Citigroup Joins US Lenders in Exiting Net-Zero Banking Alliance

Citigroup Inc. (C) has announced its departure from the Net-Zero Banking Alliance (NZBA), joining Wells Fargo and Goldman Sachs in leaving the climate-finance coalition. The move comes as major U.S. lenders face increasing pressure from Republican lawmakers to distance themselves from industry groups supporting greenhouse gas emission reductions. Citigroup's exit, however, does not impact its previously stated 2050 net-zero emissions target.



Citigroup's decision to leave the NZBA follows its progress towards its own net-zero goals. The bank has been actively working with clients to help them achieve their climate goals while remaining mindful of near-term energy needs and related economic impacts. Some of Citi's climate initiatives include supporting renewable energy projects, green bond underwriting, and innovative sustainable finance projects.

Citi's exit from the NZBA may be a strategic move to focus on its own net-zero goals and initiatives, rather than being part of a broader alliance. The bank has made progress towards its own net-zero targets and believes it can achieve its goals independently. By exiting the NZBA, Citigroup can tailor its climate strategies to better suit its clients' needs and the specific challenges faced in different industries and countries. This approach allows the bank to maintain energy security, increase resiliency, and sustain economic opportunity while addressing climate change.

In conclusion, Citigroup's exit from the Net-Zero Banking Alliance is a strategic move that aligns with its commitment to achieving net-zero emissions and managing environmental risk. The bank's decision to leave the NZBA allows it to focus on its own climate initiatives and tailor its strategies to better suit its clients' needs. Despite the departure of major U.S. lenders from the NZBA, the alliance remains committed to its 2050 net-zero goal and continues to work with its remaining members to achieve this target.