Supporting businesses in the global energy transition, we explore the ways in which BNP Paribas financially guides corporations to put sustainability first with Karine Delvallée, CEO – Australia and New Zealand.
THE BANK OF A CHANGING WORLD
The finance industry plays an integral part not only in people’s everyday lives, but more broadly on a corporate and societal level.
“A key example of this is the role the finance industry has in supporting the energy transition, as well as helping businesses and governments to reach important goals in their journey towards net zero,” introduces Karine Delvallée, CEO – Australia and New Zealand (ANZ) of leading international bank, BNP Paribas.
Delvallée’s opening words aptly summarise the company’s commitment to supporting clients with world-leading and innovative energy transition projects, helping them achieve their environmental objectives.
ANZ is at the forefront of this global journey, with the governments of both Australia and New Zealand setting a clear vision, roadmap, and targets for their respective climate ambitions.
CENTURIES OF ECONOMIC TRANSFORMATION
As the first foreign banking organisation established in Australia, BNP Paribas’ history Down Under is closely tied to the storied past of the country’s economy.
“We were there when Australia developed as a young nation and found its place as a major trading partner in Europe, starting with the wool trade,” details Delvallée.
In the 19th century, French businesses developed a desire to buy Australian wool and ship it directly to France, following international exhibitions in Melbourne (1879) and Sydney (1880) that demonstrated how French clients could benefit from financing Australian wool imports.
Responding to this demand from French retailers, who were the second-largest buyer of Australian wool at the time, BNP Paribas opened two Australian offices in Melbourne and Sydney in 1881.
“Known then as Comptoir d’Escompte de Paris (CEP), the bank’s establishment in Australia supported Australian wool imports for the French textiles industry,” Delvallée expands.
Solidified as a competitive force in wool finance and foreign exchange in Australia, CEP began serving more European clients, predominantly in France and Belgium, as well as exporting gold and financing trade on a smaller scale to other countries where it had branch representation.
In 1889, the French government took a direct interest in the bank in the form of large shareholdings, and its name was subsequently changed to the Comptoir National d’Escompte de Paris (CNEP).
After being instrumental in the establishment of many French-owned companies in Victoria, Sydney became the bank’s Australian headquarters in 1936.
Following the end of the Second World War and further into the 1960s, CNEP diversified its activities to expand its import and export potential and assist French firms in establishing themselves in Australia.
Then, CNEP merged with the Banque Nationale pour le commerce et l’Industrie (BNCI) to become the Banque Nationale de Paris (BNP) in 1966.
Fast-forward to the 1980s, the deregulation of the Australian banking industry created a more competitive environment. To tackle this unprecedented landscape, BNP leveraged its extended experience in Australia to consolidate its market position.
By 1980, BNP was still the only major overseas bank operating in Australia under a full banking license. However, throughout the decade, neighbouring bank, Paribas, also began operations in the country, having already established its presence when it financed the construction of the Sydney Harbour Bridge in 1901.
The two banking entities merged in 2000 to become BNP Paribas, today one of the top financial institutions in the world, present in 63 countries and territories with almost 183,000 employees.
“BNP Paribas is a major provider of financing to corporate Australia. Our focus is on the top 150 companies listed on the Australian Stock Exchange (ASX).”
A GLOBAL APPROACH TO LONG-TERM SUPPORT
BNP Paribas’ world-leading services comprise three operating divisions – Corporate and Institutional Banking (CIB) for large companies and institutional clients; Commercial, Personal Banking and Services (CPBS) for retail banking networks and specialised financial services; and Investment and Protection Services (IPS) for savings, investment, and protection solutions.
Combining international expertise and local know-how in ANZ, BNP Paribas delivers solutions to clients through CIB and its Asset Management business.
The former offers tailor-made solutions in areas of corporate financing, cash management, and advisory services to global banking organisations.
“By matching the financing needs of companies with the investment opportunities sought by institutional investors, CIB’s financial solutions create value and support clients in their transition to a more sustainable model,” elaborates Delvallée.
Meanwhile, BNP Paribas’ dedicated Asset Management Business offers a full range of investment management services to both institutional and retail clients around the world.
“We are working to support our clients in reaching their climate goals and have been lucky enough to contribute to some really innovative and world-leading energy transition projects,” she says.
Indeed, the bank has committed to globally mobilise €350 billion by 2025 in sustainable loans and bonds related to environmental and social topics, whilst also managing €300 billion in sustainable and responsible investments.
In aid of its environmental commitments, BNP Paribas established the Low-Carbon Transition Group in 2021, bringing together more than 200 professionals worldwide to support and advise its CIB clients on their transition towards a sustainable and low-carbon economy.
Capitalising on the advantages of evolving technology, the bank also launched an environmental, social, and governance (ESG) investment compliance monitoring system.
This helps clients meet their sustainable investment objectives by providing investment compliance screening capabilities, allowing local asset managers and owners to incorporate customisable and flexible ESG criteria into their portfolio monitoring.
“Our global model means that BNP Paribas is well positioned in ANZ to assist clients with sourcing offshore investors, whilst supporting them with our worldwide network as they expand into other international markets,” adds Delvallée.
