US’s Citizens Bank Aims to Drive $50 Billion in Sustainable Finance by 2030

Citizens Bank, based in Providence, Rhode Island, the US aims to achieve carbon neutrality by 2035 and drive $50 billion in sustainable finance by 2030. Discover their approach to combat climate change and transition high-emissions industries towards a slimmer carbon output.

Citizens Bank, based in Providence, Rhode Island, the US has set ambitious sustainability goals in an effort to combat climate change. The bank aims to achieve carbon neutrality by 2035 and is targeting $50 billion in sustainable finance by 2030. Citizens Bank has also pledged to engage with all of its clients in the oil and gas sectors by next year, but the approach does not involve pulling financing from high-emissions industries. Instead, the bank plans to encourage its commercial bankers to collaborate with clients and develop tailored strategies that can transition these industries towards a slimmer carbon output.

US’s Citizens Bank Aims to Drive $50 Billion in Sustainable Finance by 2030 | ogusyis

To support these efforts, Citizens Bank has introduced new sustainability-linked products, including carbon offset deposit accounts. The bank's $50 billion financing commitment encompasses various sectors, such as affordable housing, small businesses, community development projects, renewable energy, clean technologies, and green buildings. Specifically, Citizens Bank will allocate $5 billion towards financing and facilitating initiatives in renewable energy and green technologies.

In line with its sustainability goals, Citizens Bank has established Scope 1 and 2 emissions targets for 2021. The bank aims to achieve these targets by investing in energy conservation and implementing energy reduction initiatives. For the remaining Scope 1 and 2 emissions, Citizens Bank plans to incorporate high-quality offsets and renewable energy credits to further reduce its carbon footprint.

While Citizens Bank is taking significant steps towards carbon reduction, it is not alone in its commitment to sustainable finance. Other notable financial institutions have also made substantial pledges in recent years. For instance, PNC outlined a five-year, $20 billion environmental finance goal in 2021, which it later increased to $30 billion in January. Likewise, Goldman Sachs unveiled a 10-year, $750 billion commitment towards climate transition in 2019, and by 2020, the bank had already allocated $156 billion towards this endeavor. JPMorgan Chase pledged $2.5 trillion by 2030 to address climate change and promote sustainable development, while Citi committed to investing $500 billion in green goals within the same timeline. Additionally, Bank of America pledged a staggering $1 trillion towards transitioning to a low-carbon future.

Overall, Citizens Bank's commitment to achieving carbon neutrality by 2035 and its $50 billion sustainable finance target by 2030 demonstrate its dedication to combating climate change. By encouraging collaboration with its clients in the oil and gas sectors and providing tailored strategies, Citizens Bank aims to facilitate a transition towards more sustainable practices. The bank's investment in renewable energy, clean technologies, and green buildings will contribute to achieving these goals. As part of its efforts, Citizens Bank has also established emissions reduction targets and plans to utilize carbon offsets and renewable energy credits to further reduce its carbon footprint.

In conclusion, Citizens Bank is making significant strides to tackle climate change and support sustainable development. With its ambitious commitments and collaborative approach, the bank is positioning itself as a leader in the transition to a low-carbon future.