January 24, 2025 - 18:18
BNP Paribas is recalibrating its approach to sustainable finance by prioritizing profitability and re-evaluating its definition of sustainability. A senior executive highlighted that this strategic pivot is part of the bank's broader effort to distance itself from the traditional ESG label. Constance Chalchat, the chief sustainability officer of the corporate and institutional banking (CIB) division, emphasized that the new direction aims to ensure that sustainable finance initiatives do not compromise financial returns.
The banking sector has witnessed a growing trend of rethinking ESG investments, particularly in light of disappointing returns that have emerged since the initial enthusiasm for these initiatives. As more institutions reassess their commitment to ESG principles, BNP Paribas is positioning itself to strike a balance between sustainable practices and financial viability. This move marks a significant shift in the landscape of sustainable finance, as banks increasingly seek to align their sustainability efforts with their core business objectives.
