SOCIETE GENERALE CONTINUES TO EXPAND ITS “SUSTAINABLE AND POSITIVE IMPACT FINANCE” OFFERING
Societe Generale further strengthens its dedicated offering to meet its clients’ rising needs, both issuers and investors, in the field of Sustainable and Positive Impact Finance. Through this offer, the Group moves forward with the fulfilment of its commitments.
In a recent study, UNEP FI* estimated that there is currently a US$ 2.5 trillion annual gap in financial flows to be allocated to finance Sustainable Development Goals, until 2030.
Aware of these major issues at stake, Societe Generale made strong commitments in 2015, during the COP 21 and Paris Agreements, to align the Group’s activities by 2020 with the International Energy Agency’s (IEA) trajectory to limit global warming to 2°C.
These commitments resulted in a proactive and responsible policy led by the Group to support its clients in their energy transition and CSR ambitions, most notably through its offering dedicated to corporates.
Major progress in our commitments towards energy transition
In line with our Transform to Grow strategic plan, the Group aims at contributing EUR100 billion to energy transition between 2016 and 2020.
As at 31st March 2019, Societe Generale has already achieved 78% of this target with:
• EUR 56.4 billion in green bond issuances led or co-led by the Bank, representing 65 deals worldwide
• EUR 21.5 billion in advisory and financing in the renewable energies sector
Societe Generale has been supporting the renewable energy sector for more than 10 years, being one of the leading banks today in both advisory and financing.
Societe Generale continues to enrich its “Sustainable and Positive Impact Finance” offering.
Launched at the end of 2017 within the Global Banking & Investor Solutions’ activities, this offer pools all the Bank’s Environmental & Social (E&S) expertise in a wide range of innovative financial solutions.
It is dedicated to meet issuer and investor clients’ financing needs related to energy transition andextra-financial commitments, as well as their investing needs. This offering is continuously expanded, with:
- The development of new innovative structures within Financing Activities.
The Group signed both the “Sustainable Linked Loan Principles” in March 2019 and “Green Loan Principles” in March 2018, which define common standards for those financing structures. The Bank supported many clients in implementing inaugural impact loan credit lines that proved to be innovative and virtuous financial solutions for CSR policy. The pioneering role of Societe Generale in Positive Impact Finance** and its expertise in structuring and distributing sustainable bonds are other examples of financing capacities offered to clients.
- The enrichment of new sustainable investment solutions within Market Activities.
The ESG investment offering is available through the index proprietary franchise of the Bank, “Societe Generale Index”, as well as through thematic baskets accessed via swaps, funds or structured products. The SG Index franchise covers a range of more than 1,600 indexes, including EUR 3 billion outstanding flows allocated to ESG investments, representing a 33% increase in ESG outstanding since 2017.
Societe Generale also created a range of products enabling clients to invest in a structured note while promoting Positive Impact Financing. Thus, for any subscription, the Bank commits to keeping in its books a Positive Impact Finance amount equivalent to 100% of the nominal value of these products. Since their launch in 2017, more than EUR 700 million have already been subscribed.
The Bank has been also accompanying its clients through its know-how developed by the dedicated ESG research teams for more than 10 years. The SG CIB research team has notably been ranked 5th in Europe for the category “SRI & Sustainability” in Extel rankings 2019.
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*UNEP FI : United Nations Environment Programme Finance Initiative
** Societe Generale is at the origin of Positive Impact Finance, in which the financing of any activity has a positive impact on one of the three pillars of sustainable development (economy, society, environment) while ensuring that potential negative impacts have been identified and efficiently mitigated. The Principles for Positive Impact Finance were launched in Paris with UNEP in early 2017. Note to Publishers : Societe Generale’s commitments and achievements Press Release – 23rd May 2019 - Societe Generale further reduces its involvement in coal Press Release – 28th November 2018 - Societe Generale’s commitments and achievements in the fight against global warming Press Release – 13th November 2017 - Societe Generale launches a “Sustainable and Positive Impact Finance” offering within the global banking & investor solutions’ activities Useful content: UNEP FI report Rethinking Impact to Finance the SDGs – November 2018 Press Release Sustainability Linked Loan Principles – 20th March 2019 Press Release Green Loan Principles – 21st March 2019