Regulation & Standards
Published  10 MIN READ

A New Framework for ESG

Global Transaction Banking Leads the Charge

Corporate treasurers are at the tiller as they help their companies navigate the increasing ESG challenges. While global standardisation around ESG is still a work in progress, a recent innovative framework developed by Societe Generale can help to increase transparency and credibility in this space.

ESG has become increasingly important for corporate organisations in recent years, with regulatory necessities placing it firmly on the board-level agenda. As a result, the topic has also risen up the priority list of the corporate treasury function, particularly given the growth of cash and debt products that carry an ESG badge. Treasurers can now avail of green and sustainable bonds and loans, for example. Green deposits and ESG-focused MMFs are also growing in popularity alongside sustainable SCF programmes and ESG-linked FX derivatives.

Marie-Gabrielle De Drouas, Head of ESG within Societe Generale’s Global Transaction Banking department, remarks: “In many ways, treasurers are integral in ESG because they’re often in the driving seat of interactions with all the counterparties such as regulators, investors, banking partners, rating agencies, the company’s clients, export credit agencies, and their senior management.”

This pivotal position means that treasurers can influence the business to integrate ESG goals and improve the firm’s positive impact on the environment and society. Equally, treasurers can help allocate capital away from activities that generate negative impacts.