Citigroup

Citigroup assigns decision-making and oversight for the sustainability strategy to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. A stewardship policy supports environmental transitions and social best practices, encompassing client and stakeholder engagement, advocacy, and partnerships. This policy includes criteria for successful stewardship outcomes, escalation routes for unsuccessful efforts, and defines when escalations should occur.

The institution identifies key sectors, clients, and investees for climate engagement and it monitors scope 1-2 emissions and emissions from associated financing activities. Citigroup also transparently outlines nature-related impacts associated with its products, services, and capital. It prioritises sectors with the highest nature-related impacts and has a strategy for nature protection and restoration in these areas.

The institution discloses the monetary amounts or shares of products, services, and capital provided to women-owned businesses and to groups typically excluded, as defined by the institution.

While the financial institution identifies material sustainability impacts across its value chain, further details on the criteria and evidence used for prioritisation are needed. There is no indication that it refrains from using lobbying to influence sustainability negatively. The financial institution reports total exposure to oil, gas, and coal in its credit portfolio but does not disclose fossil fuel financing across all activities. It aims for 1 trillion USD in sustainability investments by 2030, including climate solutions, though the percentage allocated to climate solutions remains unclear. It discloses seven categories of scope 3 emissions but lacks justification for excluded categories.

Recommendations include detailing the footprint calculation methodology, establishing a transition plan, ensuring emissions reductions align with interim targets, and providing a breakdown of clients by income group. It is also advised to disclose processes to prevent divestment from low-income countries due to sustainability strategies. While the financial institution states that it respects ILO fundamental rights at work, there is no evidence of a risk assessment process for these rights related to its products and services. Recommendations further include mitigating identified risks and providing examples of actions taken regarding salient human rights issues in the past three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.