Societe Generale further reduces its involvement in coal
As part of the ongoing efforts to reduce its involvement in coal, Societe Generale today announces its decision to cease offering financial services and products to client companies: - whose current activity in thermal coal* represents 50% or more; - whose current activity in thermal coal represents between 30% and 50% and do not have a reduction strategy to reach at most 30% by 2025 or who have plans to expand their thermal coal capacities.
The new policy reflecting these commitments will be published before 1 July 2019.
Societe Generale was one of the first banks to reduce its involvement in the coal sector by committing to limit its portfolio exposure to coal in alignment with the International Energy Agency 2°C scenario in 2015 and then ending coal-related project financing in 2016. At the end of 2018, the Group reached, two years ahead of schedule, its 2020 objective of limiting to 19% the coal-fired share of its financed power production energy mix.
The Group is currently working on aligning its methodology with the Paris Agreement to other sectors and intends to undertake new commitments beyond 2020. The Group made this commitment on 18 December 2018 during the COP 24 (Katowice Commitment).
*Thermal coal is used to produce electricity, it can be replaced by other and more environmentally friendly sources of energy.
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