How AI Oversight & Gen AI Improves Corporate Sustainability
As AI continues to accelerate across every corner of the world, sustainability concerns are rising with it.
Part of the unique sustainability problem with AI is that while itâs causing sustainability problems, itâs also helping solve them.
Citizens Financial Groupâs 2024 sustainability & impact report underscores this issue and what the company is doing about it â through ongoing dedication to enhancing its ESG performance through advanced technological integration.
With an emphasis on AI-driven strategies, the bank focuses on fostering sustainable economic growth, utilising AI for climate impact reduction and creating enduring value for stakeholders.
Programming efforts within governance, climate risk, workforce evolution and community investment showcase Citizens' alignment with its US$50bn sustainable finance target combined with an AI-enhanced ESG strategy.
Integrating AI into corporate governance
Citizens strongly supports a governance framework with 12 of its 13 directors independently classified, boasting a board tenure averaging 6.4 years.
The board committees guide sustainability endeavors as well as demonstrate robust AI oversight, incorporating AI into areas such as risk and ethics management.
In 2024, Citizens achieved an 87.1 score on the Center for Political Accountability-Zicklin Index, showing strong governance and political transparency.
The bank’s enterprise risk management system also includes rigorous AI and cybersecurity oversight, paired with annual educational sessions for directors on modern threats like climate change, cyber risks and Gen AI potential.
“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.
“Our approach centers on three strategic priorities: partnering with our clients, deepening our capabilities and minimising our own impact.
“As we make progress towards our 2030 US$50bn sustainable finance target, which includes a US$5bn green sub-target, we participated in seven transactions across a range of eligible green activities.
“We established a new target to reduce Scope 1 and 2 (location-based) emissions 29% by 2030, compared to a 2023 base year – and matched 100% of our electricity consumption using renewable energy credits (RECs) generated through our virtual power purchase agreement.”
Citizens proved AI-enhanced climate strategy and environmental impact
Citizens is advancing towards its 2030 target, achieving notable reductions in operational emissions by 29% from a 2023 baseline.
In 2024, the bank reported a 7.6% decrease in Scope 1 and 2 emissions, despite an increase in Scope 1 emissions due to a fleet expansion.
A virtual power purchase agreement (VPPA) with Ørsted enabled the bank to match 100% of its electricity consumption via renewable energy credits (RECs).
Key highlights include:
- Over US$252m in green finance deals for renewable energy, energy efficiency and sustainable water
- New training initiatives for frontline commercial, business and wealth managers in climate and sustainable finance
- First-time disclosure of financed emissions meeting PCAF standards
Advancing workforce development through AI
Citizens also introduced the Talent Matters platform in 2024, focusing on personalised career development supported by AI technology.
Around 88% of employees participated in professional and compliance training, with more than 420,000 training hours logged.
US$10m was allocated to support community workforce development initiatives, reinforcing a culture of inclusion through seven business resource groups (BRGs) involving 21% of employees.
Furthermore, the organisational health survey ranked inclusion highest, with an 86% score and pay equity reviews indicating that women earn 99% of men's wages in equivalent roles.
