Citizenship Report 2006 TABLE OF CONTENTS

Letter from Chuck Prince 4

Corporate Citizenship at Citi 6

Sustainability at a Glance Chart 8

Stakeholder Letters 9

Our Company 12

Citi Microfinance 17

Community 22

Volunteerism at Citi 34

Voice of the Employee 38

Global Financial Education 40

Microfinance and Citi Foundation 46

Environment 53

Awards and Recognition 86

GRI Reporting 88 A good head and a good heart are always a formidable combination.

—Nelson Mandela Nobel Peace Laureate 1993 been excludedfrom thefinancialsystem. toimproveand services theeconomic prospectshave notjustoftheaffluent but alsoofpeoplewhohistorically As theworld’s company, leadingfinancialservices we strive tomake adifference by delivering innovative products inhistory.largest organizedactofglobalvolunteerism toputtheirdedicationcommunities towork. outin100countries turned This may have beenthesingle business. Onourfirst-ever GlobalCommunity Day, more than45,000Citiemployees, families andfriends their Our philanthropic activities positively affecttheeducationandwelfare of peopleinevery nationinwhichwe do take a paid day off from their job each calendar year to volunteer for the organization of their choice. communities and to citizenship projects that Citi supports. Active and qualified Citi employees workare encouraged every to day to make Citi the financial leader it is, many volunteer their time and personal resourcesCiti’s to their global reach is buoyed by the hard work and creative ingenuity of our 325,000 employees.communities, Notand onlywe do encouragethey and help channel their efforts and give generously to community institutions.The second way is to be involved in communities and to act philanthropically. Our employees are involved in their with ourclientstoprovide innovative solutionsasthey strive toreduce theirown emissions. these issues. Onclimatechange, we have setatargettoreduce ourown gasemissions, greenhouse andwe work the world. The public andprivate sectoraswell ascivil societymust work together tomake progress onbothof poverty are notunrelated becauseclimatechangewilldisproportionately impactthepoorer peopleandnationsof climate changeisamajoreconomic, socialandenvironmental challengeglobally. Climatechangeandglobal profoundly aware thatglobalpoverty isoneofthecompellingmoralissuesourday. We alsorecognize that the growth forustohelpcreate ofeconomies anditisvery jobs andraisethequalityoflife. important We are There are two ways we candothat. We recognize forgrowth. thatourbusiness isanengine We to are integral choose toreside andgrow. expand, we have toprosper, theright butinhow onlyifwe interests we ofthesecountries actinthelegitimate without theother. We we are serve. guestsinthecountries We have toexist, theright we have to theright Indeed, from themany benefitsaccrued ourfranchisecomewiththese responsibilities. We cannothave one community. As such, we clearly recognize Citi,what our role by virtue is and of whatour sizeour responsibilitiesand presence in moreare tothan the 100 betterment countries, of society. holds a very special position within the global E C N I R P K C U H C M O R F R E T T E L > > >

 CR 2006 Citi Inc. andChiefExecutiveChairman Officer Chuck Prince known not only for delivering success to our clients, but also for responding to the needs of people and the planet.world to address the environmental and social issues that lie outside the traditional scope of Citi. WeWe are committedwant to to be delivering shareholder value, coupled with our commitment as concerned citizens of the sustainable growth and in demonstrating exceptional environmental, social and economic performance. World Index and the FTSE4Good Index for 2007, which acknowledge our leadership in setting standards in We have been recognized for our efforts and are pleased once again to be included in the Dow Jones Sustainability on how we are doing. You willfindfeedbackfrom ourstakeholders onpages8–9and we welcome additionalfeedbackfrom you and we continue totestourselves againstourown standards rigorous aswell asthoseestablished by others. At Citi, we are accountable forallthatwe do. Therefore, we welcome andseekdialogue withourstakeholders finance — withinour we continuebusiness. toensure theimplementationofthesePrinciples —guidelinesdevelopedof theEquatorPrinciples tomanageenvironmental andsocialissuesrelating toproject growth, socialoutreach, financialeducation, community building, disaster relief andphilanthropy. Asco-founders We have always andwe driven changeinourindustry continue tosethighstandards forourselves insustainable “unbanked” and “underbanked” to participate — many for the first time — in the mainstream economy.and marketed a wide range of financial products, working together with leading microfinance institutions,participants infor those the financial markets. In the past year, our Citi Global Microfinance business thegroup underlying has developed framework of local economies — which is beneficial to those countries and will be beneficial to the For example, Citi is a leader in supporting microfinance in the developing world. We do it because it strengthens E C N I R P K C U H C M O R F R E T T E L

 CR 2006 improve thecommunities where we dobusiness. generation. Ourbusinesses allover theworld identifynonprofitswithinorder to andpartner they cansupport and developing entrepreneurs through inmicrofinance; ourleadership financialliteracy; andeducatingthenext Citi Foundation continues tomake adifference byinitiatives supporting inthree areas: building communities GlobalCommunitytake Day. inourfirst part to Save. Ourbusinesses organizeteamevents incommunities around theworld, andwe had45,000employees volunteer initiatives, includingJunior Achievement, HabitatforHumanity, OperationHopeand Teach Children Volunteerism haslongbeenembeddedinCiti’s culture. Citihasspearheadedmany successfulcompany-wide hit by foreclosures, with expansionplannedforlaterthisyear. qualified housingcounselors. Theprogram willbepilotedfortwo ineightto10 years U.S. communities hardest Foreclosure Solutions, whichencouragesfinanciallydistressed homeowners toseeksupport bycontacting In 2006, intheU.S. apartnership ourConsumerBusinessGroup formed withNeighborWorks Centerfor businesses, ourapproach toaddressing anddescribes them. issueswe believe whichhumanrights Statement onHumanRightsdescribes are mostsubjecttoinfluence by our ourviews onaglobalissuethataffectsus,articulates ourclientsandcommunities where we dobusiness. The foreclosureapproach whoface inourU.S. tohelpingfamilies consumerbusiness. The climatechangeposition Three examplesincludetheissuanceofastatementonclimatechange; a statementonhumanrights; andanew which helpustogeneratenew ideasforpolicies, products andimplementation. ofourbusinessStakeholder strategy. part engagementcontinues tobeanintegral We from thesedialogues, learn power ofourbusiness andtohelpfinancesustainable toexpandthereach offinancialservices development. and careersfor325,000peoplearound theworld; inphilanthropy engaging andvolunteerism; andapplyingthe We make apositive impact infourways: operatingaprofitable business in100countries; providing employment stakeholders andtake actionwhere appropriate. business responsibility opportunity. andagreat is anenormous We, inturn, from strive our tolistenandlearn organization, uswiththeirwealth, peopleentrust andtherefore, withtheiraspirationsforfamilies. This our clients, whileatthesametimeimproving thecommunities inwhichwe dobusiness. As afinancialservices socialresponsibility isgoodbusiness.Corporate We are committedtobuilding ourglobalbusiness andserving P I H S N E Z I T I C E T A R O P R O C I T I C T A > > >

 CR 2006 President andChiefExecutive Officer, Citi Foundation Director, Citizenship Corporate Pamela P. Flaherty added commentsfrom theNationalUrbanLeagueandbothhave intheirentirety. beenprinted one Non-Governmental Organization(NGO)tocommentonadraftversion ofourreport. This year, we have statistics andfacts. We have also, asinprevious year, invited agroupofSociallyResponsible Investors (SRIs)and years, we have onissuesofinterest expandedourreporting tospecificstakeholders, including, wherever possible, Transparency ofourengagementwithstakeholders. continues tobeacornerstone This year, asinprevious financial returns. minimize environmental andsocialrisks, thatgeneratestrong whilealsoseekingopportunities environmental and investments andacleanenergy fund. insolarfacilities There are many otherexamplesofhow Citihassoughtto Research issuedanumber ofresearch reports. The Sustainable Development Investment Program madesignificant Management (ESRM)unitinourCitiMarkets &Bankingbusiness addednew capacitythisyear. CitiInvestment We alsosaw enhancedbusiness engagementonsustainabilityissues. OurEnvironmental andSocialRisk employees responded in2006. the Voice oftheEmployee (VOE) survey toobtainanonymous employee feedback. A record 94percent ofour We continue tosearch forbetterways toserve ouremployees intheworkplace, andeachyear Citiconducts I T I C T A P I H S N E Z I T I C E T A R O P R O C

 CR 2006 Citi totalgiving # Employees taking Volunteer Day & Financial Education/#countries Territories Voice of the Employee Survey (% employees satisfied / neutral / dissatisfied) Voice (responserate) oftheEmployee Survey Five Point Plan: Annual franchise and complianceTraining (top3K) for seniormanagers training for manager (top 27K) Five Point Plan: Annual franchise Groups Employee Network Diversity (women andethnicdiversity) Board diversity Workplace (US) ethnicdiversity Women (US) % LocalHires #Employees (DirectStafffigure) Social ofoperation Countries onequity Return Total assets Net income Total revenue (netofinterest) Business Results 2006 SUSTAINABILITY AT A GLANCE CRA results (# of Citibank entities rated CRA results(#of Citibankentitiesrated “Outstanding”) spending(%oftotalsupplierspending) Supplier diversity Community Development lendingandInvesting (US) Economic Development (#people trained) training Environmental andsocialrisk totheEquatorPrinciples # Exceptionsgranted (Categories A andB) subjecttoEquatorPrinciples Funded projectfinancetransactions FSC paperprocurement Recycled copy paperprocurement Recycled officesuppliesprocurement Office paperrecycled(select buildings) Green power procurement(#ofcountries) Green power procurement CO CO CO CO consumption/sf Energy consumption/occupant Energy consumption Energy Environmental 2 2 2 2 emissions, business airtravel emissions/sf emissions/occupant emissions(Scope2) E C N A L G A T A Y T I L I B A N I A T S U S 1,338,905 metric tons 1,338,905 metric 195,071 metric tons 195,071 metric 22,694 metric tons 22,694 metric tons 0.0160 metric $1,884,318 trillion 8,186 metric tons 8,186 metric 557 metric tons 557 metric 3.5 metric tons 3.5 metric Category A 5 Category Category B7 Category 52,283 MWh 36 networks $137 million $21.5 billion $89.6 billion 2,705 GWh 6,763 KWh $3.7 billion $1 billion 70/17/13 31 KWh 333,097 54.78% 98.45% 34.6% 18.8% 4 of5 2006 2006 2006 2006 7,243 100+ 7/16 32% 94% 80% 91% 556 72 2 3

36% (10/31-12/31/05) 1,243,800 metric tons 1,243,800 metric 177,656 metric tons 177,656 metric 20,318 metric tons 20,318 metric tons 0.0157 metric 7,416 metric tons 7,416 metric Category B10 Category 173 metric tons 173 metric 3.5 metric tons 3.5 metric Category A 3 Category 30,000 MWh 26 networks $1.49 trillion $950 million $126 million $24.6 billion $83.6 billion 2,552 GWh 6,823 KWh $3.5 billion 67/18/15 31 KWh 299,938 9 of12 33.2% 55.3% 22.3% 2005 2005 2005 2005 100% 6,138 500+ 7/17 98% 44% 92% 100 68 2 3

 CR 2006 S M R I F T N E M T S E V N I E L B I S N O P S E R with itsEnvironmental andSocialRiskManagementPolicy. more policyintopractice, abouthowlearning stepandturn Citiwillbuild onthisfirst linkingtheStatement Statement onHumanRights, referenced inthisreport, among isanotable first U.S. banks. We lookforward to We associatedwiththeirlending. have risks tomanagethehuman rights Citi’s long urgedCitianditspeers new the results covered inthisreport. Environmentalpublic thefulltextofits current andSocialRiskManagementPolicy, whichguidessomuch of andareas ofdisappointingperformance.deep-seated challengesitfaces We alsoencouragethecompany tomake yet achieved agold-standard level oftransparency, todiscusswithreal candorsomeofthe stillfails asitsreporting progress inmeetingpast goals, short. hasfallen where performance However, includinginformation Citihasnot insight intohow thepolicies are putintoaction. We alsowelcome offorward-looking thereporting goalsand number ofEquatortransactions in2006ascompared to2005, andwe appreciate thecasestudiesthatprovide by sector, andenvironmental region impact. We alsowelcome thatgiveslookatthe anew chart alongitudinal isnoexception,The 2006report providing laudable detailsonthenumber ofEquatortransactionsbroken down Citi’s commitmenttocontinuous improvement isevident inthesix-year evolution ofitsCitizenshipReport. problem ofillegallogging. strengthens duediligenceontransactions, naturalhabitatsanddiscouragesthewidespread helpsprotect critical implementation.around EquatorPrinciples Environmental Itsleadership andSocialRiskManagementPolicy deals. Among bankswe interactwith, we believe Citihassomeofthemost robust practices, staffinganddisclosure which bankscommittoapplythesocialandenvironmental standards ofthe World BankGroup toproject finance For example, Citico-authored andin2006helpedrevise theEquatorPrinciples, anindustry-level initiative in industry.services stakeholders’ evolving expectations, paved theway foradramaticshiftinaccountabilitywithinthefinancial financing decisionsontheenvironment andlocalcommunities. Citi’s visionandleadership, coupledwithexternal moved beyond focusingonitspaperandenergyusetoaddressing impactsofits thecomplexandfar-reaching developmentin theenergysectortounderwriting projects insensitive ecosystems. Over thattime, Citihas how thebankcanidentifyandmanagesocialenvironmental infinancingdecisions, risks from investments For nearlyadecade, Citihasmetregularly withagroupofinvestors andenvironmental advocates toexplore Y L L A I C O S F O S E V I T A T N E S E R P E R M O R F T N E M E T A T S A > > >

 CR 2006 Michele Chan-Fishel andJulieTanner; standing are: Elizabeth McGeveran andSteve Lippman. Shareholder DialogueGroup members pictured from left to right are: (front row seated) systems that meet sustainable development goals. that market by establishing due diligence and banking opportunity for the bank to set a new standard in Development Bank provides another critical management control of the China Guangdong In addition, Citi’s new ownership stake and leadership among banks. gas emissions, and raise the bar for environmental sustainable energy future, reduce global greenhouse that help it contribute to the growth of a more see a need for Citi to adopt new financing policies Position Statement on Climate Change. However, we greenhouse gas emissions in its February 2007 effective public policies to reduce U.S. and global own greenhouse gas emissions, and its support for We welcome the bank’s commitment to reduce its reputation and credibility as an environmental leader. United States posed a real challenge to the bank’s expansion of coal-fired power generation in the Citi’s lead role arranging financing for a substantial Social Risk Management Policy. Over the last year, few years since Citi adopted its Environmental and more to address it, have grown dramatically in the of climate change, and calls for businesses to do climate change. Recognition of the potential risks opportunities. One of the most central of these is financial institution, itfaces both challenges and its goal of being the world’s most respected As Citi seeks to maintain its leadership and achieve Y L L A I C O S F O S E V I T A T N E S E R P E R M O R F T N E M E T A T S A S M R I F T N E M T S E V N I E L B I S N O P S E R leadership position.leadership global challengesandtoensure itmaintainsits tomeetthese management systemsandreporting to evolve itsenvironmental andsocialcommitments, confidence thatthecompany canandwillcontinue not justCiti. Nevertheless, Citi’s give pastefforts us and addressing themmust involve multiple players, We know thesechallengesare noteasilyresolved,

Steve Lippman, Vice President ofSocial transparency. sustainability initiatives, implementationand investment firms, provides Citifeedbackon its self-assembled groupofsociallyresponsible The Shareholder Dialogue Group (SDG), a Investments Program, Friends of the Earth U.S. Michele Chan-Fishel, Director, Green Management Ltd. Governance &Sustainable Investment, F&C Elizabeth McGeveran, Vice President, Brothers InvestmentChristian Services Julie Tanner, Corporate Advocacy Coordinator, Research, Trillium Asset ManagementCorp. > > > 10 CR 2006 National UrbanLeague President andChiefExecutive Officer Marc H. Morial Sincerely, that prevent from individuals andfamilies achieving thedream ofhomeownership. financialchoices,informed andtogether withCiti inourmissiontohelpingclosethegaps we are steadfast We remain aspassionateever aboutproviding withtheknowledge consumers they needtomake ensure thatlower-income canaccessfinancialservices. consumers and programs thatare delivered by UrbanLeague facilitate financialliteracyclasses,Affiliates to andinturn, financial literacyacross ournation. We have jointlydeveloped several innovative financialeducationtools ofourcollaborativeHelping peoplebecomebettermoneyisjustthebeginning toimprove managers efforts help communities thrive. mobilize many resources —financialexperts, jobs, loans,grants, —to andpolicyleadership volunteer hours strength ofcomplexanddiverse dependsontheinterplay elementsandwe are proud withCitito topartner — toitscustomers, itsshareholders, itsassociates anditscommunities —seriously. We know thatcommunity communities where itdoesbusiness. The NationalUrbanLeagueispleasedthatCititakes itsresponsibilities Citi isinthebusiness ofhelpingpeopleachieve ofthe fabric theirfinancialgoalsandstrengthening the andlow- tomoderate-incomecommunities.exists inminority homeownership. tohelpclosethehomeownership gapthat isour determination importance Ofparticular to andcontinuing missionoftheNationalUrbanLeague(NUL)istolowerA core principle thebarriers A Statementfrom theNationalUrbanLeague

Y L L A I C O S F O S E V I T A T N E S E R P E R M O R F T N E M E T A T S A S M R I F T N E M T S E V N I E L B I S N O P S E R 11 CR 2006 Y N A P M O C R U O to ourfranchise. We have aresponsibility We have aresponsibility We have aresponsibility to ourclients. to eachother. —Our Shared Responsibilities > > >

