Green Car Congress  
Go to GCC Discussions forum About GCC Contact  RSS Subscribe Twitter headlines

« GM First Automaker to Join United States Climate Action Partnership | Main | Home Fuel Cell Systems Reduced Energy Use by 15.3% in One-Year Test »

Print this post

Citi Targets $50 Billion Over 10 Years to Address Global Climate Change

8 May 2007

Citi, the financial services company, announced that it will direct $50 billion over the next 10 years to address global climate change through investments, financings and related activities to support the commercialization and growth of alternative energy and clean technology among the clients and markets it serves, as well as within its own businesses and operations.

The $50 billion target is a realistic estimate according to the company, based on market-based activities and transactions with clients as well as energy saving, “green” projects within Citi’s own operations.

This target includes nearly $10 billion in activities Citi has already undertaken to address climate change to date.

Corporate-wide, Citi will increase ten-fold, to $10 billion, its commitment to reduce its corporate environmental footprint through its own real estate portfolio, procurement and energy use, as part of its pledge to reduce GHG emissions by 10% by 2011.

This undertaking across Citi’s more than 14,500 global facilities is driven by the creation of a Global Energy Council; purchase of 52,283 MWh of green power for operations; and its goal of achieving environmental certification (e.g. Leadership in Energy and Environmental Design or LEED in the US) for the construction of all new office buildings and operations centers and evaluation of existing larger facilities.

In 2007, two major US office facilities in Dallas and New York City are in the process of achieving LEED status, with a new office tower in Long Island City, NY, housing 1,500 employees, achieving LEED Silver rating, and a data center in Europe that is being designed to achieve LEED Gold status. Citi expects to open LEED-certified retail branches in 2008, and has already begun installation of 100% recycled materials.

Citi’s Markets & Banking group plans to invest in and finance over $31 billion in clean energy and alternative technology over the next ten years through the expansion of existing activities and the launch of new client services. With committed investments and financings approaching $7.5 billion to date, the Markets & Banking group sees tremendous opportunities to support companies working in alternative energies such as solar, wind, hydro and geothermal; helping to commercialize energy efficiency ideas; and facilitating investments in aging infrastructure using cleaner and more efficient technologies.

Citi has a growing portfolio of equity investments in renewable energy projects, including wind farms in Minnesota and New Mexico. Citi recently advised and financed the $2.15 billion acquisition of a major US wind portfolio by EDP - Energias de Portugal that plans to bring more than  9,000 MW of new wind development projects to market. Citi also underwrote US Green Bonds for a green/carbon neutral real-estate development in Syracuse, NY, and will continue developing innovative financial products to support clients as they implement climate change initiatives.

Since 2006, Citi has also provided advisory services in targeted GHG-intensive sectors to help clients analyze and understand carbon exposure and reduction strategies, building on Citi’s industry leading environmental and social risk management (ESRM) capabilities.

Various businesses at Citi Alternative Investments (CAI) have been active in making environmentally friendly investments. For example, as part of the Sustainable Development Investment Program, CVC International has invested $150 million to date, including such notable transactions as Suzlon Wind Energy, a wind turbine manufacturer based in India, and Sindicatum Carbon Capital, a developer of projects that reduce GHG emissions globally. Citi Property Investors (CPI) invests in sustainable building projects. Its first such investment was in the Loreto Bay Company, a 5,000-home community in Baja California, Mexico that is one of the largest sustainable resort communities in North America.

In April 2007, CAI created a standalone investment center called Sustainable Development Investments (SDI). SDI builds on Citi’s Sustainable Development Investment Program with an expected ten-fold increase in its capital commitment to over $2 billion of private equity over the next ten years in renewable and alternative energy, clean technologies, energy efficiency, carbon credit markets, waste and water management and sustainable forestry. Similarly, CPI intends to commit $500 million to investments in sustainable building projects over the next 10 years.

In the summer of 2006, CitiMortgage and Sharp Electronics Corporation signed a joint marketing agreement that enables Sharp’s Solar Energy Solutions Group offer home equity loans and lines of credit through CitiMortgage as an additional financing option for homeowners to purchase and install solar electric systems. The home equity program offers customers an affordable alternative to make this energy-efficient upgrade to their homes.

Citi’s commercial finance and leasing division, CitiCapital, is more than doubling its commitment to facilitating the reduction of carbon-gas emissions and promoting sustainability by 2010. Its CitiCapital Energy Finance Unit has an existing portfolio of more than $1 billion from underwriting energy efficiency upgrades for universities, local school districts and various municipalities in the United States, allowing clients to amortize the cost savings of improvement over a 15- to 20-year period generally without capital outlays.

Citi Community Development is building on its existing investing activities to include green-related investments, such as renewable energy tax credit investments and green private equity investments.

