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Societe Generale and the International Finance Corporation (IFC), part of the World Bank Group, have recently entered into a Collaboration Framework Agreement to bolster sustainable finance in developing countries.
This aligns with the shared goal of both organisations to support the United Nations Sustainable Development Goals (SDGs). This collaboration underscores a firm commitment to environmental transition and sustainability.
Under this agreement, Societe Generale and IFC plan to enhance a variety of financial solutions. These include co-financing projects and risk-sharing agreements aimed at encouraging private sector involvement in climate transition efforts.
Specifically, the partnership will focus on sustainable finance projects that improve access to clean energy, water, and other essential infrastructure. It will also promote sustainable agribusiness and support projects that empower women entrepreneurs in small and medium-sized enterprises (SMEs).
Additionally, the two institutions intend to exchange knowledge and expertise on methodologies for measuring and monitoring the impact of these initiatives.
This new agreement is an extension of a longstanding partnership between Societe Generale and IFC, characterised by a solid history of cooperation and a shared commitment to the SDGs and stringent environmental, social, and governance (ESG) standards.
Over the past decade, the two entities have jointly financed around 60 transactions with other partners, resulting in more than $20 billion in new investments in developing countries. IFC has also provided around $1.3 billion in financing to Societe Generale, contributing to the expansion of green vehicle fleets.
The partnership will leverage the unique strengths of each institution. Societe Generale will contribute its expertise in structured finance and ESG, its asset distribution capabilities, and its global presence.
Meanwhile, IFC will draw on its vast experience as the leading global development institution focused on the private sector in developing countries, along with its strong balance sheet and comprehensive understanding of developing economies.
Slawomir Krupa, Chief Executive Officer of Societe Generale, said, “I am delighted to strengthen our cooperation with IFC with the signing of this Collaboration Framework Agreement, building on solid relationships between our institutions established over time. By joining forces, our ambition is to increase our contribution to sustainable projects in developing countries, in relation with the UN Sustainable Development Goals. As part of our strategic plan and ESG commitments, developing partnerships with the most relevant stakeholders helps us design the best solutions to address the challenges of the environmental transition and the need for sustainable infrastructures in developing countries.”
Makhtar Diop, Managing Director, IFC, said, “This agreement will deepen the long-standing relationship between IFC and Societe Generale, allowing us to work together to deploy scalable private sector investments in emerging markets. We look forward to an enhanced partnership to provide the critical financing needed for projects with a transformative impact on people and local economies.”
