Citi Report details Energy Sector’s Lack of Climate Transition Plans

Citi, a global financial institution, recently unveiled a new report indicating that 42% of its energy clients lack comprehensive climate transition plans. Released on March 28, 2024, under the leadership of CEO Jane Fraser, the report underscores Citi’s commitment to aiding clients across various industries and nations in transitioning to a sustainable, low-carbon future.

The report highlights the urgent need for the energy sector to adopt comprehensive climate transition plans, considering the challenges it faces in navigating the shift towards sustainability. Despite these challenges, Citi is actively contributing to the transition through initiatives such as renewable energy projects, sustainable finance innovations, and facilitating an inclusive shift.

CEO Jane Fraser emphasises the importance of supporting clients in financing their transition to low-carbon business models and innovating clean technologies while ensuring that ample and affordable energy is available to meet current and future needs. She stresses that these activities are not mutually exclusive and must be addressed simultaneously.

The revelation regarding the lack of comprehensive plans among Citi’s energy clients underscores the significant gap in readiness within key sectors to confront climate change challenges. It underscores the urgency and scale of effort required to foster a more sustainable and resilient energy sector.

The report candidly addresses the complexities of the transition towards a sustainable energy future, emphasising the need for a collaborative, multifaceted approach involving supportive public policies, investment in clean energy technologies, and infrastructure upgrades.

Despite the challenges, Citi views the energy evolution as a significant business opportunity for itself and its clients. The institution remains committed to achieving a net-zero target by 2050, demonstrating its dedication to addressing one of the most pressing challenges of our time while delivering value to all stakeholders.