12 CR 2006 financial managementexpertise. training andtechnicalassistance,leadership and education, community development financing, as economicdevelopment, microfinance, financial where we feelwe canhave impact, thegreatest such company, we hundreds ofprograms support inareas to bethemostrespected globalfinancialservices communities where we dobusiness. Instriving ofCiti’sis attheheart operationsineachofthe roleleadership tofostereconomicdevelopment, Responding toourclients’ needs, whiletakinga the Middle East, Latin America and the Caribbean. continent. We also have a wide presence in Europe, international financial services company on the offices in 17 countries in Africa, we are the largest the Philippines, Singapore and the U.K. With than a century in China, Hong Kong, Japan, Panama, Citi traces its history in the U.S. to 1812 and more and Banamex. Citibank, CitiFinancial, Primerica, SmithBarney underCiti’snames thatfall trademarkarc include: brokerage andwealth management. Majorbrand credit, andinvestment corporate banking, securities and services, includingconsumerbankingand institutions withabroad rangeoffinancialproducts consumers, corporations, governments and employees around theworld helptoprovide and doesbusiness in100 countries. Our325,000 Citi hassome200millioncustomeraccounts company,As theleadingglobalfinancialservices Citi Inc. Chief Administrative Officer, and Vice-Chairman Lew Kaden Y N A P M O C R U O

We believe thatby aligningourselves withour Our Shared Responsibilities who willcomeafterus. came before usandextendourlegacyfor those where we work andlive. We must honorthosewho culture andtake anactive role inthecommunities for ourshareholders. We must respect thelocal unit’s gainsandprovide results short-term superior We must putCiti’s interest aheadofeach long-term to OurFranchise We Have aResponsibility successes andacceptaccountabilityforourfailures. remarkable diversity, share theresponsibility forour treat ourteammates withrespect, championour torealize theirpotential.opportunity We must We must provide outstandingpeoplethebest We Have aResponsibilitytoEach Other the highestlevel ofintegrity. advice, products andservices, andalways actwith We must putourclients first, provide superior We Have aResponsibilitytoOurClients expectations forallemployees. Responsibilities in2004toreinforce values and company. Citideveloped andadoptedtheseShared to bethemostrespected globalfinancialservices Shared Responsibilities, we willachieve ourgoal

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13 CR 2006 employees live up to our Shared Responsibilities. which has brought needed change to Citi and helped 2005) highlighted the company’s Five Point Plan, governance practices. The most recent update (Spring has undertaken to ensure leadership in corporate This report discusses initiatives that the company full text on our Web site at www.citigroup.com. Governance Business Practices Report We publicly issue the GovernanceCorporate ofthecontent.acknowledging theirunderstanding to readaform theCodeandsignreturn later thisyear. All employees worldwide are required codeconduct.htm. A revised Codewillbepublished citigroup.com/citigroup/corporategovernance/ directives inourCodeofConduct. http://www. and follow consistentpolicies. We provide these our employees have commonethicalstandards growth andcreate if more faster opportunities We believe thatourcompany willachieve organic Our CodeofConduct Citi Initiatives Corporate . Please see the Y N A P M O C R U O International Finance Corporation (IFC)policies FinanceCorporation International Equator Principles, asetofguidelinesbasedon Citi was ofthe alsoamongthefoundingmembers org/citigroup/corporate/foundation/annual.htm. Annual Report at http://www.citigroupfoundation. view of giving at Citi, see the 2006 Citi Foundation duringterritories the year. For a comprehensive Citi Foundation made grants in 85 countries and 2006 by 40 percent ($27.6 million to $38.1 million). Citi increased its international giving from 2005 to businesses combined was $137 million in 2006. philanthropic giving from our Foundation and our on both the global and local levels. Citi’s total Citi recognizes its responsibility to be a participant in the World Citi intheNeighborhoodand spearheading a variety of initiatives around the world. enhance investor confidence, and to this end we are develop better banking standards and practices, and most effective ways to improve banking services, Educating financial professionals is one of the are hired locally. training localtalent; 98percent ofouremployees do business. We are committedtoemploying and where wewith theneedsofcountries work and practices who work forCitiand align ourhiring We value onthemenandwomen placeenormous targeted tobenefitthecommunities we serve. residents, anddevelops financialproducts andoffers level, Cititrainsfinancialmanagers, employs local development projects they finance. Atthelocal potential environmental andsocialimpactof used by bankers around theworld toassessthe > > >

1 4 CR 2006 citigroup/citizen/diversity/annualreport.htm. athttp://www.citigroup.com/Annual Report initiatives atCiti, pleaseseeour2006Diversity comprehensive view ofdiversity andworkplace value forourclientsandshareholders. For a depends oneachofusworking together todeliver employee beinggiven tosucceed. theopportunity It origin. Insteadoursuccessdependsonevery orientation, religion, physical abilitiesornational we attendedorourethnicity, race, gender, sexual cultureentrepreneurial depend notontheschools to diversity. Citi’s successandtheofour hasbeenourlongstandingcommitment leadership elementsofCiti’sOne ofthemostimportant Diversity atCiti “ Y N A P M O C R U O our communities.” our business partners, and to ouremployees, ourclients, Diversity atCitiisacommitment— Citi Inc. Chief Diversity Officer, McCarthy Ana Duarte Citi Corporate PoliticalCiti Corporate Contributions political contributions intheU.S.political contributions laterin2007. pdf. Citihascommittedtopostafulllistingofour com/citigroup/corporategovernance/data/ccpcs. contributions, seethe Web siteatwww.citigroup. Citi’s political completestatementoncorporate or, whenpermitted, funds.)For from corporate funded CitiPolitical Action Committee(PACE, comefromThese contributions theemployee- andultimatelythefree-marketindustry economy. whose views andpositionsare goodforCiti, our federal, stateandlocallaws tohelpelectcandidates under accordance withthispolicyaspermitted to dobusiness. Political are madein contributions on issuesthatimpactthecompany andourability Citi GlobalGovernment (GGA)stafflobby Affairs

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1 5 CR 2006 organizations include Transparency International, the consistency in addressing those issues. These share information on best practices and promote financial industry organizations to foster cooperation, and regulatory agencies, as well as a broad range of also works with law enforcement, administrative financing, and to protect information security, Citi fight against money laundering, fraud and terrorist Recognizing the complexity and global nature of the across theU.S. andabroad. these issues to governments and financial institutions staff provides trainingandtechnicalassistanceon runs even financings deeper.terrorism Each year, and associatedwithmoney laundering the risks that boththeprivateunderstand andpublic sectors financial community. Ourcommitmenttoensuring House, hashelpedprovide neededguidancetothe Industry Association andtheNew York Clearing led by the Bankers American Association, Securities initiatives,anti-money laundering includingthose Our involvement inthisandotherprivate sector program. anti-money laundering team helpsensure thecontinued effectiveness ofour businesses.been implementedinthevarious This proceduresof theanti-money laundering thathave istoconductreviewsa teamwhosesolepurpose function, anti-money laundering corporate we have in whichwe operateoutside theU.S. Within the well asthelaws andregulations ofthejurisdictions ensure compliancewithU.S. laws andregulations as diligence requirements and procedures designedto customerdue Policy ourstringent setsforth Citi’s broad-based Global Anti-Money Laundering in preventing thefinancingofterrorism. identify therole thatfinancialinstitutionscan play We alsocontinue tobeattheforefront to ofefforts promoting principles. globalanti-money laundering we have taken role aleadership inadoptingand perceived ashonest, transparent andefficient, and ways toprotect theglobalfinancialsystemthatis for allparticipants. We have beenactive inmany standards ofgoodgovernanceregulations andstrict and operating inopeneconomieswithclearrules At Citi, we recognize thatwe benefitfrom More Transparent Making theGlobalFinancialSystem Y N A P M O C R U O to beasked by NGOs(Non-Governmental sustainability;corporate and3)we were beginning in is becomingabestpracticeamongleaders sustainability; statement 2)having ahumanrights issuewithintherealm ofcorporate is anemerging fortakingonthisinitiative:drivers 1)humanrights issues andtheirrelevance toCiti. There were several Rights Working abouthumanrights Group tolearn In March 2006, Human aninternal we formed Human Rights Association of Credit Card Investigators. Management Association and the International Advisory Counsel, the International Security Financial Action Task Force, the Overseas Security do business. suppliers, ourclients, where we andthecountries infour areas:human rights our employees, our clients. how Citi addressesThe Statementdescribes and engagement ontheseissueswithsuppliers standards,rights andhow we seektocontinue our human our existingpoliciesrelate tointernational Citi’s how StatementonHumanRightsdescribes com/citigroup/citizen/humanrights/. can beviewed onlineathttp://www.citigroup. released itsStatement onHumanRights, which As aresult of thiswork, inJanuary 2007Citi statements.human rights indevelopingtheir experiences andimplementing fromalso interviewed othercompaniestolearn industry.the financialservices The groupworking issuesrelevantperspectives onhuman rights to their tounderstand onhumanrights expertise The groupthenmetwithNGOsandSRIs policiesastheyour current relate tohumanrights. with peoplewithinthecompany tounderstand Affairs. 2006, During theworking met groupfirst Operations,International Legal, andEnvironmental Procurement, CitiMarkets &BankingRisk, of representatives from HumanResources, The HumanRights Working Group consists Investors) issues. abouthumanrights Organizations) andSRIs(SociallyResponsible 1 6 CR 2006 interventions, arguing that We every encourageandsupport conceivable advocate microcredit in addition toallother fight outofpoverty. makes intervention tohelp E C N A N I F O R C I M I T I C those interventions work better. thepoor microcredit —Muhammad Yunus Nobel PeaceLaureate2006 We always > > >

1 7 CR 2006 “ and Access Globally Microfinance: AcceleratingImpact serve as valuable clients.” view those whom we ultimately our colleagues…but most of all, to expertise and professionalism of and to leverage the energy, new segment into our businesses; the underserved; to incorporate a Institutions, the unbanked and potential of partner Microfinance knowledge of the needs and the perceptions, increase our We have set out to change and Bob Annibale, Global Director, Citi Microfinance. (left to right) Li Wang, Citi China, Professor Muhammad Yunus, 2006 Nobel Peace laureate, E C N A N I F O R C I M I T I C —Bob Annibale Citi Microfinance Global Director

making small loans to the poor without any collateral founder of Grameen Bank in Bangladesh, started movement back to 1976, when Muhammad Yunus,Many date the beginning of the microfinance funds andeven technology billionaires. of investorsspectrum — including banks, specialized communities, attractingtheinterest ofawider topoorandunderserved of financialservices that they are sustainable andscalable providers leading microfinance institutionsare demonstrating withphilanthropy,Long associatedprimarily Expanding Access toFinancialServices outperforming local mainstream consumer portfolios. portfolios have excellent performance histories, usually to the underserved. Most of these MFIs’ microcredit etc. — have been formed to deliver banking services nonbank financial institutions, NGOs, cooperatives,a wide range of legal vehicles — including banks, microfinance institutions (MFIs), operating through Since the movement began, more than 10,000 outside the reach of traditional financial institutions. to financial services to individuals and communities Peace Prize for his innovation — expanding access the Grameen Bank were jointly awarded the Nobel — because no one else would. In 2006, Yunus and > > > 1 8 CR 2006 “ clients and partners. with microfinance institutions, investorswith ourand businessesnetworks as to develop commercialsupport relationships to microfinance, Citi MicrofinanceBuilding collaborates on Citi’s 40-year history of philanthropicthe scale and scope of financial access in manyMicrofinance countries. as an initiative to accelerateChuck and Prince expand highlighted the launch of Citi In his 2005 letter to Citi shareholders, Citi Chairman Innovation Ledby Citi word among other banks.” improvements and spreading the loans, supporting technology services devoted to guaranteeing up its microcredit support and past two years, Citi has scaled are getting involved. In the more and more corporate players As the movement goes mainstream, E C N A N I F O R C I M I T I C —BusinessWeek One of the businesses that has led in supporting this One ofthebusinesses that hasledinsupporting and partners. businesses towork withmany more MFIsasclients These actionshave acceleratedandenabled Citi’s include awiderangeofmicrofinance institutions. In 2006, policieswere credit risk expandedto insurance partnerships. by developing innovative savings, remittance and local capitalmarkets; andincrease product offerings achieve scaleby providing financingandaccess to totheindustry; transactionservices appropriate mechanisms;hedging reduce costs, by offering clients managerisks, through theprovision of products tohelpitsmicrofinance andgeographies Citi Microfinance works withCiti’s businesses, “ microfinance lending by Citibranches worldwide. scaleoflocal agreater of MFIsandwillfacilitate establish bankingrelationships withawiderrange have nottraditionallyreceived funding—will around theworld, smallerMFIsthat particularly This lendingprogram —designedtofundMFIs Overseas Private Investment (OPIC). Corporation by participation the withrisk facility medium-term $100 millionglobalmicrofinance localcurrency such program withadevelopment agency: anew Clinton GlobalInitiative, Citiannouncedthelargest for microfinance institutions. Latelast year atthe creative officestostructure country financing multilateral development agenciesandCiti’s local (EAF), whichworks with allleadingbilateraland initiative isCiti’s Export Agency FinanceGroup their benefit.” thathaveregions notyet realized among mainstream investors in profile of themicrofinance sector forMFIs,support raisingthe program willhelptodiversify This microcredit finance > > > —Robert Mosbacher,—Robert Jr. OPIC PresidentandCEO

1 9 CR 2006 Citi Microfinance, and Bob Annibale, Global Director, Citi Microfinance Compartamos; Jorge Rubio Nava, Director of Institutional Relationships, (left to right) Fernando Alvarez Toca, Chief FinancialOfficer, Financiera countries where microcredit exists.” commercial transaction that may be replicated in innovation to funding for the poor, introducing a referred to the deal in an editorial: “The deal brought of microcredit receivables. world’s first AAA-rated local currency securitization are mostly women in poverty. The transaction was the the doorsteps of nearly 1.2 million households, who landmark deal brought the global financial markets to with over 5 million borrowers in Bangladesh. This for BRAC, the world’s largest national NGO KfW (Germany), arranged a microfinance transaction In 2006 Citi, working with FMO (Netherlands) and Mexico’s capital markets. and outreach in part due to its ability to access Compartamos is able to sustain its ambitious growth to Compartamos’ co-CEO Carlos Labarthe, range of financing resources for MFIs. According for the microfinance sector globally, diversifying establishedthe an important capital markets benchmark in microloans by Compartamos. This innovative gradedeal bond was designed to support the rapid growth employed rural women. The five-year investment-MFI with more than 600,000 clients of mostly self- Compartamos. Compartamos is Mexico’s leading structured investment-grade bond for Financiera second tranche of the $50 million local currency Banamex the “Sustainable Deal of the Year”Last summer,for its the Financial Times CFO Asia awarded Citi/ E C N A N I F O R C I M I T I C magazine “ done in Romania to any borrower for ProCredit. as well as the first local currency loan syndication Frankfurt-based network of 19 microfinance banks), include a 10-year facility to ProCredit Holdings (a Other financing transactions in developing countries Citi in the microfinance sector. opportunities for clients interested in co-investingCiti Alternative with Investments on developinginvestment investment funds and networks, and itthe is banker working to witha number of the leading microfinanceCiti’s Global Wealth Management businessesbusiness is as now our relationship with the sectorCiti’s deepens. Global Transaction ServicesMicrofinance (GTS) and institutionsTreasury are increasingly working with development agencies affiliated with to Assist the Poor, a consortium of executive of the Consultative Group said Elizabeth Littlefield, the chief markets in developing countries,” to focus on building domestic the right thing to be doing.” the World Bank. “That is absolutely Citi’s well aware of the need

> > > 20 CR 2006 individual microfinance borrowers. Citi’s ConsumerBankisalsoproviding loanstothe in thebranchesofCiti’s MFIs, partner withwhom different locallanguages. The machinesare located ATM displays inuptosix andspeakstocustomers card andpin, but alsoby theirfingerprints. The ATMs thatcanidentifycustomers, notonlyby a savers by utilizingthelatesttechnology ofbiometric Award first-time 2006)accountaimsatserving the IndianBanks’ Association Banking Technology for theunbanked. The CitibankPragati(whichwon (“Progress” inHindi)to expand accesstosavings microsavings product called “Citibank Pragati” in IndialaunchedOctober2006, aninnovative Similarly forsavings, Citi’s GlobalConsumerBank life insurancepoliciestaken outinMexico. areas —represent 10percent ofthetotalindividual — onaverage towomen inrural $1,300catering Compartamos’s microcredit clients. These policies 550,000 lifeinsurancepoliciestoFinanciera in 2005, andby year-end 2006provided over Banamex, launchedamicroinsurance program In Mexico, Citi’s insurancecompany, Seguros credit, but alsoinsurance, savings andremittances. toprovideopportunity topeople— services needandatremendous There isanenormous a Tremendous Opportunity Need,An Enormous

E C N A N I F O R C I M I T I C

foreign exchange hedging andmuchforeign more. exchangehedging innovative transactionservices, cashmanagement, commercial relationships, funding, localcurrency in themicrofinance sector—from expanded been able toaccelerateourinvolvement andimpact businesses’ policiesandprocedures, risk we have analytics,risk credit modelsandpoliciesintoour microfinance incorporated Since Citiformally provide both sides with banking services. the families in the United States and in Ecuador and between Citibank, N.A. and Banco Solidario to link services for its immigrant clients, such as the program its ability to offer safe, fast and lower-cost remittance presence and developing new partnerships to expand In addition, Citi has been leveraging its worldwide underserved andunbanked.”underserved tothe financing sourcesanddeliver morebankingservices initiatives todevelop innovative products, diversify are scalingupandsustainingourmicrofinancecommercial withthedifferentplayerspartnering intheindustry, we businesses’ andby wholerange ofproductsandservices Global ConsumerGroup, According to Ajay Banga, Co-CEOoftheCiti “By leveraging our 21 CR 2006 You must be wish Y T I N U M M O C thechangeyou to seeintheworld. > > > —Mahatma Gandhi 22 CR 2006 regulators andlenders. community organizations, cityagencies, bank ofmany parties:efforts property owners, tenants, could onlybeachieved through thecooperative and improvingpreserving thequalityofhousing violations. BothCitibankandHHNrecognized that building the 100buildings withthemostserious these buildings were includedinHHN’s listof purchased by oneofourborrowers. Many of following ofbuildings ourlendingonaportfolio Citi was contactedby HHNin August 2005 • • • campaign withthree areas ofreform: That summer, HHNlaunched the “Fix ItNow” topreservewas decentaffordable formed housing. and Now” 2005. (HHN)inFebruary The group and housingadvocates formed “Housing Here unions, clergy, community-based organizations A coalitionofmore than100tenantorganizations, Protocol inNew York City Housing Lending Multi-family program in up to six more communities thisNeighborWorks year. and its partners expect to inlaunch eight the to ten communities hardest hit bycounseling. foreclosures. This program will be pilotedand telephonic for two counselingyears as well as face-to-faceaims to educate those most at risk through advertisingdesignated 24/7 hotline for counseling. distressedThe program homeowners to seek help by contactingSolutions, a and is designed to encourage withfinancially the NeighborWorks Center for Foreclosurefirst local rollout in Ohio. This ourprogram national is a foreclosurepartnership prevention program,borrower with and thethe servicer, in April relationship2006 we announced with the community can help bothin criticalthe locations. Recognizing that acampaign nonprofit’s of innovative programs to preventeconomic foreclosures challenges, Citi launched an aggressiveIn anticipation of rising interest rates and inForeclosure Leadership regional Prevention Innovative Programs intheU.S.

