Citigroup, a global financial services company, has set net-zero targets as part of its commitment to sustainability and reducing greenhouse gas (GHG) emissions and aims to achieve it by 2050. The company has set interim targets which it aims to achieve by 2030. These interim targets includes six loan portfolios and reducing GHG emissions in their own operations, which is detailed in its 2022 ESG report. The targets encompass a 31% reduction in emissions intensity for auto manufacturing, a 41% reduction in emissions intensity for commercial real estate, a 29% reduction in absolute emissions for energy, a substantial 63% reduction in emissions intensity for power generation, and a notable 90% reduction in absolute emissions for thermal coal mining.

The company is actively working towards achieving its net-zero targets and is focusing on reducing its emissions. Benchmarked against a 2010 baseline, the company has established operational objectives for 2025 and reports on its progress in 2022. This entails a targeted 45% reduction in location-based greenhouse gas (GHG) emissions, with an impressive achievement of 48%. In terms of energy consumption, the company aimed for a 40% reduction and attained 36%, while maintaining a commendable 100% renewable electricity sourcing. Regarding water management, the goals included a 30% reduction in total water consumption, surpassing expectations with a 37% reduction. Additionally, they aimed for 25% of water consumption to be sourced from reclaimed or reused sources, accomplishing 7%. In sustainable building practices, the target was to have 40% of the floor area LEED-, WELL-, or equivalent certified, and they successfully reached 41%. Lastly, in waste management, the company aspired to achieve a 50% reduction in total waste, successfully meeting this goal, along with diverting 50% of waste from landfills, achieving a 32% rate.

The company's net zero plan outlines interim financed emissions reduction targets set to be achieved by 2030. Beginning in 2021, they introduced 2030 emissions reduction targets for two sectors, expanding to four more in 2022, encompassing a total of six loan portfolios. Since announcing their net zero commitment in 2020, Citigroup has strategically outlined 2030 interim targets for these portfolios: energy and power (with targets set in 2022). Specifically, the goals include a 29% reduction in energy emissions from the 2020 baseline of 143.8 million mt CO2 e to 102.1 million mt CO2 e in 2030, and a 63% reduction in Scope 1 intensity per MWh to 115 kg CO2 e/MWh in 2030. Additionally, targets were established in early 2023 for auto manufacturing, commercial real estate, steel, and thermal coal mining. These targets adhere to the UN Environment Programme Finance Initiative’s Guidelines for Climate Target Setting for Banks, underscoring their dedication to a sustainable future.

The company believes in transitioning to more sustainable practices and has already implemented various measures and is expected to continue investing in emission reduction initiatives. These steps include sustainable finance, climate risk management, sustainable operations, building equitable and resilient communities, talent and diversity, and responsible business practices. The company's efforts are aligned with its commitment to environmental, social, and governance (ESG) initiatives.

In conclusion, Citigroup has set net-zero targets and is actively working towards reducing its GHG emissions. The company's commitment to sustainability and responsible business practices is evident as its efforts align with its focus on sustainable finance, climate risk management, and building equitable and resilient communities. As a global financial services company, Citigroup plays a crucial role in addressing climate change and promoting sustainability in the financial sector.

Premium Insights

From

The gold standard of business intelligence.

Blending expert knowledge with cutting-edge technology, GlobalData’s unrivalled proprietary data will enable you to decode what’s happening in your market. You can make better informed decisions and gain a future-proof advantage over your competitors.

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Company Filings Analytics uses machine learning to uncover key insights and track sentiment across millions of regulatory filings and other corporate disclosures for thousands of companies representing the world’s largest industries. This analysis is combined with crucial details on strategic and investment priorities, innovation strategies, and CXO insights to provide comprehensive company profiles.