Societe Generale has announced its intention to accelerate its efforts in supporting the environmental transition, aligning with its ESG policy. The bank has set a new target of EUR 500 billion for sustainable finance by 2030, following the successful completion of its previous goal ahead of schedule.
The breakdown of this new target includes approximately EUR 400 billion in financing and EUR 100 billion in sustainable bonds, with around 80% directed towards environmental activities and the remaining 20% towards social initiatives. This aligns with the group's aim to focus financial resources on decarbonizing high-emission sectors.
The bank's strategy involves enhancing technical expertise and broadening its sustainable finance offerings to support clients in their transitions. Societe Generale aims to align its credit portfolios with the Paris Agreement goals and is part of the UNEP-FI Net Zero Banking Alliance since 2021.
In terms of fossil fuel exposure, Societe Generale reports significant progress in reducing thermal coal financing to less than 0.1% by the end of 2023 and achieving a more than 50% reduction in oil and gas upstream exposure by mid-2024 compared to 2019 levels. The bank targets an 80% reduction by 2030, along with a GHG reduction across the oil and gas chain.
Additionally, Societe Generale has completed work on carbon-intensive sectors as per NZBA guidelines and has set alignment targets for ten sectors. The bank emphasizes transparent communication through dedicated progress reports.
Investment efforts include acquiring a majority stake in Reed Management, partnering with EIT InnoEnergy, investing in Polestar Capital Circular Debt Fund, collaborating with Schneider Electric, and implementing agreements with IFC.
Slawomir Krupa, CEO of Societe Generale, stated: "Societe Generale continues to strengthen its contribution to sustainable development...with concrete progress reflected in the progressive reduction of our fossil fuel exposure...I remain convinced that the transition to a low-carbon and sustainable economy requires collective and coordinated action."