EIB lends €250 million to National Bank of Greece (NBG) for green investments by SMEs and Mid-Caps
· EIB lends €250 million to National Bank of Greece (NBG) for green investments by SMEs and Mid-Caps· New credit brings EIB financing for climate action by Greek businesses via on-lending from local banks to €1 billion· The facility supports local businesses with preferential loans for renewable energy, energy efficiency, and other green projects
The European Investment Bank (EIB) is lending the National Bank of Greece (NBG) €250 million to increase support for green investments made by Greek small and medium-sized enterprises (SMEs) and Mid-Caps. The agreement raises the total intermediated lending made available through this EIB facility to back decarbonization investment by smaller Greek companies to €1 billion.The new agreement will enable hundreds of SMEs and Mid-Caps in the country to get NBG loans on favourable terms, including reduced interest rates, for investments that help tackle climate change. The accord follows similar EIB deals with both NBG and Piraeus Bank since 2020.“Reaching this €1 billion milestone highlights the EIB’s unwavering support for Greece’s green transition and our commitment to foster sustainable economic growth,“ said EIB Vice-President Yannis Tsakiris. “The partnership with NBG has been essential in enabling Greek businesses to access financing for climate-focused investments, helping them grow while contributing to a greener future.”The new €250 million credit to NBG is part of an EIB programme to spur green investments by Greek SMEs and Mid-Caps, which form the backbone of the country’s economy. Established in 2020, the programme is the first of its kind in Greece and is open to all eligible banks in Greece, with NBG and Piraeus Bank having taken part so far. The latest NBG loan brings its total participation in the programme to €800m.“NBG has absorbed 80% of the €1 billion total program financing illustrating our ongoing commitment to support Greek SMEs and Midcaps, while allowing us to further grow our green projects’ portfolio,” said NBG’s CEO Pavlos Mylonas. “Today’s signing marks another important milestone in our long-term cooperation with EIB.”Supporting the green growth of Greek SMEs and mid-capsThe EIB programme to spur green financing in Greece aims to:· Support businesses operating in sectors linked to climate action and environmental sustainability and/or;· Enable investments in renewable energy, energy efficiency and other green projects undertaken by SMEs and Mid-Caps regardless of their sector and/or;· Promote youth employment and gender equality in the workplace.So far, more than 350 Greek businesses have benefitted from the EIB’s support under the programme. Because the EIB requires recipient banks to match its funding, the total financing mobilised for green projects in Greece is expected to reach €2 billion.Long-standing partnership with NBGOver the past five years, EIB-NBG collaboration has supported a range of strategic priorities including SME competitiveness, agriculture, the bioeconomy and climate action. The total volume of EIB transactions with NBG during this period has exceeded €2 billion and is expected to, in turn, mobilise more than €3.8 billion in financing for SMEs and Mid-Caps.
Insurer BNP Paribas Cardif sets target of 3.5 billion euros in green investments by end 2020
The company is strengthening the socially responsible investment strategy initiated in 2008, taking new measures to support the energy transition and reduce ecological footprints.
A target of 3.5 billion euros in green investments [1] by end 2020
As the energy transition is part of its CSR strategy priorities, BNP Paribas Cardif announced in 2017 a commitment to reaching 2.4 billion euros in green investments by the end of 2020. In just two years the insurer has more than doubled its green investments [2] within the framework of its general funds in its domestic markets (France, Italy, Luxembourg), supporting financing of the energy transition and reduction of ecological footprints.
BNP Paribas Cardif has decided to raise its objective by 1.1 billion euros to reach 3.5 billion euros in green investments by the end of 2020. The insurer will continue to contribute to the development of green bonds which finance projects with high environmental value, and to continue its positive environmental impact investments.
Reduced exposure to coal
BNP Paribas Cardif continues to reduce the exposure to coal in the investment portfolios managed directly for the general funds in its domestic markets [3]. This initiative is aligned with the sector policy of the BNP Paribas group, which establishes guidelines in particular governing activities involving coal-fired power generation.
Within the scope of its directly managed activities, BNP Paribas Cardif now no longer finances any power generation businesses whose coal-fired power accounts for over 30% of their total installed power generation capacity.
Application of this sector policy covers investment flows and securities already held directly in the general funds. This is why in 2018 the insurer divested 200 million euros in investments in companies in the coal-fired power generation sector [4].
In addition to these initiatives, BNP Paribas Cardif is pursuing its shareholder engagement to encourage change in practices by issuers. As a major source of financing for the economy and direct holder of shares, BNP Paribas Cardif is strengthening its shareholder engagement policy by integrating new Environmental, Social and Governance criteria (ESG), in particular concerning diversity and human rights. The insurer applies this strategy to all directly held shares within the general funds in its domestic markets.
Responsible management of real estate investments
BNP Paribas Cardif continues to apply more demanding environmental criteria to its real estate holdings in France. The company has committed to a 30% reduction in energy consumption for its 55 office buildings (representing 658,956 square metres) by 2020. BNP Paribas Cardif pursues innovative energy renovation and investment initiatives – such as financing for the Java building in Paris, which operates without air-conditioning, planted surfaces on buildings, wood construction, etc. – in order to reduce greenhouse gas emissions and improve biodiversity.
“We believe that insurance companies have an important role to play in supporting the energy transition. As an institutional investor we are pursuing our efforts to fight climate change while combining financial performance and social responsibility,” says Olivier Héreil, BNP Paribas Cardif Deputy Chief Executive Officer, Asset Management.