Societe Generale is embarking on a new stage to strengthen its leadership in the energy transition and align its activities with the Paris Agreement

While the latest study by the NGO Oxfam denounces the investments of the six main French banks including BNP Paribas, Crédit Agricole and Société Générale, accused of placing the planet on the path of global warming of +4 degrees from here 2100, and on the eve of Climate Finance Day, Societe Generale is launching a strong message and announcing a new Climate strategy.

Societe Generale, ranked best bank worldwide in 2019 on environmental topics (RobecoSAM) and number one globally in the financing of renewable energies at the end of September 2020 (IJGlobal), is embarking on a new decisive stage in its climate strategy to strengthen its leadership in the energy transition alongside its clients and to align all of its activities with the objectives of limiting global warming as defined by the Paris Agreement:

Over the coming months, Societe Generale will set itself precise sector-by-sector alignment targets for each of its financing portfolios, starting with the most carbon intensive sectors.

This work will draw on a robust methodology. The Group has decided to align itself with the strict goals of the IEA Sustainable Development Scenario (SDS), which is broadly used by companies, and aims to limiting temperature increase to below 1.65°C.

In parallel, the work undertaken since 2018 with four banks as part of the Katowice agreement to define a common methodology for sector-by-sector alignment of credit portfolios gave rise to the publication in September of a report detailing the application of the PACTA open source method of the 2DII Institute, which is available to all banks to enable them to measure the impacts of their various portfolios, dynamically steer their alignment targets and publish comparable market results.

Societe Generale is one of the first global banks to announce a concrete near-term target to reduce its overall exposure to the oil and gas extraction sector by 10% by 2025. This commitment goes beyond the requirements of the SDS scenario..

In this context, the Group has decided to stop financing onshore oil and gas extraction in the US.

Societe Generale is maintaining its strategy to completely exit from the coal sector by 2030 for EU and OECD countries ,and by 2040 for the rest of the world.

The Group has restated its pledge to contribute financing of up to €120 billion for energy transition projects between 2019 and 2023. Societe Generale is thus developing its support for renewable energies worldwide, is innovating to create responsible financing and investment solutions, and is launching a massive training program for its teams.

Article: Joana Foglia