Introduction BNP Paribas is a leading global banking and financial services group, headquartered in Paris, France. Paribas was founded in 1848 and is one of the largest banks in the world in terms of total assets, operating in over 65 countries and serving millions of clients. The bank offers a wide range of services, including corporate and investment banking, wealth management, retail banking and asset management. Paribas is renowned for its innovative solutions, strong risk management practices, and its commitment to sustainability which has led to their consistent ranking as a top bank in Europe. Sustainability Goals BNP Paribas’ sustainability goals are based on six pillars. The first focuses on the 3E’s, Energy transition (committing to low-carbon energy and net-zero by 2050, aligning with SDG 13 Climate action), Ecosystems (supporting biodiversity and protecting species, aligning with SDG 7 affordable and clean energy and SDG 15 Life on Land), and Equality (promoting diversity, inclusion, and economic equity). By 2025 BNP Paribas aims for 30% women in leadership roles, aligning with SDG 5 Gender equality and SDG 10 Reduced inequality ​(BNPP AM, 2023, pp. 26, 27)​ The second pillar focuses on Responsible Business Conduct (RBC) and sector-based exclusions, holding its business partners up to high ethical standards in line with the UN Global Compact Principles, by 2030 BNP Paribas wants no financing for coal in OECD countries and in 2040 globally, aligning with SDG 13 Climate action​ (BNPP AM, 2023, p. 35)​. The third pillar focuses on ESG (environmental, social, governance) integration, to guide risks and opportunities to help make better-informed business decisions which links with SDG 8 Decent work and economic growth​ (BNPP AM, 2023, p. 38)​. The fourth pillar, Stewardship (voting, engagement, policy advocacy), influencing other companies and governments to help shape sustainable and fair economies​ (BNPP AM, 2023, p. 60)​. The fifth pillar focuses on Sustainability in financial products, by 2025 they want to allocate €15 billion to sustainable finance which aligns with SDG 9 industry, innovation, and infrastructure and SDG 12 Responsible consumption and production​ (BNPP AM, 2023, p. 102)​. The final pillar is Corporate Social Responsibility (CSR), this includes reducing the environmental impact of their operations, and creating a culture of diversity, equity, and inclusion, by 2025 they want to achieve zero waste and full employee sustainability training​ (BNPP AM, 2023, p. 108)​. Triple Bottom Line Social/People: BNP Paribas Asset Management (BNPP AM) is dedicated to helping their employees grow and creating a welcoming work environment through their Sustainability Centre that plans and executes their sustainability efforts. In 2023, new roles were created for private assets and community- focused initiatives. BNPP AM has over 140 ESG Champions who connect the investment and sales teams with the Sustainability Centre, they receive regular training to stay updated on the latest ESG trends. In 2023, 709 employees earned sustainable finance certifications, 76% had adequate sustainability-related training. pay and bonuses are linked to sustainability goals, by including them in performance reviews and financial rewards, ensuring that everyone is working towards the company’s sustainability goals. ​(BNPP AM, 2023, p. 17)​. Environmental/ Planet: BNPP AM actively works to protect the environment through various practices: Energy efficiency: They made their offices more energy efficient and use green energy, moved their Paris headquarters and their Belgium offices to more efficient buildings. They also encourage sustainable commuting with electric bikes and cars. Waste Reduction and Biodiversity: They aim to reduce waste sent to landfills and protect biodiversity by offering gardening workshops, participating in biodiversity and circular economy workshops, and organizing clean-up events ​(BNPP AM, 2023, p. 109)​. Future goals include reducing the carbon footprint of their investments by 30% before 2025 and 50% before 2030. They also plan to cease coal investments by 2030 in developed countries and by 2040 globally. Additionally, they are focusing on moving to renewable energy sources like wind and solar power, investing in projects that support this transition ​(BNPP AM, 2023, p. 49)​. Economic/profit: BNPP AM aims to deliver strong financial returns while incorporating sustainability into their investment’s strategies. The bank focuses on long-term economic growth by addressing environmental and social challenges​ (BNPP AM, 2023, pp. 5, 11)​. Key Achievements: BNPP AM's main achievements include growing their ESG fund range, investing in ESG data programs, and buying a majority