Citizens Releases Inaugural Climate Report
Report details the latest in Citizens’ commitment to a more sustainable future
Citizens released its inaugural Climate Report, which aligns with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This report details efforts underway at Citizens to address both the risks and opportunities related to climate change. The TCFD was established by the Financial Stability Board to develop consistent reporting recommendations that enable companies to disclose climate-related information to stakeholders in four areas: governance, strategy, risk management, and metrics and targets.
“In releasing our first TCFD report, we are showing how we are operationalizing our commitment to building a more sustainable future,” said Beth Johnson, Chief Experience Officer and Head of ESG at Citizens. “While this represents another step in our overall journey, we have established a strong foundation and look forward to progressing the important work that lies ahead.”
In 2021, Citizens set targets to reduce its Scope 1 and 2 greenhouse gas emissions 30% by 2025 and 50% by 2035, based on a 2016 baseline. Recognizing the importance of transitioning to renewable energy, the company earlier this year entered into a virtual power purchase agreement with Orsted, supporting the construction of the Sunflower Wind Project, which will match 100% of Citizens’ power consumption across its entire operational footprint with renewable energy credits.
See related article: Citizens Launches Carbon Offset Deposit Accounts for Corporate Clients
The bank is focused on playing a critical role in accelerating the transition to a lower carbon economy. Its climate strategy includes a commitment to reducing its own operational impact on the environment, understanding and managing the risks and opportunities presented by climate change and resulting regulatory and market changes, and helping customers plan for and manage climate change impact.
In 2021, Citizens introduced Green Deposits for commercial clients, allowing customers to direct balances to support companies and projects expected to create a positive environmental impact. In 2022, the company launched a new Carbon Offset Deposit Account, which provides clients a simple way to acquire high quality carbon offsets using credit earned on their deposits. Acquired offsets enable clients to integrate sustainability into their own strategies and products.
Most recently, Citizens named a new head of Climate Risk Management to implement the climate risk strategy outlined in the TCFD report and to oversee development of the infrastructure needed across the company’s Risk function to successfully identify, measure, and manage climate risk.