BNP Paribas to provide carbon-linked credit line to Ant Group
BNP Paribas will provide a revolving sustainability-linked line of credit to Ant Group, verifying the Chinese company’s green credentials through a blockchain-based carbon management platform.
As part of this agreement, BNP Paribas will offer Ant Group revolving lines of credit with a “two-way interest rate adjustment mechanism” linked to a number of SPTs (Sustainability Performance Targets) of the society. For example, the SPTs state that Ant Group will meet the company’s green and sustainability commitments, including those regarding achieving carbon neutrality, using renewable energy and donating a certain percentage of the company’s annual turnover to biodiversity conservation and environmental protection projects.
Each year, the bank will verify SPTs using Carbon Matrix, AntChain’s enterprise carbon management SaaS (software as a service) product. Carbon Matrix is built on blockchain technology which ensures that the verification process is transparent and tamper-proof. If the SPTs are met, the interest rate on the SLL will be lowered, if they are not, the interest rate will be raised.
BNP Paribas’ partnership with Ant Group comes after the French bank announced in April that it had achieved carbon neutrality in its own operations since 2021, and is on track to reach net zero in all carbon emissions while along its value chain by 2030.
On April 21, Ant Group joined the Low Carbon Patent Pledge and made its green computing patents free to low-carbon innovators around the world. Earlier in the year, a number of Chinese and overseas financial institutions were in touch with the company to discuss green finance collaborations.
CG Lai, CEO of BNP Paribas China, comments: “Sustainability is deeply embedded in all aspects of BNP Paribas, from our long-term strategy to day-to-day operations, and Ant Group is a strong advocate for ESG development globally. . Our similar vision for a sustainable future has laid the foundation for more joint achievements and innovations in the field of sustainable finance in the future.”