Citi achieves $441B of $1T sustainable finance 2030 goal with renewables a ‘major driver’: report

AI generated summary

Citigroup has made significant progress towards its goal of investing $1 trillion in sustainable finance by 2030, having financed $441.2 billion in the sector as reported in its 2023 ESG Report. The bank has exceeded targets for five of its eight operational goals aimed at reducing its environmental footprint by 2025, with renewable energy being a major contributor to its achievements. The investment banking sector has played a crucial role, accounting for 85% of sustainable investments, driven in part by client interest following the Inflation Reduction Act.

In 2023, Citi invested $92.7 billion in green infrastructure, climate technology, and social initiatives, with 64% of this funding directed towards environmental issues. The bank noted a strong demand for activities that meet multiple sustainability criteria, highlighting the importance of sustainable finance in addressing environmental and social challenges. While renewable energy investments grew, Citi also experienced growth in thematic bonds and sustainable supply chain financing, although there was a decline in sustainability-linked mergers and acquisitions. The bank continues to work towards its operational targets while committing to greater transparency in its clean energy financing ratios.