Citi, the fourth-largest U.S. bank, released a climate report revealing that nearly half of the energy companies it lends to lack comprehensive plans to cut greenhouse gas emissions.
The bank categorized these companies based on their strategies to reduce emissions across three scopes, with a significant portion failing to provide substantive transition plans.
Many energy firms neglected to disclose Scope 3 emissions, which account for a substantial portion of their carbon footprints.
Scope of Transition Plans
Analysis of Citi’s energy clients found that only 8% had comprehensive transition plans targeting emissions reductions across all scopes, demonstrating a clear commitment to sustainability. When excluding Scope 3 emissions, this proportion increased to 37%.
Despite these findings, Chief Sustainability Officer Valerie Smith emphasized that the bank is committed to advancing its climate efforts and acknowledged the ongoing challenge of this energy transition.
Enhancing Climate Action
While Citi and other major banks have set ambitious “net zero” targets for 2050, the report underscores the need for greater collaboration and urgency in addressing climate change.
Despite the challenges, Smith expressed optimism about the bank’s progress and emphasized the importance of continuous improvement in data collection and analysis to drive meaningful climate action.
