Citigroup is setting up a sustainability and corporate transitions group in its global banking, capital markets and advisory business unit as sustainability continues to drive change in companies’ business models and capital allocation.
ESG is a strategic priority for Citi, which said that the coronavirus crisis is only increasing its importance as clients focus on more sustainable and resilient strategies, and recovery plans.
“The action for sustainability is gaining momentum, and we see Covid-19 as providing an opportunity for the world to accelerate the just transition to a net-zero emissions future,” the bank said in a memo seen by IFR.
The corporate transitions group will be led by global co-heads Keith Tuffley in Europe and Bridget Fawcett in the US. Tuffley co-led BCMA’s initial sustainability committee and Fawcett was chief strategy officer.
The cross-disciplinary group will build on Citi’s sustainability initiatives and work across the firm. It will maintain Citi’s focus on ESG and work with BCMA and Citi partners, drawing together sector, region, product, risk, and content expertise.
Citi will also establish a global sustainability client council in BCMA of senior leaders to drive client engagement on sustainability and corporate transitions along with a science, policy and technology advisory group of experts on climate and earth sciences, emerging technologies, innovation, and the future of regulation.
It will also create a team of "sustainability champions" in each of its global franchises.
Citi updated its global ESG policy in April. It applies to all businesses in nearly 100 countries, and includes a commitment to stop all underwriting and advisory services to thermal coal companies and cut credit exposure by 50% by 2025 and in full by 2030.
The bank has also been active in the markets on its own behalf as well as for clients, and issued its inaugural US dollar green bond on May 7, raising US$1.5bn in fixed-to-floating-rate green notes.
Citi also led the IPO of the world’s first ESG-focused special purpose acquisition company, raising US$300m for Sustainable Opportunities Acquisition Corp. The bank was also a bookrunner on the EIB’s US$1bn sustainability awareness bond.
The bank published its first ESG report on April 29 which said that Citi has financed and facilitated US$164bn in environmental finance since 2014, exceeding a US$100bn goal more than four years ahead of schedule.