Citigroup, one of the biggest lenders to energy companies, said it will measure and disclose emissions tied to its massive lending portfolio and is working to finance $250 billion (Dh918bn) of sustainable activities by 2025 after reaching an earlier goal four years ahead of schedule.
The new goal includes financing or advancing initiatives such as clean technology, water conservation or sustainable agriculture, the New York-based lender said in a statement on Wednesday. Citigroup also said it is on track to power its own facilities using only renewable electricity by year-end.
“What gives us confidence in terms of setting very ambitious targets is, if you look at our banking, capital markets and advisory business, they formed big groups around this,” chief executive Mike Corbat said in an interview. “It’s not the firm pushing something top-down, this is now percolating within the businesses.”
Under Mr Corbat, Citigroup has sought to pivot toward more climate-friendly industries. The firm promoted Val Smith to the new role of chief sustainability officer last year and in recent months announced it would stop providing financial services to thermal coal-mining companies over the next 10 years to help accelerate the economy’s shift away from fossil fuels.
“Val used to have to go out and have to scream from the mountaintops to get people to pay attention,” Mr Corbat said. “Today, the trouble is she’s got so many people coming at her.”
Citigroup announced in 2015 that it would seek to facilitate $100bn of sustainable activities by 2023, and by last year it had already financed $164bn. The latest goal adds to its previous efforts.
As part of its new strategy, the firm is also joining the Partnership for Carbon Accounting Financials, which requires financial institutions to measure the emissions tied to their lending portfolios.
Citigroup has helped arrange about $165bn of bonds and loans for energy companies, excluding solar, wind and other renewable producers, since the Paris climate accord was signed in late 2015, according to data compiled by Bloomberg. Only JPMorgan Chase and Wells Fargo have helped provide more financing for corporate emitters.
“We have to recognise that we’re in a transition,” Mr Corbat said. “As we look into our portfolio and that transition that our clients are on, I think it will help us to better inform them on things they could or should be doing around what’s best in class and what peers and others are doing out there.”
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
THE BIO
Favourite holiday destination: Whenever I have any free time I always go back to see my family in Caltra, Galway, it’s the only place I can properly relax.
Favourite film: The Way, starring Martin Sheen. It’s about the Camino de Santiago walk from France to Spain.
Personal motto: If something’s meant for you it won’t pass you by.
