Case study: How Socredo identifies and works on strategic business opportunities to increase positive and reduce negative impacts

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Socredo participates in a wide range of committees, initiatives, and partnerships involving both the private and public sectors, as well as civil society through its involvement with associations. Through these channels, Socredo engages on numerous topics relevant to the implementation of the PRB within its work and actions. Issues such as climate change, biodiversity, inclusion, and equality are frequently addressed to explore solutions, understand critical challenges, and deepen its knowledge.

Socredo recognizes that its employees and Board members are both sustainability ambassadors and key stakeholders. By participating in workshops, conferences, and representing the bank on committees and external missions, they share their expertise and acquire new skills. These experiences help enhance practices and strengthen Socredo’s sustainable strategy. Here are some examples of how their engagement supports and advances Socredo’s approach:

• During the “Je Marche Pour La Planète” month organized in September 2024, over 20 Sustainable Development ambassadors contributed to a variety of activities to share knowledge on eco-friendly practices (e.g., learning to make homemade eco-friendly laundry detergent); participated in a walking challenge to raise awareness about health issues; engaged with local actors involved in ecological transition through themed conferences; and organized weekend initiatives such as beach clean-ups.
• During the Carbone 4 onsite mission, 70 employees took part in workshops. Based on their ideas and reflections, they helped shape the bank’s Action Plan.
• The Management and Sustainable Development Department participates in the Regional CEC (Business Convention for Climate), which brings together various local stakeholders to collaboratively develop sustainable solutions for the territory. This platform encourages joint thinking on sustainable initiatives for Socredo’s Fenua, draws inspiration from global practices, and strengthens efforts through partnerships and exchanges with other regional actors.
• An executive director of the bank serves on the Board of CESEC (the Economic, Social, and Cultural Counsel of French Polynesia), playing a direct role in shaping national policies that benefit and protect all citizens.
• A member of the Executive Committee is the chairwoman of FACE (Foundation Act Against Exclusion), actively involved in developing inclusion initiatives and promoting social equity in French Polynesia.
• Executive senior managers participate in the Polynesian branch of MEDEF (Movement of French Companies) to collaborate with other private sector stakeholders and influence policymakers on key industry issues.
• Over the past year, the Sustainable Development team has undergone training provided by the CCISM (Chamber of Commerce and Industry of the Overseas Society) to learn how to conduct a carbon footprint assessment.
• 100% of new staff members completed a training session on Sustainable Development.

Public institutions, organizations, and associations are key stakeholders for Socredo. Engaging with them promotes change and offers valuable insights from the frontlines. Here are some examples of how Socredo engages with them:

• As a founding member or major shareholder of local associations such as FACE and ANAVAI (a crowdfunding platform), Socredo benefits from these partnerships in multiple ways. These collaborations enable the bank to amplify its message and advance financial inclusion, while also gaining valuable insights from their field activities.
• Socredo partners with impactful organizations such as:
  • Aoa, which is dedicated to restoring and protecting French Polynesian biodiversity. Through this partnership, Socredo is actively involved in raising awareness among real estate developers about the environmental impact of land clearing for new construction. The goal is to encourage them to consider and incorporate these ecological dynamics into their projects. As part of this collaboration, Socredo proposes a ‘compensation’ initiative where, for every square meter built, the developer contributes a specific amount of money to Aoa. This contribution covers half of the cost, with the bank covering the remaining half.
  • Other associations, public institutions, and private actors, which, in exchange for partnership, share their expertise with Socredo through conferences, workshops, or internal training sessions. An example of this is the installation of a worm composting system at one of the bank’s branches.
• At the request of the University of French Polynesia, Socredo assisted in designing and developing courses for a new Sustainable Development program. The bank contributed by integrating local business needs and expectations to train a new generation of skilled professionals directly within the territory.
• Through the French Polynesian government’s Fare Ora (Home for Everyone) initiative, which streamlines administrative processes on remote islands, Socredo will expand its reach to a broader client base. By partnering with this program, the bank enhances its capacity to serve underserved communities, providing access to essential banking products and services that were previously unavailable.

Finally, Socredo positions its clients as direct stakeholders. The bank highlights and supports MSMEs with innovative or environmentally beneficial initiatives to promote sustainable alternatives and responsible consumption. Additionally, Socredo actively engages with its clients by providing tailored advice to guide them toward more virtuous choices, a commitment further strengthened through the implementation of the MATIE sheet.

Through these various engagements, Socredo aims to involve all stakeholders, from policymakers to clients, in driving rapid change to address climate issues and promote inclusion at every level. In the long term, the bank aspires to establish itself as a central hub for the Fenua’s activities, fostering a virtuous cycle through its positive impact financing initiatives and emerging as the key player in sustainable development in French Polynesia. Investing in Socredo will thus be recognized as a mark of quality and a commitment to resilience.

How did Socredo identify and work on strategic business opportunities to increase positive and reduce negative impacts?

In its 2024 PRB Reporting and Self-Assessment Template Socredo reports that it identified and worked on strategic business opportunities to increase positive and reduce negative impacts as follows:

The impact analysis conducted for Socredo’s carbon footprint identified the most impactful sectors. Mortgage, real estate, and transportation loans are primary contributors, driven by the high carbon intensity of energy in French Polynesia and reliance on imported materials.

These challenges present significant opportunities for local stakeholders. With the goal of helping Polynesians reach a target footprint of 5.5 tCO2e per inhabitant per year by 2030, Socredo must guide its clients by demonstrating that the transition is an opportunity rather than a constraint. Socredo has a responsibility to provide support through advisory services and financial incentives. It is Socredo’s role to promote and support the development of clients as key players in French Polynesia’s decarbonization efforts. Refinancing is also a crucial aspect of maintaining the economic performance of Socredo. The bank is currently working on identifying funds that could support its strategy in this area.

Reducing the negative impacts of Socredo’s financings involves assisting clients in lowering their own environmental impacts. Since the implementation of the MATIE sheet in 2019, the proportion of “reserved” reviews decreased to 0% of files studied in 2023. Discussions during the review process and with clients have proven effective in addressing and mitigating negative impacts. Socredo aims to keep this share as low as possible, despite stricter conditions and an increasing number of files studied.

Additionally, Socredo is developing a strategy to identify projects earlier in their development stages. This will enable the bank to support projects from the outset, guide them toward appropriate sustainability assistance, and incorporate environmental considerations more quickly. This proactive approach will also focus on identifying and engaging with promising, impactful initiatives to help bring them to fruition—whether through favourable financing options or by connecting them with key stakeholders.

To foster a fairer society and promote greater equality among Polynesians, thereby contributing to long-term sustainability, Socredo is committed to further developing its financial inclusion initiatives. This will be achieved through some of the following levers:

• Increasing the share of clients subscribing to the Fragile Customer Offer. As of the end of 2023, 313 clients had subscribed, representing 39% of eligible clients.
• Raising the equipment rate among inclusive customers to 70% within Socredo’s adapted products and service packages.
• Installing bank terminals in areas where Socredo is not currently represented, with a target of deploying 10 new terminals by 2028.
• Expanding digital services to ensure equitable access for all, regardless of location. In 2024, Socredo introduced electronic signatures to minimize travel, reduce transport-related emissions, and serve remote customers more efficiently. This goal will be further supported by the continued expansion of the e-Agency platform, enabling customers to access all banking services online.

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References:

This case study is based on published information by Socredo, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.socredo.pf/uploads/documents/cards/unep-fi-self-assessment-2024-version-definitive-677460bb6e7d4480506080.pdf

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