Citi Investment Research issued more than 70 climate-related notes in 2006. A major thematic investment research report by Edward Kerschner, Chief Investment Officer of Citi Investment Research, highlights the investment opportunities and implications of a changing climate. Based on this report, Citi is holding a two-day conference on June 5-6, 2007, that will bring senior executives from the corporate, political, regulatory and advisory arenas together with influential global investors to discuss the issue.

Citi Smith Barney and Citi Private Bank also advise clients on opportunities in the socially responsible investment arena, including climate-friendly opportunities.

Citi Private Bank and the Financial Times have created an Environmental Award for businesses from around the world that have significantly improved their environmental performance. The focus in 2007 is on GHG reductions, and the inaugural awards event will be held in London on September 19, 2007.

Citi endorses industry-wide efforts to advance climate solutions, and is actively involved with other corporations on climate change in such groups as Columbia University’s Global Roundtable on Climate Change (GROCC), the Pew Center on Global Climate Change’s Business Environmental Leadership Council, the 3C initiative led by Vattenfall, the World Resources Institute (WRI), and Renewable Energy and Energy Efficiency Program (REEEP).

Citi’s stock is part of Dow Jones Sustainability Index and FTSE4Good, both of which acknowledge leadership in setting standards in sustainable growth and in demonstrating  environmental, social and economic performance.

Citi has been working with Sustainable Finance Ltd., leading advisors on sustainability opportunities to the financial sector, to develop and implement Citi’s environmental strategy, including the climate change commitments announced today.

May 8, 2007 in Climate Change | Permalink | Comments (11) | TrackBack (0)

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c4fbe53ef00d835017f4e53ef

Listed below are links to weblogs that reference Citi Targets $50 Billion Over 10 Years to Address Global Climate Change:

Comments

This is what I mean by "massive private investment". It's a start. And I should note it's without any sort of federal regulations as incentives.

To US consumers who still have some cash left over from refinancing their homes/cars, invest in photovoltaic panels (plus roof & structural reinforcements), insulation, and other energy saving/renewable energy producing upgrades.

Citi made the bulk of their money via unfair lending trade practices in effect, soaking their customers with $ Billions in hidden fees and bait & switch fluctuating credit card rates which helped to bankrupt and impoverish tens of thousands of Americans. The congressional hearings were very interesting.

Citi is investing for profit and not philanthropy. However, choosing to invest in highly lucrative environmental technologies may help to wash some of their customer’s financial blood off their consciences and improve their public image.

Hell, even the Chicago MOB used to build churches and donate to the poor and Hammas is the #1 provider of charity in Palestine. I hear they are just “good people” too. Unfortunately, many of Citi’s fleeced customers believe that they are simply a “financial” terror organization looking for a extreme image makeover.

The green they are concerned about is the color of money, pure and simple. They have never done anything for the sake of good. They exist only to make their rich shareholders even richer.

SJC Wrote: They have never done anything for the sake of good. They exist only to make their rich shareholders even richer.

That is what banks do. But if it bio-greases the wheels for greener, more efficient and secure energy, then lets encourage them.

In fact the best part is that is shows reducing greenhouse emissions can be profitable. et tu W!

The green they are concerned about is the color of money, pure and simple. They have never done anything for the sake of good.

Well, duh. And in a properly functioning free competitive market, the side effect is beneficial to the consumer, even if the motives are selfish.

What's significant here is that green and greed are aligned. Follow the money, folks.

In an economy where money is debt and the banks control the flow, it's good to see signs of it slowly shifting course towards something resembling sustainability even if banks (as operated today) can't be part of a sustainable future.

In exchange for being allowed to do business in the U.S., it would be nice if corporations were required to do some good for the society that they profit from. This would be paying your dues for the privilege to do business here. I feel that this is called a Congress, because we discuss many aspects of these issues.

Before 1960, corporations paid more than 40% of the national budget. After 2000 they paid less than 7%. If they want to stay here and do business they should pay the freight, so to speak.

Since the 70s, corporations have been given lots of tax breaks, because they supposedly "create the jobs". This is all done while they lay off, close down and out source.

I think it is a privilege to do business in this wonderful country and I would like to keep it wonderful by having the people that profit from it pay for that privilege.

One of the ways that they can pay back is increasing capital availability for things this country needs. Tax dollars should not be the only source for that purpose and the greatest return should not be the only decision criteria. To that end, maybe this is a start, but if past behavior is an indicator, I am doubtful.

SJC, how much of your money do you donate to charity? percentage? total? Do you claim tax write-offs for charity?

Do you think that because you ask a question, people are required to respond to it? You are mistaken.

For daily updated news on biofuels, ethanol and climate change issues, please visit:

http://www.ethanol-news.de

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Green Car Congress © 2013 BioAge Group, LLC. All Rights Reserved. | Home | BioAge Group