Measuring and monitoring climate alignment and impact actions for automotive credit portfolios

Scientific project

Context:

The climate alignment of an activity consists of calculating the predicted trajectory of greenhouse gas emissions related to this activity and comparing it to one or more scenarios, i.e. emission trajectory references. Based on scenarios and climate targets, the granularity of the scenarios can vary greatly (geographically, definition by sector…).

Alignment can be defined in several ways: is the emissions trajectory strictly below that of the scenario, is the sum of emissions at a given horizon (2030, 2050, 2100) lower than that required in a given scenario?

The complexity of this topic is to:

• Defining the appropriate scenario(s) associated with desired uses and specific regions or countries.
• Projecting the BNPP PF portfolio in line with the chosen scenario(s).
• Match or facilitate the implementation of its other alignment commitments (PACTA, NZBA…).

Following the project conducted in 2021, BNPP PF is also looking to go further on the actions to be implemented to be able to demonstrate a positive impact and proactively reduce its environmental footprint faster than the market. The exercise consists of finding the appropriate impact measurement method and making the link between these measures and their effects on the emissions trajectory.

1.1: Development of a methodology for the climate alignment of BNPP PF’s automotive credit portfoliooIdentification of the scenario(s) used at BNPP / BNPP PF, with focus on the automotive sector

Analysis of consistency with the group’s Net Zero commitments.
Selection of scenarios and adaptation of scenario data with Enerdata.
Development of a methodology to measure the alignment of BNPP PF France and Spain’s automotive credit portfolios.
Development of a methodology to simulate the evolution of BNPP PF’s portfolio with Enerdata.

1.2: Definition of the optimal positive impact methodology and link with alignment

Methodological mapping of existing impact approaches (e.g. Impact Management Project).
Identification of methods used in the BNPP group.
Recommendation and development of a scientifically robust methodological framework adapted to the needs of BNPP PF.
Development of the methodology linking impact and alignment.

This research work carried out in pilot countries is intended to be replicated in other countries. This point, which is essential, will have to be taken into account when preparing the deliverables for the project, which will have to include avenues and recommendations for doing so. Moreover, this work is being carried out in parallel with the BNPP Group’s progress on these subjects. The overall coherence between these actions will have to be ensured during the project.