code enforcement To endneglectfullandlords’ abuse ofsubsidies To increase lenderaccountability multi-family To strengthen New York City’s systemof

Y T I N U M M O C

announced the general principles of best practicesYork in City’s Housing and PreservationYork Department State Comptrollers and the CommissionerSuperintendent of New of Banks, New Yorkof the City Commercial and the New Business Group, HHN,In April the 2006, State Jorge Bermudez, President and CEO best practices for multi-family lenders. met frequently over a five-month period to develop communities. HHN and Citi worked together and affordable, decent housing for low/moderate income play in neighborhood revitalization and in preserving understanding of the important role lenders could after the loan was made. The dialogue confirmed our the underwriting decision, as well as the bank’s role 2005 to look at market practices, due diligence in We began a dialogue with HHN in September New York. to aCitibank financed apartment building intheBronx, and Joya Colon of Northwest Bronx Clergy, onasite visit Julie Miles andChlose Tribich of HousingHere, andNow Director, Commercial Real Estate, joinsRamona Santan, McKinney,Curtis CitiNortheast Region Managing Julie Miles, Executive Director of healthierHHN. homes for families in all five boroughs,”substandard housing. said This partnershiplives means saferof tens and of thousands of New YorkersPrinciples is aliving milestone in in the fight to improvethese principles the in multi-family lending. Since“The our Citigroup work with HHN, other banks havepreserving adopted the market value of the lenders’quality collateral. of multi-family housing in New multi-familyYork Cityhousing while lending designed to improve the > > > 23 CR 2006 CEO, NeighborWorks America —Kenneth D. Wade tojoininthisimportant work. peers influenced financialindustry for NeighborWorks America’s foreclosure prevention also efforts that willeducateborrowers indistress. Citigroup’s strong support withthe partnership Ad Counciltodevelop anationalcampaign Center forForeclosure Solutions. Citigroupchampionedaninnovative topreventour efforts foreclosures through theNeighborWorks Citigroup’s inshapingandadvancing hasbeeninstrumental leadership

Y T I N U M M O C > > > 2 4 CR 2006 decisions, validate theeffectiveness ofourfinancial tomakein enabling consumers wisefinancial offinancialeducation demonstrate theimportance performance. Itishopedthatthestudywill between financialeducation andimproved loan of atwo-year studyofthecausalrelationship on LoanPerformance: Citiisinitssecondyear Studying theImpactofFinancialEducation(FE) reachingconducted 12seminars 170individuals. of2006, quarter in thefourth andtodate, Citihas andforeclosure.default The program was launched thatwillhelpthemavoidinformation delinquency, outreach andeducationtoprovide themwith targets existinghomeowners through advertising, “The Post Purchase” program: This program radio inJune 2007. ontelevision and airing The campaignwillbegin ofthevalueunderstanding ofagoodcredit history. campaign thatpromotes financialliteracyand an Council of todevelopAmerica apublic awareness andthe lenders withothermortgage partnered Ad HMDA Public Awareness Campaign: Citihas solutionswithournonprofitand strategic partners. address thesechallengesby developing innovative forthelendingindustry.opportunities At Citi, we the new HMDA datareveal bothchallengesand According totheU.S. Federal Reserve Board, (HMDA) SolutionsUpdate: DisclosureHome Mortgage Act Y T I N U M M O C and madeanumber ofrecommendations, published twoThe forum forcomment reports credit allocation. mortgage market and their implications for mortgagealso studied consumer and lender behavior ineconomic, the demographic and risk factors.mortgage The credit forum is made available throughin aFebruary review 2006 of to evaluate, among otheracademics, things, nonprofitshow and lenders, convenedHarvard Joint a forum Center for Housing Studies,Harvard with Studyother on Mortgage Best Practices: The advantage offinancialeducationprograms. toalenderifborrowersthe reduction ofrisk take toreflect mortgages a loanpilotthatwould price education curricula, andsetthegroundwork for shopping similartoa “blue book” value forautos. number andaconsumer website forcomparative meaningful andtimelydisclosures, andatoll-free on advice toconsumers “best fit” products, more of anational “Trusted Advisor” network toprovide review market, ofthesecondary thedevelopment Reinvestment ACT (CRA)tocover alllenders, a including: extendingtheCommunity > > > 2 5 CR 2006 “ —

benefits toallstakeholders.” synergy withfar-reaching of relationships, we create a and thebuildingvalues-sharing participation, collaboration, employeeBy encouraging viable andstrong communities. tocreating sustainable,contribute dictatehow wepartners with ourglobalcommunity role insociety, thegoalswe share While business plays acentral people wholive andwork there. only asstrong andvibrantasthe Communities across the globe are Global ConsumerGroup Head ofGlobalCommunity Relations, Eric Eve Eric

Y T I N U M M O C Our toolbox community programs ofstrategic respond quicklytoissueswithinfluentialsolutions. dialogue thatprovides to us withtheopportunity We inongoing continuously engage ourpartners andthecommunitiesnonprofit partners we serve. relationships with maximizing ourstrategic financial educationandissuesmanagementwhile focusesonassetbuilding,Relations Department The GlobalConsumerGroup Community housing andsustainable community development. initiatives andprogramsaffordable andby fostering byour leadership developing industry-leading communities where we live andwork. We continue Our goalatCitiremains thesame—toimprove Improve Communities Working Together to Neighborhood Preservation andRevitalization. areas:priority Asset Building, FinancialEducation, community-building strategyintofourkey inthefield,Relations Officers wefocusour closely withCitiFoundation andourCommunity communities makes goodbusiness sense. Working and sustainable communities. Creating strong At Citi, we are committedtobuilding viable relationships internationally. broadening thescopeofourprograms and community involvement here intheU.S., while In 2006, we focusedon strengthening our communities.underserved in low- andmoderate-income (LMI)andother the resources they needtomake apositive impact provides andtheirconstituentswith ourpartners > > >

2 6 CR 2006 deeper impactinLMIcommunities. they needtodevelop housingprograms thatmake a withthetools toequipourpartners opportunities financial institutionproviding capacity-building agencies. Inmany ofourmarkets, Citiistheonly development institutionsandgovernment training thatbuilds thecapacityofcommunity comprehensive educationalandtechnicalassistance Through ourpartnership, NDCprovides projects andeconomicdevelopment finance. credits, housing development, mixed-used real estate day trainingsessionsintheareas ofnew market tax 10 key cities. The program provides three- tofive- community andeconomic development in partners funding totheNDCbuild thecapacityof Last year, asinyears past, CitiFoundation provided National Development Council(NDC) neighborhoods become economically strong andits viable. financial resources and its employeesCiti to continueshelping to apply the strength of itsBuilding Communities franchise, literacy programs. students tosave oftheirfinancial money as part focus onpositive financialaction, encouraging Future of BusinessLeaders and4-Hto America Family, Career of andCommunity Leaders America, work withnationalyouth organizationssuchas An affiliationof Saves, America Youth Saves, will individuals putintopracticewhatthey learn. financial educationtothenextlevel, helping to over-indebtedness andlow savings rates, takes of Community Relations, inpart, asasolution developed inconjunctionwithanonprofit partner to save andbuild wealth. This program, whichwas people from lower- tomiddle-incomehouseholds a pilotnationalprogram thatencouragesyoung meet theirfinancialobligations. Youth Saves, is future financialgoalsandare betterprepared to savings behaviors are more likely toachieve their Youth thatdevelop astrong foundationintheir with aProactive Program Addressing Credit Issues Following are highlightsfrom 2006:

Y T I N U M M O C development anddistribution; and strategies rural themes suchas: markets; emerging bestpracticesin fromcountry 2005through 2006, andfocusedon wereThe seminars heldinkey citiesacross the innovation andthefuture oftheasset-building field. and theFederal Reserve Systemfocusedon withCFED created inpartnership The forums perspective onassetbuilding. programs thatprovided anew andprogressive on Asset Building products. solutions anddeveloping cutting-edgeprograms and by identifyinginnovativeof changeinourindustry More oftenthannot, Citihasbeenattheforefront Development (CFED) forEnterprise Corporation opportunities thatexistforfinancialinstitutions. opportunities withafocusonthe identification ofnew strategies range ofstakeholders shared bestpracticesinthe for LMIindividuals andcommunities. A wide to advance asset-building policyandpractice Discussions anddialogue sparked additionalresearch think tanks, government andCitiparticipated. public policy. from Leaders academia, foundations, > > > The Visions ofOwnership: RegionalForums is one in a series ofinnovative isoneinaseries

2 7 CR 2006 “ Quote from theNational CouncilofLaRaza: — 

community-based organizations in leadership and support, Latino is open to all Latino families.” the door to the American Dream NCLR are working to ensure that partnership. Together Citi and Latino community and to our Citi’s strong commitment to the We are deeply appreciative of homes to first-time homebuyers. health clinics and provide new to start charter schools, build access to critically needed capital (NCLR) network now have more the National Council of La Raza’s Thanks to Citi’s innovative Executive Director, NCLR Janet Murguia

Y T I N U M M O C term needsoffor-profit andnonprofitterm organizations andlong- financing packagesmeetboththeshort- innovative, comprehensive andcost-effective projects inlocationsaround theU.S. CCD’s affordable housingandcommunity revitalization (CCD) provided financingupto$3.7billionfor In 2006, CitibankCommunity Development entrepreneurs. populations, nonprofit organizationsand business thatmeettheneedsofunderserved opportunities helping strengthen communities andincreating At Citiwe are proud oftherole we play in grow andfulfilltheirpotential.their enterprises haveFew industries theabilitytohelppeopleand Making aDifference Community-Focused Businesses underserved communities.underserved funds thatseektofostereconomicdevelopment in housing taxcredit fundsandinprivate equity CCD alsomakes equityinvestments inlow-income lines ofcredit financeproducts. andotherstructured nonprofit organizations by providing loans, bridge and focuses ontheneedsofnationalintermediaries In addition, CCD’s NationalLendinggroup that benefitLMIneighborhoodsandpopulations. commercial developments andcommunity facilities that build andoperateaffordable housing, 10-year, $200 billioncommitment. 2006, Citirealized close to $160billionof its realize thedream of homeownership. Asof potential to helpasmany astwo millionfamilies in theU.S. through 2010. This initiative hasthe LMI, minority andother underserved families $200 billionnationwide inmortgage lendingto unprecedented commitment to provide In September 2003, Citi announced an Update onAffordable Mortgage Lending: > > >

2 8 CR 2006 customer service. of key benefits, beingenhanced themostimportant The consolidationinitiative hasprovided anumber Bank, fsb, Stores NationalBank. andDepartment N.A., Citibank(SouthDakota), N.A., Citicorp Trust institutionsintofourentities:depository Citibank, In October2006, Citiconsolidated12separate local U.S. markets are thekeys tooursuccess. best practicesbetweencenterandthe our corporate thatwe ourprogress share andensuring monitoring regulations. Settingconsistentgoals, closely Disclosure Act (HMDA), CRAandFairLending in compliancewiththeU.S. HomeMortgage toward thatourlegalvehicles remain ensuring Act (CRA)andFairLendingOfficers, works conjunction withCiti’s Community Reinvestment Global ConsumerGroup Community Relations, in exams.of success—ourregulatory Eachyear, nonprofit partners, there is yet anothermeasure the community comesfrom therecognition ofour in indicatorofourleadership While animportant OurBusinessPerformance Monitoring * Department Stores National Bank has applied to be evaluated for CRA under the Strategic PlanwiththeOCC StoresNationalBankhasappliedtobeevaluatedfor CRAundertheStrategic * Department Department StoresNationalBank Department Citibank (SouthDakota), N.A. Citicorp Trust Bank, fsb Citibank (BanamexUSA) Citibank, N.A. Legal Vehicle Citibank’s CRAResults Bankcards Bankcards Mortgage Trust Retail Bank Retail Bank Business Line Y T I N U M M O C OCC OCC OTS FDIC OCC Regulator in-country issues and needs. strategy to amplify and develop programs that address the world. From India to Brazil, we have focused our solutions that meet the needs of communities across we remain committed to providing programs and In order to fulfill our global corporate responsibilities, Going Global: Oakwood Shores Mujeres LatinasenAcción Sioux Falls, SD Sioux Falls, SD National Los Angeles, CA Multiple Assessment Areas > > > N/A* Outstanding Outstanding Outstanding Pending Results 2006 2006 2004 2005 2006 Date TBD 2009 2007 2008 2009 Exam Next 2 9 CR 2006 Country OfficerofCitiIndia,Country whoserves onthe Through ofSanjay theleadership Nayar, Corporate travel intheConstruction. toIndiaparticipate toHFHI, community service of personal to were selected, basedontheiroutstanding record program, 28 employees from around theworld India. Through aspecialCitiemployee recognition from October30toNovember 3in Lonavala, Sponsor ofthe2006JCWP, whichtookplace To thatcause, further Citiserved astheDiamond revolving housingfund. sufficient money forasustainable, $50million mobilizing onemillionvolunteers andraising for 250,000ofthecountry’s peopleby 2010by of theirown. ability toattainadecent, safeandaffordable home catalyst forbreaking thecycleofpoverty —the of providing millionsofpeoplewithanimportant standard housing, andtohighlighttheimportance socioeconomicissuessuchassub- address critical launched The 2006Jimmy Carter Work Project (JCWP) (JCWP) 2006 IndiaBUILDS/Jimmy Carter Work Project amplify Habitat’s programs. partner partner’shighlighting eachcorporate strategyto thatpresented sponsors bestpractices corporate The Symposium, ofitskind, thefirst included20 DonorSymposiuminNew Corporate York. Habitat’s Board, International hostedtheHFHI Technology Officer, CitiInc., andmemberof In 2006, Kevin Kessinger, ChiefOperations& the U.S. and the South Asia Tsunami. disaster relief efforts, including Hurricane Katrina in Day, creating affordable housing for LMI families and Financial Services Roundtable Community Build U.S., the Jimmy Carter Work Project (JCWP), the Communities” employee volunteer program in the grant dollars have been targeted for the “Citi Builds totaling more than $20 million to HFHI. These Over the years, Citi Foundation has made grants (HFHI) Habitat forHumanityInternational Building Affordable Homes indiaBUILDS, IndiaBUILDS afive-year campaignto aimstoprovide shelter Y T I N U M M O C those 100homes. families. of12 Citisponsored theconstruction 100 homesinoneweek withlocalHabitatpartner andhiswife,President Carter Rosalynn, whobuilt employees were amongthe2,000volunteers ledby indiaBUILDS blocks, mixed andwieldedpaint mortar world. More than300Citivolunteers lifted housing forlow-income peoplearound the in itsmissiontocreate affordable anddecent (HFHI) Habitat forHumanityInternational with honorforustopartner It isagreat and Sanjay Nayar, Officer, CitiCountry India Operations & Technology Officer, CitiInc. Joint Letterfrom Kevin Kessinger, Chief in thelocalcommunity becausewe are there. most importantly, helpCitimake adifference help raiseawareness aboutsocialissues, and, partnerships, suchastheonewithHabitat, that We strongly believe inprograms and for ouremployees. inourfranchise thatcreates pride experience brought ofacommon hometheimportance in Indiawithvolunteers from 11countries community need.an important Working sensitive todifferent cultures andaddresses theneedforaglobalprogram thatis bridge as we have apresence in, Habitathelpsus inalmostasmany countries With afootprint magnitude andscope. ofabuild withsuchlarge for ustobepart andmarked afirst and amazingexperience Project (JCWP)2006. Itwas humbling atruly ofthe part tobuild homes in Lonvala,brushes India, asa > > > Board,Advisory more than300Citi indiaBUILDS / Jimmy Carter Work 30 CR 2006 the nonprofit sector. while providing studentswithdirect exposure to toenhancecommunities localefforts is supporting Through thisinnovative program, CitibankKorea assignment program. oftheireight-week aspart field mentor theinterns In addition, Citibankemployees willvolunteer to projects foreightweeks inJanuary 2007. starting to work onspecificcommunity development wereinterns placedwithselectednonprofit partners acrossregions thecountry. Groups ofuptothree atmore than30nonprofitsinterns infive major Of the255applicants, 90were selectedtowork as NGO sector. to prepare forprofessional graduates careersinthe institution ofitskindinKorea andwas established to work withnonprofits. TheGSNisthefirst studentswhowish Studies (GSN)tosupport Kyung HeeUniversity GraduateSchoolofNGO Korea with theCSIPwas launchedinpartnership adaptation ofCitiFoundation’s CSIP. InSouth In 2006, international Citiannouncedthefirst recently, throughout theU.S. organizations, initiallyinNew York only, andmore college andgraduate-level studentswithnonprofit formore than1,000 funded summerinternships For more than30years, Citi’s CSIPprogram has Program (CSIP) Scholar Intern Community International

