Green Bonds: How can investments contribute to the energy transition?

A bond… but not like the others

A green bond remains a bond: the issuer borrows funds that it repays with interest. However, unlike traditional bonds, the capital is earmarked for projects with a clearly identified environmental objective. This approach is governed by recognized international standards, such as the Green Bond Principles (ICMA), and by specialized platforms like the Luxembourg Green Exchange, which plays a key role in ensuring that only projects meeting the most rigorous criteria are accessible to investors.

Combining returns and environmental criteria

Long considered a niche market, green bonds have matured in recent years — demand is strong and bond issuances numerous, standards have been strengthened, and credibility is now established. These bonds now offer financial terms comparable to those of traditional bonds, allowing investors to invest while supporting projects aligned with energy transition objectives. Other thematic instruments have also emerged: social bonds, dedicated to financing projects with societal impact, and blue bonds, focused on the preservation of ocean resources.

Measurable and visible results

The specificity of green bonds lies in measuring their concrete impact. Each financed project is monitored through precise indicators: avoided CO₂ emissions, installed renewable energy capacity, water savings achieved, and volumes of waste treated and recovered.
As of June 30, 2025, our management companies, Société Générale Investment Solutions France and Europe, had already invested more than €2.3 billion in green bonds* to finance projects mainly related to sustainable construction (25%), renewable energy, and clean transport (20%). According to data published by issuers and consolidated by the management teams, these investments have enabled:

• An annual reduction of 550,000 tons of CO2, which is equivalent, for example, to taking approximately 110,000 combustion-engine vehicles off the road.
• The addition of 420 GWh of renewable energy production capacity, as well as annual energy savings of 267 GWh. This new capacity and combined savings can supply more than 180,000 European households.
• Water savings of 215,000 cubic meters, equivalent to the annual consumption of about 5,000 people.

These data, derived from green bond issuers’ reports, directly link the investment to tangible results. It is no longer just “sustainable investing,” but seeing the direct effects of one’s savings on the environment.

An essential lever for tomorrow

The financing needs of the transition are considerable on a global scale. Green bonds have established themselves as an indispensable lever, capable of transforming savings into concrete and measurable actions for the environment. With more than €2.3 billion already invested, Société Générale Investment Solutions demonstrates that financial performance and positive impact go hand in hand. It is by mobilizing these innovative tools that we can meet the colossal needs of the transition, accelerate the decarbonization of our economies, and build a more sustainable future starting today. However, they must be complemented by other financing mechanisms and ambitious public policies to meet carbon neutrality objectives.