Menu
Banking Exchange Magazine Logo
Menu

Banks join forces to cut carbon in steel industry

Citi joins with European banks to improve carbon disclosure related to steel production

  • |
  • Written by  Banking Exchange staff
Banks join forces to cut carbon in steel industry

Six banks, including Citi, Société Generale and Standard Chartered, have joined forces on an agreement aimed at improving carbon emissions disclosures related to lending to steel producers.

Along with ING, Credit Agricole and UniCredit, the banks have signed the Sustainable Steel Principles, the first agreement of its kind aimed at lenders to the steel industry.

The initiative has been facilitated by RMI, a non-profit organization focused on reforming the global energy sector.

The six signatories have committed to upholding five principles:

  • Standardized assessment to provide a consistent measure of portfolio emissions
  • Transparent reporting, pledging to disclose decarbonization progress annually
  • Enactment of actions to obtain quality, credible data
  • Engagement with borrowers on net-zero plans
  • Leadership to advocate more widely for the decarbonization of the steel sector.

“Given the high level of greenhouse gas emissions emitted by the global steel sector, decarbonizing the steel production process is among the biggest challenges the industry faces today,” said William Husband, global head of metals and mining for Citi’s corporate banking arm.

“As a leading lender and arranger of capital to the steel sector, Citi is proud to join this working group to support our collective journeys to net zero and to facilitate the financing of our steel clients’ decarbonization efforts.”

Arnout van Heukelem, global head of metals, mining and fertilizers at ING, added: “The decarbonization of this industry will require very significant investments over the next thirty years. Banks will have a large role to play in providing part of the funding required to realize this. The SSP is a methodology that allows banks to not only disclose their climate alignment, but also to benchmark their clients and use this data to engage with them to further stimulate decarbonization.”

In a statement, the RMI described the principles as “the turn-key solution for measuring and disclosing the 1.5°C alignment of steel lending portfolios” — a reference to the 2015 Paris Agreement on climate change, which set the aim of limiting global warming to below 1.5°C above pre-industrial levels.

back to top

Sections

About Us

Connect With Us

Resources

Technology is rapidly changing the way accountants perform and manage month-end activities. Spreadsheets, email, and shared drives no longer should slow us down. Automation generally supercharges any process and brings its value to the forefront. To get to the next level of closing, automation is a must so that repetitive, predictable, and laborious tasks can be automated.

Join us as we present a "sneak peek" into SkyStem's month-end close solution – ART. In under four weeks, your team can start reaping the benefits of month-end close automation by vastly reducing spreadsheets, cut down on reconciliation work, speed up the month-end close, and better manage your remote team.

Some results our customers have enjoyed include:

REGISTER NOW!

This webinar is brought to you by:
skystem logo