Net Zero Emissions Commitment
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.
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.
Net Zero 2030 Targets
2030 financed emissions targets for Citi’s Energy and Power loan portfolios:
| Sector | 2020 Baseline1 | Climate Scenario | 2030 Targets |
|---|---|---|---|
Energy (Scope 1, 2, 3) |
143.8 million mt CO2e |
IEA NZE 2050 |
29% reduction from 2020 baseline 102.1 million mt CO2e |
Power (Scope 1) |
313.5 kg CO2e /MWh |
IEA SDS OECD |
63% reduction in Scope 1 intensity per MWh |
1 Baseline based on available data as of September 2021. Further updates to improve data quality of the baseline numbers may result in changes to both the 2020 baseline numbers and the 2030 targets.
Net Zero Plan – Energy and Power
Citi's initial net zero plan for our Energy and Power loan portfolios will include actions laid out in the following timeline:
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.