Is the ESG Bubble Bursting? Citi Slashes London Sustainability Team in Shock Move

The green wave in high finance appears to be hitting a formidable wall, as Citigroup has made deep cuts to its London-based sustainable finance team, sending shockwaves through the environmental, social, and governance (ESG) sector. This major shake-up, which includes the departure of a veteran managing director, raises serious questions about the long-term commitment of banking giants to their once-lauded sustainability initiatives.

Inside sources have confirmed that at least four key members of the sustainable debt capital markets (DCM) division were let go in the recent cull. Among the most prominent departures is Philip Brown, a seasoned Managing Director who was appointed to co-lead the team in 2020. Vice presidents Sara Minic and Chantal Thomson were also part of the exit. Brown's co-head, Director Sanaa Mehra, is understood to be remaining with the bank. Citigroup has officially declined to comment on the staffing changes.

This move by Citi is not happening in a vacuum. It is the latest and one of the most significant examples of a broader, chilling trend across the financial industry. Banks that rapidly expanded their ESG and sustainability teams in the wake of the pandemic are now aggressively scaling them back. In March, HSBC controversially cut its global head of ESG Solutions. Similarly, reports earlier this year indicated that both Standard Chartered and Wells Fargo have also been trimming personnel from their sustainability-focused units.

The culling of these specialist teams signals a dramatic reversal of fortune. After a period of intense hiring and public promotion of green finance, it appears a harsh reality check is setting in. As market conditions tighten and banks undergo wider restructurings, these once-protected departments are now facing the same pressures as more traditional banking divisions. The era of unchecked growth for ESG roles seems to be grinding to a halt, as banks re-evaluate costs and strategic priorities.

While the long-term vision for sustainable finance remains a topic of debate, the immediate message from these layoffs is clear. The ESG boom is facing a period of intense consolidation, and the roles that were once the hottest tickets in finance are now proving to be alarmingly insecure.