paribas’sector policy.A list of excluded goods and activitiesAs a complement to its sector policies, BNP Paribas has decided not tobecome involved in financing, investments or deals carrying the highestrisks of impacting on the health and safety of populations, protectedspecies or the environment at large. This includes the production, tradeor use of drift nets over 2.5 km long, the production of asbestos fibres,the production of or trade in products containing PCBs (polychlorinatedbiphenyls) and the trading of any animal or plant species or productsregulated by the CITES (Convention on International Trade in EndangeredSpecies of Wild Fauna or Flora) not authorised by a CITES permit.Financing renewable energies and greeninfrastructuresWith total credit authorisations of around EUR 7 billion at 30 June 2012,of which 2 billion for project financing, BNP Paribas provides significantsupport to the renewable energy sector.The Group provided financing or advice for more than 71 projects aroundthe world, with a total installed capacity of more than 9,476MW atend-2012, equivalent to the annual consumption of 10 million Frenchhouseholds.In 2012, in order to improve its methodology for measuring its financingin the renewable energy sector and thus assess more precisely itscontribution to energy transition, the Group launched a reportingprogramme on its exposure to this sector.Apart from the size of the Group’s involvement, the two other main pointsto emerge from this assessment are the large share of clients establishedin the Group’s domestic markets (France, Italy, Belgium and Luxembourg)and in southern Europe, and the predominance of the wind, hydraulicand solar sectors.In order to accelerate opportunities for growth while boostingflexibility and independence, the BNP Paribas Clean EnergyPartners fund was spun off from the BNP Paribas managementcompany and combined with Glennmont Partners.Glennmont Partners is one of Europe’s largest renewable energyinvestment funds, with assets under management of aroundEUR 440 million. Since it was established in 2008, it has investedmore than EUR 1 billion in a dozen clean energy infrastructureprojects such as windfarms and hydro-electric power plants.BNP Paribas will remain an investor in the fund and will continueto support the new company’s activities under a distributionagreement. It will house the Glennmont Partners managementcompany on its premises and will play a key role in raising assetsfor the company’s second fund.Some projects in the renewable energy sector in 2012:UK: LincsBNP Paribas acted as Mandated Lead Arranger for a 270MW offshorewindfarm.Belgium: NorthwindIn 2014, a giant windfarm with 72 turbines and total production capacityof 216MW will provide a significant share of Belgium’s green energyproduction (230,000 households will be supplied, cutting Belgium’s CO 2emissions by 235,000 tonnes a year).BNP Paribas is participating in this project in various roles, notably asfinancial advisor for the sponsors and Mandated Lead Arranger for thecommercial term loan.Latin America: Oaxaca II & IVBNP Paribas acted as Joint Bookrunner for a USD 300 million bond tofinance the Oaxaca II & IV projects in Mexico (two independent windprojects, with a production capacity of 102MW each). This was the firstwind project in Latin America to be financed via the capital markets.North America: Capricorn Ridge and Desert SunlightBNP Paribas supported two projects in North America:■ the Capricorn Ridge wind project being developed by NextEra EnergyResources, the largest producer of wind and solar power, with acapacity of 662.5MW.■ Sumitomo’s Desert Sunlight project in California, one of the largestphotovoltaic solar plants ever built in the United Sates, with a capacityof 550MW.4162012 Registration document and annual financial report - BNP PARIBAS