SUSTAINABLE MARKET LEADERS
BNP Paribas has a long-standing history of providing debt advisory and financial services in the infrastructure sector. This continues to be a key area of focus for global clients, particularly for infrastructure funds and sponsors, who have a significant presence in Australia.
Therefore, against the backdrop of the energy transition, Australia is an attractive market for the bank and its clients as it facilitates investment opportunities on a global scale.
“Australia also offers opportunities for us as a global bank to leverage our awareness and experience with technologies that are new to the domestic market, such as offshore wind, e-fuels, and biofuels, whilst also learning about areas in which Australia leads the market,” details Delvallée.
One such area is battery storage, where Australia’s wealth of irradiance riches supports its ability to commercialise storage projects.
BNP Paribas has established a leadership position in relation to supporting that technology in Australia, providing project financing for four standalone battery energy storage systems (BESS), including the first four-hour BESS project for Akaysha Energy this year.
The company has also supported the energy transition through the financing of the Goorambat East Solar Farm, developed by Engie.
“The bank was able to showcase its ability to quickly tailor its Australian product range around transition opportunities, having provided financing, foreign exchange market (FX) and internal revenue service (IRS) hedging, trade finance products, and cash management services, alongside security trustee and agency services for the project,” expands Delvallée.
Evidently, BNP Paribas continues to see a strong interest amongst its global clients to invest in Australia’s industries, particularly in critical infrastructure.
“The organisational set-up that supports our global relationships with key clients means that we’re involved in a dialogue at the early stages and are accordingly well positioned to support local banking requirements as they evolve.”
Indeed, the bank’s teams that support Australian corporates are relentlessly focused on ensuring that they bridge clients’ capital solutions needs with offshore investors, whilst simultaneously supporting them with a global network as they expand internationally.
CORPORATE PHILANTHROPY
BNP Paribas pays particular attention to its own ESG activities to ensure its operations have a positive impact on the planet, making a strong contribution to addressing the globe’s social and environmental challenges.
“Our purpose has been developed in this context and is a reminder of the bank’s mission and ethics – we are at the service of our clients and the world we live in,” Delvallée states.
This sentiment perfectly captures BNP Paribas’ mission to contribute to a responsible and sustainable economy by financing and advising customers to the highest ethical standards.
As part of its dedication to environmental and social goals, the bank created the BNP Paribas Foundation in 1984, making it a major player in corporate philanthropy.
Over the past 40 years, the foundation has supported more than 4,200 projects, benefitting two million people across the globe. This has included social and educational initiatives, scientific research programmes, and other international cultural projects.
The BNP Paribas Foundation’s philanthropic activities centre around three fields of action – solidarity, environment, and culture. In 2023, the bank contributed €40 million, €8.2 million, and €7.59 million for each initiative respectively.
In Australia, the bank has supported the Australian Chamber Orchestra (ACO) since 2006.
“The orchestra is renowned around the world for its dynamic performances that embrace celebrated classics. This relationship allows us to carry out our commitment to youth, enabling them to realise their potential and fulfil their dreams,” Delvallée shares.
In aid of the orchestra’s meaningful efforts, BNP Paribas is proud to be the presenting partner for the ACO Academy and support the ACO BNP Paribas Pathway Scholarship, which offers tailored support to young musicians, including First Nations youth, in the form of private lessons and mentoring from ACO musicians.
Another key area of cultural support is BNP Paribas’ long-term sponsorship of the Alliance Française French Film Festival – the largest French film festival in the world outside of France.
This important cultural event showcases a range of approximately 50 films each year, including those financed by BNP Paribas, emphasising the company’s support of the international arts scene.
“We also support a number of other charities and causes in ANZ, offering financial support for children with cancer and their families, educational opportunities for underprivileged youth, programmes for First Nations children in regional areas, alongside many other forms of outreach and support,” outlines Delvallée.
2025 STRATEGIC PLAN
To continue to develop profitable growth and leverage the bank’s leading position in Europe, BNP Paribas developed a 2025 strategic plan based around three areas of ambition, namely growth, technology, and sustainability.
“The overall aim of the strategy is to foster organic growth, gain market share, develop new opportunities, and generate economies of scale,” highlights Delvallée.
The strategy is built on three key pillars – putting technology and industrialisation at the heart of the model, deploying sustainable finance and ESG at scale, and developing the engagement and potential of BNP Paribas’ employees worldwide.
Indeed, the bank is working to improve the client experience through innovative services and personalised financial solutions to accelerate actions, fight against climate change, and protect biodiversity.
“We are also working to improve the accessibility of financial services and equality in order to foster a more inclusive society.”
BNP Paribas’ employees are at the forefront of bringing the 2025 strategic plan to life as an essential lever in its success.
“We rely on the talent of our people, technological innovation, and the financial strength of BNP Paribas to accelerate our transformation and reinforce our leadership to serve clients.
“Achieving the ambitions set out in our 2025 strategy will help us respond to the expectations of society and ensure we continue to have a positive impact on the world,” concludes Delvallée.
