NEW YORK: Citigroup Inc, the largest US bank, said yesterday it plans to commit $50bn to environmental projects over the next decade, the biggest commitment from Wall Street to address climate change.
The amount includes nearly $10bn in activities that the bank has already undertaken. Citigroup plans to increase to $10bn from about $1bn its commitment to reduce its own greenhouse gas emissions at its 14,500 locations worldwide. The bank operates in more than 100 countries.
“It’s a dramatic announcement,” said Daniel Esty, a Yale University environmental law professor who co-wrote “Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage.”
“To the extent it signals a sea change in Citigroup’s attitude toward the environment, it could have a sweeping impact across economies globally,” said Esty.
Citigroup’s programme comes as US companies such as General Electric and Wal-Mart Stores look to boost environmental efficiency, amid growing demand for alternative energies and emissions reduction.
Charles Prince, the bank’s chief executive, said the programme is “not a wish list, but a realistic, achievable plan that serves a critical global need and responds to an emerging investment opportunity.” He called for global and US frameworks to reduce greenhouse gas emissions.
Last year, Citigroup’s profit totalled $21.54bn on revenue of $89.62bn.
In March, Bank of America Corp, the second-largest US bank, pledged $20bn over 10 years to support environmentally friendly activities and reduce global warming.
Citigroup’s markets and banking group plans to invest in and finance more than $31bn in clean energy and alternative technology. It said it has nearly $7.5bn in commitments.
“It’s the right thing to do,” said Michael Klein, co-head of markets and banking, in an interview. “Climate change is one of the single biggest drivers of investment decisions and capital expenditures. We are using all of our 100 countries to ... offer the best advice we can based on evolving policy, technology and regulatory standards.”
Citigroup said its consumer unit, its biggest business, will also offer climate-friendly mortgage, card and commercial finance products. For example, borrowers may obtain home equity loans to buy and install solar electric systems, the bank said. – Reuters |
