BNP Paribas Fortis has become the first bank in Belgium to launch a green hedge. With this product, the bank gives clients the opportunity to integrate their sustainable objectives deep into their business operations.

Sustainability is now embedded in almost every company's mission. Companies undertake numerous ecological initiatives and finance sustainable investments with green loans. BNP Paribas Fortis is going one step further and is also offering its clients the opportunity to cover the financing risk with a sustainable hedge.

A Belgian first

The first green interest rate hedge in Belgium has become a reality. "We are delighted and proud to be able to achieve this first with Katoen Natie as true partners", explains Filip Moens, Head of Corporate Solutions in the trading room at BNP Paribas Fortis. "Katoen Natie already had a green loan with us and wanted to hedge the interest rate risk by switching from a variable to a fixed interest rate using an interest rate swap. Instead of opting for an ordinary interest rate hedge, we have attached additional green terms and conditions that mean Katoen Natie is strengthening its sustainable commitment."

Katoen Natie carried out an interest rate swap, but a green hedge can also be applied to exchange rate or inflation risks. Moreover, having an existing green loan is not a requirement.

Sustainable safety net

The green hedge stimulates sustainability, but goes even further and provides a green safety net, with the client paying a sustainability premium if the proposed terms and conditions are not met. BNP Paribas Fortis does not receive this premium itself, but instead invests it in an environmental project chosen in advance. "At Katoen Natie, for example, we chose a project that plants trees. The effect of this product is therefore twofold. On the one hand, it is an incentive for the client to actually fulfil their ecological commitment. However, if they fail to do so for any reason, the additional premium they pay will be spent on a green project. So it's a win-win situation for the environment", says Filip Moens.

Tailored to your business

"The strength of this product lies in its broad application", emphasises Filip Moens.

"Companies who do not have a green loan but want to integrate more sustainability into their corporate culture, can really make this ambition a reality thanks to the green hedge. The green terms and conditions linked to it are determined by mutual consultation. A lot is possible as long as these are sufficiently ambitious, achievable and measurable. These include switching to 80% renewable energy, making the fleet 100% electric in five years' time, and collecting litter as an annual team-building exercise. Companies can define conditions that are perfectly in line with their corporate culture. The same applies to the back-up project that we finance if the conditions are not met. Here, too, they can opt for a local project close to their heart."

No empty promises

A green hedge reinforces existing green projects and firmly underlines an active green commitment. This therefore concerns more than image. "This product integrates sustainability deeply into business operations and requires a serious and firm commitment from clients", says Filip Moens. "They have to be really motivated to do something about the environment. There is quite a lot of administration involved, such as an annual evaluation report and external audits. However, clients really do make a difference with this green choice."

As a true partner, BNP Paribas Fortis wants to make a positive contribution to companies' projects and growth. The green hedge is in line with companies' current sustainable mindset and fits perfectly with the bank's strategy: to build a positive, sustainable and clean future together with clients.

How can we turn the constraints of the energy transition into a strategic opportunity? “With rigour and pragmatism,” says our partner Climact.

"We support and advise businesses so they can take action and achieve more climate maturity. This includes addressing climate-related obligations, such as the sustainability reporting required under the European Corporate Sustainability Reporting Directive (CSRD)," explains Jerome Meessen, Associate Partner at Climact. "We ensure they get real added value from this, the most tangible result being a reduction in their energy bills or improved resilience of their supply chain and customers in the face of the climate transition. Our approach is both rigorous and pragmatic. Rigorous because we base ourselves on figures and use standardised methods, such as the Greenhouse Gas Protocol, for calculating a company's carbon footprint, thus avoiding the pitfalls of greenwashing. And pragmatic because we always adapt to the company's reality. "

A 5-step process

So, how does Climact support businesses and public organisations?
Jerome Meessen: "Firstly, we help them understand the effects of climate change they are or will be facing. We do this by mapping opportunities and risks, such as flooding of a production site or the risks associated with high carbon prices. We also assess their current impact, i.e., the carbon footprint of their operations. The next step is their vision for the future, in which we define sustainability goals with them, referring to the international standards of Science Based Targets initiative where relevant. We then help them develop a detailed transition plan and implement it on the ground, allowing them to define the content and details of a green energy purchase agreement, for example. Finally, we provide support for communicating their commitment, in line with the CSRD requirements."

CSRD: burden or strategic opportunity?

Many businesses are subject to the CSRD, which enters into force this year, and its reporting process. “The directive aims to provide maximum transparency on how businesses manage their sustainable transition,” says Jerome Meessen. "The reporting focuses on environmental, social and governance (ESG) aspects. "This also allows stakeholders and especially investors to get an objective idea of the progress made, as well as a company's climate ambitions and its exposure to climate change risks."
“The CSRD sustainability reporting is a significant burden for companies,” adds Jérémy Robinet, who coordinates the partnership with BNP Paribas Fortis. "You must adhere to a specific methodology and standards, fill in forms, provide indicators... But it is also an opportunity to develop a solid, well-founded transition strategy that will benefit the company, including its reputation. Businesses can save time with our support, knowing that their reporting complies with regulatory constraints and that their ESG approach creates value and is meaningful."

