In
early 2019 BNP Paribas collaborated with Belgian chemical company Solvay on an innovative
€2bn revolving credit facility linking to environmental commitments. The
Positive Incentive Loan mechanism – in which the cost of credit is linked to a
reduction in Solvay’s greenhouse gas emissions – demonstrates their strategy to
integrate sustainability deeper into all aspects of the business, including
financing.
The
alignment of finance and sustainability objectives is becoming increasingly
important, as the transition towards a low carbon economy requires new
approaches. Max Jadot, CEO of BNP Paribas Fortis, which is acting as
Sustainability Coordinator and agent bank to Solvay remarked: “I am proud that
Solvay has mandated BNP Paribas Fortis to introduce a Positive Incentive Loan
mechanism that supports Solvay’s ambitions in reducing greenhouse gas
emissions. This innovative solution is a clear example of how we and the
syndicated banks we represent aim to serve our clients in terms of value
creation. Collaboration between banks and clients is key in driving the economy
forward to a more sustainable future”.
The
revolving credit facility is intended for general business purposes. Solvay is
also a global partner of the Ellen MacArthur Foundation and aims to accelerate
the circular economy in the chemicals sector. This is another example of how
leadership on environmental sustainability can be fostered through
collaboration.