It has been forbidden for 15 years to invest in “controversial” manufacturers: BNP Paribas adjusts its policy to participate in the rearmament of Europe

BNP Paribas softens its “defense and security policy.” As identified by the Financial Times, the bank that has been prohibited since 2010 investing in “companies that produce controversial weapons” changed its rules a few months ago, at a time when Europe seeks to rearm in the context of growing tensions with Russia.

Instead of using the term “controversial weapons” considered too vague and that probably integrate certain types of activities such as drone production, the group now predicted “not financing weapons governed by the main international conventions.”

Among them are the underlying weapons, antipersonal mines, non -localizable bursts, biological weapons, chemical weapons, nuclear weapons and equipment “that have no other practical use than to inflict capital, torture and other cruel, inhuman or degrading treatment, as defined by regulations 1236/2005 of the Council of the European Union”, reading in the new group of the group published in April.

The group also excludes any transaction “linked to the export of defense and security equipment for a country with which the transaction would represent a preponderant risk with respect to human rights.”

EU clarification

In March, the Government had brought together companies in the defense sector in Bercy and the main French banks to encourage seconds to finance the former. On this occasion, BNP had reaffirmed “his long commitment to support the financing of defense companies, mainly within NATO countries, mainly in Europe.”

If tricolor banks support the defense industry of up to 37 billion euros according to their professional federation, some have sometimes been cold in the idea of ​​launching for fear that this activity is not compatible with the criteria of ESG (environmental, social and government).

In June, the European Commission, however, has clearly stimulated investments and indicated that the latter were well compatible with ESG criteria, except for the financing of international governed weapons. This corresponds precisely to the new BNP policy in this area.