S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
1
 
Environmental, Social, And Governance Evaluation 
Societe Generale S.A. 
Summary 
Societe Generale S.A. (SG) is a global systematically important bank and one of the 10 
largest European banks with close to €1.5 trillion in assets and 67% of its risk 
exposure in France and Western Europe in 2021. Headquartered in Paris, the bank is 
geographically diversified, with a presence in 66 countries and serving 25 million 
clients globally. In the first nine months of 2022, SG generated close to €21.2 billion 
in net banking income, balanced between its three core businesses: French retail 
banking (30% of income in 2021); international retail banking and financial services 
to corporates (31%); and global banking and investors solutions (37%). 
Our ESG Evaluation score of 79 reflects the bank's meaningful efforts to integrate 
ESG considerations into its lending and financing activities. SG has been 
strengthening its climate commitments, including in renewable energy financing and 
aims to align its financing portfolios to a 1.5-degree Celsius pathway by 2050. Its 
action plan includes phasing out coal, excluding hydrocarbons such as shale oil and 
oil sands, and reducing exposure to the most material carbon-intensive sectors. 
While implementation of the ESG integration framework is not yet systematic, the 
bank is actively strengthening its process for a comprehensive coverage of all large 
corporates. On that, we view favorably the ESG-by-design project to develop 
processes and tools to monitor SG’s sustainability engagements. We highlight the 
bank's strong performance on customer engagement, capitalizing on the digitization 
trend with Boursorama. We consider France’s protectionary framework regarding 
debt overburden risks for customers, notably with the usury rate and fixed rates. 
SG exhibits strong preparedness to navigate and adapt to disruptive trends. The 
board has demonstrated its excellent awareness of long-term risks and 
opportunities that go beyond sustainability. Furthermore, we credit the board’s 
ability to embed emerging trends into strategic decision-making. The board’s 
decision-making has shown itself to be guided by long-term thinking through its early 
activity to support renewable financing and to expand its vehicle leasing business.  
PRIMARY ANALYST 
Maxime Chul 
Paris  
+33-610-450-098 
maxime.chul 
@spglobal.com 
SECONDARY ANALYST 
Philippe Raposo 
Paris 
+33-144-207-377 
Philippe.raposo 
@spglobal.com 
RESEARCH CONTRIBUTOR 
Salaheddine Soumir 
Paris 
Sreenidhi Hegde 
Pune 
ESG Profile Components (figures subject to rounding) 
ESG Profile 74 
 
Entity-specific 
assessment 
Sector/region 
analysis 
Achieved and  
attainable scores 
Preparedness +5 
Low 
Emerging 
Adequate 
Strong 
Best in 
class 
E (30%) 
37 + E (30%) 
35 = E 
 
ESG Evaluation 
79 
 
S (30%) 
34 + S (30%) 
36 = S 
G (40%) 
46 + G (40%) 
34 = G 
 
   
 
 
 
Entity within its primary 
sector/region 
Entity’s sectors/ regions 
versus all sectors/ regions 
Min and max scores possible given sectors/regions. The gray 
line represents performance in line with industry standards. 
A higher score indicates better sustainability. Figures subject 
to rounding. 
52
91
74
50
51
54
85
86
99
72
70
80
0
20
40
60
80
100

Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
2
 
Component Scores 
Environmental Profile  
Social Profile 
Governance Profile 
Sector/Region Score 
35/50 
Sector/Region Score 
36/50 
Sector/Region Score 
34/35 
 
 
 
 
 
 
 
 
 
 
 
 
Greenhouse 
gas emissions 
Strong 
 
 
 
Workforce and 
diversity  
Good 
 
 
 
Structure and 
oversight  
Strong 
 
 
Waste and 
pollution 
Good 
 
 
 
Safety 
management 
Good 
 
 
 
Code and values 
Good 
 
 
Water use 
Good 
 
 
 
Customer 
engagement  
Strong 
 
 
 
