Citizens Financial Group: Leading in Sustainable Banking

At the heart of Citizens' mission lies a powerful vision: driving inclusive economic growth whilst simultaneously reducing climate impact and creating lasting value for all stakeholders. Through strategic initiatives that span corporate governance, climate risk management, workforce development, and community investment, Citizens has achieved remarkable progress towards its ambitious US$50 billion Sustainable Finance Target and comprehensive ESG strategy.

Strong Foundations: Corporate Governance Excellence

Citizens has built an exemplary governance framework that sets the standard for the industry. With 12 of 13 directors classified as independent and an average board tenure of 6.4 years, the organisation demonstrates both fresh perspectives and institutional knowledge.

The Board's specialised committees actively oversee sustainability efforts across risk management, ethics, compensation, and AI oversight. This commitment to transparency and accountability earned Citizens an impressive 87.1 score on the Center for Political Accountability-Zicklin Index in 2024, highlighting the organisation's strong ethical governance and political transparency.

Citizens takes emerging risks seriously, integrating AI and cybersecurity oversight within its enterprise risk management approach. Directors receive annual training on critical issues including climate change, cyberthreats, and generative AI, ensuring leadership remains at the forefront of industry developments.

Climate Action: Turning Ambition into Reality

"We 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," explains Bruce Van Saun, Chairman and CEO of Citizens Financial Group.

Citizens' climate strategy centres on three strategic priorities: partnering with clients, deepening capabilities, and minimising environmental impact. The results speak for themselves.

The organisation is well on track to meet its 2030 target of reducing operational emissions by 29% from a 2023 baseline. In 2024 alone, Citizens achieved a significant 7.6% drop in Scope 1 and 2 location-based emissions, despite fleet expansion increasing Scope 1 emissions. Demonstrating genuine commitment to renewable energy, the bank matched 100% of its electricity consumption using renewable energy credits (RECs) through a virtual power purchase agreement (VPPA) with Ørsted.

Environmental Impact Highlights:

• More than US$252 million in green finance transactions supporting renewable energy, energy efficiency, and sustainable water projects
• Comprehensive training rolled out to all frontline commercial, business, and wealth managers on climate and sustainable finance
• First-ever disclosure of financed emissions aligned with PCAF standards, setting new transparency benchmarks

As Citizens progresses towards its 2030 US$50 billion sustainable finance target, which includes a dedicated US$5 billion green sub-target, the organisation participated in seven transactions across eligible green activities, demonstrating tangible commitment to environmental progress.

Empowering People: Workforce Development and Inclusion

Citizens recognises that sustainable success starts with its people. The launch of the Talent Matters platform in 2024 represents a significant investment in personalised career development, empowering employees to reach their full potential.

The numbers tell an impressive story: approximately 88% of employees engaged in professional and compliance training, logging more than 420,000 hours of learning. Beyond internal development, Citizens invested US$10 million to support community workforce development programmes, extending its impact far beyond the organisation's walls.

Inclusion remains a cornerstone of Citizens' culture, reinforced through seven active Business Resource Groups (BRGs) with 21% of employees participating. This commitment to diversity and inclusion has delivered measurable results, with inclusion ranking as the highest category in the organisational health survey, scoring an outstanding 86% overall. Pay equity reviews demonstrate tangible progress, showing women earn 99% of what men do in similar roles.

Making a Difference: Community and Social Impact

Citizens' community impact extends far beyond traditional banking. In 2024, the organisation provided US$1.5 billion in community development financing, directly supporting the creation of more than 5,000 new units of affordable housing.

The bank's commitment to underserved communities is evident through US$4.5 billion in mortgage lending to these areas and US$357 million in small business loans, providing crucial support where it's needed most. An additional US$20 million in philanthropic funding supported vital programmes in financial empowerment, digital inclusion, and workforce development.

Employee engagement reached new heights with inspiring results:

• Nearly 10,000 colleagues volunteering in their communities
• 250,000 volunteer hours logged — a record-breaking achievement
• Expanded sabbatical programme enabling skills-based volunteering

Looking Forward: Continued Innovation and Leadership

Citizens acknowledges that the journey towards sustainability is ongoing and remains firmly committed to innovation, collaboration, and responsible leadership. The organisation's continued alignment with globally recognised frameworks including the Global Reporting Initiative (GRI), SASB, and the CDP ensures transparency and accountability across all ESG priorities.

Through measurable progress, authentic leadership, and unwavering commitment to stakeholder value, Citizens Financial Group is not just adapting to a changing world — it's actively shaping a more sustainable and inclusive future for all.