Climact, a partner of BNP Paribas Fortis

Climact is one of several partners selected by BNP Paribas Fortis to support its corporate customers with non-financial issues. “At the initiative of the bank’s Relationship Manager, we meet companies who want to make progress in terms of their energy and sustainable transition, more specifically for their decarbonisation strategy and to draw up their carbon balance sheet,” explains Jérémy Robinet.
Gilles Roumain, Sustainability Program Officer at BNP Paribas Fortis who oversees the partnership with Climact, says: "The collaboration with Climact allows us to provide solutions to our customers, support them in decarbonising their activities, and continue to build our expertise on these decarbonisation issues. By offering this support, we also reduce our carbon footprint."

“The companies that the bank has referred to us come from all industries,” says Jérémy Robinet. "They are larger companies, e.g., with a turnover of at least 25 million euros or a complex supply chain. This partnership has already led to fifteen collaborations, including with garage door manufacturer RE Panels.

We initially assisted them with drawing up a carbon balance sheet in line with European CSRD requirements.  Management then realised the strategic interest of our work and asked us to perform more specific analyses by product and production site. This, in turn, allowed them to identify best practices. RE Panels really appreciated our approach. We calculated the cost, gains and investment amount for each carbon footprint improvement objective. They also commended us for our rigorous alignment with international standards, a key element to avoiding greenwashing pitfalls."

Since 2019, the bank has reduced its CO2 emissions per full-time equivalent by 55%. And according to Sandra Wilikens, Chief Human Resources Officer, everyone must play their part.

Between 2019 and 2022, the bank succeeded in reducing its CO2 emissions by 55%. So how did you do this?

"Mainly by focusing on the energy efficiency of our buildings, which account for approximately 80% of our immediate emissions. We also optimised our real estate and significantly reduced business travel. We settled on a structured approach involving all departments. Since 2012, our Green Bank Platform has gathered the contact persons of each department every quarter, allowing them to present an action plan with their initiatives. They then develop a series of KPIs on energy and paper consumption, business travel, the electrification of the vehicle fleet, waste management, etc. Because measuring is knowing."

The target was to achieve a 42.5% reduction in emissions compared to 2012 by the end of 2025. A goal we have since achieved. What else is in the pipeline?

"We have no intention of resting on our laurels until 2025. Because there is no time to waste if we want to be carbon neutral by 2050. Our new headquarters at Montagne du Parc in Brussels is a good example of energy efficiency, but there is still a room for improvement in the rest of our real estate. We will improve the energy efficiency of the various regional offices, install solar panels in more than 80 branches, and LED lighting will become standard in all our buildings. These efforts must allow us to reduce our CO2 emissions by another 7%."

How much progress have you made in terms of the electrification of your fleet?

"We are making a sustained effort to electrify our fleet, and I think we are on the right track. At the end of 2022, just under 30% of our fleet of leased company cars was electric – 100% electric and plug-in hybrids. In the third quarter of 2023, these cars accounted for 95% of new orders. This was largely due to the new car taxation. But for employers, it doesn't stop there. They must deal with a complex tax framework, including the reimbursement of electricity costs. Some of our staff members also face obstacles, for example, because they have difficulty accessing a charging station. I intend to organise a mobility roundtable this year. The aim is to bring governments, operators, start-ups and companies together. Because we have to move forward and are all in this together."

How do you ensure sufficient employee engagement?

"With a lot of communication. You need to explain what you are doing and why. That is the only way to get people to cooperate. We have a network of more than 200 EcoCoaches within the bank. The sustainability compartment of CBA 90 also inspires. We set six specific objectives each year. If we achieve at least three, all staff members receive a bonus at the end of the year. To date, this has been a success. We also have other incentives. With our “Green Fuel Consumer Plan”, we reward staff members who have a company car but use it sparingly. We are also launching many campaigns to promote soft mobility, such as walking, cycling and public transport. The decision to base our offices in cities is also positive. At the end of 2022, 79% of the employees working in Brussels used public transport to get to work. Outside cities, 60% of employees do this."

Finally, can you think of any issues that need to be addressed urgently?

"Digital pollution is often underestimated. To give you an idea: sending 100 mails emits just as much CO2 as driving twenty kilometres. That’s why we organise an internal campaign every year to raise awareness among our staff members and give them tips on how to reduce their digital footprint. Regularly cleaning up your mailbox, sending links instead of files, deleting outdated files: all little things. But if our 11,000 colleagues do this daily, we can make a big impact. Every effort counts!"

The bill to introduce this obligation in Belgium has been submitted to the Federal Parliament. If the draft bill is approved, B2B e-invoicing will become mandatory from 1 January 2026. Our experts explain why Belgium wants to introduce these new rules, what the implications are for your company and how we can better support you.

“The bill is consistent with international developments and initiatives at the European level,” says Nicolas De Vijlder, Head of Beyond Banking at BNP Paribas Fortis. "Europe's ambition is a harmonised digital standard. Structured e-invoicing between companies will also reduce the administrative burden of invoicing, enabling companies to work more efficiently and increase their competitiveness. The automation of VAT declarations will also help governments prevent tax fraud and adjust economic policies based on more qualitative data.”

