Commercial, GHG Emissions, Finance - November 22, 2024
Societe General Sets New 2030 Target
Societe Generale confirmed its plans to set a new EUR 500 billion sustainable finance target by 2030.
The Group says it has made major progress this year in the roll-out of its ESG strategy and is stepping up its efforts to support the transition to a low-carbon economy. It delivered ahead of schedule its EUR 300 billion sustainable finance target set for 2022-2025.
The Group now sets a new EUR 500 billion sustainable finance target over the period 2024-2030 that breaks down as follows:
- ~ EUR 400 billion in financing, including advisory, and ~ EUR 100 billion in sustainable bonds
- With approximately 80% in environmental activities and 20% in social activities
This target echoes the work carried out as part of the alignment of the Group's credit portfolios:
- A major portion of financing will be for dedicated transactions in low-carbon energy, sustainable real estate, low-carbon mobility and other industry and environmental transition topics.
- This new sustainable finance target is set by 2030, in line with the horizon set by the Bank to define its credit portfolio alignment trajectories.
- It aims to focus financial flows towards the decarbonization of the most emitting sectors for which the Bank has set targets, while also covering a wider scope than the Bank’s previous target.
The bank seeks to accelerate the reduction of fossil fuel exposure, and its gradual withdrawal from the thermal coal sector has progressed significantly. The thermal coal part of Societe Generale's financing portfolio represented less than 0.1% of total book outstandings at the end of 2023.
The bank also announced it achieved a reduction by more than 50% of oil and gas upstream exposure at the end of Q2 24 compared to 2019. The target of -80% set to be achieved by 2030 versus 2019 with the intermediary 2025 step of -50% is one of the most proactive among global banking players. It comes with an absolute reduction target for GHG across the entire oil and gas chain of -70% by 2030 versus 2019.
"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,” said Slawomir Krupa, Chief Executive Officer of Societe Generale, in a statement. “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. ”
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