stake in International Woodland Company to improve sustainability. They also updated their Global Sustainability Strategy to be clearer and more science-based, aiming for better financial returns and positive environmental and social impacts 1.3 Greenwashing BNP Paribas has recently been involved in a greenwashing case. In February of 2023, three NGOs filed a lawsuit against BNP Paribas, accusing the bank of violating the French Duty of Vigilance Law (Business & Human Rights Resource Centre, n.d.) by financing fossil fuel projects (Comissão Pastoral da Terra & Notre Affaire à Tous v. BNP Paribas, n.d.; Euronews, 2023). This case marks the first climate-related lawsuit against a commercial bank globally (Business & Human Rights Resource Centre, 2023). Arguments for Greenwashing The NGOs argue that BNP Paribas's public commitments to sustainability are misleading. Despite stating its support for the Paris Agreement, the bank continues to finance major fossil fuel companies, which contradicts its environmental goals (Comissão Pastoral da Terra & Notre Affaire à Tous v. BNP Paribas, n.d.). The lawsuit also claims that BNP Paribas did not conduct adequate due diligence on the environmental impact of its loans. This includes financing companies involved in deforestation and human rights violations in the Amazon (Comissão Pastoral da Terra & Notre Affaire à Tous v. BNP Paribas, 2023). Thirdly, the bank's sustainability reports, and public statements create a picture of strong environmental stewardship, which may not align with its actual practices (Euronews, 2023). Arguments Against Greenwashing BNP Paribas argues that transitioning to sustainable financing is a difficult and gradual process. Immediately cutting off all fossil fuel financing could disrupt economies and energy supplies (Comissão Pastoral da Terra & Notre Affaire à Tous v. BNP Paribas, n.d.). Additionally, the bank could claim partial compliance with environmental goals, highlighting investments in renewable energy and other green projects as proof of its commitment (Euronews, 2023). BNP Paribas might also say that it runs within the legal frameworks and regulatory requirements, which sometimes need balancing various economic and environmental considerations (Business & Human Rights Resource Centre, 2023). So, while the allegations against BNP Paribas suggest greenwashing, the bank's defence could focus on the complexities of transitioning to a fully sustainable model. The outcome of this case will likely rely on the court's interpretation of the bank's duty of vigilance and its actual environmental impact. 2.1 Internal and external stakeholders 2.1.1 Internal stakeholders The Internal stakeholders include employees, management, shareholders, and trade unions. Employees perform essential tasks, driving the bank's success through their productivity and innovation. Management sets strategic direction, makes key decisions, and oversees risk management for investments. Shareholders provide capital, enabling investments and growth, and influence major decisions. Trade unions negotiate fair wages and working conditions, ensuring a motivated workforce. ​​(BNP Paribas, 2023)​ 2.1.2 External stakeholders The external stakeholders include customers, regulatory bodies, suppliers, local communities, NGOs, and the media. Customers generate revenue through their use of the bank's services, while regulatory bodies ensure legal compliance and financial stability. Suppliers provide essential goods and services, impacting operational efficiency. Local communities support the bank and influence its reputation. NGOs advocate for corporate social responsibility, enhancing the bank's public image. The media shapes public perception through its coverage of the bank's activities. ​(BNP Paribas, 2023)​ 2.2 Stakeholders map We analysed the stakeholders of BNP Paribas. Employees of BNP Paribas execute daily operations and strategic activities; they have both high interest and high influence. Management is responsible for overseeing operations and making strategic decisions, they have high interest and high influence. Shareholders, who provide capital and vote on major decisions, also have both high interest and high influence. Trade unions, which represents employees' interests and advocating for fair labour practices and employee rights, have a high interest but a moderate to high influence. Customers who use the bank's products and services are crucial for BNP Paribas. Their satisfaction and loyalty directly affect the bank's reputation and revenue, making their interest and influence high. Regulatory bodies ensure compliance with laws and regulations, hold a high level of influence due to their ability to impose fines and sanctions. Suppliers, who provide necessary goods and services, have a medium level of interest and moderate influence. Local communities, have a medium interest in economic development and environmental impact and have a moderate influence. NGOs, have a high interest in corporate social responsibility and ethical practices, but have moderate influence. Lastly, the media has a high influence in shaping public opinion but do not have much direct interest in Paribas​ (BNP Paribas, 2023)​. 