French banking giant BNP Paribas sued for fossil fuels financing

Written By adam bezemek

Several non-governmental organizations (NGOs) sued BNP Paribas on February 23, 2023, for allegedly violating the French Duty of Vigilance law.

The plaintiffs want BNP Paribas to be ordered to:

  • Terminate funding for new fossil projects. 

  • Use its power as a shareholder to force portfolio companies to renounce new fossil projects and take actions to limit global warming to 1.5°C., or to divest those investments. 

  • Take other actions compatible with the Paris Agreement 1.5°C goal. 

Why this matters 

  • This case will be studied for its historic, precedential significance.

  • There is a global movement to pressure banks and institutional investors to cut ties with the fossil fuels industry.

  • Private climate litigation like this will be a major new weapon in the arsenal of environmental and human rights activists.

  • The French law was the first Value Chain Sustainability (VCS) law. The VCS concept becomes more developed and stronger with each new VCS law.

What companies need to do

  • Companies directly affected by the French law need to become compliant at once. 

  • Direct and indirect suppliers to such companies will be under pressure to cooperate with the compliance demands of their supply chain partners.

  • Sizable companies should (i) educate themselves systematically about VCS laws and (ii) develop strategies to survive and thrive under existing and future VCS laws.

This article is only a quick summary of the BNP Paribas case, its context and significance. For more detailed information, see Groundbreaking lawsuit against BNP Paribas, https://mcalan.com/groundbreaking-lawsuit-against-bnp-paribas.

©Allen Campbell 2023
Written Mar 09, 2023
By Allen Campbell, JD, MBA
www.linkedin.com/in/allencampbelljdmba
Email: AC@McAlan.com
Tel. 972-402-5300
adam bezemek
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Part II: Are All Carbon Emissions (And Credits) Created Equal?