Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Political Contributions
• Executive Compensation
• Human Rights
• Environmental Sustainability
• Climate Change

Environmental Achievements

• Goal of reducing greenhouse gas (GHG) emissions from its facilities and real estate portfolio by 10% by 2011.
• Target of $50 billion over ten years to address climate change through investments in and financing of alternative energy and clean technology.

Social Achievements

• Publication of a Statement on Human Rights in January 2007.
• Comprehensive strategy for addressing environmental and social issues related to business activities.

Governance Achievements

• Adoption of Senior Executive Compensation Guidelines.
• Adoption of a Political Contributions Policy.
• Elimination of super-majority vote provisions in its charter.
• Amendment of by-laws to give holders of at least 25% of outstanding common stock the right to call a special meeting.
• Amendment of by-laws to include a majority vote standard for director elections.
• Adoption of a policy to recoup unearned compensation.
• Adoption of a confidential voting policy.

Climate Goals & Targets

Environmental Challenges

• Demonstrating that compliance with the Equator Principles leads to improved environmental and social outcomes.
• Balancing pay for performance with the need to attract and retain senior executives in a challenging economic environment.
• Addressing concerns about excessive executive compensation.

Mitigation Strategies

• Reduced the value of incentive awards payable to some senior executives.
• Decreased the percentage of incentive awards payable in cash and increased the percentage payable in stock.
• Granted retention equity awards to key executives.
• Adopted a political contributions policy with annual disclosure.
• Implemented a comprehensive executive compensation program emphasizing pay for performance.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best in class among global banks for climate change disclosure (Carbon Disclosure Project)

Environmental Metrics

Governance Achievements

• Eliminated super-majority vote provisions contained in its charter
• Amended by-laws to give holders of at least 25% of the outstanding common stock the right to call a special meeting
• Amended by-laws to include a majority vote standard for director elections
• Adopted a policy to recoup unearned compensation
• Adopted a Political Contributions Policy under which Citi will annually compile and publish a list of its political contributions

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges and profound change in the financial services industry
• Extraordinary events of 2008 significantly decreased total compensation for 2008

Mitigation Strategies

• Repositioning the Company to capitalize on the best opportunities for global growth
• Reducing assets on the balance sheet, reducing expenses, and streamlining businesses
• Redesign of the compensation structure and substantial turnover of top management

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Financial Inclusion and Economic Progress
• Environmental Sustainability
• Valuing Our Employees

Environmental Achievements

• Surpassed 10-year goal to invest $50 billion in activities that mitigate climate change (three years early)
• Exceeded 2015 operational environmental performance goals for greenhouse gas emissions and waste (two years early)
• Reduced absolute GHG emissions by 25% since 2005

Social Achievements

• Supported 92 employee networks with roughly 14,000 members
• Enabled 15,000 employees across 55 countries to have formal flexible working plans
• Invested $66 million in community development programs
• Reached a 74% employee satisfaction score

Governance Achievements

• Launched an updated Code of Conduct for all employees
• Incorporated shareholder feedback in executive compensation policy
• 85% of the Board is independent

Climate Goals & Targets

Environmental Challenges

• Ethical failures jeopardizing credibility
• Navigating frequent changes in financial regulations
• Coordinating operational efficiency improvements across thousands of locations
• Retaining diverse employees at senior levels
• Balancing respect for local customs with social goals and diversity policies

Mitigation Strategies

• Launched a comprehensive program including improved training and a continued focus on responsible finance
• Developed a global framework for energy and power financing
• Introduced a recruitment scorecard to track consideration of female and minority candidates
• Continued to expand microfinance lending and community development initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Statement of Supplier Principles (promoting ethical business practices, human rights, and environmental sustainability)

Climate-Related Risks & Opportunities

Physical Risks

• Facility damage from severe weather

Transition Risks

• Regulatory changes, potential physical damage and other business impacts

Opportunities

• Development of energy-efficient products, green bond markets

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines

Certifications: Null

Third-party Assurance: KPMG LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Citi® Mobile Collect (mobile payment solution)

Awards & Recognition

• Top financial services company in DJSI World and DJSI North America indices, World’s Greenest Bank (Bloomberg Markets), Sector Leader for Diversified Financials in the Dow Jones Sustainability Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Human Rights
• Ethical Conduct
• Financial Inclusion
• Youth Economic Opportunities
• Sustainable Cities

Environmental Achievements

• Reduced carbon emissions (net CO2e reduced from 1,085,820 mt in 2015 to 619,282 mt in 2017)
• Reduced energy consumption by 29.9% compared to 2005 baseline
• Reduced water consumption by 29% compared to 2005 baseline
• Achieved 61.8% waste diversion rate compared to 2005 baseline
• 18.3% of global real estate portfolio powered by renewable energy

Social Achievements

• Launched the Citi Tech for Integrity Challenge to promote integrity and transparency in the public sector
• Expanded the Pathways to Progress initiative with a $100 million commitment to connect 500,000 young people to jobs
• Improved pay equity, with women and U.S. minorities paid 99% of what men and non-minorities are paid respectively
• Increased female representation in campus programs to 40%
• Provided over $4.7 billion in loans for affordable housing projects in the U.S.

