(Credit: Pixabay)Citigroup, whose CEO, Jane Fraser, took the helm this morning, has announced its commitment to achieve net-zero greenhouse gas emissions from its financing activities by 2050. Citi joins large US banks Morgan Stanley, Bank of America, and JPMorgan Chase in setting long-term targets to reduce its financed emissions in line with the Paris Climate Agreement.
The announcement comes after engagement with investors regarding a shareholder resolution filed by As You Sow, Mercy Investment Services, Boston Common Asset Management, Arjuna Capital, Presbyterian Church USA, and the School Sisters of Notre Dame Cooperative Fund. The resolution, which asks the company to disclose whether and how it will reduce emissions from its financing in line with the global goal of limiting warming to 1.5 degrees Celsius, has been withdrawn in recognition of Citi’s new commitment.
With this announcement, four of the top six US banks have now set ambitious financed emission targets and have agreed to measure and disclose progress towards those goals. Bank of America earlier this month announced a commitment to reduce its financed emissions in line with the Paris Agreement’s net-zero goal, resolving a shareholder proposal. JPMorgan also resolved a shareholder proposal in agreeing to disclose its financed emissions for three high-carbon sectors; provide assumptions and methodologies; report on its success in portfolio decarbonization; and announce a timeline for adding additional sectors.