2.3 Negative externalities BNP Paribas, as a financial institution, indirectly contributes to several negative externalities. These are social and environmental costs that arise from the bank's financing activities. BNP Paribas finances industries, including fossil fuel companies, that produce major carbon emissions, contributing to climate change. The bank’s financial support allows these companies to expand, increasing their carbon footprint (BNP Paribas, 2023; BNP Paribas, 2022). For example, BNP Paribas has backed companies like Repsol, a major carbon emitter (Repsol, 2022). BNP Paribas funds projects that can lead to environmental pollution, such as mining operations that release toxic waste into water bodies. While BNP Paribas does not directly cause pollution, its financial support aids these projects (PERSPECTIVES - Banque BNP Paribas, n.d.). By financing large corporations, BNP Paribas can contribute to social inequality. Large projects may lead to the displacement of communities or poor working conditions, widening the gap between rich and poor (SECOND PARTY OPINION [SPO] - invest. Bnp paribas, n.d.). The bank’s financing of industries like agriculture and energy can result in deforestation and habitat destruction, negatively impacting biodiversity (BNP Paribas, 2023). BNP Paribas’s support for industries that use large water resources can worsen water scarcity, especially in already stressed areas (PERSPECTIVES - Banque BNP Paribas, n.d.). Although BNP Paribas can influence these outcomes through policies, the responsibility for these externalities lies with the companies operating the projects. 3.1 Social Sustainability Issue: Financial Inequality Faced by Elderly People Reason for the Issue Many elderly people face financial inequalities, often having less access to financial services, struggling with limited income, and facing higher healthcare costs. According to the National Council on Aging, more than 17 million older adults aged 65+ are economically insecure, with incomes below 200 percent of the federal poverty level ​(NCOA, 2024)​. They often struggle to access financial assistance, making it harder to manage expenses and secure affordable housing. Higher interest rates and stricter rules can prevent them from handling unexpected costs. Addressing these issues is crucial to ensure they can live with financial security and dignity. Partner Organization AARP (American Association of Retired Persons) Description of AARP AARP is a nonprofit organization that helps people aged 50 and older, focusing on money, health, and social activities. AARP provides resources, advocacy, and programs to help older adults manage their finances and access necessary services. They work to empower older adults to live independently and with dignity. AARP also advocates for issues like Social Security, Medicare, and affordable healthcare ​(AARP, n.d.)​. Why Work with AARP? AARP has extensive experience in addressing financial inequalities among elderly people. They offer programs that help seniors access benefits, avoid financial scams, and improve their financial literacy. AARP partners with major companies like Bank of America, Google, and UnitedHealthcare ​(Hayes, 2024)​. By partnering with AARP, BNP Paribas can leverage these programs to better support their elderly clients. Added Value Partnering with AARP will allow BNP Paribas to support elderly people by utilizing AARP’s programs, resources, and experience. This collaboration can address financial inequalities among the elderly, helping them manage their money, avoid financial scams, and improve access to affordable financial services. This partnership will not only support the elderly but also enhance BNP Paribas's reputation by demonstrating their commitment to social sustainability and efforts to address inequality. 