• New Sustainable Finance Goal: Societe Generale sets a €500 billion target for sustainable finance by 2030, with 80% allocated to environmental activities and 20% to social initiatives.
• Proactive Fossil Fuel Reduction: The bank achieved a 50% reduction in oil and gas upstream exposure since 2019, with a target of 80% by 2030.
• Innovative Investments: Societe Generale advances energy transition leadership with investments in REED, EIT InnoEnergy, and circular economy initiatives.

Accelerating the Environmental Transition

At COP, Societe Generale reaffirmed its commitment to advancing the environmental transition. The bank’s new €500 billion sustainable finance target for 2024–2030 includes €400 billion in financing and advisory and €100 billion in sustainable bonds. This milestone follows the early delivery of its €300 billion target for 2022–2025.

Slawomir Krupa, CEO of Societe Generale, stated:
“This year, we have taken new steps in the execution of our strategic roadmap with concrete progress reflected in the progressive reduction of our fossil fuel exposure. We are also continuing to broaden our action by proactively supporting our clients in their own transitions with adapted solutions and an enhanced sustainable finance offering.”

Related Article: Isle of Man Launches Sustainable Finance Roadmap to Drive Green Investment

Achieving Milestones in Portfolio Alignment

Societe Generale is aligning its credit portfolios with the Paris Agreement through the Net Zero Banking Alliance. Key achievements include:

• Reducing thermal coal exposure to less than 0.1% of its portfolio by the end of 2023.
• Completing work on 12 carbon-intensive sectors, with alignment targets set for 10.
• Publishing transparent progress reports, including the “NZBA Progress Report” and “Climate and Alignment Report.”

The bank is on track to reduce upstream oil and gas exposure by 80% by 2030, coupled with a 70% reduction in greenhouse gas emissions across the entire oil and gas chain.

Investing in Sustainable Innovation

Societe Generale has committed €1 billion to energy transition investments, focusing on emerging leaders, nature-based solutions, and impact-driven projects. Key initiatives include:

• REED Investment: Acquired a majority stake in REED, advancing equity investments in energy transition leaders.
• Partnership with EIT InnoEnergy: Supporting sustainable energy start-ups.
• Circular Economy Focus: Invested in Polestar Capital Circular Debt Fund, Europe’s only private debt fund for circular economy initiatives.
• Schneider Electric Collaboration: Helping mid-sized companies reduce carbon footprints.
• IFC Partnership: Facilitated transactions like the BRD risk transfer deal in Romania to finance SMEs and sustainable projects.

These initiatives underscore Societe Generale’s role as a global leader in financing the transition to a low-carbon economy while driving innovation and partnerships.

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