Citigroup has pledged $250 billion (£193bn) to finance and facilitate climate solutions globally and reduce the risks of climate change.

The Environmental Finance Goal will support activities in renewable energy, clean technology, water quality and conservation, sustainable transportation, green buildings, energy efficiency, circular economy and sustainable agriculture and land use.

The announcement has been made as part of the bank’s 2025 Sustainable Progress Strategy to help accelerate the transition towards a low carbon economy.

The new strategy will focus on three key areas over the next five years: low carbon transition, climate risk and sustainable operations.

Citi, said to be the third largest US financial institution, will begin measuring the climate impact of its portfolios and their potential alignment with the 1.5°C and 2°C warming scenarios.

It expects to meet its goal of sourcing 100% renewable electricity to power its facilities globally before the end of 2020 and is also aiming for a 45% reduction in carbon emissions by 2025.

Since 2005, Citi has reduced 3,600GWh of energy use and avoided greenhouse gas emissions equivalent to more than half a million cars on the road for a year.

CEO Michael Corbat said: “If there’s one lesson to be learned from the COVID-19 pandemic, it is that our economic and physical health and resilience, our environment and our social stability are inextricably linked.

“ESG has been front and center in Citi’s response to this health crisis and evermore present in conversations with clients and partners. With our $250 billion goal, we want to be a leading bank in driving the transition to a low carbon economy, which we anticipate will accelerate as businesses of all kinds shift to a more sustainable future.”