French banking group BNP Paribas has collaborated with Baringa to develop its climate scenario analysis capability.

The move will offer an additional objective and data driven approach to climate strategy and commitments, noted Baringa.

The bank will utilise Baringa’s Climate Change Scenario Model under the partnership.

Baringa head of Financial Services Sector & Climate Change Colin Preston said: “We will help BNPP to accelerate and embed practical and usable climate analytics across its organisation, feeding into its climate strategy, and into all key decision making and reporting.

“This will pave the way for others to follow across the industry.”

Being fully integrated, the Climate Change Scenario Model of Baringa combines transition and physical risk along with climate risk and temperature alignment measured at individual asset level.

It offers comprehensive global coverage of various sectors and asset classes.

BNPP head of Stress Testing Methodologies and Models Antoine Bezat calls climate scenario analysis a “critical strategic capability” for the bank.

Bezat noted: “Baringa’s Climate Scenario Model stands out for its breadth of sector and asset coverage, the integration of transition and physical risk, and the ability to provide risk metrics down to the individual asset level.

“The modular and customisable nature of the solution will enable us to develop our own climate scenario and risk framework over time, to the specific needs of BNPP.”

The French lender has attained its carbon neutrality goal in terms of the CO₂ emissions from its own operations. It also increased total funding for renewable energies and backed innovative start-ups to ramp up energy transition initiatives, stated Baringa.

In a separate development recently, BNP Paribas picked Orange Business Services (OBS), a part of telecom company Orange, as its technology partner to accelerate its digital transformation in France.