In March 2021, Citi made a commitment to reach net zero greenhouse gas emissions by 2050, including our own operations by 2030. For a global financial institution like Citi, a net zero commitment means working with our clients and helping them in their own low-carbon transitions.
Our Net Zero Framework
- Calculate Emissions
Calculate baseline financed emissions for each carbon-intensive sector
- Transition Pathway
Identify the appropriate climate scenario transition pathway
- Target Setting
Establish emissions reduction targets for 2030 and beyond
- Implementation Strategy
Engage with and assess clients to determine transition opportunities
- External Engagement
Solicit feedback from clients, investors and other stakeholders as this work continues to evolve, and collectively define net zero for the banking sector
Our approach is guided by Citi’s Net Zero Transition Principles, which reflect our aim to reduce emissions with urgency in the near-term, while also driving a responsible and orderly transition that minimizes economic disruption. We expect these principles to evolve as we collectively learn with our clients, peers, investors and other stakeholders.
Citi Net Zero Transition Principles
- Net Zero LeadershipSet net zero targets that are ambitious, transparent and aligned with climate science, consistent with our leadership in sustainability over the past two decades. Help define net zero for the banking sector, including through our membership in the Net-Zero Banking Alliance.
- Client TransparencyPartner with our clients, with the ultimate goal of helping them decarbonize. If we decide to exit a client relationship, communicate the time frame and rationale in a transparent manner, taking into account worker and community impacts.
- Focus on TransitionPartner with our clients through their transition, ensuring appropriate alignment with our net zero commitment and helping them navigate the challenges they face. Assist clients and governments as they evaluate the carbon-intensive assets in their portfolios and consider responsible asset retirements or divestments, giving consideration to the destination, transparency and stewardship of these assets as we assess transactions and transition plans.
- Social ResponsibilityStrive to ensure that our net zero transition is consistent with other sustainable development objectives. We will also assess how our financing decisions could affect lower-income communities, developing countries and communities dependent on carbon-intensive sectors, balancing the need for carbon reduction with the potential negative impacts on access to energy and economic dislocation. We will be mindful that some of these same communities could also be faced with some of the worst impacts of climate change.
- Constructive EngagementWork with the public sector, clients, civil society and our peers to transparently promote and support climate policies, regulations and the scaling of new technologies that are required for an orderly transition.
- DisclosureReport annually on our progress and our transition as we learn.
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