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CLIMATE FINANCING

WE ARE ACCELERATING THE ENERGY TRANSITION

Crédit Agricole is the market leader in the area of green bonds and can proudly claim to have been a forerunner in this segment for nearly 10 years. The CO2 footprint of our loan book has been analysed since as early as 2011. Additionally, for several years we have been consistently implementing sector measures that rule out offshore drilling in the Arctic as well as mining and coal power. The Group is convinced that it is essential to decarbonise our economies while preserving their value creation at the same time.

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Social projects and the strong social engagement secure the commitment to making green financing a key to our growth and to acting in the interests of the energy transition.”

Dominique Lefebvre, Philippe Brassac and Raphaël Appert

 

OUR MANY YEARS OF COMMITMENT TO ALL BUSINESS AREAS

THE GROUP’S CLIMATE STRATEGY – APPROVED IN JUNE 2019 

To strengthen its measures and commitments, Crédit Agricole approved a climate strategy that fully harmonises with the Paris Agreement. The objective of this strategy, which is being implemented by all companies and subsidiaries, is to make green financing a growth driver. It consists of the following three main pillars: 

Commitment to more transparency at the highest management level

  • Innovative control of the climate strategy that is based on scientific expertise and led by three high-ranking steering committees.
  • Certification of the implementation of the climate strategy by an independent body.
  • Climate reporting in complete harmony with the TCFD recommendations by 2020.

Inclusion of matters of the energy transition in the customer relationship

  • Transition scoring to measure customers’ ability to adapt their business model to the challenges of current climate issues.
  • A support mechanism for start-ups and SMEs that are innovative in the environmental sphere.
  • A series of environmentally friendly financing solutions for corporate customers and private customers.

The step-by-step redistribution of our loans, investments and assets in accordance with the Paris Agreement:

  • Strengthening our commitment to financing the energy transition.
  • Promoting a sustainable investment policy.
  • Planning the complete exit from coal power according to a timetable tailored to the Paris Agreement.

EXIT FROM COAL POWER

Crédit Agricole is adapting its portfolio to the resolved complete exit from the coal power sector. (EU and OECD countries by 2030; China by 2040; rest of the world by 2050). Companies who do not support this approach are automatically adopted into the “Transition Watch List” and are subject to the reduction or even the freezing of our financial support. From 2019, we will also:

  • Announce our KPIs for the coal power sector annually.
  • Ask companies to present to us by 2021 their detailed plan for exiting the coal power sector.
  • No longer develop business relations with companies that generate more than 25% of their turnover in the area of coal power.
  • End our collaboration with the companies that are currently developing or planning new coal power plants along the entire value chain. 

A GLOBAL LEADERSHIP ROLE

Crédit Agricole is strengthening its position as the global market leader in green bonds with an initial issuance of EUR 1 billion to finance its commitments to the energy transition.

This issuance is being used to refinance the environmentally friendly assets posted by Crédit Agricole regional banks, Crédit Agricole CIB, LCL and UNIFERGIE in the following sectors: renewable energies, environmentally friendly buildings, energy efficiency, environmentally friendly transport, waste and water management, sustainable agriculture and forestry. With this initial issuance, Crédit Agricole confirms its ranking as an energy transition bank and intends to become a regular issuer on the market for green bonds.

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Business and the financial sector can and should become powerful allies to achieve the objective of CO2 neutrality by 2050 set in the Paris Agreement. With this dimension of green bonds, we can further expand our commitments. The scope and type of the bond probably make it a benchmark measure in the banking landscape.”

Philippe Brassac CEO Crédit Agricole S.A.

 

You can find further, English-language information on the topic of climate financing here:

Integrated report 

 

GROUP SECTOR GUIDELINES

The sector guidelines published by Crédit Agricole establish the social and ecological criteria for its financing and investment policy. These criteria mainly reflect social topics that seem most relevant to the Group and especially to Crédit Agricole CIB. These include, above all, respect for human rights, combating climate change and the preservation biological diversity..

Arms

Energy

Mining

Transport

Construction trade

Agriculture and forestry

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