They need to be a part of the solution.
Citigroup Inc, a company Forbes says was worth around
$156.7 billion as of this past May, has released a report called
Environmental and Social Policy Framework.
In 2015, Citi launched its Sustainable Progress Strategy, which describes Citi’s initiatives and goals to advance environmental and social progress and conduct business in a way that creates value for our company and for future generations. This strategy includes an ambitious $100 billion environmental finance goal, and sets out priority areas that are highly material to our sustainable progress — Climate Change, Sustainable Cities and People and Communities. Citi’s Environmental and Social Policy Framework summarizes the programs, initiatives and policies that underpin this strategy.
Using the term
climate change already puts them well above the scientific bell curve of the Republican Party. The important bit in this 9 page release is their section on coal mining:
Climate change is a global challenge of tremendous magnitude, and Citi is helping to accelerate the transition from a high-carbon to a low-carbon economy. Citi conducts corporate-level reviews for the global coal mining sector, incorporating environmental, social and governance (ESG) performance into our annual portfolio review process. Company ESG performance is assessed based on commitment, capacity and track record. This research helps inform our business with the sector and with individual clients.
Citi's credit exposure to coal mining companies has declined materially since 2011. Going forward, we commit to continue this trend of reducing our global credit exposure to coal mining companies. This commitment applies globally to coal mining companies, including
those that use mountaintop removal (MTR) methods, and to coal-focused subsidiaries of diversified mining companies.
Bank of America and
Credit Agricole SA have also said they are moving away from coal financing and
Bloomberg Business is reporting this as a real sea change in financial outlook for the coal industry.
“With Bank of America, Credit Agricole, and now Citigroup withdrawing support for coal mining, this announcement shows major momentum away from financing coal by the banking sector,” said Lindsey Allen, executive director of the Rainforest Action Network, an advocacy group that has pressured banks to cut their support for the industry.
Future approvals for coal projects will require “escalation and senior approval," according to Citigroup’s new policy.
Its not the final result we are all looking for and half (possibly a lot more than half) of this is most likely lip service to the growing wave of environmental concerns humans around the world have; but these big companies are acknowledging the very real need to bring down carbon levels and to be a part of a solution to ameliorating the speed with which our climate is changing.