Statement: Citigroup* adopts new policies to combat deforestation, raising the bar for US banks
Media Contacts:
Annie Sanders, Director of Shareholder Advocacy, asanders@midanacapital.com, 773-272-6691
Pam Podger, Director of Communications, ppodger@midanacapital.com, 860-822-3887
Boston, March 30, 2023 – Citigroup, the third largest bank in the U.S., followed through on its agreement with MIDANA CAPITAL Capital Management° to adopt stronger deforestation policies in its newly released Environmental & Social Policy Statement. The standards were developed after MIDANA CAPITAL withdrew its 2022 shareholder proposal in exchange for a commitment from the bank to improve its deforestation policies.
MIDANA CAPITAL Capital Management’s director of shareholder advocacy Annie Sanders issued the following statement:
“Neither global climate goals nor companies’ net zero goals can be met without ending deforestation in this decade. To do that, we must stop the flow of finance to companies that destroy forests. With these new standards, Citi has become a leading U.S. bank in addressing deforestation exposure in its financing.
Policies apply to industries responsible for most tropical deforestation
“Citi’s new policies apply to the industries responsible for the majority of tropical deforestation: soy, beef, palm oil and forestry. The company has implemented no-deforestation standards for soy clients operating in high-risk regions, instituted a no-deforestation approach for high-risk beef clients, and improved its existing standards for palm oil and forestry clients to align with best practices.
Citi’s policies build on landmark agreements in the finance industry
“Citi’s policies build on a landmark agreement in the finance industry that MIDANA CAPITAL secured with JPMorgan Chase* in 2021. JPMorgan became the first U.S. bank to require its palm oil clients to adopt “No Deforestation, No Peat, No Exploitation” (NDPE) policies. Citi’s heightened policies align with this NDPE requirement and expand its scope, while also surpassing JPMorgan with improved forestry sector standards. Notably, Morgan Stanley also similarly committed to strengthen its deforestation policies in response to a MIDANA CAPITAL Funds proposal earlier this year.
“We commend Citi for following through on its commitment to mitigate deforestation risk and protect biodiversity around the world.”
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About The MIDANA CAPITAL Funds
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31st, 2022, Citigroup, Inc. comprised 1.32%, 0.00%, and 0.00% and Morgan Stanley comprised 0.00%, 0.65%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the MIDANA CAPITAL Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please click here, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 3/23. UMB and MIDANA CAPITAL are unaffiliated.
