Banking giant Citigroup ($1.82 trillion) has issued its first green bond, continuing its sustainability goals.
The firm has put out €1 billion ($1,13 billion) for three-year fixed rate notes, which will fund renewable energy, water quality and conservations, green building projects, and other environmentally friendly missions. The bonds are financed as part of Citi’s $100 billion environmental finance goal.
The green initiative was launched in 2015 to finance and facilitate $100 billion within 10 years to speed up the global transition to a low-carbon economy, keeping in line with the Paris Agreement.
Citi also wants to have all of its global energy needs sourced by renewable power by 2020.
Both the environmental finance goal and the 2020 plans are part of Citi’s push to meet the United Nations’ Sustainable Development Goals. The 17 development goals are part of the organization’s agenda to achieve a sustainable future by 2030. The bank is dedicating more time to seven of those goals: partnerships; gender equality; climate action; sustainable cities and communities; industry, innovation, and infrastructure; decent work and economic growth; and affordable and clean energy.
“Since we co-founded the Green Bond Principles in 2014, Citi has played a leading role in the development of the green bond market, and we look forward to maintaining our commitment as this market continues to grow,” said Michael Verdeschi, Citi’s treasurer.
The green bond principles were devised by a consortium of investment banks which included Citi, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Deutsche Bank, and others. The principles are the blueprint for each bank’s launch of a green bond.