Exclusive: Citigroup sees loan book hit in climate action ramp-up, document shows

NEW YORK/WASHINGTON, May 1 (Reuters) – Citigroup (C.N), opens new tab could suffer billions of dollars of losses in its loan book if the world sped up efforts to tackle climate change, according to a confidential analysis prepared by the U.S. bank that was reviewed by Reuters.

The analysis was drafted by Citigroup last summer as it prepared to make a submission to the Federal Reserve on how it plans to manage the impacts of climate change. Five other major U.S. banks were also required to make confidential submissions using the same instructions from the Fed.

Reuters could not establish how much of the information in the document it reviewed made it to Citigroup’s official submission, on which the bank declined to comment.

The analysis said that if efforts to combat climate change ramped up enough to put the world on a path to bringing greenhouse gas emissions down to zero on a net basis by 2050, the bank would suffer $10.3 billion in loan losses over 10 years, more than the $7.1 billion in losses expected if those efforts did not speed up.

Source: REUTER