Citigroup Inc. is aiming to reduce to zero its exposure to thermal coal companies by the end of 2030, the company said in its environmental and social policy framework published in April.
Citigroup said that it will not provide project-related financing for new thermal coal mines and significant expansions for existing mines.
The company has also set targets to phase out financing of mining companies deriving more than 25% of their revenue from thermal coal mining. Exposure to such companies will be reduced to zero by 2030.
By the end of 2025, the company intends to reduce its credit exposure to such companies by 50% from its current year baseline and stop facilitating capital market transactions or merger and acquisition advisory and financing for thermal coal companies after 2025.
The New York-based finance company said that the guidelines will bolster its 2015 commitment to lower credit exposure to coal companies and its 2009 enhanced due diligent requirements for companies using mountaintop removal coal mining.
Citigroup also said that it will not provide project-related financing services for oil and gas exploration, development and production in the Arctic Circle, and projects that negatively impact UNESCO World Heritage Sites.