Transparency 
and reporting 
Good 
 
 
Land use and 
biodiversity 
Good 
 
 
 
Communities 
Good 
 
 
 
Financial and 
operational risks 
Neutral 
 
 
General factors 
(optional) 
3 
 
 
 
General factors 
(optional) 
None 
 
 
 
General factors 
(optional) 
None 
 
 
 
 
 
 
 
 
 
 
 
Entity-Specific Score 
37/50 
 Entity-Specific Score 
34/50 
 Entity-Specific Score 
46/65 
E-Profile (30%) 
72/100 
S-Profile (30%) 
70/100 
G-Profile (40%) 
80/100 
 
 
 
 ESG Profile (including any adjustments)  
74/100 
 
 
Preparedness Summary 
 
 
Our preparedness opinion reflects SG’s opportunity-oriented approach to navigate 
long-term risks and opportunities within its sector. In line with its corporate purpose, 
we believe the bank is committed to developing innovative solutions to help clients 
transition toward the low carbon economy, bearing in mind that clients in emerging 
markets may be slower to adapt to the energy transition. Furthermore, we recognize 
SG's foresight to anticipate emerging trends, including digital banking, renewable 
financing, and (unique to the bank) its vehicle leasing business anticipating changes in 
vehicle usage behaviours. In line with the rest of the sector, SG keeps upgrading its 
climate risk management tools. We credit the bank’s responsiveness to the Ukrainian 
conflict in its exit from Russia, via the sale of its local subsidiary Rosbank, in May 2022. 
 
Capabilities 
 
Awareness 
Excellent 
Assessment 
Good 
Action plan 
Good 
Embeddedness 
 
Culture 
Good 
Decision-making 
Excellent 
 
 
 
Preparedness Opinion (Scoring Impact)  
Strong (+5) 
 
ESG Evaluation
 
79 
 
 
 
 
Note: Figures are subject to rounding.

ESG Profile 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
3
 
 
Environmental Profile  
 
72/100 
Sector/Region Score (35/50) 
The banking sector faces low direct exposure to environmental risks balanced by material indirect 
exposure from financing activities. As awareness raises on banks' role in promoting a low-carbon 
economy, we see a growing number of initiatives to deepen ESG integration. We view SG as having 
moderate exposure to physical climate risk overall, with 10% of the bank’s assets in regions with 
elevated risk (Asia-Pacific and Africa). 
 
Entity-Specific Score (37/50) 
Note: Figures are subject to rounding. 
 
 
 
 
 
 
 
 
 
