- The move to a sustainable future involves a change in energy, moving towards a low-emission energy mix that is not straightforward and includes significant advances and turning points.
- To achieve a low-emission future, a combined approach is needed, such as supportive public policies, investment in clean energy technologies, and upgrades to infrastructure.
- Citi plays an active role in moving towards a low-carbon economy through important renewable energy projects, innovative sustainable finance, and helping with an inclusive shift, even though 42% of its energy clients don't have full climate transition plans.
In a detailed report titled “Citi’s Approach to Climate Change and Net Zero” released on March 28, 2024, by Citi under the leadership of CEO Jane Fraser, the global financial institution outlines its strategy and commitment to help clients across various industries and countries move to a sustainable, low-carbon future. The report emphasizes Citi’s engagement in promoting resilience in the face of climate change and the ambition for net zero emissions.
Jane Fraser, the Chief Executive Officer of Citi, states: “From our work with clients in nearly 160 markets, we know that the journey toward net zero will happen at different speeds in every industry and country. We support our clients in funding their move to low-carbon business models and developing clean technologies, while also supporting clients who supply ample and affordable energy to meet the world’s current and future needs. These activities are not mutually exclusive and must be addressed simultaneously.“
An important finding in the report is that 42% of Citi’s energy clients don't have comprehensive plans for transitioning to lower greenhouse gas emissions, showing a significant gap in the preparedness of key sectors to actively tackle the challenges of climate change. This disclosure underlines the urgency and the level of effort needed to promote a more sustainable and resilient energy sector.
The report honestly discusses the complexities and tough decisions involved in the move towards a sustainable energy future, emphasizing the idea of an energy evolution rather than a simple technological substitution. It recognizes the non-linear path of this evolution, which is expected to include numerous cumulative advances and important moments over the coming decades. This progress relies on a combined approach that includes supportive public policies, investment in clean energy technologies, and improvements to electric grids, transmission systems, and permitting processes. Additionally, the challenge of accessing strong and reliable data for analyzing climate risk impacts and identifying transition opportunities is acknowledged, with a call for collaborative effort from all sectors of society.
Citi sees the changes in the energy sector as a big opportunity for itself and its clients because the energy sector needs a lot of money to operate worldwide. The bank's 2023 Climate Report talks about its progress in moving towards net zero emissions, managing environmental risks, and the effects of its climate strategy over the past year. Citi has helped with important events such as supporting renewable energy Initial Public Offerings (IPOs), creating plans for sustainable finance, and making it easier for people to use clean energy and reduce emissions through voluntary carbon markets.
Citi takes a proactive approach to dealing with climate change and the move towards a low-carbon economy, even though many of the energy companies it lends money to don't have good plans for handling climate changes, as shown in a climate report. Despite this, Citi keeps looking at the climate risks and preparedness of the businesses it lends to, stressing the importance of making progress on climate issues and recognizing the huge effort it takes to change the energy sector. The bank's commitment to reaching net zero emissions by 2050 shows how dedicated it is to dealing with one of the most important challenges of our time and creating value for everyone involved.
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