Citigroup: 40% of the bank’s customers have no energy transition plan. So he doesn’t care
More than 40% of Citigroup clients either have no “substantial plan” to reduce their emissions to align with net zero ambitions, or believe the transition is unlikely to happen at all, the company's latest climate report shows. bank.
The report, published earlier this week, builds on initial findings from its net zero model review, which monitors customers' willingness to adapt to the energy transition.
In the energy sector, according to Citigroup, 42% of its clients have a “low” transition plan alignment and 29% have a “medium-low” score, meaning they have a clear climate plan, but may not have the means to carry it out. 40% just don't have it or don't want to have it, or don't have the possibility of having it.
For the bank's energy clients, things are more optimistic regarding achieving stated goals, with 59% of clients in this sector having “strong” transition plan alignment.
In 2022, Citigroup promised net zero emissions by 2050 with all its clients, with a 29% absolute reduction in financed emissions in the energy sector by 2030 and a 63% reduction in portfolio emissions intensity in the energy sector . This works, however, only if customers follow their emissions reduction programs.
Citigroup CEO Jane Fraser said the bank is "working side by side with clients to help them achieve their goals, while remaining very mindful of near-term energy needs and related economic impacts."
Fraser suggested that talking about “energy evolution” rather than “energy transition” would be more appropriate.
“This change will not be linear and will include a series of cumulative leaps and turning points over the next few decades.”
Last summer, Citigroup recommended traders short oil after the end of the summer, estimating a 200,000 bpd surplus in oil markets in 2023 and a 1.8 million bpd surplus in 2024, with growth in too low demand and extra supplies that should come from both non-OPEC+ and OPEC+ countries. In January this year, Citi changed its Brent forecast to $74 this year.
At the time, Brent was trading at $84.60 a barrel, about $3 lower than today. Other institutions, however, see the situation in the opposite way: for example, Morgan Stanley sees the price reaching 90 dollars a barrel.
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The Citigroup article: 40% of the bank's customers have no energy transition plan. So he doesn't care, it comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/citigroup-il-40-dei-clienti-della-banca-non-ha-nessun-piano-di-transizione-energetica-quindi-non-se-ne-interessa/ on Thu, 28 Mar 2024 20:48:24 +0000.