3.2 Environmental Sustainability Issue: Climate Change and Carbon Footprint Reduction Reason for the Issue Climate change poses a significant risk to the banking industry, impacting both operations and financial stability. Banks are recognizing the need to reduce their carbon footprint and support the transition to a low-carbon economy. Addressing this issue can enhance BNP Paribas’s reputation, meet regulatory requirements, and align with global sustainability goals (Eceiza et al., 2020). Partner Organization Carbon Disclosure Project (CDP) Description of CDP The Carbon Disclosure Project (CDP) is a global nonprofit organization that runs the world’s leading environmental disclosure system. CDP supports companies and cities in measuring and managing their environmental impacts, focusing on climate change, water security, and deforestation (CDP homepage, 2024). Why Work with CDP? CDP offers a framework for measuring and managing carbon emissions, which can improve stakeholder trust and attract environmentally conscious investors. CDP provides benchmarks and best practices, enabling BNP Paribas to set up effective sustainability targets. Added Value CDP provides expertise in carbon emissions reporting, benchmarking, and stakeholder engagement. By partnering with CDP, BNP Paribas can enhance its environmental sustainability efforts, improve transparency, and attract investors focused on sustainability. 4.1 corporate social responsibility and stakeholder map 4.1.1 corporate social responsibility BNP Paribas has set targets to stop funding any coal related activities. Since 2017 they have not financed any new coal-fired power plant projects globally. Paribas also does not accept new customers whose share of coal related revenue surpasses 25%. Paribas set targets for their electricity-producing customers to cut off coal usage completely, by 2030 for the European Union and 2040 for the rest of the world​ (BNP Paribas, 2020)​.   This initiative is an example of traditional CSR focusing on damage control. The main objective is to reduce the negative environmental impact associated with coal financing. It addresses the harmful effects of coal usage, focusing on fixing problems instead of actively working to create positive environmental changes. By committing to phase out coal financing, BNP Paribas aims to lessen its environmental footprint and comply with regulatory and societal expectations ​(BNP Paribas, 2020)​. 4.1.2 corporate social responsibility stakeholder map For this CSR example eight key stakeholders were identified.   Customers (electricity producing): Customers are impacted by Paribas’ targets and must transition away from coal. Customers have high influence and high interest so Paribas must manage closely. Shareholders and Investors: They directly influence decision-making and strategy, so they have high influence and high interest. Regulators and policy makers: They are high influence due to legal requirements and climate agreements. They have high interest since the csr example complies with sustainability policies. Competitors: They can influence through setting industry benchmarks and by adopting similar commitments. Their interest in Paribas’ decisions is low. NGO’s: They are interested in environmental impacts and corporate responsibility and have high influence. General public: They influence people’s perception; however, they are not directly after Paribas’ policies, which gives them moderate influence and moderate interest. Media: They shape public perception which gives them moderate influence, since they have no direct authority. They have high interest since sustainability is a relevant subject in the media. Employees: indirectly impacted through potential role adjustments. But have low interest and low influence. 4.2 Creating shared value and stakeholder map 4.2.1 creating shared value BNP Paribas has integrated sustainability into its core business through its sustainable finance initiatives. The bank actively promotes and finances projects that contribute to environmental sustainability, such as renewable energy projects, green bonds, and sustainable infrastructure. By doing so, BNP Paribas not only supports the transition to a low-carbon economy but also creates economic value for itself through new business opportunities and enhanced reputation. 4.2.2 creating shared value stakeholder map . Seven stakeholders are central to CSV. Customers (Individuals, SMEs, Corporates): Customers seek financing for sustainable projects, driving demand for sustainable finance products. They have high influence as their needs shape the bank's offerings. Employees: Employees develop and manage sustainable finance products, executing the bank's sustainability strategy. They have moderate influence due to their critical role in implementation. Shareholders and Investors: These stakeholders provide capital and expect returns on sustainable investments, significantly influencing the bank's financial decisions. Regulatory Bodies and Public Authorities: They set regulations and policies for sustainable finance, enforcing compliance. Their high influence ensures the bank adheres to legal standards. Suppliers and Partners: Collaborating on sustainable projects, suppliers and partners contribute to the value chain. They have moderate influence through their essential support. Civil Society (NGOs, Local Communities): Advocating for environmental and social responsibility, these groups shape public opinion and pressure the bank to act responsibly. They hold moderate influence. Media and Opinion Makers: Reporting on BNP Paribas' sustainability efforts, they affect the bank's public image. Their moderate influence can enhance or challenge the bank's reputation. 