Société Générale has launched what it describes as a global transaction banking (GTB), framework that focuses on the bank's sustainable solutions for its large corporate clients, including those writing letter of credit (L/C) business.

The framework aims to help the bank's clients assess and monitor the environmental and social impacts of their day-to-day working capital, trade, and liquidity management.

GTB solutions

The framework focuses on sustainable GTB solutions for trade finance, including L/Cs, standby L/Cs, guarantees and other trade facilities.

It also focuses on cash management, including working capital loans, as well as factoring services, such as receivable finance and forfaiting.

Establishing market standards

Société Générale says it developed the framework in response to changing market expectations and the absence of established market standards for sustainable GTB solutions.

Corporates have increasingly been looking to quantify the impact of their transactions and fulfil corresponding reporting requirements according to the bank.

Environmental and social impacts

As one of the first GTB solutions, the bank says the framework helps corporate treasurers to support their company's transition to sustainable ways of working by identifying activities considered to have positive environmental or social impact.

It also helps them to identify approaches for reporting the impact of these transactions and methods through which transaction banking can support these activities.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.