Y T I N U M M O C Ajay Banga, andChiefExecutive Chairman Officer, Citi was well represented attheconference with — one of four focus areas covered at the conference. thePovertysupport Alleviation Track discussion Foundation provided toCGIprimarily agrant At theannual meetingheldinSeptember2006, Citi world’s underserved. financial education to more than two million of the the Citi Microentrepreneur Awards and to provide to honor microentrepreneurs in 24 countries with March 2006, Citi Foundation committed $5.5 million from corporations, philanthropists and NGOs. In catalyst for global change by receiving commitments the nonpartisan Clinton Global Initiative to serve as a In 2005, former President William J. Clinton founded A CatalystforChange a difference in their communities. than 100 countries and 450 cities volunteered to make that we surpassed when 45,000 employees in more in November across the world. It was a commitment Community Day, an employee volunteer initiativeIn addition, held Citi committed to the first-ever Global have had limited access to local currency financing. program targeted to microfinance institutions that committed to launching a $100 million financing with the Overseas Private Investment Corporation commitments. Citi Markets & Banking in partnership At the annual meeting, Citi made two additional panels related topoverty alleviation. International Board,Advisory on alsoparticipated Committee andJames Wolfensohn, Chairman, Rubin,Robert Director, oftheExecutive Chairman Chief Administrative Officer and ViceChairman, the Power ofEconomicOpportunity.” Lew Kaden, RodhamClintonentitled Hillary “Women and onapanelhostedbyBoard andparticipated Senator was appointedtothePoverty Alleviation Advisory Global ConsumerGroup –International, who > > > 31 CR 2006 Citi attorneys assisting GulfCoast residents whowere displaced by Hurricane Katrina. Citi businesses made several trips to Mississippi to help Small teams of lawyers representing a cross-section of Federal Emergency Management Agency (FEMA). on helping hurricane survivors seek relief from the in the Gulf Coast. Two of these projects focusedCiti lawyers have been involved in six different projects major pro bono effort in the Gulf Coast region.Katrina. Citi is one of the few corporationsorganizations to launch a in need of legal assistance afterhundreds Hurricane of hours of pro bono work to individualsabout 50 attorneysand from the U.S. andIn Mexico 2006, provided through the Citi Pro Bono Legal Initiative, to Effort Survivors Aid Katrina Citi MountsMajorPro Bono “ partners. We continue to apply the our dialogues with community citizenship efforts and continuing to strengthening our corporate better because we are there.” employees to make communities reach, financial resources and strength of Citi’s franchise, global At Citi we remain committed Global ConsumerGroup– Chairman andCEO Chairman

—Ajay Banga Y T I N U M M O C International

important role played by Second Windtargeted in helping to smallto business owners, she Blancoacknowledged announced the a $100 million pilot grant program2006, when Louisiana Governor Kathleen assistanceBabineaux to small business owners. Inadvocating December for relief programs and providingorganization other with more than 1,000 members thatCiti is lawyers helped create “Second StroockWind,” and Lawyers a nonprofit Committee for Civil ownersRights, in New Orleans. TogetherCiti with lawyers lawyers have from also been working with small business denied FEMA assistance. letters on behalf of hurricane survivors who were firms and legal aid organizations to help prepare appeal issues. In addition, Citi lawyers joined a network staffof law free legal clinics that focused on FEMA and other pro bono efforts in the years to come.” we look forward to strengthening and expanding our done thus far, there is still much more we can do and Responsibilities and all the pro bono work they have are proud of our lawyers’ commitment to the Shared Helfer, the Citi General Counsel, noted that “whileZelon we Award to the Citi Legal Department. Michael efforts, the Pro Bono Institute presented its prestigious In March 2007, in recognition of these and other low-income housingin Gulfport, Mississippi. organization building environmentally sensitive Program andproviding advicetoanonprofit related totheMississippiHomeowner’s Grant New Orleans, developing forlegalclinics materials are providing schoolsin tocharter legalsupport In otherGulfCoastpro bonoprojects, Citilawyers provide the much-needed assistance. > > > 32 CR 2006 other programs. small around theworld, volunteers, and sponsorships including relationships withcompanieslargeand as CitiMarkets &Bankingleverages itsresources, local contactsforneededresources. Itcontinues providing office space, andimportant computers operations inBangkok fortherecovery by effort staff in Asia helpedspeedupdramaticallythe WFP’s U.S. andtheearthquake inthePhilippines. Citi inthe Katrina and continued through Hurricane when CitiMarkets &Bankingprovided support and the after the2005 WFP was born Asian tsunami between CitiMarketsThis partnership &Banking and effectively andmore lives canbesaved. allows swiftlyWFP toutilizeprivate sectorsupport andastreamlined andpreplanned approacha crisis before disasterstrikes. Time isoftheessenceduring positioned inemergencybasesaround theworld resources andassetsthatcanbepre-critical Economic Forum, companiesprovide participating & Banking, from andwithsupport the World Through thenetwork established by CitiMarkets to extreme poverty. women andchildren, whosufferfrom hungerdue disaster andconflictas well asthose, especially people whoselives have beenaffectedby natural most remote oftheworld, regions WFP helps in more than80countries. Working inthepoorest, and feedsanaverage of90millionpeopleevery year is theworld’s leadagencyinthefightagainsthunger provides disasterrelief around theworld. The WFP (WFP), anemergencynetwork that toform coordinator, theU.N. World Food Programme United Nations arm”“logistics anddisasterrelief Citi Markets &Bankinghasjoinedwiththe Emergency Network The U.N. World Food Programme Y T I N U M M O C > > > 33 CR 2006 45,000 Citiemployees and withtheirfriends families participated involunteer participated activitiesfamilies in 500,000lives were improved, 100,000meals were served, 10,000trees were planted, I T I C T A M S I R E E T N U L O V One globalcommunity All ofit injustoneday. On November 18, 2006, more than making theworld just 8,000 tonsoffoodwere collected 475 citiesin100countries. a littlebitbetter. > > >

3 4 CR 2006 Indonesia commitment to andourinfluencethrough created in2003asCitirecognized thatour The OfficeofGlobal Volunteer Initiatives was Credit, March of Dimes and Global Community Day. Hope, Teach Children To Save, Get Smart Achievement,About Habitat for Humanity, Operation company-wide volunteer initiatives including Junior activities, and Citi has spearheaded many successful been highly supportive of employees’ volunteer Citi’s culture. Senior management has traditionally Volunteerism has long been an integral part of enthusiasm ofitsemployees forvolunteerism. unique positiontomobilizeandmaximizethe 325,000 employees in100countries, Citiisina volunteerism, andgiven ourglobalpresence of responsibility toplay role aleadership incorporate their communities. comesaspecial With thishistory causes they believe in, ultimatelyhelpingtoimprove toworkexpertise by helping organizationsand day ouremployees puttheirpassion, talentand thousands ofcommunities around theworld. Every of and achievement ofthefabric hasbeenpart For nearly200years, Citi’s legacyofinnovation Bahamas Japan I T I C T A M S I R E E T N U L O V Mexico enhanced through acashaward totheorganization. The impactoftheemployee’s involvement is may for thatorganization. applyfora$500 grant NGOornonprofitwith aneligible organization acalendar yearvolunteer ormore 50hours during Volunteer Incentive Program: reported that they used their Volunteer Day.organization of their choice. In 2006, 7,243 employeesfrom their job each calendar year to volunteer for the Citi employees are encouraged to take a paid day off Employee Volunteer Day: The Citi Volunteer Program includes: and coordinate company-wide volunteer initiatives. and our Office of Financial Education, helps identify conjunction with Citi Foundation, Human Resources The Office of Global Volunteer Initiatives, in tohelpmeetcommunity goals. opportunities marketvolunteer andstrategically volunteer efforts our employees, recognize individual andgroup volunteer activities, promote to volunteerism conceived asaway on tocentralizeinformation couldbeevenvolunteerism broader. Itwas Netherlands New York > > > Active and qualified Brazil Employees who 3 5 CR 2006 events from Australia to Vietnam teamed up to show more than 13,000 volunteers in 17 countries at 90 access to the most popular areas. All over Asia Pacific, facilities for the disabled by mapping out wheelchair disadvantaged children. Colleagues in Japan improved volunteers spent the day on a Texas ranch mentoring over 50 tons of food in 52 cities. In the U.S., 700 In Mexico, volunteers collected and distributed a remarkable breadth of activities. to the communities where they live and work through time zones and continents, Citi volunteers gave back 800 activities to make their communities better. Across450 cities and 100 countries participated in more than November 18, more than 45,000 volunteers in some communities. But 2006 was historic for Citi. On businesses to organize team events that support local a culture of volunteerism and encourage our Global Community Day: 54,000 Citiemployees usethissystem. currently area, andtracktheirvolunteer hours. More than for find and intheir register volunteer opportunities where employeesdimensional onlineplatform can Volunteer Management System: Turkey Every day we foster I T I C T A M S I R E E T N U L O V A multi- Poland China associates and covered every Citi business in Japan.” in my team ranged from 30-year veterans to first-year compost for the benefit of the forest. The participants entailed cutting down trees to provide air, space and at Mount Fuji with Green Earth Japan — which in volunteer events here today. I led a team of 90 air of Mount Fuji, more than 600 people participated urban congestion of Tokyo the streets of to the crisp Hokkaido to the beaches of Okinawa, and from the his experience. “From the snow-bound mountains of Japan, wrote to colleagues in New York City about Douglas Peterson, Citi’s Chief Executive Officer in working to improve the environment. with disadvantaged children, painting hospitals and and from the Congo to Zambia, spending time the U.K., from Israel to the United Arab Emirates were involved in events in locations from Austria to Middle East and Africa, nearly 10,000 volunteers and visiting hospitals. And throughout Europe, the communities by painting schools, planting trees nearly 25 percent of the workforce revitalized their and the Caribbean, from Argentina to Venezuela, “the power of our people.” Across Latin America Taiwan > > > United Kingdom Korea 3 6 CR 2006 China it exhilarating.” of you whohave donevolunteer work, we found day would —like beanunderstatement somany classroom windows. To say we enjoyed the a groupofstaff, andolderchildren teachers painting from LaiShuiCounty, whilePeggy andLew joined and Itaughtacredit moduleto12credit officers School, Primary whereCentral District Richard clients. We allproceeded totheDongLongQuan through Grameen Trust forits1,500microfinance $250,000 seedfundingfrom theCitiFoundation microfinance from support Citi, including took abus toLaiShui, acountythathasreceived China ChiefExecutive OfficerRichard Stanley, we andmeinBeijing.Vice Chairman) Joined by Lew Kaden(Chief Administrative Officerand Community Day 2006foundmy wife, Peggy, in theday. Hewrote toemployees, “Global microfinance andjoinedinaleekharvest later Community Day whenhetaughtaclasson Chairman, onGlobal tellsofhisexperience Charles Prince, ChiefExecutive Officerand Baltimore I T I C T A M S I R E E T N U L O V

Peru Maathai attheU.N. conference. Billion Tree Campaign launchedby Professor event was acontribution to theUnited Nations’ Change endedinNairobi. Citi’s reforestation the United NationsConference onClimate Global Community Day was marked aday after Nairobi’s Karura Forest with1,000 trees planted. leads CitiKenya volunteers inreforesting Ayeyemi, CCO Kenya andCMBCEO (East Africa), Professor Wangari Maathai,assisted by Ade Nobel Peace Laureate andenvironmentalist

Barbados Kenya India 3 Ecuador 7 CR 2006 Nature has given us E E Y O L P M E E H T F O E C I O V twice as much hear from others but two ears, thatwe may aswe speak. one tongue,

—Epictetus

> > > 3 8 CR 2006 there continue for improvement.to be opportunities showed significantimprovement inmany areas, and rateever.the highestparticipation The 2006results percent ofouremployees inthe participated VOE, In 2006, we were thatarecord pleasedtoreport 94 Citi’s businesses regularly discuss VOE follow-up. evaluation andaction, andourCEOheadsof usetheresults andlinemanagers for managers effectiveness anditswork environment. Senior designed tohelpCitiimprove itsorganizational feedback from employees. The VOE process is (VOE) survey toobtainanonymous, candid Each year Citiconductsthe Voice oftheEmployee survey responserate survey Voice oftheEmployee 82% 2003 87% 2004 92% 2005 94% 2006 Voice of the Employee survey % of employees that are 2006 2005 2004 2003 E E Y O L P M E E H T F O E C I O V and the leadership skills of the managers within skillsofthemanagers and theleadership create skills actionplanstoenhancetheirleadership MFS results were senttoindividual managers complete theManagerFeedback Survey (MFS). In additiontothe VOE, Citiemployees also communications. career development, jobmobilityand internal client focus, culture, management, performance surveys focusedonspecializedissues, suchas listed above, sample Citiconductsperiodic In additiontothetwo full censussurveys their areas. n satisfied 70% 67% 65% 64% n neutral 17% 18% 19% 19% n dissatisfied 13% 15% 16% 17% 3 9 CR 2006 N O I T A C U D E L A I C N A N I F L A B O L G education starts a man will determine amanwill determine education starts The direction his future life. inwhich

—Plato > > >

4 0 CR 2006 • • • categories: programs thatprovide financial educationinthree Citi andFoundation direct resources toward Our Approach is needednow more thanever. presence. Facedwiththisreality, financialeducation marketplaces where they hadpreviously nothada newincreasingly complexandare entering life skill. are becoming Financialinstruments complex world, financial literacyisacritical knowledge assetandintoday’s isthegreatest all, we’ve thatwhen itcomestomoney, learned available tothemmeettheirgoals. Through it howunderstand tousethefinancial resources entrepreneurs, institutionsandgovernments better leadership, we’ve helpedindividuals, families, Citi’sDuring nearly200-year legacyofindustry education in72countries. have invested nearly$85millioninfinancial commitment in2004, CitiandFoundation education. Sincetheannouncementofthis $200 millionglobalcommitmenttofinancial second anniversary ofourunprecedented 10-year, In April, CitiandFoundation celebratedthe Why Financial Education CitiSupports    economics, markets andfinancialsystems. promote knowledge andsoundmanagementof institutions, andnonprofit organizationsto assist governments, academicandfinancial capital andgrow theirbusinesses. invest andsecure financingtobettermanagetheir and spendwisely, andmanagedebtresponsibly. Institutional — To programs that helpsupport Small Business— To helpentrepreneurs save, Personal — To helppeoplesave, invest, borrow N O I T A C U D E L A I C N A N I F L A B O L G “ —

financial education programs to the world who have successful selected non-profits throughout through our partnerships with financial goals. We accomplish this and tools they need to reach their ages by providing the information hope to empower those of all incredibly important. At Citi we how to use money wisely is reach those in need.” No matter your age, understanding Director, CitiOfficeofFinancialEducation Dara Duguay

> > > 4 1 CR 2006 EduCities’ FinancialEducation Program. donated US$180,000over two the years tosupport recognized attheawards event. CitiFoundation were numbers participation with thegreatest also ofUS$300.and cashprize The topthree schools top 20schoolteamseachreceived acertificate offinancialideasandconcepts.understanding These contested withstudentsdisplaying anexcellent finale event.grand Thecompetition was keenly gathered in Taipei on August 9tocompete inthe site. school teams The top20onlineperforming run onthefinancial educationcompetition Web programs, 206schoolteamsalsoentered anonline andstudentsalike.teachers Inadditiontolearning andonlinequizzes,courses andhaswon praisefrom This collaborative program features animated in Taiwan sincethelaunch oftheprogram inMay. students elementary more than20,000upper-grade initiative thathasdelivered thebasicsoffinanceto Central University tolaunch EduCities, anonline Citi hasjoinedforces with Taiwan’s National Students in Taiwan Program Trains More Than 20,000 EduCities —OnlineFinancialEducation Personal Financial EducationCurriculum. to teachfinancialeducationusingtheCiti staffhaveprofit partner undergone training To date, more than5,300employees andnon- credit challenges. managing lending, andsubprime prime lendingand predatory such ascredit scores, identitytheft, bankruptcy, new lessonswiththeCredit modulecovering topics preparation toolsandchecklistsforfacilitators, and financial decisions. Updatesincludeadditional thathasenabled themtomakeinformation better andCitiemployeepartners volunteers, providing thousands ofpeoplethrough ournonprofit its debut in2003, hasreached thecurriculum of theCitiFinancialEducationCurriculum. Since In April, Citiproudly released anupdatedversion Citi FinancialEducationCurriculum N O I T A C U D E L A I C N A N I F L A B O L G

