Comparative analysis of BNP Paribas' approaches to energy sustainability, security, and costs in France and South Africa

Corgnier, Julien

Comparative analysis of BNP Paribas' approaches to energy sustainability, security, and costs in France and South Africa

Thesis / Dissertation

2025

Publisher

University of Cape Town

Department

Graduate School of Business (GSB)

Faculty

Faculty of Commerce

Abstract

This thesis investigates BNP Paribas' approaches to sustainability, security, and energy costs in France and South Africa, comparing the bank's strategies in response to energy challenges. The research problem focuses on banks' challenges in creating consistent energy sustainability strategies across different regulatory and socio-economic contexts. The study aims to understand how BNP Paribas balances sustainability and profitability in these regions. The research employs a qualitative methodology, using a comparative case study approach. Data was collected through interviews with key stakeholders and content analysis on secondary data, focusing on the bank's energy investment strategies, regulatory interactions, and responses to local challenges. The data was analysed thematically to identify patterns and differences in the bank's approaches in the two countries. The study concludes that regional contexts influence the effectiveness of bank's energy sustainability projects. In France, BNP Paribas has taken advantage of a stable regulatory environment to promote renewable energies. They target 90% renewables in their portfolio by 2030, supported by policies like the European Green Deal. In South Africa, challenges such as coal dependency, regulatory inconsistencies and socio-economic complexities limit the bank's efforts. As a result, direct energy investments were reduced and its Johannesburg branch closed in 2024. Instead, BNP Paribas has focused on stable African regions such as Morocco, aligning itself with its sustainability goals. These findings contribute to the field of sustainable finance by providing insights into the complexities banks face in balancing sustainability and profitability. The study underscores the importance of context-specific strategies and the role of banks in promoting global energy transitions.