In a move sending shockwaves through the world of ethical finance, Citigroup has axed key members of its London-based sustainable debt team, raising serious questions about the commitment of major banks to their once-touted green initiatives.

While the banking giant has remained officially silent, inside sources confirm a significant cull within its Debt Capital Markets (DCM) division. The cuts have notably impacted the team responsible for structuring and selling green bonds and other sustainable financial products. Among the high-profile departures is Philip Brown, a veteran Managing Director who was appointed to co-lead the sustainable DCM team back in 2020. He is joined by Vice Presidents Sara Minic and Chantal Thomson, leaving a significant gap in the unit's expertise. Sources suggest that Brown's co-head, Director Sanaa Mehra, has survived the shake-up and remains with the bank.

This isn't just a Citi problem; it's a bloodbath. The move is the latest in an alarming trend across the financial sector, suggesting the ESG (Environmental, Social, and Governance) boom may be heading for a bust. The very teams that banks rushed to build in a post-pandemic frenzy for green credentials are now facing the chopping block as economic realities bite.

An Industry-Wide Purge?

The actions at Citi mirror those of its rivals, who are also quietly trimming their sustainability ranks. The pattern is becoming impossible to ignore:

• HSBC made headlines in March for cutting its global head of ESG Solutions—while she was on maternity leave—along with her temporary replacement.
• Reports from earlier this year confirmed that Standard Chartered and Wells Fargo have also been letting go of bankers in their sustainability divisions.

The cuts, which follow a period of aggressive hiring under former JPMorgan executive Vis Raghavan, suggest a stark recalibration of priorities. As banks streamline operations in the wake of major recruitment drives, the once-protected and celebrated sustainability departments appear to be one of the first areas deemed expendable.

The layoffs raise a stark question for the industry: was the banking world's passionate embrace of sustainability merely a fleeting, bull-market trend, or is this a more calculated pivot as institutions focus on pure profit over public-facing principles?