Banking / Financial
On Sep 19, 2023
Citizens Financial Group, Inc. has announced a $50 billion Sustainable Finance Target including $5 billion in green financing, by 2030. The financial institution will also engage corporate clients in high-emitting sectors on climate-related topics. To start, Citizens will engage 100% of its oil and gas clients by the end of 2024. In addition, it has committed to achieving carbon neutrality by 2035.
“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,” said Bruce Van Saun, Citizens chairman and CEO. “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.”
Citizens’ Target will finance and facilitate environmental and social initiatives. This includes affordable housing, support for small businesses, and community development projects. It also encompasses $5 billion in financing and facilitation for green initiatives that support a lower-carbon future such as renewable energy, clean technologies, and green buildings. Citizens recently published its Approach to Sustainable Finance which outlines its methodology for tracking progress against its Sustainable Finance Target.
As a trusted advisor for its clients, Citizens is committed to supporting clients wherever they are on their sustainability journeys and will ensure that 100% of its Commercial and Business Banking colleagues are prepared to engage with clients on climate-related topics. This will help them leverage the opportunities, meet stakeholder expectations, and manage risk.
The bank’s culture of innovation is driving new solutions toward sustainability-linked products for clients. For example, the Citizens’ Sustainable Deposits and Carbon Offset Deposit Account products allow clients to incorporate their sustainability goals into their banking strategies.
Citizens, which recently accelerated its private banking strategy driving growth in the wealth management space, will also continue to ensure colleagues are versed in ESG-integrated, ESG-focused, and impact-focused investment products.
“In developing this commitment, we took a methodical, customer and client-centered approach, that includes detailed disclosures and reporting to ensure overall success,” said Beth Johnson, Citizens Vice Chair, Chief Experience Officer, and Head of ESG. “Through our efforts we will continue to maximize impact for our colleagues, clients, customers, and other stakeholders.”
Citizens continues to make progress on its operational sustainability efforts and today, announces its intention to be carbon neutral by 2035. Citizens set Scope 1 and 2 emissions targets in 2021 that will be achieved through ongoing energy conservation investments and energy reduction initiatives across the company’s footprint. By 2035, Citizens is targeting to offset the remaining Scope 1 and 2 emissions through high-quality offsets and renewable energy credits. Last year, Citizens entered into a virtual power purchase agreement with Ørsted that supports the construction of a wind generation facility in Kansas, demonstrating Citizens’ commitment to renewable energy as a key part of its transition to a lower-carbon economy.
Citizens is committed to providing disclosures related to its progress, and recently released its ESG Report, TCFD Report, CDP Climate Response and an Environmental & Social Risk Management Statement.
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