Sustainable Investment

ISSUE #60 – For many years, Crédit Agricole CIB has been committed to sustainable development, in setting up either best practices or sector policies for financing granted to economic players like corporate or financial institutions.

 

Crédit Agricole CIB is a founding member of the Green Bond Principles.

 

ACTIVE ACTOR IN SETTING UP BEST PRACTICES

Overall, COP21 in Paris was an opportunity for Crédit Agricole CIB to reassert its commitment to financing the energy transition. Crédit Agricole CIB was the first bank to adhere to the Equator Principles when they were launched in 2003. In just a few years, it has become the benchmark for responsibility in project finance.

Nowadays, our group is involved in the “Mainstreaming Climate Action within Financial Institutions” initiative to promote

climate finance alongside development banks. All these principles have placed Crédit Agricole Group at the forefront of renewable energy financing in France, one of the few French banks to have backed the World Bank’s call to “put a price on carbon” and, in 2015, the fi rst bank to decide to no longer finance coal mine projects and new coal-fi red plants in high-income countries.

PIONEERING ROLE IN SUSTAINABILITY

The entire group is committed to tackling climate change, and developing new products in that respect is a priority. For instance, Amundi was the first asset manager to offer low-carbon index funds. Furthermore, we are determined to assist major clients on projects with a strong social or environmental dimension. In early 2010, a Sustainable Banking team was set up, specialised in advisory and capital-raising in the sphere of responsible finance.

To go further in developing responsible fi nance for structured transactions, the group has implemented specific due diligences and relevant sector-based policies such as forestry and palm oil, with a focus on climate and carbon risks. As the haze is a reality in Singapore every year, we are focused on continuing the assessment of climate risks to revise policies as necessary.

Nº1 SUSTAINABILITY AND GREEN BONDS ARRANGER

Crédit Agricole CIB is a founding member of the Green Bond Principles and the clear leader in this segment since 2012.

A green bond offers the same financial characteristics as a normal bond, but the difference is that the investment must finance projects and businesses with a strong environmental and/or social dimension. An early mover in this market, Crédit Agricole CIB is the Nº1 book runner in green and sustainability bonds issued up to now, for all years and in all currencies*.

The Monetary Authority of Singapore and local authorities are sensitive to the recent COP21 debate and we trust that there are opportunities for green bonds issuance in Singapore.

GREEN BUILDINGS IN SINGAPORE

In Singapore, Crédit Agricole offices are located in Capital Tower, an eco-friendly skyscraper, and in the green complex of Mapletree Business City (MBC). Capital Tower is constantly looking into ways to achieve energy savings, using famous NEWater for many of its non-domestic purposes for example. Crédit Agricole CIB has centralised its internal IT development centre in Singapore within ISAP (Information Systems Asia Pacific). More than 600 staff are working for ISAP in MBC, built to achieve sustainability through electricity savings, carbon emissions reductions or using cooling plants.

In the future, Crédit Agricole CIB will continue to be a major player in financing the fight against global warming and has the ambitious goal to arrange at least USD 60 billion in new climate financings by end of 2018.

 

* Source, July 2015: Market data, CACIB

 

By Pierre Finas, Senior Country Officer, Singapore, Malaysia & Indonesia, Crédit Agricole Corporate & Investment Bank (CIB)

Article published in the FOCUS Magazine “Green Power” – Issue #2 2016