Citi will cease working with coal-mining companies
Citigroup will stop providing financial services to thermal coal-mining companies over the next ten years to help accelerate the economy’s shift away from fossil fuels.
By 2025, the bank will not provide underwriting and advisory services to the industry and will cut its credit exposure in half. It plans to eliminate its exposure entirely by 2030. It also vowed to stop providing project-related financial services for coal mines and coal-fired power plants. The firm had previously made exceptions for projects in energy-impoverished countries
Citigroup updated its environmental and social policy framework on Friday to include the new targets, as well as a commitment to reject financing for oil and gas exploration and production in the Arctic. The company said it hasn’t provided such financing in the past.
"The shift away from fossil fuels in pursuit of renewable and other sources of low-carbon energy will have a significant effect on clients in coal-fired power generation, coal mining and certain segments of the energy sector," it said in a statement.
