Under New Leadership, Citi Joins Other Leading U.S. Banks in Setting Net-Zero Financed Emissions Reductions Goal
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609
BERKELEY, CA—MARCH 1, 2021—Citigroup, whose CEO, Jane Fraser, took the helm this morning, today announced in a blog its commitment to achieve net-zero greenhouse gas emissions from its financing activities by 2050. Citi joins large U.S. 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reduce emissions from its financing in line with the global goal of limiting warming to 1.5 degrees Celsius, has been withdrawn in recognition of Citi’s new commitment.
“Investors applaud this commitment from Citi at this critical moment,” said Danielle Fugere, president of As You Sow. “By announcing a net-zero target on day one, Citi’s CEO is demonstrating much needed leadership in addressing the climate crisis. This announcement aligns Citi with other major banks taking action on climate change and sends a clear signal that client companies must either begin transitioning to net-zero business models or face higher costs of capital. We look forward to learning more about how Citi will meet this critical and urgent goal; there is much work to do.”
With this announcement, four of the top six U.S. 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.
Investors are now increasingly concerned that Wells Fargo and Goldman Sachs are lagging their peers. While discussions with Goldman Sachs continue, Wells Fargo has chosen to fight shareholders at the Securities and Exchange Commission by attempting to keep the proposal to measure, disclose, and set net-zero targets off its proxy.
“Not only has Wells Fargo failed to take responsibility for its financed emissions by setting a reduction target in line with the Paris Agreement’s net-zero goal, or even take the first steps of measuring and disclosing its financed emissions, it is challenging shareholders' basic right to ask the bank about these critical issues,” said Fugere.
“As the largest banks continue to up the ante on climate ambition, investors can better differentiate the leaders from the laggards,” said Lila Holzman, senior energy program manager at As You Sow. “The time is now for all banks to step up and take full responsibility for the emissions associated with their financing activities.”
Additional quotes from shareholder resolution co-filers:
“It’s high time banks are accountable for the emissions of their lending portfolios—including the financing of fossil fuel projects,” said Natasha Lamb, managing partner of Arjuna Capital. “Citigroup is once again showing leadership on the ESG issues critical to their investors. Citi’s commitment to achieve net zero emissions by 2050 is a huge step forward, not only toward achieving the Paris Climate goal, but towards creating a lower-risk more climate-resilient company.”
“Given our long term engagement with Citi on financed emissions, we are delighted to see that Citi has adopted a net zero carbon target, an essential step to decarbonize the financial sector,” said Lauren Compere, managing director of Boston Common Asset Management. “We look forward to working with Citi and other investors from this group on the critical implementation steps needed to achieve this commitment.”
“The School Sisters of Notre Dame Cooperative Investment Fund thanks Citigroup for taking this first step on behalf of all us and our planet,” said Sister Ethel Howley of School Sisters of Notre Dame. “Hopefully other financial institutions will follow suit.”
To learn more about As You Sow’s work on climate change, click here.
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As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. See our resolutions here.