While banks may have relatively limited direct impacts on nature, their ability to wield influence through financing activities is substantial. As key enablers of the real economy, banks can play a pivotal role in steering financial flows towards nature-supportive outcomes, supporting clients in their environmental transition and sharing in nature-related risks.
Increasingly, regulators, civil society and markets are encouraging banks to understand and address nature-related issues within their portfolios. However, assessing their nature impacts is challenging due to the complexity of environmental pressures, incomplete data and intricate financing structures.
Against this backdrop, leading European financial services group Societe Generale has taken forward-looking action to enhance its understanding of the pressures of its financed activities on nature, engaging Quantis for an initial pilot assessment. Together, we examined the potential nature impacts of its credit portfolio, focusing specifically on the power utilities sector.
By embracing the inherent complexity of nature, rather than simplifying it, we assessed impacts at the granular level of company assets. This enabled Societe Generale to enhance its capabilities in nature-related assessment methods, data and tools. As a result, the firm is now better equipped to manage the potential environmental impacts of its portfolio. Additionally, the project facilitates productive engagement with clients on nature related issues and provides foundational elements for reporting.
Discover our joint case study – a deep dive into the lessons learned from this initiative and valuable insights to inform and enhance nature actions across the finance sector.
In “Understanding nature impacts across financed activities”, you’ll discover:
- A first-of-its-kind methodology for better evaluating the impacts of financial investments on nature across the power utilities sector.
- A concrete example of cross-industry collaboration between Societe Generale, Quantis and EDF Renewables to accelerate the integration of nature impact assessments.
- An innovative and replicable approach applicable across the finance industry.
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