Societe Generale Factoring, the short-term liquidity financing business of European financial services group Societe Generale announced the expansion of its ESG-focused financing solutions to SMEs and medium-sized companies in France.
The announcement follows the launch of sustainable finance solutions in June to the company’s corporate clients, including environmental and social financing, and sustainability-linked solutions for the firm’s flagship factoring products, including receivable finance, supply chain finance and forfaiting.
With the new expansion, Societe Generale Factoring is enabling smaller businesses to finance receivables with purposes linked to environmentally sustainable development – such as energy efficiency improvement, renewable energy or low-carbon transport – or societal issues including financing of education and training or social housing. Customers utilizing the service will benefit from a reduction on financing fees if sustainability objectives are met. Societe Generale said that the solution is aimed at companies with a rating from business sustainability ratings provider EcoVadis.
Aurélien Viry, CEO of Societe Generale Factoring, said:
“Societe Generale Factoring fully participates in the Societe Generale group’s commitment to support its customers and accelerate their transition to greener and more inclusive development models. These new ESG offers complement our system of solutions already offered for large corporates, in response to the growing interest of our customers.”
Societe Generale recently announced a target to facilitate €300 billion of sustainable finance by 2025, after significantly surpassing its goal by the end of 2021 to help raise €120 billion between 2019 and 2023 through energy transition-related sustainable financing solutions.