Net Zero Emissions Commitment

On Jane Fraser’s first day as CEO in March 2021, Citi announced our commitment to net zero greenhouse gas emissions by 2050, including our own operations by 2030. This means rethinking our business and helping our clients rethink theirs. For banks like Citi, a net zero commitment includes not just our own operations but also our business impacts—in other words, our financing activities.

In line with our net zero commitment, we have published our initial net zero by 2050 plan in our 2021 TCFD Report, including 2030 emissions targets for our Energy and Power loan portfolios. These targets were developed in line with Net-Zero Banking Alliance (NZBA) Guidelines for Climate Target Setting .

Net Zero Framework

For our net zero by 2050 commitment, we have established the below framework:

  1. Calculate Emissions: Calculate baseline financed emissions for each carbon-intensive sector
  2. Transition Pathway: Identify the appropriate climate scenario transition pathway
  3. Target Setting: Establish emissions reduction targets for 2030 and beyond
  4. Implementation Strategy: Engage with and assess clients to determine transition opportunities
  5. External Engagement: Solicit feedback from clients, investors and other stakeholders as this work continues to evolve and we collectively define net zero for the banking sector.

Net Zero 2030 Targets

2030 financed emissions targets for Citi’s Energy and Power loan portfolios:
Sector 2020 Baseline1 Climate Scenario 2030 Targets
Energy (Scope 1, 2, 3) 143.8 million mt CO2e IEA NZE 2050 29% reduction from 2020 baseline
102.1 million mt CO2e
Power (Scope 1) 313.5 kg CO2e /MWh IEA SDS OECD 63% reduction in Scope 1 intensity per MWh
115 kg CO2e /MWh
1Baseline based on available data as of September 2021. Further updates to improve data quality of the baseline numbers may result in changes to both the 2020 baseline numbers and the 2030 targets.

Net Zero Plan – Energy and Power

Citi's initial net zero plan for our Energy and Power loan portfolios will include actions laid out in the following timeline:

  • 2021

  • 2022

  • 2023

  • ...

  • Client Transition Assessment, Advisory and Finance

    • Client engagement and assessment
    • Transition advisory and finance, including debt and equity underwriting and lending

  • Clean Tech Finance

    • Support existing and new clean technologies to accelerate commercialization

  • Public Policy Engagement

    • Support enabling public policy and regulation in the United States and other countries, including through trade associations and other industry groups

  • Risk Management

    • Dimension climate rsik exposure across our lending portfolios and review client carbon reduction progress
    • Ongoing review and refinement of ESRM policy

  • Portfolio Management

    • Active portfolio management to align with net zero targets, including considerations of transition measures taken by clients

2030

Energy

Reduce Energy portfolio financed emissions by 29%, or approx. 41.7 million mt CO2e by 2030 (143.8 million mt CO2e to 102.1 million CO2e)

Power

Reduce Power portfolio financed emissions intensity by 63%, from 313.5 kg CO2e/MWh to 115 kg CO2e/MWh

Client Engagement and Assessment

The first step of our net zero plan involves engagement, client by client, to understand their GHG emissions disclosure and their perspectives and plans on carbon transition. Additionally, we will review clients’ public disclosures, climate governance, and the commitments and actions they have taken to date. We anticipate that this initial review phase will continue through the end of 2023.

The key considerations that will frame client engagement include public disclosure of GHG emissions and reduction targets, climate risk ratings, and transition plans.

View Citi’s Net Zero Commitment and Transition Principles in PDF.