French bank BNP Paribas said it “disagrees” with NGOs who have put the French bank on notice to stop financing new oil and gas projects, in a letter in response that AFP consulted on Thursday.
“We fully understand the political nature of your action and fully respect both the associations you represent and their fight for the climate”, writes Antoine Sire, director of corporate engagement on the group’s executive committee, in a letter dated of January 24.
Companies “cannot replace the legislator”, however believes BNP Paribas, which says it “deeply disagrees” with their interpretation of the legislation on the duty of vigilance.
“The injunctions that are made to us through your letter are not intended to comply with the law on the duty of vigilance, they go significantly beyond”, adds the manager.
Take steps to prevent human rights abuses
“We are convinced that our vigilance plan not only meets the legal requirements, but even goes beyond on each of the aspects that your letter mentions”, insists the bank. Three NGOs gave formal notice to the French banking giant at the end of October, asking it in particular to stop financing new oil and gas projects.
Oxfam, Friends of the Earth and Notre Affaire à Tous accuse BNP Paribas of being “the leading European and fifth largest funder in the world for the development of fossil fuels, with 55 billion dollars (about 50 billion euros editor’s note) in financing granted between 2016 and 2021” to new extraction projects.
Since 2017, the French law on “the duty of vigilance” requires large companies to take effective measures to prevent human rights and environmental abuses throughout their chain of activity.
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According to the law, companies given formal notice have three months to comply and possibly dialogue with NGOs, before the latter can launch a possible summons.
“BNP Paribas is accelerating the reallocation of its financing towards a low-carbon economy, by constantly refining its commitments, policies and means dedicated to their implementation”, continues Mr. Sire.
Historical financier of the industrial sector, BNP notably announced on Tuesday vast new climate commitments and ensures that it wants to divide by five its financing for the oil extraction and production sector.