Evolution rather than a revolution

“The new legislation is an evolution rather than a revolution,” adds Erik Breugelmans, Deputy Managing Director at BNP Paribas Factoring Northern Europe. "Digitalisation is becoming pervasive at all levels of society, as we have seen with the increase in electronic payments, as well as the additional obligations in recent years regarding electronic invoicing to the government. In this sense, the bill for mandatory electronic invoicing between companies is a logical next step. Our bank is happy to contribute to this process, although we do not intend to offer the same services as accounting software or fintechs. However, we are happy to help our customers with payments and financing."

The impact on businesses

“Customers need to be aware that the new regulations will have an impact on their internal and external processes,” continues Erik Breugelmans. "The majority of Belgian companies mainly serve an international market, which means that the introduction of electronic invoicing will be more complex for them than for companies operating in the domestic market. As the legislation will be introduced in one go, they need to start preparing now."

“The new rules will affect a company’s accounting department as well as its IT department,” emphasises Nicolas De Vijlder. "The procedural requirements are key, otherwise the automated process will not work. However, one of the main benefits of advanced automation is that everything can be done faster and more efficiently. The time between sending an invoice and paying it will be shorter and cash flows more predictable. In addition, it will also reduce the risk of error and fraud, as all transactions will pass through a secure channel."

Ready to offer you even more and better support

“Thanks to the far-reaching digitisation resulting from the new regulations, we will be able to further optimise payments,” concludes Erik Breugelmans. "As a bank, we need to finance our customers’ receivables as quickly and efficiently as possible, so that they have easier access to their working capital. In addition, because we have already gone through an entire process in terms of large-scale automation, we will be able to adapt quickly to the new rules. We can also draw on the expertise of the BNP Paribas Group, which is currently developing an e-invoicing solution for large companies."

Want to know more?

Listen to the episode on B2B e-invoicing :

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A subscription to build customer loyalty, reinvent yourself in times of crisis and buy better: Emna Everard saw that as exactly the right way to launch and maintain her Brussels-based start-up.

Born into a family of dietitians, Emna Everard knows what it means to eat healthily. "At the age of 12, I was already deciphering packaging labels. My dream was to open a supermarket one day where you could shop with your eyes closed", she recalls.

And because Everard has entrepreneurship in her bones, that’s exactly what she did. In 2016, just before the end of her university studies, she launched the “healthiest online supermarket on the market”: Kazidomi. Her standards are high, both in terms of composition and taste. Kazidomi selects products carefully, enabling its customers to buy healthy, mainly organic, plant-based products with complete confidence.

The loyalty programme

Six months after its launch, Kazidomi’s growth is accelerating thanks to the launch of its loyalty programme. A 59 euro subscription offering 20–50% discounts on all food, cosmetics or care products available online. Profitability and savings guaranteed.

This was followed by a first fundraising of €50,000 in 2017. Kazidomi is growing, expanding the size of its stock and developing its marketing. Everard hired her first two employees. Sales grew rapidly and literally exploded during the COVID-19 pandemic. "Consumers suddenly had time to think about their health and well-being and were doing most of their shopping online," she adds.

How did you reinvent yourself?

The post-crisis period was a turning point. "Kazidomi had to reinvent itself. We wanted to have financial stability and avoid any dependence on external resources," continues Everard. Together with her teams, she looked at their cost structure, operational efficiency and marketing. After these reflections, the aim was no longer growth at any price, but the company's long-term viability and financial health, thanks to an intelligent reorganisation.

Two acquisitions would subsequently enable Kazidomi to boost its growth, creating significant synergies: "Smart Fooding" in August 2022 and "Bébé au Naturel" a few months later, a business specialising in healthy products for babies and their parents. "With Bébé au Naturel, we doubled the volume of orders sent out," adds Everard. "This has allowed us to get a better rate from our carriers and reduce costs."

A responsive and attentive bank

As the Brussels start-up’s bank, BNP Paribas Fortis granted it three loans for its launch, between 2016 and 2019. This support came naturally, with Kazidomi’s commitments in terms of Environmental, Social and Governance (ESG) objectives perfectly aligned with the bank’s strategy. "We joined the BNP Paribas Fortis Innovation Hub programme and our relationship manager – who knew the start-up environment extremely well – was immediately enthusiastic and very attentive. He believed in our project, followed it closely, advised us to participate in a series of events to meet other players whose background and profile would be of interest for us," explains the Entrepreneur of the Year 2019.

But the support didn't stop there. "In December 2022, it was thanks to BNP Paribas Fortis, among other things, that we were able to acquire “Bébé au Naturel”. Start-ups like Kazidomi need a high level of responsiveness from their bank. When there is a company to buy, or another opportunity, things have to move fast. Analysis of the file, provision of funds: BNP Paribas Fortis has always been responsive and enthusiastic and has supported us in 99% of our requests," says the CEO enthusiastically.

Kazidomi is ready to change the world. Discover even more inspiring entrepreneurial stories.