Exit from coal sector : new measures effective now
As announced at the beginning of the month, Societe Generale publishes an updated thermal coal sector policy. It is a new step towards the implementation of the Group’s ambitious targets regarding its exit from thermal coal sector.
In 2019, Societe Generale took the long-term commitment to progressively reduce to zero the Group’s exposure to the thermal coal sector in 2030 for companies with mining or power thermal coal assets located in EU or OECD countries and in 2040 elsewhere.
In order to reach this goal, Societe Generale is restricting its support to companies involved in the thermal coal sector in two steps :
First, Societe Generale disengages from the most exposed companies (over 25% of revenues linked with thermal coal sector) which have not made commitments to exit the thermal coal sector. The Bank also further tightens the policy criteria for all thermal coal mining clients and prospects of the sector. All these new measures are effective immediately.
Second, from the end of 2021 at the latest, Societe Generale will stop providing new financial products and services to any company with mining or power thermal coal assets which is a thermal coal developing company or does not have communicated a transition plan aligned with the 2030/2040 thermal coal phase out objectives of Societe Generale.
By the end of 2021, Societe Generale will have reviewed its entire portfolio and had a dialogue with all client companies with mining or power production thermal coal assets about their transition plans and coal phase-out timeline.
For further information, read the entire thermal coal sector policy here.