Citigroup Inc. has laid off five analysts from a team focused on producing ESG and climate-related reports, according to sources familiar with the matter. Among those departing is Jason Channell, head of sustainable finance for Citi Global Insights. The team, part of Citi’s Global Perspectives & Solutions unit, had specialised in reports on climate change, renewable energy, biodiversity, and carbon markets but did not charge clients for their research.
This move is part of Citigroup’s broader effort to streamline operations, which includes a plan to eliminate about 20,000 jobs globally. To date, approximately 11,000 positions have been cut as the bank focuses on increasing profitability and restoring investor confidence.
A Citigroup spokesperson reaffirmed the bank’s commitment to supporting clients’ sustainability goals but declined to comment on the layoffs directly. Despite these cuts, Citigroup continues to employ ESG analysts in other divisions.
The layoffs come amid a challenging environment for ESG strategies, as Wall Street braces for intensified scrutiny under a second term of President Donald Trump. The GOP, emboldened by the election, has escalated its opposition to climate-focused financial strategies. Recently, Texas Attorney General Ken Paxton led a lawsuit against major asset managers, accusing them of breaching antitrust laws by prioritising climate-friendly investments over traditional energy sectors.
Analysts predict a more hostile political landscape for ESG strategies in the years ahead, with potential rollbacks in green subsidies and environmental protections looming.