“Economy: Knowledge with…Value” aimsat Additionally, schoolinitiative theprimary December 2004. reaching in atotalof20,000children sinceitstarted financial educationsessionsforthesecond year, thus schoolchildren through 400 10,000 primary by theHellenicChildren’s Museum, reached Citi Foundation, anddesignedimplemented The program, from by supported a$75,000grant Thessaloniki, Larissa, Patra andHerakleioninCrete. program thatvisitedfive mainGreek cities: Athens, of Economy” program, afinancialeducation the secondconsecutive year ofthe “Classes Citibank andCitiFoundation have completed Financial EducationPrograms Greece: CitibankCompletesSecond Year of reached an estimated 77,469 students. program in 2000, 2,467 employee volunteers have students in 2006. Since we began participating in the our employee volunteers reached an estimated 8,000 of life. Through the of saving money, budgeting and other financialfacts and teach children of all ages about the importance encourages bankers to go into their local schools program, Banker’s Association Education Foundation’s their time, energy and expertise for the American for blackboards in cities across the U.S. to volunteer In April, Citi employees traded in their balance sheets Reached inPast Seven Years inU.S. Teach Children toSave –77,469Students educational activities. theimplementationofvarious supported volunteered inschoolclassesandenthusiastically bysupported more than100Citibankstaffwho Citibank’s financialeducationinitiatives were 100,000 studentsinthe2005-2006schoolyear. conducted inschoolsthroughout Greece, reaching and themeaningofcommerce. Sessionswere between needsandwants, themarket’s functions covers many topics, includingthedifference educational gamesandrole-plays, thisprogram vary according totheschoolclassandthrough lives. Through three different programs that basic economicconceptsthataffecttheireveryday 1-6withcertain children ingrades familiarizing Teach Children to Save Day. Teach Children to Save > > > This program program, 4 2 CR 2006 target pooryouth indeveloping countries. along withtheadaptationofexistingmodulesto insurance andremittances are underdevelopment modules onconsumerprotection, management, risk practices inadulteducationandevaluation. New negotiation andbankingservices, aswell asbest cash flow, debtmanagement, savings, financial onbudgeting and uses acutting-edgecurriculum semi-illiterate people around the world. The training teachatleasttwowill inturn millionilliterateand more than60microfinance institutions(MFIs)who provide at technicalassistancetomastertrainers Over thenexttwo years, theprogram willtrainand the region. their respective organizationsandnetworks across the toolkitinorder toshare thetrainingthrough theworkshop,During touse theattendeeslearned workshop was heldinLima, Peru inMay 2006. network offinancialeducators. training Thefirst workshopsand country thatwillresult inaglobal suchasChinathrough regional poor incountries aims torapidlyadvance financialeducationforthe of educationwithmicrofinance. Theprogram development andintegration in adultcurriculum collaboration withFreedom from Hunger, aleader profitgroup Microfinance Opportunities, in non- is designedandmanagedby international The FinancialEducationforthePoor project standard ofliving. financialdecisionsandimproveinformed their financial conceptsthatwillhelpthemmake more of poorpeoplearound theworld aboutimportant toteachmillions million CitiFoundation grant In BeijingonMarch 22, CitiannouncedaUS$3.9 Poor People Around the World $3.9 MillionGrant Will ReachMillionsof N O I T A C U D E L A I C N A N I F L A B O L G Speaking Competition United Kingdom: Financially provided financial educationcurricula by Citi. savings, credit, money managementandmore using nationwide by educatingyouth inthearea of NULYP incommunity service participated chapters youth between theagesof12and18. Over 40 education toatleast5,000 African American time andresources toproviding finance personal professionalsAfrican lenttheirvoices,American Empowerment Agenda.” Thousands ofyoung ofthe aspart service “NULYP NationalFinancial Professionals (NULYP) sponsored anationalday of On June 24, CitiandNationalUrbanLeague Young “National Day ofService” Financial EducationIstheFocus forNULYP headquarters at Canary atCanary headquarters Wharf. The finalcompetitionisheld each year inCiti’s tangible and rewarding—and it’s a greatusual deal financial of fun!” arena. In both directions,and messages the benefits effectively are to an audience outsidelearning theexperience in how to communicate conceptsgroups of young people. Going the otherexperience way, in teaching it’s essential a life skills way,to enthusiastic you are able to invest your“It’s personal like professional a two-way street for volunteers.& Banking, Going explained one the full benefits ofBill the program:Wilkins, senior relationship manager, Citi Markets Cool andtheRoleofBanking. Responsible Ways Money, ofEarning The Costof Topics include: Needsand Wants, Budgeting, from theCitiFinancialEducationCurriculum. forthisprogram was putforth adapted material Citi employees volunteered fortheprogram. The Tower HamletsandSouthwark. More than80 and touchednearly1,000studentsfrom Lewisham, Speaking” ranin20schoolsSoutheastLondon financial educationconcepts. In2006, “Financially while simultaneously introducing themto young tasteofpublic speaking peopletheirfirst Financially Speakingprogram isdesignedtogive public speakingorganization SpeakersBank, the by withthe CitiFoundation inpartnership “Financially Speaking” competition. Sponsored On November 28, CitiU.K. hosteditsfourth > > >

4 3 CR 2006 America and Caribbean area. Habitat for Humanity’s Vice President of the Latin manage their financial situation,” said ofTorre poverty Nelson, is helping families to better understand and credit process. “A key element of breaking the cyclethem maintain a budget and educate them about the families to manage their own personal finances, help objective of this program is to enable low-income houses constructed by Habitat for Humanity. The benefiting 2,000families who were applying for launched the “Financial Education Program,” in seven countries in Latin America and the Caribbean Throughout the year, Habitat for Humanity and Citi Train Low-Income Families Latin America: Citi and Habitat for Humanity participation of Banamex employees as volunteers. and alliances with 35 strategic partners and the 2,967,468 beneficiaries, 54 ongoing programs has achieved many accomplishments, including: 2006, after only one year of operations, the program education and banking products and services. In employment and entrepreneurship training, financial by providing programs that provide access to on improving the quality of life of all Mexicans strategy and clearly established commitments, focused is the only national project of its kind, with a sound experience of the bank’s collaborators. partnerships and leverage the knowledge and education project that would establish strategic 120 million Mexican pesos to create a financial Saber Cuenta, Mexico now in its 122nd year of operation, launched In 2005, Banamex, Citi’s banking subsidiary in Saber Cuenta: Knowledge Counts or Knowledge Counts, N O I T A C U D E L A I C N A N I F L A B O L G and committed Saber Cuenta

and other interested parties inearly2007.and otherinterested parties in EnglishandSpanish, toournonprofit partners “Becoming anEntrepreneur” willbecomeavailable, owners todevelop, andproduce thisseries. write the way. Citiworked withateamofsmallbusiness and valuable additionalresources toconsultalong activities, worksheets, self-assessments, glossaries entrepreneurs. of10guidesincludes This series tobecome business tothoseseekinganopportunity a andrunning onstarting wealth ofinformation guidesdesignedtoprovideof informational a developed “Becoming anEntrepreneur,” aseries United Stateseconomy. That iswhy Citi Small businesses playrole anintegral inthe “Becoming anEntrepreneur” Citi ReleasesSmallBusinessGuideEntitled Small Business this program. and theskillsthey gainedthrough in participating tremendous difference inthelives ofthesestudents coaches andjudgesinthiscompetition; eachmadea andCitivolunteersthan 50SmithBarney served as and featured high-profile “celebrity” judges. More exciting evening program forclientsandguests, with thefinal round, heldinconjunctionwithan rounds ofthecompetition. The day culminated guest executives, andsemi-final inthequarter of judges, includingCiti, andother SmithBarney winners, presented theirbusiness planstoourroster representing NFTEcompetition 28regional theday ofOctober26,During highschoolstudents, academic andlifeskills. economic productivity by improving theirbusiness, from low-income communities, toenhancetheir entrepreneurship toyoung people, overwhelmingly New York CityonOctober26. NFTEteaches National BusinessPlanCompetitionwas heldin Citi Foundation, SmithBarney/NFTE thefirst Through from and a$325,000grant SmithBarney for Teaching Entrepreneurship andtheNationalFoundationSmith Barney > > > 44 CR 2006 $250,000 grant from$250,000 grant CitiandFoundation. taken inallcountries. The summitwas fundedby a are two ofthekeycurriculum stepsthatshouldbe ofthecore and makingfinancialeducationpart financialeducationfromthat starting anearlyage over ofthetwo-day thecourse summit, agreed level speakers, anddelegateswho, moderators and young adults. The event featured many high- related tofinancialeducationforchildren, teenagers representatives todiscussawiderangeoftopics 200 regulators, educators, andNGO corporate held in Asia Pacific, brought together more than andadvocatesfinancial educationpractitioners ever of gatherings one ofthelargestinternational Health fortheNextGeneration.” This summit, 9-10, withthisyear’s themebeing “Financial Summit was heldinSeoul, Korea onNovember the 2006Citi-INSEADFinancialEducation Education SummitsinHongKong andMalaysia, Building onthesuccessofprevious Financial Financial Illiteracy Among Youth Financial EducationSummit Addresses Citi-INSEAD 2006 Institutional N O I T A C U D E L A I C N A N I F L A B O L G bankers are thosewhocreate awinningstrategyto research anddevelopment. The mostsuccessful how muchand determine toinvest inmarketing, deposits andloanstoattractsavers andborrowers, andlong-term set interest ratesonfundsforshort- from theperspective ofseniormanagement. They student teamsmake bankingdecisions important program culminateswithacompetitioninwhich of operatingabankincompetitive market. The to thefundamentalsofbankingandchallenges Junior Achievement Worldwide, introduces students in Action, City, Panama, from November 27to30. Regional Tournament, whichwas heldinPanama of theannual High schoolstudentsfrom Brazilwere thewinners JA Banksin Action — A Growing Success including 21U.S markets. program isscheduledfor2007in28countries The fullgloballaunchofthenew program, in2006. whichwas pilotedin19countries and worldwide expansion ofthe over three years toJA Worldwide fortheredesign In 2005, CitiFoundation committed$2.7million students inLatin andtheCaribbean.America Banks in Action a totalof17countries. Throughout 2006, the was in 1998, the largest since its beginning involving The 2006 and liabilities, andincrease theirprofits. best serve theircustomers, managetheirbank’s assets a program created in partnership with aprogram created inpartnership JA Banksin Action JA Banksin Action program reached more than25,000 Regional Regional Tournament Latin America JABanksin Action JA Banksin Action JA Banks JA

45 CR 2006 what we do, N O I T A D N U O F I T I C We make D N A E C N A N I F O R C I M what we give. a living by but we make —Winston Churchill a lifeby > > >

46 CR 2006 have established deep, relationships multifaceted of MFIsandmicrofinance organizations, we in more than 50 countries. Through oursupport impact to low-income families and communities networks, which provide long-term, sustainable microfinance institutions(MFIs)andmicrofinance have nearly$40millioninfundingto contributed with thatexpansion. Over thepastseven years, we decades; ourfundinghassteadilyincreased along and evolution ofthemicrofinance for industry theexpansion Citi Foundation hasbeensupporting and achieve theirgoals. they needtohelpthembuildand services wealth provide themwithaccesstothefinancialproducts that thepoortake intheireconomy part isto that oneofthemosteffective meansofensuring and more than20percent ofGNP. We atCitiknow than 80percent ofallwealth-building enterprises are estimated torepresentmicroenterprises more In developing where poverty countries isgreatest, N O I T A D N U O F I T I C D N A E C N A N I F O R C I M • • • • the world. Ourapproach isto: withthecommunities they serveexperience around of ouremployees, whoshare theirtalentsand the microfinancethrough industry the volunteerism more thanjust dollars.contribute We alsosupport that provide forusto significantopportunities     increased accesstocapitalmarkets effective poverty alleviation toolandencourage practices measures andbest standardized performance financial education housing finance, remittances, insuranceand mobilizing capital borrowers by increasing thecapacityofMFIsand Build globalawareness ofmicrofinance asan commitmenttotransparency,Increase industry Build andpreserve borrowers’ assets viasavings, Expand outreach tomillionsmore low-income > > >

47 CR 2006 and selling amuchneededitem Africa. Ms. Moleleandherhusband started abusiness producing of the2006 Citigroup Microentrepreneurship Awards inSouth Sewela Joyce Moleleof Mokomene, Limpopowas theoverall winner Association for Microenterprise Opportunity.Economic Opportunity (AEO) and the California including the ASPEN Institute, the microenterpriseAssociation fordevelopment, microcredit,number andof U.S.training, organizations that supportACCION broader San Diego. We also provideACCION fundingChicago, to a ACCION New MexicoUSA and and its affiliates ACCION NY,microfinance ACCION has beenTX, principally targeted atIn the ACCIONUnited States, Citi Foundation’s support of the Abrinq Foundation. Women, the Chinese Academy of SocialManagement, Sciences and the Indian School of Microfinancethe Russian for Microfinance Center, theDevelopment Asian Institute Cooperation, of Integra Ventures,Information Exchange, Sanabel, the Foundation for Opportunities, the SEEP Network, the FINCA,Microfinance the Grameen Foundation, MicrofinanceACCION International, Women’sGlobally, World Banking, our partners include (but areconnection not limited to financial to) institutions and capitalmicrofinance markets. industry and strengthening theof industry’s the industry, encouraging policies assistance,that support the improving monitoring and benchmarkingwith these nonprofits are focused on providingthey continue technical to grow exponentially.in orderOur relationships to achieve greater client outreachindustry, and scale as build capacity and strengthenand localthe sector microfinance overall organizations that informCiti Foundationthe supports numerous global, regional N O I T A D N U O F I T I C D N A E C N A N I F O R C I M — bath tubs. Caribbean, Asia, Africa and the U.S., and served more organizations throughout Latin America, the ACCION partners with more than 30 microfinance its affiliates totaling approximately $9 million. has made more than 100 grants to ACCION and pleased to support them. To date, the Citi Foundation microfinance activities in 1973, Citi Foundation was back as far as 1965, and when ACCION launched its development grants from Citi Foundation, dating ACCION had previously received community grant ever — to an organization called ACCION. ago, Citi Foundation made its first microfinance ACCION International: the microfinance industry: representative ofCitiFoundation’s broad of support The following organizationsandprograms are lenders, multilateral institutions and newmanagers MFI staff.of MFIs, field staff, policy makers,2,800 people wholesale over five years, trainingprograms. middle and seniorThe school expects to reachthe asdevelopment many as of the school’s core curriculuminstitution and in India, Citi Foundation isprimary supporting funder of this premier microfinance trainingIndian School of Microfinance for Women: customer service and business development services. products, technologies, efficiencies, market research, includes the development of new microfinance Foundation’s global support of ACCION’s activities than 1.88 million active borrowers in 2005. The Twenty-five years > > > As the 48 CR 2006 excellent service. in all-natural andhome-madefood products andfeatures Awards inChina.Shefounded abakery thatspecializes for Urban Processing inthe2006 Microentrepreneurship Yi Wenhua of Mongoliareceived theFirst Place award around theworld.”countries onmicrofinance indevelopinginformation the world’s leadingsource ofreliable, standardized fromsupport CitiFoundation, The MIXisnow standards fortheindustry. Through continued 2002 toencouragetheestablishment ofreporting Foundation provided seed fundingto The MIXin about how itworks. Recognizing thisconcern, Citi challenges stemmingfrom alackoftransparency the basicneedsofpoor, attimeshasfaced while recognized asaneffective meansofaddressing “Microfinance indeveloping countries, Exchange,Microfinance Information Inc. (MIX): According toPeter Wall, executive director ofthe standards inthemicrofinance industry. flows, promote transparency andimprove reporting tools forMFIs, exchangeandinvestment tofacilitate accepted benchmarking, andratings monitoring The objective of The MIXistoprovide globally of supporters The MIXsinceitslaunchin2002. MIX): Exchange (The Microfinance Information Citi Foundation isoneofthefounding N O I T A D N U O F I T I C D N A E C N A N I F O R C I M

The objective of the and healthcare services. Loansaverage $164each. combine microfinance withboth business training served by Pro Mujeraffiliates, and even fewer Few MFIsfocusonclientsaspoorthewomen have auniqueapproach tomicrofinance delivery. Nicaragua andPeru. Pro Mujeranditsmembers poorest women in Argentina, Bolivia, Mexico, manage itsgrowth andoutreach toLatin America’s accreditation systeminorder tomore effectively to implementaninstitutionalevaluation and in 2006. This innovative organizationisworking received from a$100,000grant CitiFoundation with bothbusiness trainingandhealthcare services, development network thatcombinesmicrofinance Pro Mujer, • • • the Citi Microentrepreneurship Awards program are: communities in 23 countries. Specifically, the goals of sustainability of their families as well as their microentrepreneurs have made to the economic extraordinary contributions that individual program seeks to generate recognition for the alleviation around the world. In particular, the effective role that microfinance plays in poverty Awards microfinance industry. andlaysectors thefoundationfora flourishing networks, build more inclusive financial donor community throughout theworld. accomplishments amongtheinvestment and preneurs by highlightingtheirtalentsand practices inmicroentrepreneurship. to theworld economy; andtohighlightbest thatmicroentrepreneurs contributions bring benefit from it; to recognize andcelebratethe among microentrepreneurs whocould To create the nextgenerationofmicrofinance To raiseawareness ofmicroentre andsupport To raiseawareness ofmicrofinance, particularly program is to illustrate and promote the amicrofinance and women’s Citi Microentrepreneurship > > > - 49 CR 2006 made food products and excellent service. gain a good reputation for her all-natural and home- Bureau. Her efforts paid off as she soon started to basic accounting from the Labor and Personnel month course in food processing. She also learned of her factory, she went to Shanghai to attend a one- Processing Factory and, in order to ensure the success her business. This time, she established Kangyu Food micro loan of RMB 20,000 (USD $2,443) to restart Wenhua approached the Bureau and applied for a microfinance to workers who had lost their jobs. Labor and Personnel Bureau would be providing article in the local newspaper saying that the mother and young son, Wenhua came across an In 2002, faced with the need to provide for her bakery down. steady stream ofcapital, shewas forced toshutthe a loanfrom hersister. Unfortunately, asshelacked a herownresults andin2000shestarted bakerywith different day jobs, but remained unsatisfiedwiththe to findanew aliving.way toearn several Shetried went inJune bankrupt 1998,factory Wenhua had month, shemanagedtosustainherself. When the washer salary onlyRMB200-300(US$24-37)a Xinjiang HejingFood Processing Factory. Although technical schoolandwent ontowork atthe In 1993, Yi Wenhua from ofMongoliagraduated Microentrepreneurship Awards inChina: Winner inUrbanProcessing, theCiti of Here isthestory Yi Wenhua, Place First N O I T A D N U O F I T I C D N A E C N A N I F O R C I M contribute theirideasonproductcontribute development and welfare andabonus) andencouragesthemto but sheprovides themwithbenefits(insurance, employees thatisabove asalary theaverage scale, from apastjob. Notonlydoessheofferher thosewhohaveparticularly beenmaderedundant Wenhua isvery conscientiousabouthelpingothers, (US$12,216). generates annual revenues ofover RMB100,000 citiesinChina,various employs five workers, and more than10different products thatare soldin her production space. produces Now herfactory to improve herworkshop andincrease thesizeof to expandherbusiness. With thisloanshewas able for anothermicroloan ofRMB20,000(US$2,443) In 2005, shehired five laid-off workers andapplied among consumers throughoutamong consumers China. cities inorder toestablish herbrandmore widely andopenretail stores innearbyexpand herfactory remain all-natural. Finally, shewould like tofurther to standardize herproducts andensure thatthey university oneday. Looking ahead, Wenhua iseager son isstudyinghard andshehopeshemay attend which sheshares withhermotherandson. Her Wenhua isnow theowner ofherown apartment, quality control aswell. > > > 5 0 CR 2006 million inmore than3,000loans. resulting ofover inthedisbursement portfolio $21 expects todouble itsactive itsloan clientsandtriple At theendofthree-year grant, ACCION populations.and immigrant istoincrease accesstocredit forLatinos partnership capital.$35,000 orlessinstart-up The goalofthis employs five orfewer and persons requires business isonethat sustainable microenterprise businesses.microenterprise Bydefinition, a thedevelopment tosupport services ofsustainable individuals by providing credit andotherfinancial is dedicatedtoimproving thelives ofLMI leader inthedomesticmicrofinance fieldand ACCION, USAisapioneerandrecognized ACCION, USA inmicrofinance domestically.experience Combined, have thesepartners over 50years (AEO)andthe Opportunity ASPEN Institute. ACCION, USA, Association forEnterprise intheU.S. partners of microenterprise — theongoingresearch support andexpansionefforts financial investment exceeded$1,000,000to sponsorship,Foundation andcorporate our2006 philanthropic institutionsinthisfield. Through Citi withleadingnonprofits and our partnerships microfinance domestically by strengthening In 2006, Citiincreased itsinvestment in intheU.S.Microenterprise N O I T A D N U O F I T I C D N A E C N A N I F O R C I M

are working hard tocreate viable smallbusinesses. toassistwomenopportunity across thenationwho organizations. This project hasgiven Citithe women received equityawards through 15local That successledtoasecondyear inwhich128 developmentlocal microenterprise organizations. microentrepreneurs intheU.S. through eight impact equityawards LMIwomen to72deserving very successfulinitsfirst year, providing high- BoostProgram.Microenterprise The project was now known asthe Women andCompany Company (AEO), CitiFoundation and Women and In 2004, Opportunity the Association forEnterprise (AEO) Opportunity Enterprise Association for process doubled innumber. development inthis organizationswhoparticipated In addition, thenumber of localmicroenterprise women entrepreneurs whoreceived equityawards. resulting ina77%increase inthenumber of investment represented a127%increase infunding manage, expandanddocumentthisprogram. This In 2006, we provided AEO with$250,000to ® developed anequityaward project

