Societe Generale is making a major stride towards sustainability with a €500 billion sustainable finance target for the period of 2024–2030. This ambitious goal marks a significant step in the bank’s commitment to advancing the environmental transition while driving innovative investments in energy, circular economies, and nature-based solutions. With 80% of the funds dedicated to environmental initiatives and the remaining 20% earmarked for social causes, the bank aims to accelerate global efforts toward a low-carbon economy.
Pioneering Fossil Fuel Reduction
A key element of Societe Generale’s sustainable strategy is its proactive reduction in exposure to fossil fuels. Since 2019, the bank has achieved a 50% reduction in its upstream oil and gas exposure and has set an ambitious target of 80% by 2030. This aligns with the Paris Agreement and positions Societe Generale as a leader in the global push for net-zero emissions.
Slawomir Krupa, CEO of Societe Generale, emphasized the bank’s ongoing commitment, stating:
“This year, we have taken new steps in executing our strategic roadmap, with concrete progress reflected in the reduction of our fossil fuel exposure. We are continuing to broaden our efforts by supporting our clients in their own transitions, offering tailored solutions and enhanced sustainable finance offerings.”
Concrete Progress on Carbon-Intensive Sectors
Societe Generale is actively working to align its credit portfolios with climate goals through the Net Zero Banking Alliance (NZBA). The bank has made significant strides in decarbonizing its portfolio, with major milestones including:
- Thermal Coal Exposure: Reduced to less than 0.1% of its total portfolio by the end of 2023.
- Carbon-Intensive Sectors: Completed work on 12 high-carbon sectors, establishing clear alignment targets for 10 of them.
- Oil & Gas Reduction: Societe Generale is on track to meet its target of an 80% reduction in upstream oil and gas exposure by 2030, alongside a 70% decrease in emissions across the entire oil and gas value chain.
These achievements underscore the bank’s commitment to a sustainable, transparent approach to financing and carbon emissions reduction. The bank has committed to publishing detailed progress reports, including the NZBA Progress Report and its Climate and Alignment Report, offering transparency in its efforts to reduce carbon risks.
A €1 Billion Investment in Sustainable Innovation
Societe Generale’s sustainability ambitions are backed by significant financial commitments, including a €1 billion fund dedicated to supporting energy transition investments. The bank is focusing on emerging leaders, nature-based solutions, and impact-driven projects. Notable investments include:
- REED Investment: Societe Generale acquired a majority stake in REED, a company focused on energy transition solutions, providing equity investments in emerging energy transition leaders.
- EIT InnoEnergy Partnership: The bank is backing EIT InnoEnergy, which supports sustainable energy start-ups, further advancing the green energy transition.
- Circular Economy Initiatives: Societe Generale invested in the Polestar Capital Circular Debt Fund, Europe’s first private debt fund focused on circular economy projects, supporting the reduction of waste and resource usage in production.
- Schneider Electric Collaboration: Through a partnership with Schneider Electric, the bank is helping mid-sized companies reduce their carbon footprints through energy efficiency solutions.
- IFC Partnership: Societe Generale also facilitated sustainable projects globally, including the BRD risk transfer deal in Romania, which finances SMEs and sustainable ventures.
A Global Leader in Low-Carbon Finance
Societe Generale’s bold financial commitments and proactive approach to the environmental transition underscore its role as a leader in sustainable finance. The bank is not only reducing its own exposure to carbon-intensive industries but is also actively facilitating the transition of its clients and partners toward a sustainable and low-carbon future.
By pushing forward with initiatives like the €500 billion sustainable finance goal and its focus on innovative investments, Societe Generale is aligning its financial resources with the urgent needs of the climate crisis, reinforcing its commitment to global sustainability goals and the transition to a greener, more resilient economy.
References:
- Societe Generale – Sustainability and Climate Goals: Societe Generale Sustainability
- Net Zero Banking Alliance (NZBA): Net Zero Banking Alliance
- EIT InnoEnergy Partnership: EIT InnoEnergy
- Polestar Capital Circular Debt Fund: Polestar Capital
- Schneider Electric Partnership: Schneider Electric Sustainability
