Citi Investors Reject Oil, Gas Loan Limits as Climate Activists Gather at HQ

(Bloomberg) -- Citigroup Inc. shareholders rejected a proposal that would have limited the bank’s ability to lend to projects dedicated to new oil and gas exploration as climate activists convened at the firm’s Tribeca headquarters in Manhattan.

Just 12.8% of shareholders voted in favor of the measure, according to a preliminary tally at the company’s virtual annual meeting Tuesday. Investors also rejected proposals that would have required the company to examine how it treats Indigenous people and review its efforts to become an anti-racist institution.

“It’s not feasible for the global economy or for human health or livelihoods to shut down the fossil-fuel economy overnight,” Chief Executive Officer Jane Fraser said at the meeting. “The transition needs to be accelerated, but it also needs to be managed to minimize the shock to our economy and our communities.”

Protesters from groups including New York Communities for Change and Dayenu: A Jewish Call to Climate Action descended on Citigroup’s headquarters ahead of the virtual meeting. Activists have spent much of the last week dogging banks and their executives, calling for Wall Street’s biggest companies to do more to avert climate change.

Last week, protesters with Extinction Rebellion NYC blockaded Citigroup’s headquarters for hours, a move that resulted in at least 19 arrests, according to a statement. Students at Yale University also confronted outgoing Citigroup board member Ernesto Zedillo, a professor at the school, during his class after he refused to meet with them on numerous occasions.

Net Zero

On her first day atop Citigroup last year, Fraser vowed that her bank would achieve net-zero greenhouse-gas emissions in its financing activities by 2050. The bank also pledged to provide $1 trillion for financing sustainability efforts by 2030. Still, Citigroup was one of the largest financers of fossil-fuel companies last year.

“We’ve been clear that the climate crisis is among the top challenges facing our global society,” Fraser said. “There’s an urgent need for collective action.”

Separately, Citigroup investors approved the slate of directors up for election to the bank’s board, as well as the proposed executive compensation plan. Investors also approved a plan to increase the number of authorized shares available for the company’s 2019 stock incentive plan.

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