Ant Group partners with BNP Paribas

Monday 16 May 2022 13:49 CET | News

Global technology provider Ant Group has partnered with bank BNP Paribas on a bilateral sustainability linked credit facility arrangement, according to the official press release.

The agreement will support the Ant Group in implementing its ESG strategy and carbon neutrality roadmap. According to the arrangement, BNP Paribas will offer revolving credit lines to Ant Group that come with a ‘two-way interest rate adjustment mechanism’ tied to a number of the company’s SPTs (Sustainability Performance Targets). For instance, the SPTs stipulate that Ant Group will adhere to the company’s green and sustainable development commitments, including those on reaching carbon neutrality, using renewable energy and donating a certain percentage of the company’s annual sales revenue to biodiversity conservation and environmental protection projects. 

Each year, the bank will verify these SPTs using Carbon Matrix, AntChain’s enterprise carbon management SaaS (Software-as-a-Service) product. Carbon Matrix is built upon blockchain technology which ensures that the verification process is transparent and tamperproof. If the SPTs are met, the interest rate on the SLL will be lowered, if they are not, the interest rate will be raised. The arrangement is designed to incentivise companies to actively implement their sustainable commitments.

BNP Paribas’ partnership with Ant Group came after the company announced in April 2022 it has achieved carbon neutrality in its own operations since 2021, and is well underway to reach net-zero in all carbon emissions throughout the company’s value chain by 2030.

On 21 April 2022, Ant Group joined the Low Carbon Patent Pledge and made its green computing patents free for low carbon innovators around the world. Earlier in 2022, a number of Chinese and overseas financial institutions were in touch with the company to discuss green financing collaborations. 

In 2021, BNP Paribas was part of 48 sustainability-linked bonds and 215 sustainability-linked loans worldwide, working with brands including Carrefour, Chanel, and Treasury Wine Estates. Also in 2021, the bank was one of the joint-lead banks on Chile’s pioneering multi-tranche green and social bonds, the press release concludes.

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Keywords: partnership, carbon footprint, ESG, green finance
Categories: Banking & Fintech
Companies: Ant Group, BNP Paribas
Countries: China
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Banking & Fintech

Ant Group


BNP Paribas

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