FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
The board has regular oversight of the organization’s climate strategy and is responsible for approving the organization’s CSR policy and risk appetite. Additionally, since 2022 the board has included a non-voting director with energy transition expertise. Management-level positions and committees like the Responsible Commitments Committee are addressing climate-related issues and initiatives, and the organization has established two new ESG risk committees in 2023 but has not specified these committees’ oversight of climate risk.
Société Générale has previously referenced numerous climate-related risks and opportunities it considers relevant over different time horizons, though its latest 2023 reporting lacks granularity as well as details on time horizons. It does disclose its processes for assessing the materiality of different risks, and how it considers climate across different business activities. It is transparent about how it has integrated climate-related risks and opportunities into its business planning and has included examples in its reporting across different services and products.
The organization appears to have tested the resilience of some business areas using climate scenarios. For example, it has previously disclosed a physical risk scenario on its French retail mortgage loan portfolio to assess resilience to drought, river flooding, and coastal flooding. It has also used a transition scenario on its lending portfolio to examine its portfolio allocation. However, it has not disclosed the analyses used or results of its analyses in recent 2023 reporting.
Société Générale uses several tools and processes to identify and assess transition and physical risks, such as climate vulnerability indicators (CVI) to assess transition and physical risks on different clients. It also highlights the processes used to manage and mitigate climate-related risks, including special monitoring of certain portfolios and alignment targets for high emitting sectors. The organization appears to have integrated climate-related risks into the group’s overall risk management processes, and recently has made progress in incorporating climate into its overall stress tests and risk appetite.
Société Générale is transparent about some key metrics used to measure and manage climate-related risks and opportunities against its main climate-related targets, including its sustainable financing metrics, ESG remuneration policies, and lending to carbon-related assets.
The organization is transparent about Scope 1 and Scope 2 emissions data and has relevant Scope 3 emissions disclosures. Additionally, it reports its Scope 3 Category 15 emissions for 11 sectors, disclosing absolute emissions measurements that include clients’ Scope 1, 2 and 3 emissions.
In April 2021, Société Générale joined the Net Zero Banking Alliance as a founding member. In October 2022, the organization announced several sectors’ interim targets including for oil and gas, power generation, and coal. In December 2023, it updated its interim targets, adding on targets for cement, steel, automotive, shipping, and commercial real estate sectors. In July 2024, it added on targets for aviation and aluminum. However, its targets are mostly in emissions intensity metrics and appear to only apply to lending activities.
Société Générale has set a phaseout of its financing of coal-related activities and companies that generate revenue from coal, planning to exit the sector completely by 2030 for companies with assets in the EU or OECD and by 2040 for the rest of the world. It alsoexcludes companies that generate more than 25% of revenue from the thermal coal sector or companies in the thermal coal mining sector that generate more than 20% of revenue from thermal coal, and requires clients in the coal sector to have a transition plan aligned with the bank’s phaseout commitment.
Société Générale has set targets to reduce its exposure to upstream oil and gas by 50% by 2025 and 80% by 2030. In September 2023, the organization updated its oil and gas financing policies, stating that beginning in 2024 it will not finance exploration, development, production, or infrastructure of greenfield oil and gas projects, and that it intends to phase out existing exposure to companies with oil and gas exposure until extinction in compliance with existing contracts. Additionally, it has excluded financing projects and companies generating more than 30% of revenue from unconventional oil and gas.
When providing financing for nuclear projects, the organization requires enhanced due diligence to ensure the host country and clients meet international safety standards. This policy does not appear to have been updated since 2014, so it is unclear how the organization is positioning the role of nuclear with regard to the goals of the Paris Agreement.
The organization has set a sustainable financing commitment of 300 billion euros by 2025 and has been increasing its financing of renewables. In addition, Société Générale is committed to reducing the carbon intensity of its financing activities related to electricity production.
FinanceMap’s Climate Governance and Policies analysis assesses statements financial institutions (FIs) are making on how they are incorporating climate issues into their decision-making and operations using FinanceMap’s matrix methodology. This methodology is adapted from the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and guidelines, Net-Zero Banking Alliance (NZBA) or equivalent Glasgow Financial Alliance for Net-Zero (GFANZ) initiative reporting, and IPCC and IEA technology statements. The TCFD provide guidance on 11 recommendations across four areas which are reflected in our matrix: Governance, Strategy, Risk Management, and Metrics and Targets. Additional benchmarks have been introduced to strengthen the ambition of scoring criteria in the assessment of targets, which are supplemented by guidance from the NZBA or equivalent GFANZ initiatives.
