Global financial services company Citi revealed today that it more than doubled its sustainable finance activity in 2021, facilitating $160 billion in sustainable finance throughout the year, compared with $62 billion in 2020, according to its newly released 2021 ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Report.
With its jump in activity last year, Citi indicated that it is “well on track to meet its $1 trillion commitment by 2030.” Citi announced its $1 trillion commitment last year, including goals to deploy $500 billion to environmentalEnvironmental criteria consider how a company performs as a steward of nature. finance by 2030, and $500 billion for other Sustainable Development Goals (SDGs) areas including education, affordable housing, health care, economic inclusion, community finance, international development finance, racial and ethnic diversity and gender equality.
In 2021, Citi’s environmentalEnvironmental criteria consider how a company performs as a steward of nature. finance activity increased significantly to over $130 billion, nearly quadrupling 2020’s $33 billion. SocialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. finance reached $29.6 billion, roughly flat year-over-year. By business unit, investment banking represented the bulk of the activity at $150 billion, including facilitating over $44 billion of green, socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. or sustainable bonds, and $28 billion of sustainability-linked loans.
Citi’s ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Report also included details of the impact derived from its sustainable finance activity. According to the report, the bank estimates that since 2020 its sustainable finance activities have resulted in the avoidance of 3.9 million metric tons of greenhouse gas emissions, and “supported approximately 1.8 million jobs, affected 26 million people globally and contributed to approximately $9.5 billion in U.S. GDP.”
Citi’s report comes amidst a significant increase in sustainable finance activity by the company’s wall street peers, with Bank of America reporting earlier this month that its facilitated $250 billion in sustainable finance last year, and JPMorgan reporting reaching $285 billion.
Commenting on the release of the new report, Citi CEO Jane Fraser said:
“From COVID-19 and climate change to systemic racial inequity and a transformational war in Ukraine, we continue to see the need for businesses like Citi to step up and help address the global challenges facing our society. The health of our business is inextricably linked with the health of our planet and our communities, and we cannot succeed at one without the other. At Citi, this sense of responsibility continues to shape our decisions, business strategy and firm-wide goals and commitments.”
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