Oil & Gas 360 Publisher’s Note: The oil industry is strapped for cash. If an oil company does not have a well communicated, and documented, ESG plan in place, gaining access to capital will be increasingly more difficult.

NEW YORK (Reuters) – Citigroup Inc (C.N) said on Tuesday that is launching a new business unit within its corporate and investment bank dedicated to environmental sustainability to strengthen its commitment to an area that has grown increasingly important to corporate clients and investors.

The New York-based company said its Sustainability & Corporate Transitions group will be led by Banking, Capital Markets and Advisory (BCMA) Chief Strategy Officer Bridget Fawcett and Keith Tuffley, who has lead the unit’s sustainability efforts so far.

Citigroup launches new ESG investment banking group -oilandgas360

“The current Covid crisis will elevate the importance of ESG to our clients, as they increasingly focus on more sustainable and resilient strategies and on recovery plans that help drive the just transition to a net-zero emissions future,” global BCMA heads Tyler Dickson and Manolo Falcó said in a memo to bankers sent on Tuesday.

Companies have become more focused on environmental, social and governance (ESG) factors in recent years as activists and investors put pressure on them and companies that put these considerations at the forefront are rewarded.

The European Securities and Markets Authority (ESMA) said in a February report the ESG Leaders 50 index has for the past two years outperformed the corresponding benchmark index.

“The sustainability revolution is accelerating, and our corporate clients are facing new challenges, risks and opportunities,” Dickson said in a statement.

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