Risk of harmful investments with BNP Paribas

The risk of a harmful investment with BNP Paribas is high. Hopefully the risk of harmful investments will be reduced drastically by BNP Paribas in the near future.

Explanation of the BNP Paribas ranking

BNP Paribas has no well developed policy regarding labour rights, environment or freedom & democracy. BNP Paribas says to take into account environmental, social and governance criteria when the bank takes investment decisions. BNP Paribas does have a policy regarding the exclusion of anti-personnel mines and cluster munitions.

These policies have however been evaluated as unsatisfactory for three reasons:

• Unclear criteria: BNP Paribas does not make clear which investments can or cannot be accepted;
• Limited applicability: These policies do not apply to all investments of BNP Paribas.
• Unclear application: BNP Paribas does not show how the policy has affected the practice of the bank. It is never stated which investments are allowed and which are refused.

BNP Paribas has a thorough policy regarding the exclusion of a number of controversial weapons: anti-personnel mines, cluster munitions, weapons with depleted uranium, biological weapons and chemical weapons. BNP Paribas also excludes the financing of exportation of non controversial weapons to countries under arms embargo grom France, the EU, the US and the UN, and to countries of which the Security Council of the UN judges that grave violation and abuse against children are committed during conflict. This policy has been evaluated as satisfactory:

• Sufficiently strong criteria: the policy of BNP Paribas implies clear and concrete criteria for investments in weapon industry;
• Sufficient applicability: this policy is valid for all investments and financing of BNP Paribas;
• Clear application: BNP Paribas works with a list of companies that are excluded from financing as a result of its policy.

Examples of harmful investments by BNP Paribas

In June 2008, BNP Paribas acted as a lead manager for the issuing of bonds of Total Capital (financing subsidiary of Total) worth € 149 million. BNP Paribas participated for a sum of € 75 million. In January 2009 and April 2009, BNP Paribas underwrote issues of bonds of Total for a sum of € 117 million and € 66 million respectively. Total is involved in gas extraction which supports the Burmese junta. The laying of the pipeline and the surrounding infrastructure led to serious human rights abuses.

In June 2008, BNP Paribas participated for a sum of € 82 million in a € 3.4 billion project finance facility to Sakhalin Energy Investment company, to finance Phase 2 of the Sakhalin II Project. The Sakhalin II project damaged salmon spawning rivers with its 800 kms of onshore pipelines and threatens the last 120 critically endangered Western Gray Whales in the world with extinction.

Between April 2008 and March 2009, BNP Paribas underwrote the issuing of bonds of Wal-Mart for € 36.1 million, € 7.7 million and € 10.1 million respectively. The US supermarket chain Wal-Mart censors trade union information, sacks members of trade unions, and even closes entire stores to block the unionisation of the workforce.

June 2009: BNP Paribas owns or manages shares in:

• Suncor - US$ 142,47 million : Suncor Energy is one of the largest companies in the Canadian tar sands industry. Oil extracted from tar sands has a disastrous impact on the environment.
• EADS - US$ 10,42 million : EADS has assisted India with the delivery of attack helicopters to Nepal, and in the near future will supply them to Burma. EADS is also a shareholder in AviChina that supplies military equipment to China, Sudan and Burma.
• Wal-Mart- US$ 213,6 million : The US supermarket chain Wal-Mart breaches the most basic labour rights both in its stores and in its suppliers.

More harmful investments by BNP Paribas and other banks, check www.banksecrets.eu

Profile BNP Paribas (update February 2010)