The circular economy: a win for everyone involved

In 2020, 90% of Europeans expressed the will to consume “better” instead of “more”, as noted by Cecile Gauffriau ?? , Stream Leader Circular Economy at BNP Paribas Personal Finance , in Perspectives, the quarterly publication created by BNP Paribas’ NEST. Once marginal, the concept of circularity is now praised by a majority.

• And with good reason: this year, the circular economy saved each European 77 euros on average, according to the Cetelem Observatory 2020-2022 report on the subject . An opportunity for households at a time when inflation is putting considerable pressure on their budgets.

• The circular economy, which, as shown below, aims to foster the sustainable production of goods and services by limiting consumption, waste, and waste production, is a powerful solution to many challenges of our times, from climate change and dwindling natural resources to rising supply chain insecurity.?

Source : Ellen MacArthur Foundation

• A key component of the green transition, its development over the next few years will require significant financial investments. Marie-Sophie Pastant , Head of ETF & Index Portfolio management Team at BNP Paribas Asset Management , highlights the crucial role the finance sector can play in funneling financial flows towards high-performing players of the circular economy. And while circularity remains harder to measure than carbon footprints, regulations are set to evolve in this area over the next few years and facilitate evaluation, helping financial actors boost the development of the circular economy. BNP Paribas has long taken a proactive stance on circularity, launching an ETF based on a circular economy index, covering global companies involved in segments of the circular economy such as recycling, extending product life, sharing platforms, or leasing.

New frontiers

Waving plastic goodbye: SAS Minimum invents material of the future?

• Thanks to a unique thermoforming process, French startup SAS Minimum transforms plastic waste into a safe, fully recyclable new material with a low carbon footprint . An invaluable innovation in a world that produces up to 400 million tons of plastic each year, and one that BNP Paribas is proud to support via its impact investing team. Watch out for “ Le Pavé? " in 2024: the new material will be featured in stadium seats at the Paris Olympic Games!?

Explorers

“The key to reduce the impacts of road transportation lies in a combination of technological, infrastructure and cultural changes.” – Laurence Pessez, Global Head of Corporate Social Responsibility (CSR) at BNP Paribas

• With transportation responsible for 57% of global oil demand and 16% of CO2 emissions, reducing the environmental footprint of automotive mobility will be integral to limiting climate change. A revolution is needed to usher in the automobile of the 21st century, and the future is already on its way, as the 2022 Mondial de l’Auto (17-23 October, Paris) recently showed. Yet electrification and hydrogen, often heralded as the most promising ways to decarbonize cars, are no silver bullets. Ultimately, decarbonizing road transportation will require striking the right balance between pollution reduction and comfort, Laurence Pessez argues.

Milestones

This fall, BNP Paribas provided a 10M€ support to Phenix , a French startup that helps industrials, supermarkets, wholesalers and food producers offer anti-waste baskets thanks to its app downloaded by more than 4 million users and donate unsold products to 2,000+ charities. Since its creation, Phenix saved more than 200 million meals from going to waste.

• This support has been made through the BNP Paribas Solar Impulse Venture Fund, the result of a partnership between BNP Paribas and renowned environmental pioneer Bertrand Piccard and his Solar Impulse Foundation in 2021. Its mission: to invest, with a target size of €150m, in innovative companies acting for the ecological transition.
• The BNP Paribas Solar Impulse Venture Fund is only one example of the bank’s?active policy to encourage ecological innovation and reduce its portfolio’s environmental footprint. In September 2022, this commitment was recognized by British magazine Environmental Finance , which awarded BNP Paribas the EMEA Net Zero Progression of the Year Award. “BNP Paribas has gone beyond its commitment to being a signatory of the Net Zero Banking Alliance to align its ‘whole business’ with the transition, which encompasses creating solutions for clients and scaling up a data-driven approach to transition,” wrote Environmental Finance .
• BNP Paribas’ commitment towards the sustainable transition goes far beyond Europe’s borders: the Bank supports its clients all over the world. That is what demonstrates the Sustainable Future Forum (SFF) organized by BNP Paribas CIB in 16 different locations on October 18th. Discover key insights from speakers from Seoul, Singapore, Abu-Dhabi, Paris or New York .

From the observation post

On track to concentrate 70% of the world’s population by 2050, cities are on the frontlines of the green transition. Find out urban spaces are being transformed and get a glimpse of the real estate world of tomorrow, with “Real Catch Up”, BNP Paribas’ urban foresight podcast .?