BNP Paribas to partner with Baringa in the development of its climate scenario analysis capability

March 29, 2021
  • BNP Paribas will leverage Baringa’s Climate Change Scenario Model  as it further develops its ability to analyse climate scenario risk
  • BNP Paribas is already committed to being a leader in climate strategy, as the Financial Services industry responds to and recognises its role in climate change and climate risk
  • BNP Paribas has reached its carbon neutrality objective in terms of the CO₂ emissions arising from its own operations, increased total funding for renewable energies and invested in innovative start-ups to accelerate efforts in energy transition
  • BNP Paribas is now turning to developing its climate scenario analysis capability as part of a strengthening of its ESG risk management framework through this 2021 project with Baringa
  • BNP Paribas has chosen Baringa as its partner for this work, recognising their expertise in climate strategy and risk in financial services
  • BNP Paribas will also be leveraging Baringa’s award winning Climate Change Scenario ModelTM, which has been adopted by Financial Services institutions globally with over $12 trillion of assets. 

This partnership between BNP Paribas and Baringa will help to develop the standards for embedding climate scenario analysis within one of the world’s largest banking institutions. The establishment of an integrated climate scenario analysis capability will bring an additional objective and data driven approach to climate strategy and commitments, to climate risk management, client engagement and to both internal and external reporting.   

Antoine Bezat, Head of Stress Testing Methodologies and Models at BNPP, said: “Climate scenario analysis is a critical strategic capability for BNPP. We are delighted to be working with Baringa who are deep experts in this topic. They bring 20 years of experience of energy system and climate transition modelling, as well as their experience as leaders in deploying climate strategies into many of the largest banks in the world. 

“Baringa’s Climate Scenario Model stands out for its breadth of sector and asset coverage, the integration of transition and physical risk, and the ability to provide risk metrics down to the individual asset level. The modular and customisable nature of the solution will enable us to develop our own climate scenario and risk framework over time, to the specific needs of BNPP”

Colin Preston, Head of Financial Services Sector & Climate Change at Baringa, says “We are thrilled to be working with BNPP – as one of the largest global banks, and an organisation that is recognised for its commitment to sustainability and climate. We will help BNPP to accelerate and embed practical and usable climate analytics across its organisation, feeding into its climate strategy, and into all key decision making and reporting. This will pave the way for others to follow across the industry.”