(Reuters) – Citigroup Inc has announced that it will consolidate three of its investment banking groups into one in a bid to promote environmental sustainability, an area that has become critical for investors.
The new unit, which will be called Natural Resources and Clean Energy Transition Group, will be headed by Steve Trauber and Sandip Sen, according to a note seen by Reuters on Monday.
The unit will include the chemicals, energy and power franchises, the note from Tyler Dickson and Manuel Falcó, co-heads of Citi’s banking, capital markets and advisory business, showed.
Trauber will oversee the unit’s investment banking front, while Sen will be in charge of corporate banking, according to the memo.
In a March 1 blog post, Citigroup CEO Jane Fraser announced the bank’s commitment to achieve zero net greenhouse gas emissions by 2050. (http://citi.us/ 3foQuVx)
The COVID-19 pandemic has sparked renewed interest in companies performing well on environmental, social and governance (ESG) goals.
Other leading institutional firms such as Mastercard Inc and HSBC have also pledged to achieve net zero issuance by 2050.
Last year, Citi launched a new business unit within its corporate and investment bank dedicated to ESG objectives.
(Reporting by Niket Nishant and Noor Zainab Hussain in Bangalore; editing by Shinjini Ganguli)