BNP Paribas to partner with Baringa in the development of its climate scenario analysis capability
6 min read | By Colin Preston Partner, global climate change lead & James Belmont Partner, climate risk lead
BNP Paribas to partner with Baringa in the development of its climate scenario analysis capability, leveraging Baringa’s Climate Change Scenario ModelTM
- 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.
"This is an important step for BNPP in the development and the effective implementation of our climate risk management framework across our organisation. Baringa is playing a leading role in helping the Financial Services sector globally to develop their climate strategies and to ensure they are credible and evidence based. This partnership will contribute to deliver the foundations of BNPP climate scenario analysis set-up."
Marc Irubetagoyena, Head of Group Stress Testing and Performance, Planning & Synthesis at BNPP
"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."
Antoine Bezat, Head of Stress Testing Methodologies and Models at BNPP
"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"
"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."
Colin Preston, Head of Financial Services Sector & Climate Change at Baringa
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About Baringa’s award winning Climate Change Scenario ModelTM
- The only climate scenario model that is fully integrated, bringing together transition and physical risk as well as climate risk and temperature alignment measured at individual asset level
- Configurable from scenario construction through to incorporating assessments of individual company level transition and adaptation strategies
- ‘Zoomable’, from global portfolio views to granular analysis of individual companies and single physical assets
- Comprehensive global coverage of all sectors and asset classes
For more information, visit www.baringa.com/climaterisk
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 72 countries, with more than 202,000 employees, of which more than 154,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
About Baringa Partners
Baringa Partners is an independent business and technology consultancy. We help businesses run more effectively, navigate industry shifts and reach new markets. We use our industry insights, ideas and pragmatism to help each client improve their business. Collaboration is central to our strategy and culture ensuring we attract the brightest and the best. And it's why clients love working with us.
Baringa launched in 2000 and now has over 700 members of staff and more than 65 partners across our practice areas Energy and Resources, Financial Services, Products and Services, and Government and Public Sector. These practices are supported by cross-sector teams focused on Customer & Digital; Finance, Risk & Compliance; People Excellence; Supply Chain & Procurement; Data, Analytics & AI; Intelligent Automation & Operations Excellence; and Technology Transformation. We operate globally and have offices in the UK, Europe, Australia, US, Middle East and Asia.
Baringa Partners have been voted as the leading management consulting firm in the Financial Times' UK Leading Management Consultants 2021 in the categories Energy, Utilities & the Environment, and Oil & Gas. We have been in the Top 10 for the last 13 years in the small, medium, as well as large category in the UK Best Workplaces™ list by Great Place to Work®. We are a Top 50 for Women employer, and are recognised by Best Employers for Race.
Baringa. Brighter Together.
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