 
Greenhouse gas 
emissions 
 
Waste and 
pollution 
 
Water use 
 
Land use and 
biodiversity 
 
General factors 
 
Strong 
 
Good 
 
Good 
 
Good 
 
3 
 
SG’s most material environmental risks stem from its financing activities, including exposure 
to carbon-intensive sectors such as oil and gas (5.4% of SG’s corporate portfolio), transport 
(6.5%), metals and minerals (2.8%), and food and agriculture (3.7%). We view SG’s 
environmental exposures as comparable with that of other large global banks, balanced by 
ambitious climate-related targets, backed by the groupwide environmental and social risk 
management (ESRM) framework and sector policies. Full ESG integration is progressing as SG 
works to apply environmental and social (E&S) reviews across business units and clients. Building 
on its equity investment and partnership with Impak, the bank aims to have performed E&S 
assessments on 100% of its largest corporate clients by year-end 2023 (about 1,250 entities) as 
part of its annual credit reviews, which we view as above average industry practices. These 
assessments aim to implement sector policies’ criteria, monitor reputational risks, and guide 
engagement with customers to support their climate transition. 
SG has set ambitious Paris-aligned emissions reduction targets for its financing activities, 
including a carbon-neutral portfolio by 2050 and reinforced ambitions on most carbon-
intensive sectors. In line with this, the bank has adopted interim targets to reducing upstream oil 
and gas lending commitments 20% by 2025, and scope 3 emissions from investments in that 
sector by 30% by 2030. Along with other industry players, SG will phase out coal financing by 2030 
in the EU and 2040 in the OECD. Assessment tools developed internally include the Industry and 
Sovereign Climate Vulnerability Indexes, which assess exposure to climate physical and transition 
risks in various industries and across 114 countries. Beyond greenhouse gases (GHG), factors 
including waste, water, and biodiversity are included in environmental assessments and sector 
policies. Overall, efforts to mitigate the exposure is less advanced than for GHG in terms of targets 
and criteria definition. Still, SG shows growing awareness and management of biodiversity risks, 
through updated exclusion criteria, active engagement in industry commitments, and stronger 
accountability on value chain impacts and traceability. 
Furthermore, we credit the group’s green investments and products in support of the energy 
transition in line with those of more advanced peers. This includes SG's target to facilitate €300 
billion to sustainable finance through bonds, loans and advisory by 2025. The bank's issuance of 
green and positive-impact bonds also increased, totalling €2.5 billion in 2021. In line with 
advanced asset owners, SG Assurance aims to reduce its portfolios carbon footprint by 30% (2018 
to 2025). Furthermore, vehicle leasing business ALD maintained its 2030 target of 50% electric 
vehicles in new deliveries, and we will monitor the LeasePlan acquisition's impact.

ESG Profile 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
4
 
 
Social Profile  
 
70/100 
Sector/Region Score (36/50) 
The most important social challenges for the banking and investment sectors are the fair 
treatment of employees and customers, and effective management of the consequences of 
digitalization for the workforce and customers. SG’s employee base is in France (48%), 
Eastern Europe--mainly Romania, and Czech Republic (15%), Africa (11%) and India (9%). 
 
Entity-Specific Score (34/50) 
Note: Figures are subject to rounding. 
 
 
 
 
 
 
 
 
 
 
Workforce and 
diversity 
 
Safety  
management 
 
Customer 
engagement 
 
Communities 
 
General factors 
 
Good 
 
Good 
 
Strong 
 
Good 
 
None 
 
SG’s exposure to social risks is moderate overall and adequately managed across its value 
chain. The bank faces direct social exposure from having 117,000 employees serving more than 25 
million customers. Indirect exposure comes from its supply chain and health, safety, and 
community risks associated with lending in high-risk sectors (metals and minerals; 2.8% and food 
and agriculture; 3.7%). SG considers social factors within its sector policies and combined 
environmental and social assessment of clients. Its social integration remains less advanced than 
environmental and equally limited in scope across business units. However, it is ahead of some 
peers when it comes to products addressing social issues. For instance, in 2021, €5.9 billion was 
dedicated to social sustainable positive impact finance. Furthermore, to mitigate supply chain 
risk, the bank includes corporate social responsibility (CSR) criteria in its purchasing tenders and 
performs third-party supplier evaluations. 
SG’s responsible workforce management is reflected in its effort to mitigate emerging social 
risks under its Vision 2025 strategy describing the merger of SG and Credit du Nord's retail 
networks. The bank expects the merger to yield 3,700 employment cuts in 2023-2025 but 
committed to no forced redundancies through voluntary departure plans and natural attrition, an 
area that we will keep monitoring. SG supported employees after Lyxor and Rosbank’s sale to 
ensure a smooth transition and business continuity. The bank's employee engagement metrics 
are on a positive trend; however, its voluntary turnover remains above that of other banks 
explained by external factors such as SG's operations in India, where the labor market had a 
particularly high attrition rate in 2021. In addition, the bank has more women in management than 
peers and reports lower gender pay gaps. Its targets to increase female representation in 
management to 30% across all business units by 2023 are ahead of the French requirements’ 
timeline.  
SG maintains a strong customer base partly because of its digital branch growth in France, 
especially after ING’s customers joined SG. Through its online banking platform, Boursorama, SG 
has become a digital banking leader in France after tripling its customer base from 2016-2021 
and has already outperformed its 2023 target of 4 million customers. The bank monitors customer 
engagement closely, factoring the net promoter score into the Management Committee’s variable 
remuneration. SG has implemented protection measures for vulnerable customers such as fee 
capping systems. In line with peers with similar exposure to the African market, the bank makes 
efforts to support local SME financing, and microfinance projects.

