Liz Doherty, liz.doherty@sierraclub.org
Washington, DC -- Today, Citi announced a new commitment to reach net zero greenhouse gas emissions for its financing by 2050, but put off providing key details, instead promising an initial plan “within the next year.” Citi announced that its net zero plan will include “emissions reduction targets for carbon-intensive sectors that also have low-carbon transition opportunities, including interim emissions targets for 2030 for our Energy and Power portfolios.” Citi has been the world’s third largest banker of fossil fuels in recent years, pouring $188 billion into the sector from 2016-2019.
The announcement comes on Jane Fraser’s first day as CEO of the bank, and makes Citi the third major U.S. bank, following Morgan Stanley and Bank of America, to make an explicit commitment to achieve net zero financed emissions by 2050. JPMorgan Chase previously pledged to align its financing with the goals of the Paris Agreement. Wells Fargo and Goldman Sachs are now the only two major U.S. banks without a similar commitment.
Last year, a coalition of more than 60 climate and human rights organizations around the world issued a set of Principles for Paris-Aligned Financial Institutions that details what true climate leadership from banks and other financial institutions would look like to meet the Paris Agreement’s goal of limiting global warming to 1.5°C.
In response, Sierra Club financial advocacy campaign manager Ben Cushing released the following statement:
“It’s good to see Citi’s new CEO making big climate commitments on her first day, but today’s announcement is simply an IOU for the real plans and actions that will be needed to achieve net zero emissions by 2050. Despite citing ‘an urgent need for collective action’ in response to the climate crisis, Citi does not provide specifics on how it will get to net zero or begin taking further action this year. It should not be a mystery to Citi or any major bank where to start right now: stop financing fossil fuel expansion. There’s no time left to waste.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.