Did you know that mortgage loans to individuals indirectly generate greenhouse gases? To ensure that BNP Paribas respects its climate commitments, our CSR team has worked with the Agence Française de Transition Écologique (ADEME) to optimize the use of the database containing the Energy Performance Certificates (EPCs) of goods sold or leased. in France. The experts explain how, together, ADEME and BNP Paribas are working on an open source solution allowing all stakeholders to act on climate change.
A national and open database
Since 2013, any energy performance certificate (EPC) produced within a mandatory framework – for example when selling an apartment – must be sent to the dedicated monitoring center for integration into its database. “The ADEME website has been completely revamped this year, in particular to comply with the new CPE, which has been applicable since July 1,” explains Romuald Caumont, project manager at the Sustainable Cities and Territories Department of the ADEME. Accessible to all, this database allows the State and local authorities to carry out an energy balance of dwellings by territory, and individuals can find out about it. But why would this interest the banks?
“This collective approach bringing together transversal expertise guarantees that it is objective, that it is fair to all actors, and that it is scientifically neutral.”
Project manager at the ADEME Sustainable Cities and Territories Department
A collaboration to limit global warming
“The ADEME database allows us to have a granular calculation of the average climate performance of our mortgage portfolio for individuals”, specifies Imène Ben Rejeb Mzah, Methodology and Data manager within the CSR Department of BNP Paribas. By providing us with additional financial data, such as the carbon footprint of the goods financed, it allows the Bank to identify priority actions to achieve its Net Zero objectives in the residential real estate sector. ”
For ADEME, there are two major incentives to work with banks to improve the EPC database. “It’s up to us to collect technical feedback in order to optimize the database for use by other actors, and ultimately to make it as useful as possible”, explains Romuald. “In addition, this collective approach bringing together cross-disciplinary expertise guarantees that it is objective, that it is fair to all stakeholders, and that it is scientifically neutral.
In order to allow the entire sector to make the best use of this database, the members of the French Banking Federation (FBF) have co-drafted a methodological document, also available in open access. “This collaboration improves the accuracy of climate performance metrics for bank portfolios,” says Ben Rejeb Mzah.
To limit global warming, pooling efforts to process and interpret data is very important. By offering a common base to French investors, we are promoting the convergence of our decarbonisation efforts and thus the achievement of the objectives of the National Low Carbon Strategy. ”
This collaboration improves the accuracy of climate performance measurements for bank portfolios.
Since July 1, 2021, the new CPE in France has become legally binding, thus increasing its impact. Concretely, this means that it now has the same legal value as the other technical real estate diagnoses. The calculation method and the format of the documents have also been revised in order to make the EPC even more reliable and readable.
the database allows the Bank to identify priority actions towards Net Zero
Multifaceted work for BNP Paribas
The Bank uses the data from the EPC database in several very concrete ways: “We identify the most energy-consuming assets in order to carry out targeted transition actions, such as the financing of energy renovation works to maximize the impact on the economy. real economy ”, specifies Ben Rejeb Mzah. The data can also be used to improve the accuracy of financial risk measurements made in climate scenario analyzes. “Finally, we use our machine learning algorithms to predict the missing energy performance within the ADEME database,” explains Imène. A comprehensive approach to an ever more detailed dataset.
“We use our machine learning algorithms to predict the missing energy performance within the ADEME database.”
Imène Ben Rejeb Mzah,
Methodology and Data Manager within the CSR Department
Photo credit: © Maya Claussen / Westend61, Westend61,
BNP Paribas SA published this content on 25 November 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on November 25, 2021 08:29:05 AM UTC.
Public now 2021
BNP PARIBAS technical analysis trends
|Short term||Mid Road||Long term|
Evolution of the income statement
|Average consensus||TO BUY|
|Number of analysts||23|
|Last closing price||
|Average price target||
|Spread / Average target||11.6%|