Global financial services company Citi has joined the ranks of Wall Street banks setting ambitious sustainable finance goals, with a new $1 trillion by 2030 commitment.
The announcement follows a pledge last week by Bank of America to achieve $1.5 trillion in sustainable finance mobilization and deployment by 2030, and a $2.5 trillion goal, set by JPMorgan today.
The sustainable finance commitments come as banks anticipate substantial increases in spending over the coming years by companies and governments on climate and energy transition-related investments, as well as expenditures towards other sustainable development areas, and as investors and financiers look to have a more meaningful impact from the funds they deploy.
Citi’s new sustainable finance target includes a goal to deploy $500 billion to environmentalEnvironmental criteria consider how a company performs as a steward of nature. finance by 2030, extending its current commitment of $250 billion by 2025. Key areas identified by the bank’s environmentalEnvironmental criteria consider how a company performs as a steward of nature. finance efforts include a wide array of climate solutions, such as renewable energy and clean technology, water conservation and sustainable transportation, and accelerating the transition to a sustainable, low-carbon economy that balances the environmentalEnvironmental criteria consider how a company performs as a steward of nature., socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and economic needs of society.
The bank is also targeting other Sustainable Development Goals (SDGs) outside of environmentalEnvironmental criteria consider how a company performs as a steward of nature. finance, earmarking $500 million for areas including education, affordable housing, health care, economic inclusion, community finance, international development finance, racial and ethnic diversity and gender equality.
In a post announcing the new sustainable finance initiative, Citi’s Head of Global Public Affairs, Ed Skyler said:
“Given our global footprint and our role in supporting economic activity around the world, Citi has a role to play in achieving the SDGs — and in this moment as we look towards emerging and rebuilding from the COVID-19 pandemic, it’s more crucial than ever that we address these priorities together.”
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