SocGen Warns of Unintended Fallout of EU’s Green Asset Ratio (1)

The head of sustainable finance at Société Générale SA in Asia says Europe’s plan to require banks to provide a green score card risks putting banks with a global client base at a disadvantage.

Banks operating in the European Union will be required to start publishing their green asset ratios in 2024. The metric, which shows a lender’s environmentally sustainable assets as a percentage of the bank book, excludes a number of areas such as exposures to central banks and governments as well as trading. Analysts at S&P Global have already warned that the ratio won’t provide a reliable assessment ...