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5 1 CR 2006 microentrepreneurs andtheirbusiness growth. the microfinance fieldbetterdocumentimpacton andanalyzingoutcomedatathatwillhelp gathering in thecountry. willfocuson These internships nonprofit organizationoftheirchoiceanywhere toworkopportunity with amicroenterprise studentswiththe andgraduate undergraduate thatwillprovideis asummerinternship 25 ResearchersProgram The CitiMicroenterprise business modelstoscale. microfinance organizationstotakeperforming their provide tohigh- technicalandfinancialsupport while thesecondproject, theScale Academy, will inthecommunity developmentof leaders field; Project, isdesignedtoestablish thenextgeneration project,first Researchers theCitiMicroenterprise themicrofinance industry.that willtransform The funding two majorprojects witha$500,000grant developmentleadership institution. We are currently ASPEN Institute, aprominent research and In 2006, withthe Citideepeneditspartnership ASPEN Institute N O I T A D N U O F I T I C D N A E C N A N I F O R C I M “Citi Foundation has Quote from ASPEN Institute: needed toachieve theirgoals. them withthefinancialandtechnicalsupport potentialforachievinggreatest scaleandtoprovide business modelsthathaveidentify current the efficiencies. TheScale Academy isdesignedto cost-effective business modelsthatincrease its market, must identifyanddevelop theindustry entrepreneurs. Inorder toreach thispotential 300,000) andtheestimatedmarket of10million (some supported currently of microenterprises field isthesignificantgapbetween the numbers Today, themicroenterprise issuefacing acritical communities.” develop vibrantandsustainable developmententrepreneurial and economic opportunity, foster asitstrives toincreaseindustry ofthisimportant the leadership tosupport to deepenourefforts the Foundation willenable us Institute, with thepartnership entrepreneurs. For the ASPEN emerging tools tosupport effectiveness and usenew financial to achieve scale, documentits building thecapacityoffield in projects thatare innovatively withitsinvestmentsindustry United Statesmicroenterprise inthe demonstrated itsleadership — ElaineL. Edgcomb, Director, FIELD, The ASPEN Institute 5 2 CR 2006 challenge We are calledto to healherwounds… threatening its life-support system.threatening itslife-support thinking, sothathumanitystops Today we are faced T N E M N O R I V N E thatcallsforashiftinour assist the Earth assisttheEarth with a > > > —Wangari Maathai Nobel PeaceLaureate 2004

5 3 CR 2006 ENVIRONMENT > > >

Our Environmental I. Engagement: Reach out to stakeholders Management Framework and partners for dialogue on issues of mutual Our Environmental Management Framework concern and importance (EMF) is the framework Citi uses to evaluate the II. Policies: Develop sustainable environmental environmental and social aspects of its operations. The and social policies and implement them EMF is designed to identify issues and opportunities, throughout the company gather information from a wide variety of internal and external sources’ and adopt and implement III. Organization: Ensure ownership of our policy. The EMF has six components that work sustainability initiatives by the people in our together to accomplish these goals: businesses through training, teamwork and communication

IV. Footprint: Reduce the impact of our operations on the environment

V. Sustainability: Promote sustainable enterprise through our business units

VI. Evaluation: Provide a framework for evaluating our activities and accomplishments against our goals, with an eye to improving future performance and promoting better planning and effectiveness in the future

Stakeholder Our Policies Organization I Engagement II and Process III and People and Partnerships > > >

Our Sustainable Evaluation and IV Environmental V Enterprise VI Future Planning Footprint > > were based. the updatingprocess, During numerous Principles Safeguard Policies onwhichtheoriginal Performance Standards, whichhadreplaced theIFC (IFC) FinanceCorporation the new International toalignwith the draftingofrevised Principles theupdatingprocess by(EPFIs) during co-leading FinancialInstitutions with otherEquatorPrinciple revision oftheEquator Principles. Citipartnered clients, NGOsandSRIs, was akey ofthe 2006 part Significant stakeholder engagement, including with and Socially Responsible Investing (SRI) discussedstakeholders. in this report; below we focusOur onengagement our NGO with many of these stakeholderscommunity is organizations, competitors and non-governmentalothers. organizations (NGOs), withgovernments, our stakeholders—clients, shareholders,environmental employees, strategy. WeStakeholder communicate engagement regularly is an integral part of Citi’s I.  KLD Research & Analytics Partnership for New York City SmartPower Stakeholder Engagement Entity China Institute Rainforest Alliance Global ClimateChange The Pew Centeron Global Roundtable onClimateChange Philanthropy Roundtable Rainforest Action Network Shareholder Dialogue Group Natural Resources Defense Council Innovest Strategic Value Advisors Healthy Trees Healthy Forests Network Tropical Forest Trust Calvert Chatham House Northeast World Resources InstituteClimate Responsibility committees USCIB Environment andCorporate CERES UNEP-FI Stakeholder Engagement and Partnerships

T N E M N O R I V N E SRI Illegal logging Climate change Various Sustainable governance finance, environmental creditrisk Climate change, biodiversity, project sector Carbon reduction and the private Renewable energy Topics Discussed China’s energy market certified coffee/sustainable agriculture Partnership on forestry issues, Project finance, climate change Project finance, climate change Environmental policy and philanthropy Project finance, climate change Project finance, climate change Green building initiative SRI SRI Sustainable forestry enterprises Forestry Citi reaches out to other SRI firms, such as Calvert, annual assessment letter (see pages 8–9). In addition, gives us feedback on the Citizenship Report via an well as the NGO Friends of the Earth. The SDG also Mary Immaculate and Trillium Asset Management, as Funds, F&C Investments, Missionary Oblates of from Christian Brothers Investment Services, Ethical group of SRI firms. Members include representatives Shareholder Dialogue Group (SDG), a self-assembled had regular and focused consultations with the UNEP FI meetings in 2006. Since 1998, we have Initiative (UNEP FI) in 1995, and we hosted two the United Nations Environment Program Finance Also, Citi was a founding member and signatory of a broad rangeofstakeholders. group andone-on-oneengagementswere heldwith with NGOandSRIstakeholders in2006. The table below outlinessomeofourdiscussions on issues of mutual interest. Innovest and KLD Research & Analytics, to consult > > > December 2006 November 2006 August 2006 Periodic October 2006 September, December 2006 September, December 2006 August 2006 August 2006 July, December 2006 July 2006 July 2006 July 2006 July 2006 July 2006 Periodic April 2006 April, June, October 2006 March 2006 February 2006 Dates 55 CR 2006 Citi helditsfirst-ever Environmental Awareness re-launch ofthenewly revised EquatorPrinciples, responsibility. InJuly 2006, inconjunctionwiththe Citi’s commitmenttoenvironmental andsocial challenge istoraiseawareness about internally stakeholders,important andanongoing Our more than325,000employees are also Citi Environmental Awareness Week stakeholders, andprotecting confidential business information. client confidentiality. Ourgoalistofindbalancebetween greater transparency anddialogue withexternal withstakeholders issometimeschallenging,Engaging asCitialsobelieves strongly inandpracticesutmost requirements forindependent review ofthesetransactions. and SocialRiskManagement(ESRM)Policy requirements onnuclear-related transactions, including to discussionswiththesestakeholders abouttheneedforany project toadhere fullytoourEnvironmental dialogue onthisissue. Inanotherinstance, regarding thatwas concern anuclear facility seekingfinancingled alternative energyprojects andotherlow-carbon projects, aswell ashow we inpublic are policy engaging gas(GHG) emitting projects,greenhouse andwe hadextensive discussions regarding Citiinvestments in confidentiality while responding totheirconcerns. For example, we heard from advocates concerning for allparties. Nonetheless, we soughttoengagewiththesestakeholders inways thatprotected client comment onitsclients, andthiscanmake dialogue withadvocates regarding specifictransactionsfrustrating that we were financingor were evaluating forpotentialfinancing. AsamatterofpolicyCitidoesnot In 2006, advocates approached usregarding anumber ofenvironmentally orsociallysensitive transactions way toachieve more clarity, opennessandtransparency. discussing ourapproach toenvironmental andsocialreview oftransactionswithadvocates isanimportant advocatesthat certain reasons opposeforvarious orwishCitiwere in. notaparticipant However, we believe company. Occasionally, theseengagementsare difficult. Indeed, sometimesdiscussionsfocusontransactions Agencies, inhelpingtobuild asustainable cornerstone andalsoNGOsSRIs—isanimportant Citi believes Credit thatlisteningtoabroad suchasExport setofstakeholders —clientsandco-financiers withNGOsoncomplextransactions Engaging T N E M N O R I V N E our CEO. of sustainability to our businessthe importance from footprint,internal aswell asamemoandvideoon Program andactionsrelated toreducing ourown Policy, ourSustainable Development Investment andourESRM changes totheEquatorPrinciples related toCiti’sstories environmental initiatives, Week. This includeddailye-mailstostaffwith > > > 56 CR 2006 promising projects, evaluating applicationsand eachyear, portfolio grant includingidentifying with CitiFoundation todevelop itsenvironmental Citi’s Environmental Corporate Unitteams Affairs Grant Partnerships Defense Council Natural Resources Forest Trends Forest Trends Sustainable Trade Finance Alliance for Ecologic Finance Ecologic Development Fund E &Co. International Conservation ASPEN Institute Recipient Citi Foundation’s 2006Environmental GrantPortfolio World Wildlife Fund World Resources Institute World Resources Institute World Resources Institute The Nature Conservancy The Nature Conservancy Sustainable Northwest Rainforest Alliance

Brazil Mexico U.S. Latin America U.S. Africa Global, Brazil, South Global Global Africa, South Asia Latin America, East Honduras, Panama Latin America South Africa U.S., China Geographic Area China, Russia, U.S. Global Indonesia China, Indonesia, India T N E M N O R I V N E Carbon offsets through reforestation supports (SMEs) alternative energy producers it results for the small and medium enterprises Metrics for evaluating triple-bottom-line Sustainable agriculture, tourism and forestry curricula Inclusion of sustainability issues in MBA Project forest conservation Network utilizing market forces to promote emerging economies sustainable development initiatives in Study to quantify triple-bottom-line results for Satellite and digital forest mapping developing countries Support for sustainable (SMEs) in residents developing alternative income flows for Reforestation of conservation area while development Forestry conservation and economic stewards and producers Developing network of small forestry on sustainable forestry and tourism Community economic development focused Green Buildings Initiative markets consultations to promote new ecosystem Development of market tools, metrics and Forestry certification benchmarking analysis producers in developing countries Improved access to credit for sustainable sustainable businesses in low-income areas Development and technical support for Development (SD), Forestry andClimateChange. one ormore ofthree broad categories: Sustainable grants. projects into These grantee generallyfall $2 millionwas awarded to17individual project direction.advising onstrategic In2006, almost > > >

Climate, Forestry SD, Climate SD SD Category Forestry SD Forestry SD SD/Forestry SD/Forestry Forestry SD/Forestry SD SD Forestry SD SD 57 CR 2006 help address rural povertyhelp address rural inthearea. aswellefforts asproviding to aneconomicengine revenues willfundthereforestation andstewardship concerns.to methodological The carbonoffset not awarded offsetstoreforestation projects due a milestone, becausetheCDMhadpreviously Mechanism (CDM). EDF’s achievement was under theKyoto Protocol’s CleanDevelopment forcarbonoffsets ofitskindcertified of thefirst economic development. The project was alsoone stewardship, climatechangemitigationand a new modelthrough itscombinationofforest reforestation ofareserve. This project provides produce community-based carbonoffsetsviathe continue itswork inHondurasandPanama to awarded by theCitiFoundation agrant to DevelopmentThe Ecologic Fund(EDF)was DevelopmentEcologic Fund T N E M N O R I V N E of social services. We see similarrepressive results among military all of presence and a lack remoteof availability region with a history of extreme poverty,which has contributed a to economic stability inof a members of the Mam ethnic minority group,to support this cooperative, composed increasedprimarily membership by 66 percent. threeWe containers continue of organic coffee to 20,credit and has over five years, has expandedclients, its exports to from whom we have provided development.$1.8 million in For example, one of ourhave Guatemalan a measurable impact on grassroots enterprise(SMEs) in the developing world, and therebyeducation to to Small and Medium Enterprises provide affordable access to credit and “Citi’sfinancial support of EcoLogic Finance enables us to EcoLogic Finance EcoLogic Founding President &Executive Director, William F. Foote entrepreneurs in rural areas worldwide.”and increased investment for these deservingwe are opening the door to new financial helpingproducts define the sustainable SME asset classin protecting itself, local habitats. At the thesesame time,rural SMEs bythat have a real long-termare stake a critical vehicle for funneling privateenvironmentally capital to sensitive areas of the fisheries,world. handcraftsWe and sustainable tourismagriculture, — in wild-harvested products,of certifiedsustainable ventures — including sustainablecommunities. Our clients typically workplan in afor range the future of their businesses andsale their prices, but also provides a path forthe thempressure to to sell to middleman “coyotes”our 132 clients, at fire as access to credit not only obviates

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58 CR 2006 Environmental andSocialRiskManagement in more than100countries. Ourmarket-leading numerous transactiontypesfordozensofindustries managementapproach coversand socialrisk Markets &Banking(CMB)unit, ourenvironmental managementintheCiti Citi andindependentrisk As ashared responsibility between businesses at II. OurPolicies andProcess following transactions: finance when we know theuseofproceeds. InMarch 2006, we updatedourESRM Policy toincludethe Citi’s ESRMPolicy was designedtomanageenvironmental related tothetransactionswe andsocialrisks Our ESRMPolicy: Risk, Managing Creating Opportunities or Underwritings Equity Investments or Underwritings Debt SecuritiesPlacements Performance Bonds LCs, BidBonds, & Mandates Advisory Project Finance & Refinancings Existing Projects Project Finance Corporate or Govt Loans ESRM Covered Transactions

• Underwriting or arranging > $50 MM in aggregrate • Citi investment > $5 MM • Financing amount > $50 MM and known use of proceeds • Aggregate amount > $50 MM and supports specific investment/project • Equator Principles apply • Capital costs > $10 MM and known use of proceeds • Equator Principles apply • Expansion or upgrade is planned and capital costs > $10 MM • Equator Principles apply • Capital costs > $10 MM and known use of proceeds • Facility amount > $50 MM and known use of proceeds T N E M N O R I V N E affected by thesetransactions. for ourclientsandpartners, andforcommunities value attheproject level. This isgoodforCiti, of thesestandards ontheground, thereby adding Citi andourclientsensures robust implementation between commitment toexcellenceandpartnership transactions.complex andchallenging Intheend, a (ESRM) Policy helpsguidethousandsofbankers on > > > 59 CR 2006 • • • • • • levels oftheorganization. Key roles are asfollows: throughout thelifeofatransactionandacross all Implementation ofCMB’s ESRMPolicy takes place ESRM Policy Responsibility

   required approvals, analysis and documentation standards. categorization determination, as well as compliance with determine applicability of the ESRM Policy and initial Responsible for initial screening of the transaction to Transactor to a CMB Chief Risk Officer. projects, etc. Additionally, the ApproversESRM Director on internalnow reports and external outreach, tracking of in 2006 to assist the ESRM Unit and regional ESRM East/Africa region and the Asia region were also appointed the media. ESRM Champions in the Europe/Middle on external outreach with NGOs, SRIs, EPFIs,partnering and with the Corporate Environmental Affairs Unit and policy implementation tracking and reporting, and across CMB, internal ESRM training, communications for review, advice and consultation on new transactionscounsel for ESRM Specialists/Approvers and is responsible president and analyst, serves as a technical resource and The unit, which is led by a director and includes a vice ESRM Unit life of the loan, in consultation with the ESRM Unit. monitoring compliance with the ESRM Policy over the Responsible for providing oversight to the transaction and Portfolio Banker with theESRMDirector. transactions with knownuseofproceeds, inconsultation Responsible for reviewofbondandequityunderwriting with theESRMDirector. ESRM PolicyorEquatorPrinciples, inconsultation well asgranting exceptionsorjustifieddeviationstothe Responsible forapprovingCategory A transactions, as transactor’s andanalysis categorization Policy, ofthe reviewandconfirmation including Responsible forconsistentapplicationoftheESRM Commitment Committees ESRM Approver Risk Officer