ESG Profile 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
5
 
 
Governance Profile  
 
80/100 
Sector/Region Score (34/35) 
SG is headquartered and operates mostly (47% of exposure at default) in France, which has 
strong corporate governance standards. Other regions of exposure include the U.S. (14%), 
other European countries (28%), and countries with weaker governance standards including 
various countries in Africa and the Middle East (4%). 
 
Entity-Specific Score (46/65) 
Note: Figures are subject to rounding. 
 
 
 
 
 
 
 
 
 
 
Structure and 
oversight 
 
Code and  
values 
 
Transparency 
and reporting 
 
Financial and 
operational 
risks 
 
General factors 
 
Strong 
 
Good 
 
Good 
 
Neutral 
 
None 
 
SG’s board structure and oversight is aligned with international best practices. The board has 
had separate CEO and chairman roles since 2015 and consists of 15 voting directors. Board 
independence (92% as per SG, excluding three elected staff; 60% as per S&P Global Ratings) is 
above the recommendation of the AFEP-MEDEF Code (French code for publicly listed companies) 
that requires at least half of directors to be independent. Although some directors have long 
tenures of 10-12 years, above the nine-year threshold for independence as per our methodology, 
the average tenure of the board is six years, which is in line with French listed companies. The 
board has deep industry experience and is composed at 40% of women (42% as per SG, excluding 
three elected staff), in line with the French Financials Market Authority threshold. While a majority 
of board members are French, it also includes nine nationalities, reflecting the group’s 
international footprint. In 2022, the 14-year-long CEO, Frederic Oudea, announced he would step 
down from his role in May 2023. We view the nomination process as relatively smooth, and 
Slawomir Krupa, the current head of SG’s investment banking division, was elected by the board in 
September 2022. This leaves time for a progressive transition until the next general meeting in 
May 2023 where shareholders will vote on his board membership. 
SG’s comprehensive code of conduct and corporate purpose support the global energy 
transition through sustainable finance activity with impact-investing, green bonds, and 
renewable energy financing solutions. The group’s code of conduct is publicly available in 18 
languages and is applied across the value chain, which is a fairly common practice in the industry.  
The code of conduct is overseen by the board and reviewed annually, with all employees subject to 
annual training. In line with other banks, SG has been exposed to controversies that it has 
undertaken quick measures to address, including the implementation of a whistleblowing 
mechanism in 2019. Sustainability is embedded within the variable remuneration of the top 60 
management positions, through the achievement of KPIs including customer satisfaction and CSR 
goals. 
SG’s financial and nonfinancial disclosures are comprehensive, in line with other large French 
banks. The group has publicly available sustainability disclosures that are integrated into SG’s 
universal registration document. It publishes these disclosures annually and follows some best 
practices, including verification by an independent third party, as per the French transposition of 
the European Non-Financial Reporting Directive. However, we recognise some ESG KPIs are 
absent, including public reporting of the net promoter score and that no indicator received 
reasonable assurance. In addition, financial disclosures follow international best practice 
including the country breakdown of tax in the group’s tax contribution report.

