Citigroup Launches Unit Focused on Environmental Sustainability
Citigroup Inc has announced plans to launch a new environmental sustainability business unit to its bank. Chief Strategy Officer Bridget Fawcett and Keith Tuffley, from Banking, Capital Markets and Advisory (BCMA) are set to lead the Sustainability and Corporate Transitions group, according to a report by The New York Times.
Citigroup also plans to create a Global Sustainability Client Council to advice their clients on the sustainability transitions that will be taking place as well as an advisory group that will have access to experts on the subject.
The plan was developed because of the importance of the area to corporate clients and investors.
"The current Covid crisis will elevate the importance of ESG to our clients, as they increasingly focus on more sustainable and resilient strategies and on recovery plans that help drive the just transition to a net-zero emissions future," said BCMA’s Tyler Dickson and Manolo Falcó in a memo to bankers.
Environmental, social, and governance (ESG) have become increasingly more important in companies’ performances. The European Securities and Markets Authority (ESMA) claims that those in the ESG Leaders 50 index has outperformed their benchmark counterparts for the past two years.
"With this shift, we see an opportunity and need in BCMA to better deliver insights, trusted advice, innovative financing and holistic solutions to support their strategies in driving towards more sustainable and resilient business models," said Dickson.