Citigroup has pledged to invest $100 billion (£64.7bn) in the next 10 years for projects that reduce the impacts of climate change.

The bank, believed to be the third largest US financial institution, said it will use the cash to finance green initiatives such as managing waste and making buildings more energy efficient.

It is part of Citi’s new five-year sustainability commitment that also focuses on its environmental and social risk management and sustainability goals.

The company has set a target to cut greenhouse gas emissions by 35%, reduce energy and water use by 30% and waste by 60% by the end of the decade – all against a 2005 baseline.

Citi CEO Michael Corbat said: “Incorporating the principles of sustainability into everything we do improves our own operations, enhances our clients’ work and contributes to a better world.”

Earlier this week, the UK Energy and Climate Change Committee said the carbon market should be linked globally in the future as it is the “most cost effective way possible” to cut CO2 emissions.