T N E M N O R I V N E and Social Risk Management framework in their Investments (CAI) incorporated an Environmental In addition, our colleagues in Citi Alternative Sustainable Banking Awards. by thejudgesininaugural policies across theglobaloperationsofgroup” best-in-classenvironmentalintegrating andsocial Special Commendation in June 2006ourESRMteamwas awarded a Equator Principles. Inrecognition ofthiswork, role inthedevelopment andadoptionofthenew introduced in2003, andwe played aleadership ESRM Policy forthethird timesinceitwas in2006.and externally We updatedourinternal and expandingourESRMpolicybothinternally We madesignificantprogress instrengthening Citi’s ESRM unit Risk Management, andSusan Kleiman of Miller, Director, Environmental andSocial mental andSocial RiskManagement; Shawn Courtney Lowrance, Vice President, Environ now advises CAI informally on such transactions. receive appropriate review. CMB’s ESRM Director adverse environmental or social risks are escalated and engage in activities that have potentially significant operating in sensitive industries and/or are likely to ensures that direct investments in companies that are Risk Management Policy and Procedures. This > > > in “for exemplary leadership Financial Times

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6 0 CR 2006 ESRM Director. by anESRMSpecialist, inconsultation withthe consultant acceptable toCiti, andrequire approval by aqualifiedenvironmental and/ortechnical nuclear transactionsrequire independentreview Development (EBRD)Guidelines. Category A or theEuropean and BankforReconstruction United States’ GuidelinesforNuclearFacilities evaluated Bankofthe againsttheExport-Import The policyrequires thatnuclear transactionsbe orexpansionofexistingfacilities.the upgrading involving or ofnuclear new facilities construction 2006, anuclear policythatcovers transactions ESRM Unitdeveloped, andCMBadoptedin or uniqueenvironmental andsocialissues, the tobetteraddresswithsensitive sectors In aneffort Nuclear Policy Director andpostedintheobligor’s credit files. timber. The findingsare totheESRM reported business line, processing of orprimary inlogging thatarecustomers directly involved, asamaterial theannual reviewAssessment during process forall bankers toconductaForest Products Risk The Sustainable Forestry Policy alsorequires environment/logging.htm. information, go to http://www.Citi.com/Citi/ upon between Citi and the company. to Citi within a timeframe (e.g., 3-5 years) agreed independent certification by a method acceptable risk country, then it must develop a plan to achieve harvesting or processing of forest resources in a high- than other countries. If a company is engaged in documented to have a higher rate of illegal logging a list of “high risk” countries that have been Wildlife Fund, CMB Risk Management maintains of credible sources such as the World Bank and World sensitivity and location of operations. Using a variety additional risk management actions based on the our new Sustainable Forestry Policy, which outlines Obligors must meet our broader ESRM policy and existing anti-illegal logging initiative. Forest Products sustainable forestry policy that expanded upon our in 2006 CMB adopted a new and more robust Due to the sensitive nature of the forestry sector, Forestry Policy For more T N E M N O R I V N E various keyvarious stakeholders, includinginterested unprecedented outreach program aimedat updatingprocess wasEquator Principles an 2006.February A key componentofthe approved by theIFCBoard ofDirectorsin now calledPerformance Standards and environmental andsocialsafeguard policies, of the World BankGroup, hadupdatedits because theIFC, theprivate sectorarm II). This updatingprocess was necessary (now oftenreferredtoasEquator Principles embarked onaprocess toupdatetheEquator Financial Institutions(EPFI)network of2006,In thespring theEquatorPrinciples Stakeholders andClients Engaging UpdateProcess:Equator Principles released inJuly 2006. that version final EquatorPrinciples was feasible, thisfeedbackintothe incorporated and SRIs. EPFIsconsidered and, totheextent the subsequentoutreach withclients, NGOs, co-drafter ofthenew Principles, andalsoin role intheEPIIupdatingprocess asprincipal andgeographies.sectors Cititookacentral ofclientsacrossa variety many industry implementation experience. EPFIsconsulted fromEPFIs wanted their tolistenandlearn standards intheirprojects ontheground, entities implementingtheEquatorPrinciples groups.and industry As EPFIclientsare the credit agencies, and, importantly, key clients NGOs, SRIs, suchasexport co-financiers > > > 6 1 CR 2006 marketing) stagein2006. Ofthe86project finance process (or atthegreenlight Equator Principles ESRM review andadvicewere subjecttothe A totalof86project financetransactions received Subject totheEquatorPrinciples Project Finance Transactions Total C B A Category ESRM 2006 PROJECT FINANCE TRANSACTIONS SUBJECT TO THE EQUATOR PRINCIPLES to thesigning, theproject hadbeensubject time ofsigningloandocumentation. Prior Plan (EMP)hadnotbeenfullyprepared atthe in Asia becauseanEnvironmental Management project ofalargeoilandgas-related complex An exceptionwastoaCategory granted A Exceptions totheEquatorPrinciples ESRM Director. ESRM Approver, inconsultationwiththe exception was reviewed andapproved by an requirements.the EquatorPrinciples The and would berequired tocomplyfullywith and operationalEMPforitsexpansionplans Sponsor would prepare bothaconstruction its existingoperations. Itwas thatthe agreed had anEnvironmental ManagementPlanfor acceptable toCiti.firm Thecomplexalready Reviewto IndependentExpert by aqualified 86 11 55 20 Stage Marketing Reviewed atGreenlight/ Project Finance Transactions

T N E M N O R I V N E 20 8 7 5 Project CapitalCosts) Funded (withCombined Total Project Finance Transactions $34.2 billion $2.9 billion $15.0 billion $16.3 billion project finance advisories mandatedin2006.project financeadvisories previous years. Inaddition, Citiwas awarded 12 funded in2006were initiatedandreviewed in and funded. The 10othertransactionsthatwere transactions reviewed in2006, 10were approved Funded ProjectFinance Transactions 5 B A > > > 3 2005 2006 12 0 7 5 Finance Advisories Mandated Project 7 10 8 C 5 2 0 0 2 Granted ESRM Policy Exceptions to 6 2 CR 2006 “ loan documentation agreementwiththeclient, oftheEMPwould constitute anevent ofdefault. non-delivery of2007isarequired covenant under the toCitioftheEMPin 2ndquarter ofanddelivery * Preparation 2006 Equator Principles II(Jul-Dec) 2006 Equator Principles I (Jan-Jun) 2005 Equator Principles I PROJECT FINANCECATEGORY A TRANSACTIONS MEETINGKEYPROCESS REQUIREMENTS effectively implemented.” that environmental issueshave andwere beentaken very seriously very environmental perspective, avery impressive site. construction Itisclear The Sohar Aluminum SmelterProject siteiswithouthesitation, from an Funded ProjectFinance Transactions andSector by ESRMCategory petr Oil, —Independent Monitoring Report for Report Sohar —IndependentMonitoring Aluminum Lenders’ IndependentEnvironmental Consultant ochemicals 2 gas 4 & Metals &Mining 2 T N E M N O R I V N E 1/1 4/4 3/3 Locally and Disclosed EA Undertaken Po 1 we 1 r 1/1 4/4 3/3 Undertaken Consultation Public Infrastructur > > > 1 2 1/1 4/4 2/3 and Covenanted Plan Prepared EMP or Action e * Te leco 7 m 1/1 4/4 3/3 Review Expert Independent

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6 3 CR 2006 examples ofhow itsenvironmental andsocialduediligenceledtoimproved outcomes. improved environmental andsocialoutcomes. Citi hasconsequentlyreviewed itsproject for financeportfolio leadsto One ofthebiggestchallengesEPFIsisdemonstratingthatcompliancewithEquatorPrinciples documentation and performed agapanalysis documentation andperformed reviewed existingenvironmental andsocial with theEquatorPrinciples, ENVIRON compliance “In assistingCititoconfirm the process andexplainstherole: ENVIRON’s London, U.K. office, managed and protection. NeilDaetwyler, in Principal and resettlement tobiodiversity conservation Such impactsrangedfrom landacquisition based Category A project inthecementsector. environmental ofa andsocialrisks West Africa- the andmanaging of understanding Consultant toassistCitiinitsobjective the IndependentEnvironmental andSocial consultancy, was retained by Cititoactas ENVIRON, environmental aninternational Category A Project Perspective on Adding Value fora An IndependentConsultant’s Independent Environmental Review: the ESMP.” oftheproject’smonitoring compliancewith ENVIRON isnow providing long-term subsequent successfulfinancing oftheproject, Following completionoftheESMPand organizations) anddraftingthe ESMP. specialists from local universities andconsulting environmental investigations by (performed socialand commissioning supplementary at theproject site, assistingthecompany in project. These investigations involved fieldwork environmental andsocialinvestigations ofthe six months, ENVIRON conductedextensive Plan (ESMP). ofmore Over than aperiod an Environmental andSocialManagement assisted theproject sponsorindeveloping standards,compliance withinternational and plan detailingtheactionsrequired toensure a robust environmental and socialaction assisted theproject sponsorinpreparing Prevention and Abatement guidelines). We Safeguard Policies and World BankPollution the EquatorPrinciples, includingtheIFC standards (principally against international T N E M N O R I V N E suggested thattheimpactswould bemore the proposed impact. The expert’s findings communities andquantify themagnitudeof todelineatethecoralreefcoral reef expert requested thattheproject hire sponsors a ofthedevelopment.part Subsequently, lenders identified moderateimpactstocoral reefs as (EIA) foranoilandgasdevelopment project Environmental Impact The original Assessment Sensitive Biodiversity Modifying Project DesigntoProtect Independent Environmental Review: minimize theimpactstocoralreefs. recommendations from to thecoralreef expert project designwas amendedtoincorporate was modifiedto reflect thesefindings. The severe thanpreviously reported, andtheEIA > > > 64 CR 2006 ultimately receives the mandate for the transaction. at the marketing stage, regardless of whether Citi and advice. Transactions are added into the databasedetails of a transaction as well as all ESRM decisions The ESRM database allows the unit to track the finance transactions covered by the Equator Principles. track all ESRM-covered transactions, not just project In 2006, the ESRM unit created a new database to ESRM Reporting (includes 2006 ESRMCovered Transactions ReceivingESRMeviewbyegion No category /notapplicable:No category 10 A:Category 17 Reviewed (A, B, C): 116 Total ESRMCovered Transactions Latin America andthe Caribbean No category /notapplicable:No category 9 A:Category 4 Reviewed (A, B, C): 59 Total ESRMCovered Transactions U.S. andCanada all covered product T N E M N O R I V N E types) No category /notapplicable:No category 21 A:Category 23 Reviewed (A, B, C): 163 Total ESRMCovered Transactions Europe, Middle East, and Africa Total Credit, andRefinancings Underwriting, of Letters Underwriting, Equity Acquisition Finance, Bond Government Loans and Corporate Project Finance Advisories the Equator Principles) Project Finance (subject to 2006 Transactions Receiving ESRMeview > > > No category /notapplicable:No category 10 A:Category 26 Reviewed (A, B, C): 100 Total ESRMCovered Transactions Asia andthePacific

Total 438 105 208 39 86 Category Category A 70 26 17 20 7 65 CR 2006 and revised Equator Principles. a key component of thenew IFC Performance Standards Ensuring robust health, safety andlaborstandards was demonstrate adherence to health andsafety norms. Laborers of aCiti-financed goldmineinLatinAmerica eventual funding. intheproject’sCiti didnotparticipate independent review requirements. As such, environmental andsocialstandards, including level required ofeffort tocomplywithCiti’s client was withtheadditional uncomfortable with theclient, itbecameclearthatthe requirements. Induediligence discussions consistent withtheEquatorPrinciples Environmental ManagementPlan(EMP) Independent Review and covenanting ofan Category A treatment, includingrequiring environmental andsocialimpactswarranted ESRM Director foundthattheproject’s national law. An initialanalysisby CMB’s that appeared tocomplywithlocaland undertaken anenvironmental assessment environmental approval, regulatory andhad financing. Theproject had received in-country in Latin approached CMBfor America A project inthehydro-electric power sector transaction high-risk Citi declinesfundingofa

T N E M N O R I V N E further challenging as the resettlement was the resettlement, and review of the project, was female-headed households. Planning for the groups such as scheduled tribes and castes and and resettlement of people, including vulnerable complex because it involved land acquisition project in India. This project was especially as the sole arranger for a large infrastructure the company had approached Citi to serve told us that this was one of the reasons why to financing sustainable projects. The client an existing client regarding our commitment In 2006, we received positive feedback from ground leads to better social outcomes Citi’s direct engagement with client on the Clients Engaging environmental and social commitments. to monitor the ongoing implementation of its eventually funded the transaction, and continues these Equator Principles requirements. Citi comprehensive action plan that would meet and the independent expert to compile a After this site visit, Citi worked with the client Land Acquisition and Involuntary Resettlement. process and the IFC Performance Standard on gaps between the government’s resettlement infrastructure project’s route, and to identify anyon-site to conduct a site reconnaissance of the VP, and the contracted expert met the client mandated, our project finance team, ESRM these circumstances. Within two weeks of being experienced in Indian resettlement issues under to select a qualified and independent expert finance team worked with CMB’s ESRM unit not Citi’s private sector client. Our project direct responsibility of the government and > > > 66 CR 2006 “ ongoing and successful partnerships between Citi and its banking counterparts in China. environmental responsibility in the financial sector. Building relationships over the long term is amongkey CMBto thesebankers. Citi China’s President, Richard Stanley, continues Into 2006,support strongly ESRM our Policy efforts in training sessions were also held in Hong Kong, Shanghai and Beijing to raiseand awareness respected Chinese policy banks, such as China Development Bank, and other private commercial banks.included a discussion of the Equator Principles for project financing. Discussions were held with influential financial institutions to discuss Citi’s approach to environmental responsibility across its global operations.relationship managers and bankers, This in July 2006 CMB’s ESRM Director met with a number of Chinese financial sector in order to learn and share experiences. Building on already strong relationships built by CMB Citi’s strong commitment to China and its burgeoning economy included reaching out to the Chinese environmentally responsible development isakey goalmoving forward. challenges. The Chinesegovernment hassignaledthatachieving abalancebetween sustainedgrowth and China’s well-documented andrapideconomicgrowth as presents significantopportunities well as Citi Engages ChineseFinancialSectoronEnvironmental Responsibility — compatible withthenatural environment.” China, andwe are committedtopromoting economicgrowth thatis theseefforts.on supporting We tobedoingbusiness are in privileged and presence inChinathattoday continues toexpandrapidly, isintent Convention onClimateChange. Citi, asacompany withalonghistory initiatives itcontinues topursue, suchassigningtheUNFramework Development (covering 2006to2011), andinawiderangeofongoing reflected inits11thFive-Year PlanforNationalandSocialEconomic responsibility. China’s commitmenttosustainable development is andtocombinecontinued economicgrowthfaces withenvironmental China isactively working toaddress theenvironmental challengesit Citi China Chief Executive Officer Richard Stanley Richard

T N E M N O R I V N E > > > 67 CR 2006 *  application oftheESRMPolicy incredit review. studies andinteractive groupexercises thatsimulate included acombinationoflecture, video, case to Intermediate, toPractitionerlevel. These sessions toprogressinterested participants from Awareness, legal staff. We addednew trainingsessionstoallow relationship managers, specialistsand industry beyond project financestafftoincludebankers, expanded andacceleratedourtrainingefforts inJulythe revised 2006, EquatorPrinciples we Performance Standards andouradoptionof in March 2006, therelease ofthenew IFC With theissuanceofCiti’s refined ESRM Policy ESRM Training andCommunications: Training Totals New York London Hong Kong Shanghai) China (Beijingand India (Mumbai) Latin America Region 2006 ESRM Business Groups:and Bank;Agency Finance; EAF–Export Corporate Management; Markets GPM–GlobalPortfolio EMCB–Emerging GRB –GlobalRelationshipBank; GTS-Global Finance;Transaction andEnergy Services;MAC IEF–Infrastructure –Mumbai Analyst Center ESRM Training Level Practitioner Awareness Practitioner Intermediate Awareness Intermediate Awareness Awareness Awareness T N E M N O R I V N E EAF, GPM, IEF, Legal Analyst and Associates Training Programs EAF, GPM, IEF GRB Analyst and Associates Training Programs EAF, EMCB, GPM, GRB, IEF GPM, GTS, EMCB EMCB, MAC • Lima, Peru Affected Business Groups* •  Center inFt. Lauderdale, Florida Latin America Training &Development and will be available to all CMB bankers globally. web-based learning module will be launched in 2007, management and training for financial institutions. The firm that specializes in environmental and socialrisk Sustainable Finance Ltd, a U.K.-based consulting a web-based learning module with the assistance of In addition to these training sessions, we developed > > > 556 74 103 37 10 41 25 50 51 35 130 Number ofparticipants

