Sectoral breakdown of Groupe BPCE portfolios covered by initial carbon estimates
This diagram shows the sectoral breakdown of Groupe BPCE portfolios covered by initial carbon estimates.
Measured by carbon footprint
- Housing
- Administration
- Transport
- Oil and Gas
- Electricity
- Basic industries
Not measured by carbon footprint
- Real-estate rentals and services
- Distribution
- Consumer credit
- Construction industry
- Agri-food industry
- Other
At the end of December 2020, more than 50% of Groupe BPCE’s outstanding loans will be covered by a carbon measurement system 3.
The aim is to have a carbon measurement system for 100% of portfolios by 2024 that takes full account of data quality issues.
1.3 - Assessment of the climate impact of the assets, projects and customers financed by the portfolio
Groupe BPCE has been developing since 2018 an internal rating system to assess the climate impact of various assets: customers, property or projects. For the companies financed, the rating system takes account of both their environmental impact and carbon strategy.
The rating scale is divided into seven levels, ranging from ‘dark brown’ to ‘dark green,’ based on easily understandable principles consistent with the future requirements of the European regulations.
The aim is to have a carbon measurement system for 100% of portfolios by 2024 that takes full account of data quality issues.
On the basis of these principles, each major sector is positioned on the rating scale, with the rating of individual customers or projects depending on their own transition strategies (see graph on the following page).
The tools developed by Groupe BPCE are specific to the nature of the portfolios under assessment.
More specifically, financing granted to major corporations is analyzed by the Green Weighting Factor (GWF) that Natixis has been using since 2018 (also see chapter 3, section 2.1), thereby making it the first bank worldwide to actively measure and manage the climate impact of its balance sheet through a color-coded measurement metric.
The Green Weighting Factor rating methodology was finalized in 2019 for all sectors financed by Natixis, with the exception of the financial sector. After the development of the methodology and the completion of a proof-of-concept phase, the GWF was adopted in the bank’s information systems and made an integral part of its lending processes. The GWF has progressively been rolled out worldwide across all the business sectors served by the bank.
3. Measurement system based on data from third-party standards and sources: CDP and/or Carbon 4 for corporate financing; CSTB data for housing loans.