(3 February 2025 – France) BNP Paribas is recalibrating its approach to sustainable finance to focus on profitable deals and redefining what it considers sustainable.
The group is the latest to distance itself from Environmental, Social and Governance (ESG) investment as a Trump-led green and DEI political backlash gathers pace. Subpar returns and inconsistent definitions have prompted a widespread rethink.
The shift in the French bank’s corporate and institutional banking (CIB) division is to ensure sustainable finance does not come at the expense of profitability. BNP Paribas will support companies and promote investment opportunities where it sees both future financial growth and positive contributions to the planet and society.
“The bank wants to stick with investment linked to a sustainable future and helping companies and societies adapt to climate change, but we need to ensure investor returns. Going forward, BNP Paribas’s CIB will focus on four themes including adaptation, transition, conservation and societal resilience” BNP Paribas Chief Sustainability Officer, Constance Chalchat commented.
“We will also broaden the definition of sustainability to encompass efforts to decarbonise heavily emitting sectors such as cement and steel. That means elevating investment in areas such as water, agri-business and adaptation finance while abandoning generic exclusion frameworks that exclude entire industries and risk underperformance. We believe these things can really deliver financial performance on top of actions that are required for the planet to be resilient” Chalchat added.