Is The ESG Dream Over? Citi Chops Sustainable Finance Team in London Shake-Up

A significant shake-up at Citigroup's London office is sending shockwaves through the financial sector, as the banking giant has axed several key members of its sustainable finance team, raising questions about the industry's commitment to its green agenda.

In a move that has stunned market observers, the bank's latest round of job cuts included at least four members of its sustainable debt capital markets (DCM) division. Among those let go is Philip Brown, a veteran Managing Director who was appointed to co-lead the team in 2020. Sources familiar with the matter confirmed that two Vice Presidents, Sara Minic and Chantal Thomson, were also part of the cull. The team's other co-head, Director Sanaa Mehra, is understood to be remaining with the firm. Citigroup has declined to comment on the departures.

These cuts are not happening in a vacuum. Instead, they appear to be part of a worrying industry-wide trend where major banks are quietly scaling back the very sustainability teams they aggressively expanded in the years following the pandemic. The initial hiring boom, fueled by immense public and investor pressure for environmental, social, and governance (ESG) initiatives, now seems to be facing a stark reversal.

This apparent cooling of interest in sustainability roles is evident across the City and Wall Street. Earlier this year, HSBC made headlines when it eliminated the role of its global head of ESG Solutions while she was on maternity leave, along with her temporary replacement. Similarly, reports have confirmed that other major institutions, including Standard Chartered and Wells Fargo, have also been trimming their sustainability-focused headcount.

The recent departures at Citi, particularly of senior figures like Brown, suggest that these roles may no longer be as secure as once thought. As banks navigate a challenging economic climate and recalibrate their priorities, the once-sacred ESG departments are proving to be vulnerable. The industry is now left to wonder: was the green finance boom a genuine long-term strategy, or a fair-weather trend that is now fading as economic pressures mount?