News

BNP Cardif’s goal to reduce exposure to coal

CoalThe insurance subsidiary of French banking giant, BNP Paribas, is planning to continue slashing its exposure to coal as environmental protection gains greater momentum among global companies and the wider public. In a statement on March 18, 2019, BNP Cardif said it plans to continue cutting exposure to coal in the investment portfolios managed directly for the general funds in its domestic markets, representing a total of €114.5 billion ($130 billion) in 2018. Last year the insurer sold stakes to the tune of $227 million in investments in companies in the coal-fired power generation sector. “BNP Paribas Cardif now no longer finances any power generation businesses whose coal-fired power accounts for over 30% of their total installed power generation capacity,” the firm said in a statement on March 18, 2019. The firm says it is also committed to integrating new environmental, social and governance (ESG) criteria with an emphasis on human rights and diversity. It is also targeting €3.5 billion in green investments by the end of 2020, raising its own bar by €1.1 billion. BNP Paribas Cardif’s decision to further shed its exposure to coal is reflective of concerted efforts across the board. Last week BNP Asset Management said it would no longer include companies “that derive more than 10% of their revenue from mining thermal coal and/or account for 1% or more of total global production”. ©2019 funds global asia

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