Preparedness 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
6
 
 
Preparedness Opinion 
 
Strong  
(+5) 
 
Preparedness 
Low 
Emerging 
Adequate 
Strong 
Best in class 
SG is well positioned to navigate potential disruptions associated with the complexities of 
climate change, evolving social preferences and increasing digitization of services. In line with 
the bank's corporate purpose to build a sustainable future, SG’s strategy is opportunity-oriented, 
committing to engaging and supporting clients as they navigate the energy transition at different 
speeds. As one of the leading banks in France with a large international footprint, including 
sustainable development in Africa, we view the bank’s diversified business profile as a key 
strength for SG to navigate climate risks and market fluctuations across regions. We also believe 
the bank’s digital banking and vehicle leasing show its ability to capitalize on emerging trends. 
The board has defined sustainability and digitalization as the key pillars supporting its long-
term strategy. This reinforces its long-standing awareness of these risks, including the 
pandemic-induced acceleration of these trends. The board has developed keen insight into the 
pace at which the energy transition may play out within its international business in emerging 
markets, compared with its European clients who are more advanced in climate action. Beyond 
this, we believe the board has identified other material disruptive risks, including cyber threats, 
geopolitical tensions, and emerging cryptocurrency and biodiversity trends. 
SG exhibits excellent decision-making and early innovation with its leading online bank 
Boursorama and renewable financing activity. The bank continues to enhance its digital 
solutions and capabilities through its digital bond for the European Investment Bank (EIB) issued 
on a public blockchain in April 2021. We also credit the board’s keen foresight into the evolving 
habits on vehicle ownership and usage, reinforcing the strategic importance of its ALD through its 
ongoing acquisition of LeasePlan. In line with industry climate trends, the bank has financed 
renewable energy for the past 15 years. We also recognize the bank’s long-term goal to align its 
lending and investment portfolios with net zero emissions by 2050, as a founding signatory of the 
Net Zero Banking Alliance (NZBA). The board is aware that the road to achieving this ambition is 
filled with challenges, including setting clear objectives for each business and assess clients’ 
willingness to act in line with SG’s strategy. 
We believe the board is committed to maintaining a culture of innovation. The board values 
entrepreneurship and encourages internal innovation to support strategic objectives. Employees 
can present ideas to senior management through the internal start-up program. To ensure its 
values are well understood, SG encourages internal mobility to spread common values and has 
developed a common framework on culture that the CEO supervises. SG’s staff is also encouraged 
to take part in trainings related to climate, social responsibility, and biodiversity. 
The board's strategic decisions are well-informed by risk assessments, leveraging tools to 
assess financial and nonfinancial impacts. This includes analyses of world trends and potential 
impacts on its portfolios biannually, using economic scenarios prepared by the risk teams and 
engineers. Strategic decisions are subject to stress tests. For nonfinancial risks, the bank is using 
internally developed tools such as a web application to identify drought, coastal flooding, and 
wildfire risks in the French retail home loan portfolio. But SG faces climate-related risks data 
availability issues for mapping corporates’ exposure to physical risks, which is a sector-wide 
problem. Climate scenario planning has adopted the IEA scenarios since 2016 and SG participated 
in climate stress tests in the last few years, including its participation in the regulatory one of the 
European Central Bank in 2022. We credit SG for co-developing the Paris Agreement Capital 
Transition Assessment methodology for banks to support the low-carbon transition.

