The bank has achieved over 50% of its targets to reduce its operational footprint by 2025.
In Brief
- Citigroup has financed and facilitated $441.2 billion toward sustainable finance four years into a goal to invest $1 trillion in the sector by 2030, the bank said in its 2023 ESG Report Monday.
- Citi also has reached or surpassed targets for five of eight goals to decrease its operational footprint by 2025, against a 2010 baseline, including goals on reducing location-based greenhouse gas emissions, renewable energy sourcing, water consumption and waste reduction.
- The financial group said its investment banking sector accounts for the largest portion of its sustainable investments — 85% — and renewable energy-related activities were a “major driver” of the bank’s progress in 2023. Citi said part of this was due to clients who were spurred by the Inflation Reduction Act and its $369 billion in clean energy tax credits.
Background
Citi has affirmed its commitment to its sustainable finance goals, reporting progress on multiple fronts in its 2023 ESG Report.
The bank invested heavily in green infrastructure and social initiatives, totaling $92.7 billion, aligning with established ESG criteria. Renewable energy took the lead, with $14 billion invested, while affordable housing saw significant attention, with $7.1 billion directed towards related activities, including direct financing for projects in the U.S.
Despite progress, Citi acknowledges areas needing improvement, such as energy consumption reduction and waste diversion, and has surpassed its $1 billion financing goal for its Action for Racial Equity program.
The report follows Citi’s commitment to disclose its clean energy financing ratios, spurred by shareholder pressure, revealing insights into the bank’s climate-related financial disclosures.
