The Group’s Environmental and Social (E&S) evaluation process factors in the potential risk and geographic location of a project*. The main steps of implementation within the bank are the following: ■■categorisation of the project is the first step of the E&S evaluation; ■■E&S requirements vary based on the project’s categorisation. The relevant information about the project’s E&S aspects is collected from the customer. The provided E&S documentation is then reviewed by an independent E&S expert for all category A projects (and some category B projects where applicable). Where necessary, a plan of action is drawn up based on the expert’s conclusions as to the measures that need to be implemented in order to limit or reduce any potential E&S risks. This plan is then incorporated into the loan file, with the other appropriate clauses that the customer is required to respect under the Equator Principles, in addition to local and international E&S laws and regulations; ■■che evaluation of E&S risks is conducted by a team of Environmental & Social specialists. Additional information may be requested from the customer and/or independent E&S expert. This evaluation results in a positive, negative, or conditional opinion that becomes part of the approval file. Focus on a project E&S evaluation example: financing of an electric power plant in Cameroon The bank financed an electric power plant in Cameroon after analysing its impact on various social and environmental criteria (discharges into the air, biodiversity, economic impact, and cultural heritage in particular) and performing its evaluation with regard to the Equator Principles. In order to maintain the evaluated performance level, customers have made the commitment to establish a management plan that will be audited annually E&S evaluations of dedicated transactions (expansion of the scope) The operational procedures are deployed in three stages: identification of E&S impacts, evaluation, and establishment of mitigation actions. Societe Generale thus associates different essential skills (international presence, particularly in emerging countries, structured financing, M&A advice, capital markets, etc.). “Environmental and Social responsibility for transactions” training for the bank’s various stakeholders will be put in place in 2013 with the goal of explaining the E&S evaluation process and its interactions with the management of credit and reputation risk as well as raising awareness about Societe Generale’s commitments, the sectoral and crosssectoral E&S policies, and the E&S procedures. Customer E&S evaluation procedures The Group makes sure to work with customers who respect its E&S commitments or aim to do so. To this end, the processes incorporate an E&S risk evaluation for Corporate customers. Positive Impact Finance Societe Generale helps to bring new financing solutions that have a positive impact on the needs of the population, the environment, and economic development. This is the Positive Impact Finance approach. Some responsible financing examples in 2012 Restoration of 8 secondary schools in Seine-Saint-Denis In April 2012, a Public-Private Partnership (PPP) was signed between the General Council of Seine-Saint-Denis and Eiffage for the design, construction, financing, and maintenance of eight secondary schools of the region for a total investment of EUR 230 million, financed in part by Societe Generale. In a context of ageing of the secondary schools in Seine-Saint-Denis, this construction project comes as a response to an urgent need for the future of the department’s local populations, which are experiencing strong demographic pressure. 12 Methodological approach to a positive impact finance analysis Identification ■■Sources of impacts (clients, transactions, countries, sectors) ■■Impact on economic development, environment and society Evaluation ■■Potentially positive factors ■■Potentially negative factors Action ■■Action plan ■■Remediation measures EUR 605.8 M in positive impact financing in 2012 issued by the Corporate and Investment Banking. *Verified by Ernst & Young
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