European bank Societe Generale and IFC, a member of the World Bank Group, have signed a collaboration framework agreement to accelerate on sustainable finance in developing countries, as part of both institutions’ shared ambition to contribute to the UN Sustainable Development Goals (SDGs) and strong commitment to the environmental transition and sustainability.

IFC said in a statement on last Friday that as part of this agreement, the two institutions aim to further develop wide-ranging financing solutions such as project co-financings or risk sharing agreements, contributing to private sector mobilization in support of the climate transition.

In particular, the agreement will support sustainable finance projects to facilitate access to clean energy, water and other infrastructure and to foster sustainable agribusiness as well as the financing of projects empowering women entrepreneurs in small and medium sized enterprises (SMEs).

Societe Generale and IFC will also share approaches and expertise on methodologies and frameworks aimed at measuring and monitoring impact.

This new collaboration framework agreement builds on a longstanding partnership, solid cooperation track record, as well as a joint commitment towards the SDGs and rigorous environmental, social and governance (ESG) standards.

Over the last ten years, the two institutions have co-financed about 60 transactions with other partners, representing more than $20 billion in new investment flows into developing countries.

IFC has also provided approximately $1.3 billion in financing to Societe Generale, for instance to enable the scaling up of green vehicle fleets.

This partnership will draw on the complementary strengths of the two institutions.

Societe Generale will bring its leading expertise in structured finance and ESG, its ability to distribute assets to investors and its global reach.

IFC will leverage its experience as the largest global development institution focused on the private sector in developing countries, including its balance sheet strength and in-depth knowledge of developing economies.

“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,” said Slawomir Krupa, Chief Executive Officer of Societe Generale.

“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,” he added.

Meanwhile, IFC Managing Director Makhtar Diop said that this agreement will deepen the long-standing relationship between IFC and Societe Generale, allowing them 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,” he added.

Societe Generale is a top tier European Bank with 117,000 employees serving 25 million clients in more than 60 countries across the world.

The firm has been supporting the development of their economies for nearly 160 years, providing them corporate, institutional, and individual clients with a wide array of value added advisory and financial solutions.

IFC is the largest global development institution focused on the private sector in emerging markets.

The organization works in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.

In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.

IFC supports new fund to address infrastructure gaps, cut carbon emissions across Asia and Africa