Governance Achievements

• 88% of the Board of Directors are independent directors
• Implemented Leadership Standards in employee evaluations
• Enhanced conduct risk assessment in 84 countries
• Updated ESRM Policy to strengthen requirements related to consultation of Indigenous Peoples

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather events)
• Income inequality
• Youth unemployment
• Access to financial services for underserved populations
• Human rights risks in supply chain and client activities

Mitigation Strategies

• Partnering with UNEP FI on climate scenario analysis
• Investing in environmental finance ($57 billion towards $100 billion goal)
• Implementing Pathways to Progress initiative
• Expanding financial inclusion programs
• Strengthening human rights due diligence and ESRM policy

Supply Chain Management

Supplier Audits: 100% of top-tier suppliers completed the CRQ

Responsible Procurement

• Statement of Supplier Principles
• Standards for Suppliers
• Corporate Responsibility Questionnaire (CRQ)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Flooding

Transition Risks

• Stranded assets
• Regulatory changes
• Market shifts

Opportunities

• Renewable energy investments
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UN Guiding Principles on Business and Human Rights, TCFD

Certifications: ISO 27001 (Global Information Security Program)

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

Citi's initiatives contribute to these goals through various programs and investments

Sustainable Products & Innovation

• CitiConnect for Blockchain
• Proxymity

Awards & Recognition

• New York Law Journal’s In-House Department of the Year Award for Diversity
• Sustainable Purchasing Leadership Council Awards
• Euromoney Magazine’s “World’s Best Bank for Financial Inclusion”

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Affordable Housing
• Ethical Artificial Intelligence
• Sustainable Finance
• Community Investment
• Workforce Development

Environmental Achievements

• Exceeded $100 billion goal in environmental finance activity four years early (2014-2019), reaching $164 billion.
• 30% reduction in CO2 emissions at global headquarters due to gas-fired co-gen plant and other efficiency measures.
• 12% electricity reduction at global headquarters through LED lighting and sensors.
• 40% water reduction at global headquarters with efficient plumbing fixtures.
• 86,000+ reduction in plastic bottle usage per month at global headquarters.

Social Achievements

• Provided over $6 billion in loans for affordable housing projects in the U.S., making Citi the largest U.S. affordable housing lender for the 10th consecutive year.
• Invested $194 million through the Citi Foundation in tackling youth unemployment (2017-2019).
• Launched a $150 million Citi Impact Fund to invest in socially minded startups.
• 120,000 Citi volunteers participated in Global Community Day in 400 cities across 90 countries.
• Publicly shared raw pay gap data and continued transparency around pay equity.
• Piloted a new approach to engaging HBCUs through the inaugural HBCU Innovation and Leadership Symposium.

Governance Achievements

• Developed a set of ethical principles for AI and machine learning.
• Joined a group of leading U.S. employers supporting the proposed Equality Act.
• Appointed a new Chief Sustainability Officer.

Climate Goals & Targets

Environmental Challenges

• Climate change and the need for aggressive action to reduce emissions.
• Addressing wealth inequality and providing affordable access to financial products and services.
• Addressing hiring bias and promoting diversity and inclusion.
• Addressing ethical considerations related to the use of AI.
• NIMBYism hindering affordable housing development.

Mitigation Strategies

• Developing sustainable financial products (e.g., sustainability-linked loans, SDG bonds).
• Embracing transformational risk management, including climate scenario analysis.
• Investing in people analytics and insights to understand and address diversity challenges.
• Developing ethical principles for AI.
• Partnering with organizations to address affordable housing challenges (e.g., LAND, Factory_OS).
• Supporting initiatives to promote accessory dwelling units (ADUs).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Racial Equity
• Affordable Housing
• Economic Inclusion
• Human Rights
• Youth Unemployment
• Pay Equity

Environmental Achievements

• Launched 2025 Sustainable Progress Strategy with a $250 billion Environmental Finance Goal
• Reached goal of purchasing 100% renewable electricity for facilities worldwide
• Committed to net-zero greenhouse gas emissions by 2050

Social Achievements

• Launched Action for Racial Equity with over $1 billion in strategic initiatives
• Provided $7 billion in loans for affordable housing projects in the U.S.
• Expanded the global Pathways to Progress job skills-building initiative with a $100 million investment
• Over 63,000 volunteer engagements during Global Community Day
• Invested in 13 companies through Citi’s $200 million Impact Fund

Governance Achievements

• Publicly shared progress on pay equity, showing improvements in median pay for women globally and U.S. minorities
• Implemented a new accountability framework with clear consequences for misconduct

Climate Goals & Targets

Environmental Challenges

• Climate change
• Racial wealth gap
• Affordable housing crisis
• COVID-19 pandemic's impact
• Systemic inequities

