BNP Paribas is set to extend a sustainability-linked revolving credit facility to Ant Group, leveraging a blockchain-based carbon management platform to validate the Chinese firm’s environmental credentials.
Under this agreement, BNP Paribas will provide revolving credit lines that feature a dual interest rate adjustment mechanism, directly tied to Ant Group’s Sustainability Performance Targets (SPTs). These targets include commitments to uphold green and sustainable development goals, achieve carbon neutrality, utilize renewable energy sources, and allocate a portion of annual sales revenue for biodiversity and environmental initiatives.
To ensure accountability, BNP Paribas will annually assess the SPTs through Carbon Matrix, AntChain’s enterprise-level carbon management software. This blockchain-enabled platform guarantees a transparent and secure verification process. Should Ant Group meet its sustainability goals, the interest rate on the credit line will decrease; conversely, failing to hit these targets will result in a higher interest rate.
This partnership follows BNP Paribas’s recent announcement that it has maintained carbon neutrality in its operations since 2021, with plans to achieve net-zero emissions across its entire value chain by 2030.
On April 21, Ant Group also joined the Low Carbon Patent Pledge, offering its green computing patents at no cost to innovators focused on low carbon solutions globally. Throughout the year, various financial institutions from China and abroad have engaged in discussions with Ant Group regarding potential green financing collaborations.
CG Lai, CEO of BNP Paribas China, remarked, “Sustainability is a core element of BNP Paribas, influencing our strategic direction and day-to-day activities. Ant Group is a strong proponent of ESG initiatives worldwide. Our shared vision for a sustainable future sets the stage for fruitful collaborations and innovations in sustainable finance.”