Energy Supply Financing Ratio White Paper

This white paper presents the Energy Supply Financing Ratio (ESFR) developed by Citi to assess the proportion of financing allocated to low-carbon versus fossil fuel energy sources. The paper outlines the methodology used to calculate the ESFR, which is designed to provide transparency regarding Citi's role in the energy transition. It details the challenges of establishing a standardized methodology in the financial sector, given the variations in data availability and institutional approaches. The ESFR is contextualized within the broader landscape of energy supply, emphasizing the importance of both supply and demand in driving energy modernization. Additionally, the paper discusses the data sources utilized for the ESFR calculation, including internal data and external databases. It also highlights the limitations of the ESFR as a nascent metric, acknowledging the need for ongoing refinement and the incorporation of emerging data sets to enhance accuracy. The paper serves as a foundational document for understanding Citi's financing activities in relation to energy supply.