In this way, Groupe BPCE aims to tailor its behavior and business practices to the 2015 Paris Agreement through its coal policy and progressively to reduce its exposure to thermal coal to zero by 2030 as far as its activities in the European Union and OECD countries are concerned, and by 2040 for its activities in the rest of the world. This timetable is aligned with the International Energy Agency’s (IEA) Sustainable Development Scenario (SDS).
As early as December 2017, Natixis undertook to cease financing the exploration and production of oil from tar sands and oil located in the Arctic. In November 2018, Natixis published an oil & gas sector policy specifying the terms of its commitment:
This commitment to protecting the Arctic further strengthens the position taken by Ostrum and Mirova, two affiliates of Natixis Investment Managers. Since 2016, both these entities have led an investment group whose members are all signatories to a statement calling for the protection of this region from oil exploration and for the respect of national commitments to combat climate change in this particularly hydrocarbon-rich part of the world.
Lastly, on May 18, 2020, Natixis added to its policy in this area by pledging to cease financing projects worldwide dedicated to the exploration and production of shale oil and gas. Natixis also undertook to stop financing companies whose activities rely by a factor of more than 25% on shale oil and gas exploration and production.
The Group’s objective is progressively to reduce its exposure to thermal coal to zero by 2030 as far as its activities in the European Union and OECD countries are concerned, and by 2040 for its activities in the rest of the world.
First published in 2018, Groupe BPCE’s issuance program for sustainable development bonds was subsequently updated in April 2020. It provides for the issuance of green (and social) bonds that align the Group’s financing activities with the sustainability imperatives and missions of its organization.
The loans refinanced will help to reduce the effects of climate change (CO2 emissions) or help to support other environmental challenges (such as sustainable agriculture, biodiversity, waste treatment or water conservation) through clean energy production, energy savings or other types of action.
In 2020, Groupe BPCE issued €2.2 billion in green and social bonds for environmentally and socially responsible investors, bringing total outstandings to €6.6 billion at the end of 2020.
These issues included for the first time a ‘green covered bond’ for the individual customers of the Banques Populaires and Caisses d’Epargne for an amount of €1.25 billion. This bond issue - whose proceeds were dedicated to the financing or refinancing of loans intended for the construction of highly energy-efficient housing - generated an enthusiastic response from investors with an order book of €6.4 billion. This emblematic issue received the ‘Euro Deal of the Year’ award given by The Covered Bond Report Awards for Excellence 2020.
Another issue of interest was the Ambition Durable (Sustainable Ambition) savings solution launched in September 2020, a savings product pegged to a ‘climate’ index (see p. 21 below, ‘Sustainably responsible’), followed by three others in 2021.
