On Jane Fraser’s first day as CEO in March 2021, Citi announced our commitment to net zero greenhouse gas emissions by 2050, including our own operations by 2030. This means rethinking our business and helping our clients rethink theirs. For banks like Citi, a net zero commitment includes not just our own operations but also our business impacts—in other words, our financing activities.
In line with our net zero commitment, we have published our initial net zero by 2050 plan in our 2021 TCFD Report, including 2030 emissions targets for our Energy and Power loan portfolios. These targets were developed in line with Net-Zero Banking Alliance (NZBA) Guidelines for Climate Target Setting.
“The first step of our net zero plan involves engagement, client by client, to understand their GHG emissions disclosure and their perspectives and plans on carbon transition.”
Net Zero Framework
For our net zero by 2050 commitment, we have established the below framework: 1. Calculate Emissions: Calculate baseline financed emissions for each carbon-intensive sector 2. Transition Pathway: Identify the appropriate climate scenario transition pathway 3. Target Setting: Establish emissions reduction targets for 2030 and beyond 4. Implementation Strategy: Engage with and assess clients to determine transition opportunities 5. External Engagement: Solicit feedback from clients, investors and other stakeholders as this work continues to evolve and we collectively define net zero for the banking sector.
Client Engagement and Assessment
The first step of our net zero plan involves engagement, client by client, to understand their GHG emissions disclosure and their perspectives and plans on carbon transition. Additionally, we will review clients’ public disclosures, climate governance, and the commitments and actions they have taken to date. We anticipate that this initial review phase will continue through the end of 2023.
The key considerations that will frame client engagement include public disclosure of GHG emissions and reduction targets, climate risk ratings, and transition plans.
Please see Citi’s 2021 TCFD report for further information.
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