2025 Sustainable Progress Strategy

Sustainable progress at Citi is driven by our commitment to advance solutions that address climate change around the world in support of the transition to a low-carbon economy. Recognizing the need for urgent action, we have set out our 2025 Sustainable Progress Strategy focused on the low-carbon transition, climate risk and sustainable operations.

Climate Risk

Climate Risk

Citi is committed to managing climate risks and implementing the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Building on our Environmental and Social Risk Management (ESRM) Policy and our experience in climate risk analysis, we will further test the resilience of Citi’s lending portfolios to transition and physical risks related to climate change. We will also begin measuring the climate impact of our portfolios and their potential alignment with 1.5 and 2 degree Celsius warming scenarios. These analyses will help accelerate our understanding of the climate risks faced by Citi and our clients and the possible pathways for our collective transition to a low-carbon economy. We will explore opportunities to collaborate with our clients and peers to develop industry-wide methodologies for climate risk analysis and disclosure,

Our approach to analyzing and reducing climate risk associated with our clients includes three areas of activity:

  • Policy Development: Further integrate climate risk into Citi’s risk policies and governance frameworks; progressively and iteratively update our ESRM Policy and sector standards for carbon-intensive sectors to incorporate evolving best practice
  • Portfolio Analysis and Measurement: Utilize climate scenario analysis and stress testing of our portfolios to understand the differentiated impacts (or resilience) our clients exhibit to physical or transition climate risks; assess and test emerging methodologies to quantify the climate risks related to our clients’ activities, to estimate emissions associated with our portfolio, and to evaluate portfolio decarbonization pathways
  • Engagement: Engage with clients on their own climate risk management and low-carbon transition strategies; engage with regulators on emerging climate risk supervisory guidelines; and actively participate in multi-stakeholder initiatives to share learnings and build industry best practices for climate risk analysis and management.

For more information on Citi’s 2025 Sustainable Progress Strategy please refer to our Environmental and Social Policy Framework.