American multinational bank Citi has announced it’s new five-year 2025 Sustainable Progress Strategy to help accelerate the transition to a low-carbon economy.
The new strategy includes a $250 billion environmental finance goal to finance and facilitate climate solutions globally.
This builds on Citi’s previous $100 billion goal announced in 2015 and completed last year, more than four years ahead of schedule.
The bank plans to be 100% powered by renewable electricity by the end of 2020.
Citi will focus on three new areas to disperse the $250 billion planned investment:
The new goal includes financing and facilitating activities in renewable energy, clean technology, water quality and conservation, sustainable transportation, green buildings, energy efficiency, circular economy, and sustainable agriculture and land use.
Citi will continue to develop innovative financing structures and seek opportunities to scale positive impacts in these areas while supporting clients across all sectors in the low-carbon transition.
Measuring, managing and reducing the climate risk and impact of Citi’s client portfolio is a key aspect of a low-carbon transition.
Citi will further test the resilience of its lending portfolios to transition risks and physical risks related to climate change and continue to disclose in line with the Task Force on Climate-related Financial Disclosures (TCFD). The global bank will begin measuring the climate impact of its own portfolios and their potential alignment with 1.5 and 2 degree Celsius warming scenarios.
Citi is also joining the Partnership for Carbon Accounting Financials, a global framework for financial institutions to measure and disclose the emissions of lending portfolios and create a global carbon accounting standard for financial institutions.
This strategy includes fourth generation operational footprint goals focused on GHG emissions, energy, water, waste reduction and sustainable building solutions.
Since 2005, Citi has reduced 3,600 GWh of energy use and avoided 2.4 million MTCO2e, equal to the GHG emissions of over half a million cars on the road for a year.
While climate science requires global CO2 emissions to be reduced by 45% by 2030, Citi is accelerating that timeline with a 45% reduction target in CO2 emissions by 2025.
Michael Corbat, CEO of Citi, said: “If there’s one lesson to be learned from the COVID-19 pandemic, it is that our economic and physical health and resilience, our environment and our social stability are inextricably linked.
“ESG has been front and center in Citi’s response to this health crisis, and evermore present in conversations with clients and partners. With our $250 billion goal, we want to be a leading bank in driving the transition to a low-carbon economy, which we anticipate will accelerate as businesses of all kinds shift to a more sustainable future.”
Val Smith, Chief Sustainability Officer of Citi, adds: “We are seeing a true integration of sustainability into our businesses with the formation of additional sustainability and ESG-focused teams and increased enthusiasm and advocacy across Citi.
“Our new strategy unifies these efforts by increasing our commitment to environmental finance, propelling forward our work in climate risk analysis and disclosure and continuing to minimize our own company’s environmental footprint impacts.”