Appendix 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
7
 
Sector And Region Risk 
Primary sector(s) 
Banks 
Primary operating region(s) 
France 
United States 
United Kingdom 
Czech Republic 
Germany 
Sector Risk Summary 
Environmental exposure  
Environmental risks for the banking sector balance the low use of physical infrastructure and 
facilities needed to operate, against the large indirect exposure from lending and investment 
activities. In addition, the rising use of IT services in banking (digitization, cloud computing, and 
big data) is increasing CO2 emissions, even though banks' physical infrastructure is reducing. 
Regulators, investors, customers, and activists are increasingly looking at the banking sector's 
contribution and exposure to environmental risks. These medium- to long-term risks are 
significant and will be proportionate to the impact of climate change on the economy. While banks 
have good expertise in managing traditional risks, they currently lack standard measurement 
tools, data, and human resources to properly deal with the climate transition. Banks are also 
exposed, through their borrowers, to physical climate risks from increasing chronic hazards (such 
as increasing temperatures leading to a rise in sea levels or droughts) and acute perils (like floods 
or storms). On a positive note, we see the increasing integration of ESG criteria in banks' 
underwriting and investment policies, alongside a generally high level of diversification of their 
loan and securities portfolios, as important mitigating factors. 
Social exposure  
Human capital management in the banking sector's typically labor-intensive business, as well as 
customer relationship management, are of paramount importance and pose material social risks. 
Evolving customer preferences, greater use of digitization, automation, and AI bring new 
challenges and threats that require banks to adjust their business models. These include 
continuously training employees in new distribution channels, products, and regulations. Since 
banks are also outsourcing and offshoring an increasing number of tasks to trim costs and reduce 
the workforce and branch network, responsible management of their supply chains will become 
more important. Another challenge for banks is how to keep and attract talent, especially the 
younger generation, which tends to favor innovative and agile companies. Positively, bank 
employees typically benefit from safe and healthy working conditions relative to many other 
sectors. Banks rely on customers' trust to maintain their franchises. Issues regarding conduct 
with retail customers, such as misselling; or fraudulent activities like money laundering or tax 
evasion, can cause serious financial and reputational damage. IT issues that disrupt customers' 
access to banking services, risks of data leaks, and concerns over the treatment or privacy of data 
are important franchise risks, since open banking in many parts of the world makes it easier for 
customers to switch banks. Nevertheless, the industry benefits from significant regulation and 
supervision, which in recent years have been increasingly focusing on ESG risks to support 
stability and enhance customer confidence. 
Regional Risk Summary

Appendix 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
8
 
France 
France has strong institutions and rule of law, with free flows of information throughout society 
and open debate on policy decisions. Checks and balances between institutions are generally 
effective. Overall, corporate governance is in line with advanced economies' standards. In addition 
to the EU Non-Financial Reporting Directive's recommendations requiring the disclosure of ESG 
data, French companies must also disclose the social and environmental consequences of their 
activities under domestic law (Grenelle Act), the financial risks they face from climate change, and 
their remediation strategies (Energy Transition Law). Under the 2019 law Pacte, companies must 
consider environmental and social issues when developing their strategy. The strong regulatory 
framework is complemented by the Afep-Medef Code, the corporate governance 
recommendations from AFG (French Asset Management Association), and recommendations from 
the Financial Markets Authority. All three provide non-binding guidance for best practice on 
governance and pay. Despite waves of privatization, the state remains an important player in the 
French capital markets as a shareholder of several large, listed companies. On diversity, the Cope-
Zimmermann Law has required listed companies to reach at least 40% female board membership 
since 2017. France ranks 22 of 180 on Transparency International's 2021 Corruption Perceptions 
Index. 
United States 
With robust institutions and rule-of-law standards, the U.S. demonstrates many strong 
characteristics but lags several other countries with respect to ESG regulations. Governance is 
characterized by a very stable political system, a strong rule of law, a powerful judiciary, and 
effective checks and balances. Conditions of doing business are generally very good. The U.S. 
follows a rules-based approach to corporate governance focused on mandatory compliance with 
requirements from the major exchanges (NYSE and NASDAQ) as well as legislation. State 
corporate law is also a key source of corporate governance, particularly Delaware where over half 
over all U.S. listed companies and close to 70% of Fortune 500 companies are incorporated. 
Exchanges mandate high standards of corporate governance. The NYSE requires companies 
listing on its exchange to have boards made up of a majority of independent directors, with 
separate remuneration and nomination committees. However, formal requirements on ESG 
reporting are not as established as they are in European countries. While a growing number of 
companies have an independent chair, the combination of CEO and chair roles is still popular. 
Remuneration continues to be a contentious point because U.S. executive pay dwarves global pay 
levels. The U.S. ranks 27 of 180 on Transparency International's 2021 Corruption Perception Index. 
United Kingdom 
The U.K. benefits from strong corporate governance practices. Brexit-related policy uncertainties 
still linger, including disagreements with the European Union on the implementation of the 
Northern Ireland Protocol which may lead to frictions. Still, in our view, UK benefits from robust 
and independent institutions and high rule-of-law standards, as well as very low actual and 
perceived levels of corruption. Governance guidelines are primarily based on the U.K. Code of 
Corporate Governance published by the Financial Reporting Council (FRC) and updated in 2018. 
The revised and strengthened code provides a broad set of recommendations including executive 
remuneration and board composition, follows a comply-or-explain model, and is widely regarded 
as best practice internationally. The recent version strengthened provisions on the role of the 
audit and nomination committees, chair tenure, and stakeholder engagement. An updated version 
of the U.K. Stewardship Code published by the FRC also came into effect on Jan. 1, 2020. It sets 
out principles for investors. Overall levels of corporate disclosure on ESG are strong and the 
country benefits from a very active institutional investor base, which has been fuelling the demand 
for better disclosure and corporate engagement. Legislation that took effect in 2019 will also 
require pension funds to disclose the financial risks they face arising from ESG factors. The U.K. 
ranks 11 of 180 on Transparency International's 2021 Corruption Perceptions Index.

