As part of the Bank’s proactive ESG strategy outlined in its strategic plan, Societe Generale has reaffirmed its intention to expedite its environmental transition commitment during COP.
The Group has accomplished significant strides this year in implementing its ESG strategy, and by establishing a new sustainable finance target of €500bn ($521bn) by 2030, it is intensifying its efforts to facilitate the shift to a low-carbon economy.
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New milestone in sustainable finance
Having surpassed its previous €300bn sustainable finance target (2022–2025) ahead of schedule, the French banking group aims to allocate €400bn to financing and advisory services, and €100bn to sustainable bonds over the next six years.
Approximately 80% of these funds will support environmental initiatives such as low-carbon energy, sustainable real estate, and eco-friendly mobility, with the remaining 20% addressing social projects.
The initiative reflects Societe Generale’s deepened focus on decarbonising high-emission sectors. By integrating a cross-sectoral approach to value chains, the bank intends to offer clients comprehensive ESG solutions and advisory services shaped to their transition needs.
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By GlobalDataProgress on fossil fuel reduction and portfolio alignment
Societe Generale has made notable strides in reducing its exposure to fossil fuels. Thermal coal financing now represents less than 0.1% of its total book outstandings, and upstream oil and gas exposure has been cut by over 50% compared to 2019 levels.
The bank plans to achieve an 80% reduction in upstream oil and gas exposure by 2030 and aims for a 70% absolute reduction in greenhouse gas emissions across the entire oil and gas value chain.
As a founding member of the UNEP-FI Net Zero Banking Alliance, Societe Generale has aligned its portfolio targets with the alliance’s stringent standards.
Moreover, the bank has completed alignment assessments across 12 carbon-intensive sectors, setting detailed decarbonisation goals for 10 of them.
Investments and partnerships driving modernisation
Societe Generale has also invested heavily in innovative solutions to accelerate the energy transition.
Key initiatives include:
- Acquiring a majority stake in REED Management to support emerging leaders in energy transition technologies.
- Allocating €1bn for nature-based and impact-driven solutions.
- Partnering with EIT InnoEnergy to fund sustainable energy startups and Polestar Capital Circular Debt Fund to promote the circular economy.
- Strategic collaborations have also been forged with Schneider Electric to help mid-sized companies reduce carbon emissions and with the IFC, enabling sustainable financing initiatives in Romania and beyond.
Slawomir Krupa, Chief Executive Officer of Societe Generale, shared: “Societe Generale continues to strengthen its contribution to sustainable development in the service of its clients, supported by our culture of innovation, our ESG leadership, and our conviction of the crucial role that a responsible bank can play in the challenges of the environmental transition. 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, while supporting the emergence of new players and new technologies. I remain convinced that the transition to a low-carbon and sustainable economy requires collective and coordinated action in which Societe Generale is involved on a daily basis.”