Additionally, Science-Based Policy (SBP) benchmarks are used to measure alignment of an FIs technology positions with the science of climate change. These benchmarks are applied to an FIs internal policies on technologies including coal, oil, gas, nuclear, and renewables and also assesses its engagement with broader climate and energy policy issues such as advocacy on the role and importance of different strategy types in the future energy mix.
For each TCFD recommendation and technology, FIs statements are applied to a five point scoring scale ranging from +2 to -2, measuring alignment with the relevant benchmarks. The detailed scores for this FI are displayed below within each matrix cell.
The following table outlines the key queries and data sources, which FinanceMap uses to assess financial institutions climate governance, targets and policies. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area assesses deals in 2020–2024.
Value Assessed: $291B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area assesses deals in 2020–2024.
Value Assessed: $179B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $7.59B
| Holding Name | Contribution to Sector Production |
|---|---|
| Iberdrola SA | 64.2% |
| Enel SpA | 11.2% |
| Engie SA | 8.6% |
| EDP SA | 3.4% |
| Nextera Energy Inc | 2.8% |
| A2A SpA | 2.2% |
| E.ON SE | 2.2% |
| Verbund AG | 1.3% |
| RWE AG | 1.1% |
| PG&E Corp | 0.9% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Bayerische Motoren Werke AG | 36.3% |
| Renault SA | 29.1% |
| Stellantis NV | 11.4% |
| Kia Corp | 7.3% |
| Volkswagen AG | 5.6% |
| Mercedes-Benz Group AG | 4.9% |
| Subaru Corp | 2.1% |
| General Motors Co | 1.8% |
| Tesla Inc | 0.7% |
| Toyota Motor Corp | 0.4% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Eni SpA | 54.0% |
| TotalEnergies SE | 35.7% |
| Shell PLC | 3.0% |
| BP PLC | 1.9% |
| Tourmaline Oil Corp | 1.5% |
| Galp Energia SGPS SA | 0.6% |
| Equinor ASA | 0.6% |
| Exxon Mobil Corp | 0.6% |
| OMV AG | 0.5% |
| Chevron Corp | 0.5% |
Société Generale has been assessed through analyzing Lyxor Asset Management (Lyxor) disclosures, as the main asset management subsidiary of the financial group. While in April 2021, Amundi entered into exclusive talks to purchase Lyxor, the deal is due to be completed by the end of 2021. Therefore, Lyxor's engagement activity up until the end of 2021 will fall under Société Generale for the purpose of this scoring.
Lyxor is partially transparent about its engagements; it does not disclose a full list of companies it engages with, although it does publish summary information, and including specific examples of engagements and outcomes sought. It is transparent about its AGM voting record, but it does not publish voting justifications for key votes.
Lyxor's climate engagement process is centered around the CA100+ collaborative engagement initiative. However, it is unclear if engagements have clearly defined milestones or success criteria. However, unsuccessful engagements will result in engagement escalation.
It appears to engage with companies on climate around climate governance, Paris-aligned GHG emission targets, TCFD reporting, and decarbonization targets. For example, it engaged with companies in the utilities sector on behalf of the Climate Action 100+ (CA100) around disclosure in line with TCFD recommendations.
While it states it will generally support lobbying focused shareholder resolutions, it is unclear if Lyxor is advocating for companies to align policy influence to the Paris Agreement through engagements.
Lyxor is willing to vote against management at company AGMs for climate reasons to escalate concerns. However, ShareAction's Voting Matters report indicates Lyxor has been unsupportive of climate resolutions, supporting 2% in 2020. In 2020, Lyxor co-filed a shareholder resolution at Enel as part of the CA100+ coalition which was voted in favor and adopted.
ProxyInsight data suggests that Lyxor has greatly improved support of climate change resolutions which InfluenceMap categorizes as in line with the Paris Agreement, supporting 100% in 2021.
FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code . The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media; escalation and the shareholder resolution process (filing, voting behavior). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources.
Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. The voting data is drawn from asset managers' disclosures to the US Security Exchange Commission (SEC), asset manager websites (including third-party websites they link to), directly from the asset managers, and through specialist voting data provider Insightia. The full list of resolutions assessed is available here.