Appendix 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
9
 
Czech Republic 
The country's key political and economic institutions have a good track record of independence 
and effectiveness despite the greater instability of Czech governments, historically. Based on 
OECD principles, the 2018 Czech corporate governance code is the reference document for best 
practices. It operates on a comply-or-explain basis, but companies are required to publish an 
annual statement on their alignment with it. Companies can choose between one- or two-tiered 
governance structures where a supervisory board oversees the executive board. At companies 
with over 500 employees, employees can elect one-third of the supervisory board. While the stock 
exchange doesn't have specific ESG requirements in its listing rules, larger companies are 
implementing the EU Non-Financial Reporting Directive's recommendations, which mandate 
disclosing ESG risks. The Czech Republic's perceived corruption levels are higher than other 
developed EU countries and it ranks 49 of 180 on Transparency International's 2021 Corruption 
Perceptions Index. 
Germany 
Germany has strong institutional and governance effectiveness. Rule of law is strong, the judiciary 
is independent, and corruption is viewed as a minor issue. Germany ranks 10 of 180 on 
Transparency International's 2021 Corruption Perceptions Index. The German Corporate 
Governance Code (Kodex) is the reference document for best practices and works on a comply-or-
explain basis. Its last iteration came into effect in 2020 when the EU Shareholder Rights Directive 
II was transposed into German law. Notable improvements include recommendations on board 
independence and board oversight of related-party transactions and executive pay, with a 
shareholder vote on the remuneration report becoming mandatory in 2022. While the 
recommendations are less specific than most European codes, companies exhibit strong 
governance practices. Companies are typically governed by a two-tier board system: a 
management board overseen by a supervisory board comprising non-executives including 
shareholder and employee representatives. The 2021 Act on Strengthening Financial Market 
Integrity (FISG) is an important milestone aimed at strengthening financial oversight at German 
companies. Besides requiring a minimum number of financial experts on boards, since January 
2022 all listed companies must also form an audit committee.

Appendix 
Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
10
 
Related Research 
− 
“Environmental, Social, And Governance Evaluation: Analytical Approach,” Sept. 20, 2022  
− 
“The ESG Risk Atlas: Sector And Regional Rationales And Scores,” July 22, 2020 
− 
“Our Updated ESG Risk Atlas And Key Sustainability Factors: A Companion Guide,” July 22, 2020 
− 
“How We Apply Our ESG Evaluation Analytical Approach: Part 2,” June 17, 2020 
 
This report does not constitute a rating action.

Societe Generale S.A.
 
S&P Global Ratings  |  Environmental, Social, and Governance (ESG) Evaluation 
                    This product is not a credit rating 
Feb. 07, 2023 
11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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