Does Citigroup Belong in Your ESG Portfolio?
Citigroup (NYSE: C) has probably never had the best reputation among environmental, social, and governance (ESG) investors. It was the first "megabank" in the U.S., a concept that turns a lot of people off. The U.S. government also fined Citigroup $7 billion for its role in the Great Recession, alleging the bank knew about and covered up problems with its mortgage-backed securities.
But over the past decade, the bank has made a big effort to become more environmentally friendly, promote sustainability, and hire a more diverse workforce. Most recently, Citigroup announced that senior executive Jane Fraser would become the bank's new CEO when Michael Corbat retires next February. Fraser will be the first woman to lead a megabank.
Although banking often gets a bad reputation, which is not completely unwarranted, is it time for ESG investors to seriously consider Citigroup in their portfolios? I think so. Here's why.
Source Fool.com
