Citigroup Updates Energy Policy, Ruling Out Funding for Oil and Gas Exploration in Arctic

A significant development in the fight against fossil fuel exploration in the Arctic has been achieved with Citigroup's updated energy policy, which restricts financing for oil and gas exploration, development, and production projects, including those in the Arctic National Wildlife Refuge. This move comes on the heels of similar announcements by Goldman Sachs, JPMorgan Chase, and Wells Fargo, as well as more than a dozen global banks. The updated policy also bars direct funding for new thermal coal mines or coal-fired power plants worldwide, but fails to rule out funding for fracking or tar sands. This shift in policy is the result of sustained pressure from environmental groups and activists, including the Sierra Club and the Gwich'in Steering Committee, who argue that such investments pose significant threats to the Arctic Refuge and its inhabitants.

Key Takeaways:

• Citigroup's updated energy policy rules out financing for oil and gas exploration, development, and production projects in the Arctic, including the Arctic National Wildlife Refuge.
• The policy also prohibits direct funding for new thermal coal mines or coal-fired power plants worldwide and sets a timeline for ending financing of coal mining companies.
• Despite this update, the policy fails to rule out funding for fracking or tar sands projects.
• Citigroup's policy shift follows similar announcements by Goldman Sachs, JPMorgan Chase, and Wells Fargo, as well as over a dozen global banks.
• Activists and environmental groups have pressure-tested Citigroup, with tens of thousands of Sierra Club members and supporters sending messages to the bank and running a digital ad campaign calling for change.
• Bank of America and Morgan Stanley, the two major American banks yet to rule out funding for Arctic drilling, are expected to face continued pressure from activists and shareholders.
• The Gwich'in Nation has long opposed oil and gas exploration in the Arctic Refuge, citing concerns for human rights, wildlife, and water security.

Statistics:

• Over 3.5 million individuals are members and supporters of the Sierra Club, America's largest and most influential grassroots environmental organization.
• Tens of thousands of Sierra Club members and supporters have sent messages to Citigroup demanding a policy change.
• The Gwich'in Steering Committee has actively advocated for the protection of the Arctic Refuge for years, speaking out against the need to preserve sacred lands and human rights.
• Four of the top six American banks (Goldman Sachs, JPMorgan Chase, Wells Fargo, and now Citigroup) have recognized the risks associated with Arctic drilling and have chosen to exclude funding for these projects.

Sources:

• The Sierra Club: About the Sierra Club [n/a].
• Sierra Club members and supporters: Sent messages to Citigroup.