Today, Natixis and Groupe BPCE publish their first TCFD climate reports, which follows the recommendations of the TCFD (Task Force on Climate-Related Financial Disclosures). They thereby specify the actions they are taking to support the transition to a low-carbon economy and the adaptation to the impacts of climate change.
TCFD is a working group set up at the end of 2015, under COP21, by the G20 through the Financial Stability Board (FSB), which aims to promote a detailed and transparent communication related to climate risks. It specifies the expected elements of climate reporting and focuses on 4 pillars: governance, strategy, risk management and metric & targets.
In this first TCFD report, Natixis has set ambitious targets, such as reducing its financing of oil and gas exploration-production activities by 15% between 2020 and 2024, and laying out € 9 billion in new financing for renewable energy over the same period.
It also provides a very high level of transparency. For example, it is the first asset manager to disclose its carbon footprint and the amount of its investments in the fossil fuel sector, out of more than € 500 billion in assets under management.
“This first TCFD report reflects both our ambition to share our tools and practices and our commitment to measuring our progress. This report is also a tool for engaging our teams. Moreover, it provides an additional opportunity to interact with our stakeholders.”
Louis Douady, Global Head of ESR, Natixis
Concrete short, medium and long-term commitments to a ‘Net Zero’ trajectory
Whether its carbon footprint is direct or indirect, Groupe BPCE is determined to align its greenhouse gas emissions with an environmentally sustainable approach. In its new strategic plan, the Group reasserts its commitment to protecting the climate and has set a trajectory for its financing activities consistent with the goals of the Paris Climate Agreement. This means measuring the impact of its financing and investment activities and setting short, medium and long-term objectives to mitigate the impact of its business operations on climate change.
For its insurance portfolio, Groupe BPCE is pursuing the sustainable investment policy that it adopted three years ago to:
- Align itself with the 1.5°C trajectory as early as 2030.
For the financing portfolios of the Corporate & Investment Banking division, Groupe BPCE:
- Aims to curb the temperature impact of its financing activities, which stands at about 3.2°C today, to 2.5°C in 2024, 2.2°C in 2030, and 1.5°C in 2050.
This commitment is reflected in ambitious sector-based reallocations.
- Undertakes to reduce its financing of conventional and non-conventional oil and gas exploration and production activities by 15% between 2020 and 2024 (from a level of loan outstandings of €5.8 billion at the end of 2020).
This transformation is also reflected at the level of Groupe BPCE as a whole by an ambition to increase the financing of renewable energies, the energy renovation of buildings and green mobility by €21 billion (including €9 billion of new renewable energy financing arrangements with its major clients) between the end of 2020 and the end of 2024.
Above and beyond the most obvious sectoral allocations, the companies of Groupe BPCE, Banque Populaire, Caisse d'Epargne, Natixis CIB and Natixis IM will be helping all their customers – be they large or medium-sized companies, institutions, or individual customers – to succeed in their own energy transitions.
Measurement and management tools for all Groupe BPCE portfolios
In order to measure and steer the alignment of its portfolios, Groupe BPCE is developing tools to assess the transition. After being the first bank to actively monitor the climate impact of its balance sheet with the adoption of the Green Weighting Factor for its Corporate & Investment Banking activities, the Group is gradually extending its work to include all its financing portfolios through the Green Evaluation Models approach.
In an effort to provide information and transparency, these TCFD reports also provide methodological details on the performance metrics used to monitor the Group's progress in its transition strategy.
As such, Groupe BPCE is one of the first financial groups to publish the carbon intensity of both its financing and investment portfolios.