Citizens Financial Targets $50B Sustainable Finance
Citizens Financial Group, Inc.
Citizens Financial Group, Inc., known as "Citizens," unveiled an ambitious Sustainable Finance Target, totalling $50 billion, with a notable allocation of $5 billion towards green financing by the year 2030.
Additionally, the company made a significant commitment to actively engage its corporate clients, particularly those operating in high-emission sectors, in meaningful discussions regarding climate-related matters.
As a starting point, Citizens aims to initiate dialogues with 100% of its Oil & Gas clients, all to be accomplished by the end of 2024. Moreover, the corporation has pledged to attain carbon neutrality by the year 2035.
Bruce Van Saun, Chairman and CEO of Citizens, emphasised the company's commitment to sustainability by asserting, "Our approach to sustainability is grounded in the Citizens Credo, uniting our values and purpose while creating opportunity to use our reach, innovation, and insights to position those we serve for long-term success. This includes working to ensure that our colleagues are ready to help our clients prepare for and finance their own transitions to a lower-carbon economy."
To foster a more sustainable future, Citizens' Target encompasses financial support for various environmental and social initiatives, spanning from affordable housing and small business assistance to community development projects.
Additionally, it includes a dedicated $5 billion in financing and facilitation for green initiatives aimed at advancing a lower-carbon future, such as investments in renewable energy, clean technologies, and environmentally friendly building projects. Citizens recently released its Approach to Sustainable Finance, which outlines the methodology for tracking progress towards its Sustainable Finance Target.
Citizens, viewed as a trusted advisor to its clients, is committed to assisting clients at every stage of their sustainability journey. The bank aims to ensure that 100% of its Commercial and Business Banking colleagues are equipped to engage with clients on topics related to climate, enabling clients to capitalise on opportunities, meet stakeholder expectations, and effectively manage risks.
Fostering a culture of innovation, Citizens is actively developing new solutions, including sustainable banking products like the Citizens' Sustainable Deposits and Carbon Offset Deposit Account, which empower clients to integrate their sustainability objectives into their financial strategies.
Even as Citizens intensifies its focus on private banking and expands its footprint in wealth management, the bank remains steadfast in ensuring that its colleagues are well-versed in ESG (Environmental, Social, and Governance)-integrated, ESG-focused, and impact-oriented investment products.
Beth Johnson, Vice Chair, Chief Experience Officer, and Head of ESG at Citizens, emphasised the rigorous and client-centric approach taken in crafting this commitment, encompassing comprehensive disclosures and reporting mechanisms to ensure its overall success.
Johnson stated, "Through our efforts, we will continue to maximise impact for our colleagues, clients, customers, and other stakeholders."
In its pursuit of operational sustainability, Citizens has made noteworthy progress, culminating in its pledge to become carbon neutral by 2035. The bank previously set emissions targets for Scope 1 and Scope 2 emissions in 2021, with an ongoing commitment to energy conservation investments and initiatives aimed at reducing energy consumption across its operations.
By 2035, Citizens aims to offset any remaining Scope 1 and 2 emissions through high-quality offsets and renewable energy credits. The bank's commitment to renewable energy is evident through a virtual power purchase agreement with Ørsted, which supports the construction of a wind generation facility in Kansas, reinforcing its dedication to a lower-carbon economy.
Citizens remains dedicated to providing comprehensive disclosures concerning its progress and recently released reports, including its ESG Report, TCFD Report, CDP Climate Response, and an Environmental & Social Risk Management Statement.
For more detailed information on the bank's comprehensive ESG efforts, please refer to their dedicated page.
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Source: Citizens
