Today, Citi released its first climate disclosure report, Finance for a Climate-Resilient Future. We issued this report in response to the recommendations set forth by the G20 Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD), and it is based on a climate scenario analysis pilot project designed to understand the potential financial impacts of climate change on our lending portfolios in the oil and gas and utilities sectors.
Citi's decision to implement the TCFD Recommendations recognizes that climate change is one of today's most critical issues and presents risks that must be carefully managed. Chronic changes to temperature and precipitation, rising sea levels, and more intense and frequent extreme weather events are among the climate shifts scientists anticipate as our world continues to warm. These changes will disrupt supply chains, damage infrastructure, reduce crop yields, and lead to a decline in biodiversity, among other wide-ranging impacts, and they will have catastrophic effects on people and species worldwide.
These climate risks underpin the crucial need for our society to successfully transition to a low-carbon economy and invest in climate adaptation and mitigation solutions. While this transition poses risks to certain sectors, it also creates opportunities for Citi to support our clients in making investments in clean energy, infrastructure and technology. We are proud to have been one of 16 banks to participate in the UN Environment Finance Initiative banking sector pilot project to implement the TCFD recommendations. The process throughout was a collaborative one, as we engaged with peers to share experiences and lessons learned. Within Citi, we formed a working group drawn from teams across Banking, Risk, Quantitative Analysis, Corporate Sustainability and Environmental and Social Risk Management to undertake this complex analysis. Through the team's work, we were able to identify the climate risks, as well as the opportunities, Citi faces now and in the future.
Citi's climate scenario analysis and TCFD disclosures are a continuation of over two decades of work to promote greater sustainability and support our mission of enabling growth and economic progress. By voluntarily adopting the TCFD framework, Citi hopes to minimize future market risks and help navigate this market transition. As we continue to collaborate with stakeholders to build on the pilot project, we will keep you informed of our efforts and progress on addressing this important issue.