Citi’s latest annual climate-related disclosures report fails to include a clear net zero transition strategy to ensure its clients in the energy and power sectors decarbonise, according to US-based environmental NGO Sierra Club. Only 8% of the global banking group’s clients in the upstream and downstream energy sector have ‘strong’ transition plans, Citi determined, with 71% considered ‘low’ or ‘medium low’. Fifty-nine percent of clients in the power sector were found to have strong transition plans. Despite these findings, the Citi report does not provide “adequate information” on how it plans to reduce exposure or transition clients in these sectors to meet its own emissions reduction targets, Sierra Club has pointed out. “Yet another year has gone by without ambitious climate action from Citi, which is still one of the world’s largest financiers of fossil fuels,” said Adele Shraiman, Senior Strategist for Sierra Club’s Fossil-Free Financial campaign. “Citi’s latest climate disclosure report reveals what has long been obvious – major oil and gas companies are failing to transition in line with net zero by 2050. Citi could truly help lead the transition to net zero, but that requires more than increasing transparency – it requires action.”
