Credit Agricole SWOT & PESTLE Analysis

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Market opportunity in Asia: Although the Credit Agricole currently has its operations in China and India, it does not have any presence in the South Pacific Asian countries. Even in India the Credit Agricole Group does not provide all its products. Bangladesh is currently the fastest growing economy in the south-east Asia and also acts as a viable option got the Green Bank to enter. Apart from Bangladesh, countries like Vietnam, Philippines provide ample of opportunities with a shift is global macroeconomic trend in the favor of Asia. The need of infrastructure and capital to support this shift provides immense market opportunity for a financial sector player like Credit Agricole.

2. Developing Green solution: The Green Bank can invest in the development of investment and financing solutions to support institutional customers, businesses and professionals in adopting a low-carbon trajectory. It can also develop additional products and services to help consumers adapt their habits to an economy that consumes less energy, in line with the Paris Agreement. These include solutions for green mobility, energy efficiency upgrades and specific insurance. Finally the Group also needs financial innovation to address new business models. Currently Credit Agricole is the number one arranger of green bond worldwide.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

1. Environmental commitment to combat climate change: Global commitment to combat climate change and preserve biodiversity has become a necessity for the companies of today’s world. There is a growth in the number of regulatory and fiscal initiatives to reduce greenhouse gas emissions. There is also an urgent need to limit the scope of climate change and adapt behaviors and business models to the new situation, notably in high carbon-emitting industries such as energy, transport, building and public works, and farming. Therefore development of investment and financing solutions to support institutional customers, businesses and professionals can be new company trajectory. These solutions have the risk of higher costs and economic losses due to the consequences of climate change, both directly (related to bank transactions) and indirectly (related to customers' activities) and also may be prone to loss in market share. Energy transition Five years after the creation of FEIH (Futures Energies Investissements Holding), held 50/50 by Engie and Crédit Agricole Assurances tripled its original portfolio and reached 1.5 GW in solar and wind capacity in France. CAA is reinforcing its position in energy transition infrastructure, a sector in which it is the leading institutional investor in France.

2. Momentum in green and social bonds market: 2018 was another strong year for the Green, Social and Sustainability Bonds market. According to Dealogic data, a total amount of €149bn equivalent was issued from more than 300 individual issuers, led by China (16%), the USA (14%) and France (11%). In 2019, Crédit Agricole CIB sees a continuation of this momentum and forecasts €180bn of new issuance. Erwan Créhalet, Crédit Agricole CIB Research Green Bond Analyst said that the volume of green and social bong will continue to grow to reach €180bn equivalent in 2019, notably driven by Asian issuers and by non-financial corporates.