🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Citi, JPMorgan, RBC to give new climate metric in deals with New York City

Published 04/03/2024, 06:58 PM
Updated 04/04/2024, 11:57 AM
© Reuters. FILE PHOTO: The logo for Citibank is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo
C
-
JPM
-
RY
-

By Ross Kerber and Mehnaz Yasmin

(Reuters) -Citigroup, JPMorgan and Royal Bank of Canada (RBC) will disclose a new climate metric under agreements between New York City Comptroller Brad Lander and the three large North American banks.

Lander, who oversees public retirement assets, said on Wednesday that the three banks will disclose their ratio of financing for low-carbon energy projects compared with their financing for fossil fuel projects.

In return, retirement funds Lander helps run have withdrawn shareholder resolutions at each bank calling for the disclosures.

The new transparency will help investors "more effectively measure how well they are or aren't living up to their commitments," Lander said in a statement. "As leading public investors, we expect that energy supply ratio disclosure will become a new standard for the banking sector."

The bank's forthcoming reports should at minimum cover their equity and debt underwriting, syndicated lending and project finance, a representative for Lander said.

A JPMorgan spokesperson said the bank found common ground with Lander on disclosing a clean energy financing ratio, with an understanding it would take some time and resources to develop a decision-useful approach.

"We will engage with NYC and our shareholders to provide the market more clarity and transparency about our activities and what financing the transition truly looks like," the spokesperson said.

RBC Vice President of Climate Jennifer Livingstone said its talks with Lander had been constructive and said it planned to boost lending to low-carbon energy projects.

© Reuters. FILE PHOTO: The logo for Citibank is seen on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2021. REUTERS/Andrew Kelly/File Photo

"We plan to disclose a clean energy supply financing ratio in our 2024 Climate Report as it aligns to our strategic objectives," she said in an email. "Transparency and advanced disclosures on climate performance are critical to showing the progress we are making."

Citi Chief Sustainability Officer Val Smith said the new metric would add to a suite of metrics provided in the bank's climate reporting. "We continue to have a constructive dialogue with the Comptroller's office," Smith said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.