Societe Generale Factoring, the short-term liquidity financing business of European financial services group Societe Generale announced today the launch of a new range of ESG-focused solutions for its corporate clients. The new ESG offers apply to the firm’s flagship factoring products, including receivable finance, supply chain finance and forfaiting.
The new sustainable finance offerings fall into two categories, including environmental and social financing, and sustainability-linked solutions. Under the former category, Societe Generale will finance activities that generate positive impacts, based on a series of environmental and social categories. Eligible environmental categories include renewable energy, waste management, clean transportation, hydrogen and sustainable water and waste-water management. Social categories include areas such as education and training and social housing.
Sustainability-linked solutions are an increasingly popular form of sustainable finance, typically tying financing terms to a company’s sustainability goals, rather than to the financing of specific ESG projects. Societe Generale Factoring’s new sustainability-linked offering is aimed at companies that have established ambitious corporate social responsibility (CSR) strategies, rewarding them for the achievement of their CSR objectives.
According to Societe Generale, the sustainability-linked offering is particularly well suited for supply chain finance programs of large corporates with many suppliers, encouraging the transition of the companies and their suppliers to more sustainable growth models.
Aurélien Viry, CEO of Societe Generale Factoring, said:
“With these new offers, Societe Generale Factoring contributes to Societe Generale Group’s commitment to support our corporate clients’ transition to more ecological and inclusive development models. These solutions help strengthen our relationship and advisory work with our clients.”