In 2023, Citi confirmed its dedication to Environmental, Social, and Governance (ESG) principles in the midst of a complex global situation marked by environmental emergencies and socio-economic changes. The yearly ESG report shows significant progress across various areas, with Citi using its worldwide presence to support economic resilience and environmental sustainability.
CEO’s Thoughts: Dealing with Challenges Purposefully
Jane Fraser, CEO of Citi, started the report by reflecting on the crucial role played by the institution. She mentions, "This past year once again highlighted the important role Citi plays in helping the clients and communities we serve navigate their biggest economic and societal challenges.” Despite the challenges of an uncertain macro environment and increasing geopolitical tensions, Citi’s efforts have been focused on addressing important global issues through sustainable finance and responsible banking.
Citi’s $1 Trillion Sustainable Finance Pledge
Citi has set an ambitious target to mobilize $1 trillion for sustainable finance by 2030. As of 2023, the bank has facilitated $441 billion in environmental and social finance activities. This financing supports projects across various sectors, including renewable energy, water purification, and sustainable housing. Specific projects highlighted by Fraser include water purification initiatives in Vietnam, solar energy projects in Kenya, and substantial investments in U.S. affordable housing, totaling nearly $6.5 billion in 2023 alone, maintaining Citi’s position as the leading affordable housing lender in the U.S. for the 14th consecutive year.
Building Fair and Resilient Communities
Citi’s efforts go beyond environmental sustainability to deeply focus on societal impacts. The Citi Foundation’s Global Innovation Challenge granted $25 million to 50 community organizations dedicated to improving food security and enhancing the financial health of low-income families. Additionally, the Citi Impact Fund has been crucial in helping entrepreneurs in underserved communities, particularly through financial innovations like the Citi® ATM Community Network and the Citi Start Saving® platform, which increase financial access across the U.S.
Comprehensive ESG Governance
Supporting Citi’s ESG efforts is a rigorous governance framework that ensures these principles are deeply embedded in every aspect of operations. The report outlines Citi’s compliance with global standards such as the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD), enhancing transparency and accountability in its ESG reporting.
Sustainable Operations and Climate Strategy
Citi is unwavering in its commitment to achieve net zero greenhouse gas emissions by 2050. In 2023, the bank made significant progress, obtaining 100% renewable electricity for its operations and achieving substantial decreases in waste, water, and energy usage across its global facilities. Fraser emphasizes the critical role of partnerships in this endeavor, stating, "It is still very important for the public and private sectors to work together and agree on things, especially when trying to reach net zero.”
Diversity, Equity, and Inclusion (DEI)
Citi’s DEI efforts are made to match the diversity of the communities and clients it serves. In 2023, Citi improved its ways of hiring, keeping, and developing people to make a more inclusive and varied workplace. Fraser proudly talks about the impact of these efforts:At the center of our success are the more than 200,000 talented Citi coworkers around the world. We are still dedicated to making a team that looks like the diversity of the clients and communities we serve.”
Challenges and Forward-Looking Statements
While celebrating the year’s accomplishments, Citi’s report also points out the challenges ahead, including the ongoing need for strong climate action and solving systemic social unfairness. The bank stays careful in its planning, ready to adjust to the changing financial situation influenced by changes in rules and market forces.
Conclusion: Commitment to Sustainable Growth
Citi’s 2023 ESG report not only shows its accomplishments but also shows its ongoing promise to doing the right thing and making things last. Jane Fraser’s ending comments invite people with an interest in the report, understanding the bigger effect of Citi’s work:We know that the biggest challenges our society faces have both risk and reward, and we must keep acting quickly, openly, and ethically to make real progress for everyone.”
View Full Report