Mitigation Strategies

• $250 billion commitment to environmental finance by 2025 (later increased to $500 billion by 2030)
• $1 billion investment in Action for Racial Equity
• $7 billion in loans for affordable housing
• $100 million in COVID-19 relief efforts
• Support for COVAX Facility
• Transformation to create a best-in-class risk and control environment

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Achieved 100% renewable electricity sourcing for facilities globally in 2020
• Reduced operational emissions (Scope 1 and 2) by over 50% since 2005

Social Achievements

• Announced a $1 trillion commitment to sustainable finance by 2030, including $500 billion for environmental finance and $500 billion for social finance
• Launched enterprise-wide training module on climate risk

Governance Achievements

• Formed a new Global ESG Council chaired by the CEO
• Grew the dedicated Climate Risk team with expertise in credit risk, scenario analysis, stress testing, and regulatory engagement
• Created the Natural Resources & Clean Energy Transition team

Climate Goals & Targets

Environmental Challenges

• Limited availability and quality of climate data
• Need to translate net zero targets into operational policies and procedures
• Challenges in developing countries with less robust socioeconomic institutions
• Lack of global regulatory clarity on climate and sustainability matters
• Unequal access to clean energy in developing countries

Mitigation Strategies

• Developing an end-to-end climate risk management framework
• Expanding resources for climate risk function
• Working with regulators to enable climate policy
• Prioritizing initiatives that create real and meaningful reductions
• Considering a strategy for offsets to balance remaining emissions

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Landslides
• Sea level rise

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputational risks

Opportunities

• Expanded client and stakeholder engagement
• Growth in new markets
• Development of a more sophisticated workforce with climate expertise
• Transition finance
• Climate technology

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Third-party limited assurance review for Scope 1, 2, and a portion of Scope 3 emissions

Sustainable Products & Innovation

• Green bonds
• Social bonds
• Sustainability bonds
• Sustainability-linked bonds
• Sustainability-linked loans

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Net Zero Emissions

Environmental Achievements

• Exceeded 2022 target to reduce credit exposure to thermal coal mining companies by at least 50% from a 2020 baseline.
• Maintained 100% renewable electricity sourcing since 2020.
• Reduced emissions intensity in several sectors (e.g., Commercial Real Estate, Power).

Social Achievements

• Supported the World Bank in issuing an emission reduction-linked bond.
• Facilitated a solar securitization program in Kenya to broaden access to clean energy.
• Updated ESRM Policy agribusiness sector requirements to mitigate deforestation risk.

Governance Achievements

• Continued to evolve climate governance structure, including the formation of a CRWG under the U.S. Personal Banking and Wealth businesses.
• Incorporated sustainability and climate-related goals into executive scorecards.
• Participated in the Federal Reserve Board’s Pilot Climate Scenario Analysis exercise.

Climate Goals & Targets

Environmental Challenges

• Data availability and quality challenges, particularly for Scope 3 emissions and client transition plans.
• Evolving and increasing climate disclosure requirements across different jurisdictions.
• Reliance on new technologies for climate strategies, with uncertainties around their timely development and scaling.
• Failure to reach global emissions reduction goals.
• Inequities of the transition impacting developing countries.

Mitigation Strategies

• Developed the Net Zero Review Template and Climate Risk Assessment & Scorecard (CRAS) to assess client transition plans and climate risks.
• Launched the Climate Data Hub to improve data access and quality.
• Engaged with regulators and policymakers on climate-related issues.
• Continued to refine methodologies for emissions calculations and target setting.
• Supported multilateral development bank (MDB) reform to address capital constraints and de-risking in developing countries.

Supply Chain Management

Responsible Procurement

• Updated Statement of Supplier Principles to encourage emissions tracking and reporting.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Changes in precipitation patterns

Transition Risks

• Regulatory changes
• Technological shifts
• Market shifts

Opportunities

• Sustainable finance
• Clean energy transition
• Development of clean technologies

Reporting Standards

Frameworks Used: TCFD, GFANZ

Sustainable Products & Innovation

• Sustainable finance products and services

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 & 2 emissions from 538,317 kgCO2e in 2022 to 456,321 kgCO2e in 2023 (approximately 52% reduction in Scope 1 emissions).

Social Achievements

• Launched CSR activities including participation in Citi Global Community Day and partnership with Enactus Egypt to empower young Egyptians.
• Voluntary attrition rate of 5.4%.

Governance Achievements

• Published first sustainability report adhering to GRI Standards.
• Established Country Coordinating Committee (CCC) and Egypt Asset & Liability Committee (ALCO) to oversee risk management and sustainability topics.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: Null

Third-party Assurance: Egyptian Carbon Center

UN Sustainable Development Goals

• Not disclosed

Aligned with Global Sustainable Development Goals (SDGs) and Egypt’s Vision 2030.

Sustainable Products & Innovation

• Citidirect (E-Solution for issuing transfers and cheques)

Awards & Recognition

• Not disclosed