5.1 solutions to move towards a circular economy Circular Economy Proposal for BNP Paribas in the Electronics Industry. Industry: Electronics BNP Paribas, as a financial institution, primarily deals with financial products and services rather than physical goods. This makes it challenging to implement circular economy practices, which are typically focused on the lifecycle management of tangible products. However, BNP Paribas can still play an important role by influencing and financing companies in other industries to adopt circular economy principles. 5.1.1 Solution 1: Financing circular business models BNP Paribas can provide financing to companies that adopt circular business models in the electronics sector. This includes supporting business that focus on refurbishing, remanufacturing, and recycling electronic devices. By offering favourable loan terms and investment opportunities, BNP Paribas can encourage more companies to adopt these sustainable practices. To start, BNP Paribas should refuse to support business models that rely on single-use electronics. Instead, support those that design durable and recyclable products. Reduce: Encourage companies to use fewer materials by designing lighter and more efficient devices. Design: Focus on creating electronic products that are long-lasting, easy to repair, and recycle. Promote modular designs that allow for easy part replacement. Manufacture and distribute help companies reduce material usage by optimizing their manufacturing processes. Encourage the use of sustainable materials and minimal packaging. 5.1.2 Solution 2: Investing in circular infrastructure development BNP Paribas can fund projects that aim to build the infrastructure necessary to establish a circular economy in the electronics sector. This includes funding initiatives that promote recycling and reusing electronic products, which will contribute to reducing waste. This can include, for example, recycling facilities that specialize in extracting the valuable materials from e-waste (electronic waste) such as rare materials to reduce the need for new rare materials, in 2022 a record of 62 billion kilograms of e-waste was produced, embedded in this waste were 31 billion kilograms of valuable materials ​(ITU, 2024)​. Another example would be establishing repair hubs that make it easier for customers to fix their electronics, so that electronics can be reused instead of being disposed of. 5.1.3 Solution 3: Product-as-a-Service BNP Paribas can encourage electronics manufacturers to adopt Product-as-a-Service (PaaS) models, where customers pay for the usage of devices rather than owning them. This approach makes sure that electronics are returned to the manufacturer at the end of their life cycle for refurbishment, recycling, or responsible disposal. Using the 5Rs framework: Reuse: Products can be refurbished and leased to other customers. Recycle: End-of-life products are processed for material recovery. Redesign: Incentivize manufacturers to develop durable, modular products that are easy to repair and recycle. Financing these business models aligns with the PaaS 7-step model, particularly steps 5 (use optimization) and 7 (end-of-life management). This ensures a closed-loop system, reducing e-waste and resource extraction. 5.2 environmental impact These solutions have a lot of environmental benefits. Recycling infrastructure reduces the need for raw materials, decreasing mining activities and associated environmental harm. Repair hubs and PaaS models extend product life, reducing waste and carbon emissions from manufacturing new devices. By focussing on closed-loop systems, BNP Paribas supports a significant reduction in the environmental footprint of the electronics industry. stakeholders Customers: Customers will gain access to affordable, durable electronics with repair and leasing options. This reduces waste while lowering the cost of ownership. Electronics Manufacturers: Need to invest in sustainable product design and PaaS infrastructure but benefit from long-term savings and customer loyalty. Governments and Regulators: See reduced e-waste volumes, helping them meet environmental targets and reduce public health risks associated with improper e-waste disposal.