Confidential report warns Citigroup of billions of loss in loan book from climate action
![Citi agrees to disclose clean energy financing ratios amid pressure from shareholders](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/03/Depositphotos_535677528_S.jpg)
Citigroup could face significant financial losses in its loan portfolio if global efforts to address climate change accelerate, as indicated by a confidential analysis conducted by the bank and reviewed by Reuters.
This analysis was prepared last summer by Citigroup in anticipation of a submission to the Federal Reserve outlining its strategy for addressing climate-related impacts.
Similar submissions were required from five other major US banks following instructions from the Fed.
Also read: Canada boosts biofuel industry with multi-billion dollar support package
Reuters could not determine how much of the information from the reviewed document was included in Citigroup’s official submission, as the bank declined to comment on this matter.
According to the analysis, if global actions to combat climate change accelerated to achieve net-zero greenhouse gas emissions by 2050, Citigroup could face $10.3 billion in loan losses over a 10-year period.
This amount is higher than the projected $7.1 billion loss if climate change efforts do not intensify.
“When a company’s pace of transition is too fast or too slow with respect to the actual underlying market transition pace, it can suffer losses,” Hopper said.
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Screenshot-2024-07-05-at-4.33.30 PM-150x150.png)
CalPERS allocates nearly $10 billion to climate action...
-
The California Public Employees’ Retir...
- 05/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/07/Asset-Management-150x150.png)
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
![](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/06/Depositphotos_73537517_S-150x150.jpg)
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
ERM, a sustainability consultancy company, announced that it has commenced offshore trials to test the key elements of its Dolphyn Hydrogen process. The trials mark […]
European Energy announced that it had acquired grid connection approvals for nearly 500 megawatts (MW) of solar and wind energy projects across Romania. The approvals […]
In its second-quarter update, Shell announced that it would incur an impairment charge of up to $2 billion following the sale of its Singapore refinery […]
The California Public Employees’ Retirement System (CalPERS) announced a commitment of almost $10 billion to advancing global efforts to transition to a low-carbon economy. This […]
The European Commission announced that it has approved a €10.82 billion French scheme to support offshore wind energy deployment. It aims to help foster a transition […]
ENGIE announced that it signed a 7-year Biotmethane Purchase Agreement (BPA) with BASF. According to the agreement, ENGIE will supply the chemicals company with 2.7 […]