Citigroup commits $50 bln to green projects

By Jonathan Stempel

NEW YORK (Reuters) - Citigroup Inc. (C.N: Quote, Profile, Research), the largest U.S. bank, said on Tuesday it plans to commit $50 billion to environmental projects over the next decade, the biggest commitment from Wall Street to address climate change.

The amount includes nearly $10 billion in activities that the bank has already undertaken. Citigroup plans to increase to $10 billion from about $1 billion its commitment to reduce its own greenhouse gas emissions at its 14,500 locations worldwide. The bank operates in more than 100 countries.

"It's a dramatic announcement," said Daniel Esty, a Yale University environmental law professor who co-wrote "Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage."

"To the extent it signals a sea change in Citigroup's attitude toward the environment, it could have a sweeping impact across economies globally," said Esty.

Citigroup's program comes as U.S. companies such as General Electric Co. (GE.N: Quote, Profile, Research) and Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) look to boost environmental efficiency, amid growing demand for alternative energies and emissions reduction.

Charles Prince, the bank's chief executive, said the program is "not a wish list, but a realistic, achievable plan that serves a critical global need and responds to an emerging investment opportunity." He called for global and U.S. frameworks to reduce greenhouse gas emissions.

Last year, Citigroup's profit totaled $21.54 billion on revenue of $89.62 billion.

In March, Bank of America Corp. (BAC.N: Quote, Profile, Research), the second-largest U.S. bank, pledged $20 billion over 10 years to support environmentally friendly activities and reduce global warming.