Why Citizens is Focusing on ESG & AI for Sustainable Growth
Citizens Financial Groupās 2024 Sustainability & Impact Report outlines the organisationās ongoing commitment to ESG performance.
The bank focuses on driving inclusive economic growth, reducing its climate impact and building long-term value for stakeholders.
With key initiatives spanning corporate governance, climate risk management, workforce development and community investment, Citizens has demonstrated measurable progress aligned to its US$50bn Sustainable Finance Target and broader ESG strategy.
Corporate governance
Citizens maintains a robust governance framework with 12 of 13 directors classified as independent and an average board tenure of 6.4 years.
The Boardās committees oversee sustainability efforts, including risk, ethics, compensation and AI oversight.
The organisation scored 87.1 on the Center for Political Accountability-Zicklin Index in 2024, reflecting strong ethical governance and political transparency.
Citizens also integrates AI and cybersecurity oversight within its enterprise risk management approach and offers annual training for directors on emerging risks such as climate change, cyberthreats and generative AI.
āWe understand that climate change and the global transition to a lower-carbon economy bring challenges and new opportunities for our clients, our business, and the communities we serve,ā explains Bruce Van Saun, Chairman and CEO of Citizens Financial Group.
āOur approach centers on three strategic priorities: partnering with our clients, deepening our capabilities and minimising our own impact.
āAs we make progress towards our 2030 $50 billion sustainable finance target, which includes a US$5 billion green sub-target, we participated in seven transactions across a range of eligible green activities.
āWe established a new target to reduce Scope 1 and 2 (location-based) emissions 29% by 2030, compared to a 2023 base year, and matched 100% of our electricity consumption using renewable energy credits (RECs) generated through our Virtual Power Purchase Agreement.ā
Climate strategy and environmental impact
Citizens is on track to meet its 2030 target of reducing operational emissions by 29% (from a 2023 baseline).
In 2024, it achieved a 7.6% drop in Scope 1 and 2 location-based emissions, despite an increase in Scope 1 due to fleet expansion.
The bank matched 100% of its electricity consumption using renewable energy credits (RECs) through a virtual power purchase agreement (VPPA) with Ćrsted.
Key highlights include:
- More than US$252m in green finance transactions for renewable energy, energy efficiency and sustainable water.
- New training for all frontline commercial, business and wealth managers on climate and sustainable finance.
- First-ever disclosure of financed emissions aligned with PCAF standards.
Workforce development and inclusion
Citizens launched the Talent Matters platform in 2024 to support personalised career development.
Approximately 88% of employees engaged in professional and compliance training, logging more than 420,000 hours.
The bank also provided US$10m to support community workforce development programmes.
A strong culture of inclusion is reinforced through seven Business Resource Groups (BRGs), with 21% of employees participating.
Inclusion ranked as the highest category in the organisational health survey, scoring 86% overall and pay equity reviews show women earn 99% of what men do in similar roles.
Community and social impact
In 2024, Citizens provided US$1.5bn in community development financing, supporting more than 5,000 new units of affordable housing.
Its mortgage lending to underserved communities reached US$4.5bn and it issued US$357m in small business loans.
A further US$20m in philanthropic funding supported financial empowerment, digital inclusion and workforce development programmes.
Employee engagement was a major focus, with:
- Nearly 10,000 colleagues volunteering
- 250,000 volunteer hours logged — a record high
- Expanded sabbatical programme for skills-based volunteering
Citizens recognises there is more to do and remains committed to innovation, collaboration and responsible leadership.
Its continued alignment to global frameworks such as the Global Reporting Initiative (GRI), SASB and the CDP ensures transparency and accountability across its ESG priorities.
