Societe Generale Advances Sustainable Finance Goals with €500 Billion Commitment by 2030

Societe Generale Advances Sustainable Finance Goals with €500 Billion Commitment by 2030

(IN BRIEF) Societe Generale has set a new €500 billion sustainable finance target for 2024-2030, focusing 80% on environmental initiatives like renewable energy and 20% on social projects. Having achieved its earlier €300 billion target ahead of schedule, the bank aims to further decarbonize its portfolio, including reducing fossil fuel exposure and aligning with net-zero goals under the Paris Agreement. Investments include innovative partnerships, such as with EIT InnoEnergy and Schneider Electric, to support the green transition. CEO Slawomir Krupa emphasized the bank’s role in driving sustainable economic growth and supporting client transitions to a low-carbon future.

(PRESS RELEASE) PARIS, 23-Nov-2024 — /EuropaWire/ — Societe Generale has announced a significant milestone in its environmental transition strategy by setting a new €500 billion sustainable finance target for the 2024-2030 period. This move reinforces the bank’s commitment to supporting the transition to a low-carbon economy and reflects its ongoing alignment with the Paris Agreement goals.

Building on its earlier €300 billion sustainable finance target for 2022-2025, which was achieved ahead of schedule, the new target comprises approximately €400 billion in financing and advisory services and €100 billion in sustainable bonds. Around 80% of the funds will support environmental activities, including renewable energy, sustainable real estate, and low-carbon mobility, while the remaining 20% will focus on social initiatives.

Accelerating Decarbonization and Aligning Portfolios
Societe Generale continues to lead the way in aligning its credit portfolios with net-zero targets. The bank has significantly reduced its exposure to fossil fuels, cutting thermal coal financing to less than 0.1% of its portfolio by 2023 and halving its oil and gas upstream exposure compared to 2019. The bank is on track to reduce its oil and gas exposure by 80% by 2030 and achieve a 70% reduction in greenhouse gas emissions across the oil and gas chain.

The bank has also set alignment targets for 10 of the most carbon-intensive sectors as part of its membership in the Net Zero Banking Alliance (NZBA). Transparency remains a cornerstone of its approach, with detailed progress reports such as the “NZBA Progress Report” and the “Climate and Alignment Report.”

Investing in Innovative Solutions and Partnerships
Societe Generale is fostering innovation and supporting emerging leaders in the energy transition through strategic investments and partnerships.

Highlights include:

• Acquiring a majority stake in Reed Management, launching REED to support energy transition startups.
• Equity investment in EIT InnoEnergy, a leader in sustainable energy innovation.
• Investment in the Polestar Capital Circular Debt Fund, Europe’s only private debt fund dedicated to the circular economy.
• Partnering with Schneider Electric to help mid-sized companies reduce their carbon footprints.
• Collaborating with IFC (a member of the World Bank Group) to finance sustainable projects in Romania through innovative risk transfer mechanisms.

A Culture of Responsibility and Innovation
Slawomir Krupa, CEO of Societe Generale, stated, “We continue to strengthen our contribution to sustainable development through innovation, ESG leadership, and a deep belief in the role a responsible bank plays in addressing the environmental transition. By broadening our sustainable finance offerings and supporting clients in their transitions, we aim to drive collective action toward a low-carbon and sustainable economy.”

With this expanded roadmap, Societe Generale underscores its dedication to supporting both the green transition and social development, aligning its business strategy with the pressing challenges of climate change and sustainable growth.

Societe Generale
Societe Generale is a top tier European Bank with more than 126,000 employees serving about 25 million clients in 65 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:
• French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
• Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
• Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

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Media Contacts:

Fanny Rouby
+33 1 57 29 11 12
fanny.rouby@socgen.com

Jean-Baptiste Froville
+33 1 58 98 68 00
jean-baptiste.froville@socgen.com

SOURCE: Societe Generale