Societe Generale Factoring, the short-term liquidity financing division of the European financial services group Societe Generale, announced the expansion of its ESG-focused financing solutions to French SMEs and medium-sized businesses.
The announcement follows the launch of sustainable finance solutions for the company's corporate clients in June, including environmental and social financing, and sustainability-linked solutions for the company's flagship factoring products, including receivable finance, supply chain finance, and forfeiting.
With the new expansion, Societe Generale Factoring enables smaller businesses to finance receivables associated with environmentally sustainable development – such as energy efficiency improvement, renewable energy, or low-carbon transportation – or societal issues such as financing education and training or social housing. If sustainability objectives are satisfied, customers who utilize the service will receive a discount on financing fees. Societe Generale stated that the solution is intended for businesses with a grade from the provider of business sustainability ratings, EcoVadis.
The CEO of Societe Generale Factoring, Aurélien Viry, stated:
"Societe Generale Factoring engages fully in the Societe Generale group's commitment to supporting its clients' transformation to greener and more inclusive development models. In response to our customers' rising demand, these new ESG offerings complement our existing solutions for large corporations."
Societe Generale recently declared a goal to enable €300 billion of sustainable finance by 2025, after greatly exceeding its objective by the end of 2021 to help generate €120 billion between 2019 and 2023 through sustainable financing solutions related to the energy transition.