How does banks proceed to meet their environmental, social and governance commitments? The case study of BNP Paribas Fortis (scope Finance)

Details

Supervisors

Henrard, Luc

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

This paper is written in a difficult social and climatic context. In recent years, the world has been confronted with unprecedented climate challenges and geopolitical crises. In response to these threats, the world concluded the Paris Agreements and, the United Nations adopted an agenda for 2030 defining 17 sustainable development goals. Banks has taken action by undertaking various measures to greening the financial system and help the transition towards a low carbon economy. They have made several commitments and took many initiatives (Katowice, TCFD, Science Based Target initiative, Collective Commitment to Climate Action, UNEP FI Principles for Responsible Banking). In the framework of the Katowice commitment, signatories commit to measure the alignment of their portfolios with climate targets. The Collective Commitment to Climate Action signatories commit to align their businesses with the Paris Agreement. In that context, the thesis will aim to understand how a bank like BNP Paribas Fortis proceed to meet their environmental, social and governance commitments and this from the Finance department perspective. The research follows an exploratory approach, and a qualitative research methodology is privileged and take the form of a case study. The subject being studied will be BNP Paribas Fortis. Three data collection methods were employed: participant observation, semi-structured interviews, and documentary research (online and internal documentation). The thesis finds that BNP Paribas Finance has made of sustainability a core pillar into its strategy, initiating two complementary strategic plans, that brings different departments together: the sustainable business development plan and the ESG Action Plan. The plan is divided in substreams, responsible for different missions always with the aim to improve his positive impact and reduce his negative impact.