Climate Change

In this Citi GPS report, we examine how leading companies have been reshaping their supply chains to embrace sustainability and explore what more might be needed.

Our guests express cautious optimism for opportunities and progress, but they acknowledge the significant work required to decarbonize these industries, recognizing the challenges but importance of the journey ahead.

The power grid is arguably the backbone of modern society. We’re now at a critical convergence of soaring power demand from the digital economy — driven by the rise of electric vehicles, data centers, artificial intelligence (AI), and other technological advances — and an aging grid that requires significant improvement. The International Energy Agency estimates that power lines globally will need to double in length between now and 2050, and that’s not including the old power lines that need to be replaced. Then there’s the red tape that stands in the way of new construction, the challenge of integrating renewable energy, and the need for coordinated planning to modernize the grid —all of which point to unprecedented, structural supply-and-demand shocks.

We live in a world where there is enough food to feed everyone on the planet. However, conflict, climate change, disasters, inequality and most recently – the COVID-19 pandemic mean one in ten people globally are still going to bed hungry and millions are living on the brink of famine.

On the back of disruptive shifts in the economics of alternative energy and expanding climate policies, the global energy transition is moving rapidly. The pace and focus vary by country, depending largely on resource availability, existing infrastructure, and political ambition. Each country’s pathway is tied to geopolitical shifts and markets, creating new opportunities across sectors. Download the full report here.

Citi Global Insights A recent report from Citi Research’s Pierre Lau looks at how the solar energy business is developing around the world.

Rising global food insecurity has come under the spotlight following a series of geopolitical shocks, including the COVID-19 pandemic and Russia’s invasion of Ukraine. Food security concerns have also been compounded by the effects of a shifting climate and increasing evidence of damage caused by accelerating biodiversity loss and water scarcity. Amid concerns about immediate and long-term food security, agriculture policies are caught in the crossfire between short-term food security and sustainability.

Jason Channell joins Rashmi Ghai, Global Head of Sustainability & ESG, Citi Commercial Bank, and James Cameron, Chair of the Board at Crown Agents, Advocate and award-winning authority in the global climate change movement to discuss the barriers and solutions to capital flow for climate change and for broader development in emerging markets.

In climate finance, there has historically been a mismatch between the risk appetite of capital and the risk profile of projects. At the heart of the issue is creating bankable projects. The best way to deal with this challenge is to build capacity, education, understanding.