The following table outlines the key queries and data sources, which FinanceMap uses to assess asset managers' corporate engagement programs. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
Climate Lobbying Overview: Société Générale appears to be actively engaged on climate-related finance policy, with mostly positive engagement.
Top-line Messaging on Climate-Related Finance Policy: Société Générale supported a role for finance in keeping global temperature rise to within 1.5C in its Net Zero Banking Alliance (NZBA) 2024 Progress Report, and advocates for investment strategies guided by the need to achieve net-zero by 2050 on its corporate website as a founding member of the Net-Zero Banking Alliance (NZBA). Société Générale stated support for Paris-Aligned sustainable finance regulation in response to the UK Government’s Update to Green Finance Strategy in a 2022 consultation response, and in its 2023 Framework for Responsible Advocacy Activities.
Position on Regulated Corporate Climate Disclosure: In response to the Update to Green Finance Strategy in the UK in 2022, Société Générale stated support for mandatory disclosures, including Scope 3 disclosures. In its 2022 response to the International Sustainability Standards Board (ISSB) on its climate disclosure drafts, Société Générale advocated for further ambition, such as guidelines for the publication of a transition plan aligned with 1.5C. During 2022, it further supported the EU Sustainability Reporting Standards (ESRS) and its ‘double materiality’ lens in comments to the European Financial Reporting Advisory Group (EFRAG). In a February 2023 consultation response, Société Générale Australia supported the Australian Treasury's climate disclosure proposal, including TCFD-aligned disclosures and scope 3 disclosures on a "best efforts basis".
Position on Taxonomies: In its response to the UK government’s Updated Green Strategy in 2022, Société Générale asserted that a UK Taxonomy “is essential if the UK government is to reach its net zero targets”. In a 2023 consultation response, it also encouraged the Australian Treasury to develop a taxonomy in order to “to avoid market fragmentation and to ensure an efficient and robust sustainable finance market”.
Position on Climate Labels and Standards: In response to the 2023 review of EU Sustainable Finance Disclosure Regulation (SFDR), Société Générale gave broad support to a product labeling regime, however did not support taxonomy-alignment thresholds and pressed for flexibility in the definition of ‘sustainability’. In comments to the UK Update to Green Finance Strategy in 2022, Société Générale appeared to support a green bond standard in the UK.
Position on Incorporating Climate Factors into Investor Duties: In its 2023 response to the EU Commission on SFDR, Société Générale appeared to support the regulation, and the extension of the regulation to structured products. In 2024 SFDR statement, Société Générale also appeared to support the regulation. Subsidiary Société Générale Securities Services offered broad support for policy to improve investor-facing climate disclosure in a 2022 article, however in a 2023 article took an unclear position on incorporating climate into investor preferences in amendments to the EU policies Markets in Financial Instruments Directive II (MiFID II).
Industry Association Governance: Société Générale has disclosed a complete list of its industry association memberships, but has not given any further details of its governance of indirect influence. In its 2023 CDP response, Société Générale disclosed details of some of its member industry associations engaged on climate-related policies, it excludes numerous industry associations including but not limited to ISDA, Institute for International Finance, Association for Financial Markets in Europe, and UK Finance, all of which Societe Generale is a board member of and all of which have been engaged on climate-related policies.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q4 2024.
InfluenceMap’s methodology for assessing lobbying on climate finance policy closely follows InfluenceMap’s established methodology on climate policy engagement, which is used extensively by investors, including via the Climate Action 100+ investor engagement process. Our full methodology can be found here.
Under our lobbying assessment, InfluenceMap considers engagement on all financial policies which intersect with climate issues, as well as “real economy” climate change policies.
The analysis takes into account both the engagement of the financial institution and the activities of industry associations they hold membership of. InfluenceMap’s methodology covers seven publicly available data sources, searching for evidence of engagement and corporate positioning since 2017. To determine the policy issues within the scope of the analysis, InfluenceMap breaks down policy engagement into a series of subcategories, or 'queries'. These are designed to cover high-level issues relating to the importance of sustainable finance, as well as more specific areas of sustainable finance policymaking. InfluenceMap’s research process searches for evidence of an organization's engagement with each policy issue, across each of the data sources.
The following table outlines the key queries and data sources, which InfluenceMap uses to assess financial institutions' policy engagement. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party.
In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
