There has been a noticeable shift in recent years among consumers and investors towards financial products that embrace sustainability.
According to Global Market Insights, the sustainable finance market is expected to expand at a Compound Annual Growth Rate (CAGR) of 22.4 per cent from 2023 to 2032, driven by investors who seek financial returns alongside measurable social and environmental impacts.
This uptick is a clear indication of the changing priorities of this group, who are increasingly aligning their financial goals with their concerns for sustainable and ethical practice.
To meet the growing demand for solutions that promote a sustainable future, Citibank Singapore recently became the first bank in the country to join the Mastercard Priceless Planet Coalition (PPC), marking another step in the bank’s contribution to environmental conservation.
The PPC is an initiative that brings together merchant and issuer partners of Mastercard in an effort to restore 100 million trees. As a PPC partner, Citibank has pledged to restore at least 1,000 trees monthly over two years in partnership with Mastercard and environmental non-profit groups Conservation International and World Resources Institute.
This initiative involves a global portfolio of high-quality restoration projects that currently includes 20 reforestation projects across six continents, helping to remove carbon dioxide from the atmosphere, tackle biodiversity loss and environmental pollution, as well as empower local communities.
Spending with the planet in mind
The bank joined the PPC to mark the launch of the Citigold Private Client (CPC) World Elite Debit Mastercard. The card offers exclusive privileges for CPC clients with a minimum asset under management of S$1.5 million with Citibank. With each S$1,000 spent using this card, Citibank pledges to restore one tree on behalf of its clients.
Brendan Carney, Citibank Singapore’s chief executive officer, said: “Our CPC clients are global citizens with interests and responsibilities that transcend geographical borders, and we designed these card enhancements to provide them with even more value as they work, play, and travel globally.
“We know that sustainability matters to our clients in this top-tier segment, and that’s why we joined the Mastercard Priceless Planet Coalition in tandem with this launch.”
Promoting a sustainable future
As a bank with a global footprint, Citi is committed to helping to responsibly transition to a low-carbon economy by working with clients to help decarbonise their businesses.
In Singapore, Citibank Singapore also recognises that its retail clients are increasingly prioritising environmental issues, and is doing more to promote a sustainable future for all.
Beyond being a partner of the coalition, Citibank Singapore offers its clients investment insights on sustainability-related trends.
From as early as 2021, it has identified “Greening the world” as an “unstoppable trend”. In its latest Wealth Outlook 2024 report, it put the spotlight on renewable energy, noting that the Organisation of the Petroleum Exporting Countries’ (Opec) recent decision to cut production to support oil prices could make greener energy sources more attractive and valuable.
Renewable energy is among several “unstoppable trends”; others being increasing longevity and healthcare innovation, as well as AI-propelled digitisation, that the bank has identified as “powerful multi-year forces that produce lasting change in multiple spheres”. The bank offers a range of products and solutions where clients are able to participate in these “unstoppable trends” as they build their portfolios.
Said Carney: “By marrying financial services with environmental stewardship, we hope not only to cater to the needs of our affluent clients but also contribute meaningfully to the global sustainability agenda.”
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