68 CR 2006 from 10.6 million to 21.3 million metric tons. from 10.6millionto21.3metric tons. In2006, ourshare ofGHGemissionsranged GHG emissionstotaled2.5to5.0millionmetric thepastthree years.during In2004, Citi’s share of new capacityhave been madeinthepower sector Only two project financeinvestments tosupport the percentage ofthedebtthatCitiprovided. percentage oftotalemissionsthatisequivalent to projected capacityutilization. We allocatetoCitithe content ofthefuel(apublicly available figure), and the plant’s capacityandheatrate, thecarbon range, project-specific emissionsare derived from have notclosed. Usinga30-to60-year lifetime not includedataonrefinancings orondealsthat including expansionsofexistingplants. Itdoes on Citiproject financingofnew capacityonly, Our annual assessmentincludes emissionsdata Finance business. we andEnergy financeinourCMBInfrastructure CO the aggregate footprint, annually Citiiscommittedtoreport on identifying opportunities. Inadditiontoourown and climaterisk the foundationformanaging gas(GHG)emissionslaystracking greenhouse Carbon Disclosure Project, we recognize that respondents tothe As oneoftheoriginal Power Projects Dioxide Emissionsfrom Citi-Financed Tracking ClimateChange: Carbon 2 emissionsfrom power plantsthat T N E M N O R I V N E change. The statementcallsforthecreation Citi released itspositionstatementonclimate communities we serve. 2007, InFebruary oftheclientsand the interests andconcerns positionforCitithatreflectsappropriate an theissueandtodetermine understand stakeholders tohelpusfurther and external In 2006Citicontinued toengagewithinternal uniformity and certainty to markets. the need for climate policies that utilizerapidity and bring and severity of change. causesWe associatedalso recognize with human activity,Citi acknowledgesand the the scientific consensusglobal around environmental, economic and politicalClimate change issue. has emerged as a paramount Climate Change understanding andpromoteunderstanding climatesolutions. products, to improve andexpertise services is leveraging abroad rangeoffinancial Through theseand otherinitiatives, Citi • • • • • other sections of this report, include: Some of these initiatives, which are discussed in significant steps to help address climate change. footprint. Our business units have also taken of our own energy consumption and GHG efforts started in 2002 including the measurement Citi’s current engagement on climate builds on forconsumers. energy prices advancement, andreasonable energysecurity economicgrowth,also support technological not onlyhelpaddress but globalwarming approaches toreducing GHGemissionsthat and implementationofnationalglobal      by CitiFoundation. CitiCapital; and Investment Research group; Global Wealth Management’s Equity 2005 levels by 2011; GHG emissionsby 10percent from Investment Program; Investments’ Sustainable Development and biofuelsthrough Citi Alternative Forestry carbonoffsetprograms supported Facility energyefficiencyfinancingat Climate-related equityresearch within Commitment toreduce footprint Private equityinvestments inwind, solar > > >

69 CR 2006 responsibilities as part oftheirmandate.responsibilities aspart and peoplewithinCitithathave environmental Below thatoutlinesthemany units isachart III. OrganizationandPeople ENVIRONMENTAL RESPONSIBILITIES AT CITI issues environmental andsocial policy on advice andoversight provide 16 seniormanagers Review Committee Environmental andSocial Policy issues environmental policyandother Citizenship, consultson Led by theDirectorofCorporate Environmental Unit Affairs Primary responsibility for global corporate citizenship, responsibilityfor globalcorporate Environmental Primary Affairs, andCitiFoundation Director, Citizenship andPresidentCEO, Corporate CitiFoundation citizenship initiatives ofcorporate Committee withoversight Member ofCitiOperating Citi Chief Officer Administrative environmental policies Reviews corporate Public Committee Board ofDirectors Affairs

T N E M N O R I V N E

CMB USPublic Finance with financings Work withclientsonenvironmental andsocialissuesinconnection and CMB RelationshipManagers Transactors agencies’adherence toofficialexport environmental standards Entire professional staffof62implementsESRMpolicy, including and Agency Finance CMB Export Entire professional staffof70implementsESRMpolicy Finance andEnergy CMB Infrastructure the EquatorPrinciples, andapproveA transactions Category More than20Sr. implementtheESRMpolicy, CreditOfficers including CMB IndependentRiskManagementGroup/ESRM Approvers issues environmental andsocialrisk Approvers, ESRMChampions, andotherCMBstaff globally on Led by CMB’s ESRMDirector, provides counselandadvice toESRM CMB ESRMUnit communicate Citi’s environmental commitmenttooursuppliers to Procurement professionals work “green” oursupply chainand Procurement procure greenpower footprint, reduceenergy and Facilities managers setreductiontargets RealEstate Services Corporate Manages CitiInvestment ResearchincludingSRIresearchreports Global Wealth Management Sustainable Development Investment Program Investment professionals identifyandmake investments underthe Citi InvestmentsAlternative recycling andbrownfield projects financewater,14 seniorenvironmental bankers sewage, solid waste,

> > >

Affairs Unit Citi’s Environmental Christopher Quirkof Valerie Smith,and Bruce Schlein, (from left)

7 0 CR 2006 will define reports thatarewill define neededto better manage reports track reduction targets. Inaddition, theCouncil the useofenvironmental databasetoset and to reduce carbonemissions; andways tomaximize practices tolower costs; inclusionof “green” energy applied globally. This willincludeenergypurchasing onenergymanagementgoalsthatcanbe agreeing around theworld. The Councilisintheprocess of of dataandtosharereporting bestpracticesfrom implement for clear the businesscollection and rules The CitiGlobalEnergyCouncilwas established to effectiveness. programs that canbemeasured fortheir forward withmore aggressive conservation toimproveopportunities efficiency as we move accuracy ofourdataandenable ustoidentify and Europe. We believe thiswillensure theutmost oftheUnitedStates bill-paying inparts services also begancollectingdatathrough third-party, hundreds ofemployees whoinputthisdataand commitment. We increased trainingforthe valid measurements toattainingthis are crucial gasemissions,and greenhouse recognizing that onenergyusage andreporting for measuring Citi looked atways toimprove itsmethods goal would bereached. followed by someconcrete actionstoensure our baseline by 2011. This ambitiousannouncementwas gasemissions bygreenhouse 10percent ofour2005 Early intheyear, Citicommittedtoreducing New Initiatives be adoptedastheCitiway. will beembracedasnew ways ofdoingbusiness will goalisthattargetedprograms andinitiativesterm impact thatCitihasontheenvironment. The long- increase recycling and, inotherways, lessenthe on thejob, inorder toreduce energyconsumption, employees are beingengagedtomodifytheirhabits other initiatives. ofthateffort, part As animportant portfolio, procurement, energyusageandmany globally. This approach encompassesourreal estate growth intooureveryday business practices, of environmental responsibility andsustainable culture thatembedstheprinciples a corporate In 2006, in building Citimadesignificantstrides IV. OurEnvironmental Footprint T N E M N O R I V N E Services and Citi Realty Services (CRS) – the unit unit the – (CRS) Services Realty Citi and Services Procurement Citi between partnership the buildings. its in is That’swhyimpact environmental direct Citi’sfirm, largest services financial a As Cradle-to-Cradle Procurement combination ofsolar, biomassandwindsources. In Switzerland, 4,982MWhwere generatedby a 10,218 MHhsusedwere from renewable sources. Agency “Green Power Partner.” InItaly, allofthe for recognition asaU.S. Environmental Protection for both2006and2007. This level qualifiedCiti where power 37,083MWhofgreen was purchased The largestconcentrationwas intheUnitedStates, We alsopurchased power. 52,283MWhofgreen to seniormanagementandregulators. energy consumptionandtoprovide regular updates material thatwindsupinlandfills.material The goalwillbetominimize theamountof disposition ofevery componentusedinthebranch. network, we are identifyinga “cradle-to-cradle” ofourglobalexpansion theretail branch part for ourprocurement forfacilities. ofmaterials As Citi isalsodeveloping acradle-to-cradle approach endlesslyandwillnevercarpet besenttoalandfill. cradle design. willberecycled intomoreThis carpet themselves forreuse isthedefinition ofcradle-to- product andrecycling thecomponentsbackinto new fiberand backing. afinished Deconstructing the endofitsusefullife, itwillberecycled backinto carpet’s lifecycle. first has reached Whenthecarpet post-industrial content are used in the creation of the Sacramento, California. Carpet trimmings and other Contract Group carpet found in our facility in West to product designisembodiedintheShaw An exampleofthecradle-to-cradleapproach disposal. or recycling to manufacture their from products of impact the considering procurement, to approach cradle-to-cradle a on 2006 in together working began twounits team, the integrated services. an As building and furniture carpet, fabrics, materials, construction energy, including products of array full involves a facilities our friendly.for Procurement environmentally more practices management and construction facility our making to critical is – worldwide facilities our managing with charged > > > 7 1 CR 2006 of transporting thegoods,of transporting thatthey despite thefact the jobsitetominimizeenvironmental impact purchased from asupplierthat was locatedcloserto modifications. Precast concretewas material States useshigh-efficiencyequipment andother intheUnited A datacenterunderconstruction andotherupgrades.energy-efficient technologies time, are olderdatacenters beingretrofitted with negative impactontheenvironment. At thesame to reduce energy consumptionandminimizeany is consciouslytakingwhatever steps are possible In planningandbuilding itsnew data centers, Citi that 90 percent of employees will enjoyhigh-efficiency outside views. fixtures and workstations Thedesigned building so has a storm-water recycling program,tower is being erected that will attain InLEED New Silver Yorkstatus. City, a new 525,000-square-foot office basic LEED Certified standards. mid-course adjustments that aligned this facility with The development team was nonetheless able to make construction of office buildings and operations centers. target LEED Silver as a minimum standard for new was initiated before we made the commitment to more efficient to operate. Design of this building certified as a LEED building and will be significantly square feet. This new facility is in the process of inbeing the Dallas metro area by approximately 500,000 employees. The new site reduces our occupancy a new multi-building office park to house some 6,500 achieve LEED status. In Dallas, Texas,Meanwhile, Citi constructed new facilities are being designed to adhere toLEEDoperatingprinciples. is thatotherlargecompanieswillbeencouragedto seeking to assess their real-estate portfolios. The hope Council define a user-friendly process for corporations leadership position in helping the U.S. Green Building LEED status for our existing buildings. Citi is taking a step in determining how to most efficiently achieve EPA’s “Energy Star” energy database. our largestThis office was buildings the was firstentered into the U.S. year in the United States, for example, data for 89 of retrofitting old sites to be more energy efficient. This buildinggreen practicesinnew facilities, aswell as continues to grow, we are focusing on implementing As Citi’s employee populationandfootprint Building for Tomorrow T N E M N O R I V N E of how Citi is adapting its portfolio. In Brazil, Throughout the world, there are other examples 2008. commissioning inFebruary istobedelivered 2007andthefacility April for heat andsave electricity. in willstart Construction is covered toreduce withsoilandorganicmaterials heat recovery roof andagreen andwalls. The roof Silver status. The building willhave free cooling, in Europe thatisbeingdesignedtoattainLEED Even more impressive isadatacentertobebuilt lighting was designedtolimitlightpollution. carbon andprovide anappealingvisualbarrier. Site trees were tosequester plantedattheperimeter being minimizedandrecycled where possible. Extra were notthelow bidder. waste Construction is environmentally friendly. Europe, with the goal of making the sites more being disseminated to other locations throughout as a pilot. Going forward, these experiences are operate the building. The certification was undertaken the environmental soundness of all processes used to conducted by an independent agency that examines certified as an ISO 14001 building through a program Our London headquarters at Canary Wharf was a “Guardian of the Environment” for this initiative. Environment and Natural Resources named Citibank and irreversible. The Manila Department of the impact of damaging the aquifer is incalculable of operating a deep well is lower, the environmental usage. We recognized that while the economic cost operating systems to minimize deep-well water Manila, Citi made a decision to change its water At our main headquarters in the Makati district of nonpotable gray water. restrooms and send it for treatment to be recycled as center will be installed to collect waste water from phase of the project, a water and sewage treatment gardens, and clean the building’s facade. In the second recycled and used to flush toilets, water plants and air-conditioning cooling towers. This water will be it can collect rainwater and water from its well and 60 percent. The building will be retrofitted, so that recycling that will reduce water consumption by all of its hydraulic installations to include water approximately 3,000 staff members, will adapt the head office building, which is occupied by > > > 7 2 CR 2006 consumption awareness campaignwas started. Tap were sensors addedtosinks, andawater conserve energyandreduce carbonemissions. tofurther andair-conditioningtimers light sensors plastic bottlesandinkcartridges. CRSinstalled They alsolaunchedarecycling program forcans, products suchasrecycled paperandcups. and envelopes, andbuying environmentally friendly whenever feasible, reducing printing, reusing paper UAE, they promoted switching offequipment Officerinthe oftheCitiCountry endorsement initiatives. ande-mails, Usingposters andwiththe a “Go Green” program withawiderangeof In theUnited Arab Emirates, employees created Riverdale inLondon. Housefacility to increase recycling and waste reduction atour smallappliances,Off” lightsandPCsaswell as organization, acampaignwas launchedto “Switch Working withGlobal Action Plan, acharitable usage by 5 percent this year in the larger facilities. Asia are on track to meet a target of reducing energy electricity. Through this program, our facilities in most progress in reducing their consumption of building operators and employees who made the Recognition was provided each quarter to the conservation across all buildings in the portfolio. “Project Candlelight,” which encouraged energy Asia was the site of a friendly competition called the everyday work habitsofourpeople. While ourbuildings are beingtransformed, soare Employee Engagement T N E M N O R I V N E successful we will deploy the software more broadly.being planned for the first half of 2007. If that pilot is creatively to overcome obstacles as they arise. opportunitiesA pilot is to use the software and in thinking have formed an effective partnership in identifying efficiencies. The IT Group and CRS personnel from remote locations, yielding further operating update software and return PCs to dormant status provide our technology administrators the ability to are not being used. In addition, the software will a reduction from 82 watts to 4 watts in PCs that successful, this program will enable us to achieve compatible with our equipment and networks. If program that lowers the energy use of idle PCs is A study has been initiated to determine if a software Future Initiatives or indirectly. place thatwould affectthefinancialsectordirectly federal orstateregulations aremandatory putin offset GHGremediation costsintheevent that thepotentialimpactofhaving to and determine build thevalue ofcarbonintofinancialmodels “carbon calculator,” whichenables companiesto work group. Citiisintheprocess oftesting WRI’s Resources Institute(WRI)ClimateNortheast We have beenanactive memberofthe World Environmental andEconomicperformance. which encouragescompaniestosetgoalsforSocial, is amemberoftheBRT S.E.E. Changeprogram, Roundtable (BRT) “Climate Resolve” initiative and improve. Citiisanactive oftheBusiness supporter to berole modelssothatwe cancontinuously companies andorganizationsthatare considered andtocollectbestpracticesfromwith others other believe toshare ourknowledge thatitisimportant ofthatachievement. part activities asanintegral We we view ourenvironmental commitmentsand profitable company, globalfinancialservices and Citi’s goalistobecomethemostrespected and Leading the Way > > > 7 3 CR 2006 Citi 2006Environmental ImpactReport

Indirect CO Direct CO Total CO Total Water Consumption (m Refuse andother Recycled officepaper Total Waste (metrictons) Produced/ConsumedEnergy (GWh) Fuel oil gas Natural PurchasedEnergy (GWh) heating(steam&chilledwater) District Electricity Total Consumed(GWh) Energy Absolute Indicators Surface areamonitoredinmillions* Occupants Seats Total Consumed Energy Indicators Net CO Green power offsetsCO * Excludessublet space where utilitiesareconsumedandfundedby nonCititenants GWh =gigawatt hour, KWh =kilowatt m3=cubicmeters; hour; sf=squarefeet LEGEND: Total CO 2 2 2 2 (GHGScope1) (GHGScope1&2)(metrictons) 2 (GHGScope2) 2 3 ) T N E M N O R I V N E Metric Metric Tons/SF Metric Tons/Occupant KWh/SF KWh/Occupant Unit > > > Absolute V 1,387,413 7,467,308 1,353,840 1,338,905 103,481 (33,573) 400,000 410,384 86.7 SF 48,507 80,787 22,694 0.0160 2,705 2006 2006 2,462 2,361 6,763 244 186 101 3.5 57 31 alue 1,294,351 7,316,338 1,286,740 1,243,800 374,000 378,512 96,340 82.7 SF (7,611) 0.0157 50,551 76,022 20,318 2,552 2005 2005 2,296 2,195 6,823 256 202 101 3.5 54 31 74 CR 2006 reflect an estimate of consumption prior tothe reflect anestimateofconsumptionprior if adjustmentsshouldbemade tothebaseyear to of alargeacquisitionin2007, we willdetermine from 2005, astraight average was used. Intheevent at thebuilding level. Intheabsence ofmonthlydata footage, number ofseatsandnumber ofoccupants) changes(square monthly trackingofportfolio 2006thatwillenable database functionalityduring theyear.usage during Adjustments were madeto occupants was created tobetterreflect thelevel of average measure ofoccupiedspaceandnumber of emissions peroccupantandsquare foot. An ofconsumptionand intensity expressed interms the absoluteamountsforeachyear aswell as this year’s we reporting have decidedtopublish theyear continuesduring tobeachallenge. In made Accounting forchangestotheportfolio and 2006 data in this report to assure consistency. by UNEP. The new factors were applied to bothyears Citi2005 had used the conversion factors published conversionuse ofClimateLeaders factors. Inpast One changethatwas adoptedimmediatelywas the analysis willbeconductedin2007. consumptionin2006.with ourelectrical Additional of N by theEPA, we have that20nettons determined CH (N of compilingdataforthenew categories We are thefeasibility intheprocess ofdetermining suggestions thatwould involve expandedreporting. for anindependentreview, andthey madeseveral designated by theEPA program ClimateLeaders GHG Inventory Management Process to consultants were beyond ourscopein2006. We didsubmitour need tobemadeoursystemsandprocesses that recommendations, there are somechangesthat aspire tomeetalloftheGRIand WRI/WBCSD Agency (EPA) were examinedindetail. While we (WBCSD); andtheU.S. Environmental Protection Business CouncilforSustainable Development World Resources Institute(WRI)and World published byInitiative GlobalReporting (GRI); 2006.during The GHGinventory protocols environmental continued toimprove footprint tomeasureThe actionstaken our internally Data Analysis: 4 ). Byapplyingtheconversion supplied factors 2 O and36nettonsofCH 4 were associated T N E M N O R I V N E 2 O and of buildings dedicated to this function will shrink. grow while the number of square feet and number available in our global data centers will continue to be noted that the processing and storage capacity continue in varying degrees through 2010. It should must operate. This was the case in 2006 and will transition when both the outgoing and new centers diverse, more efficient locations, there is a period of is to move data processing into geographically program was in progress. While the ultimate goal In addition, the global data center consolidation Citibank branches and CitiFinancial locations. organic growth of the retail network for both During 2006, there was a company emphasis on 2006 asmostofthegrowth was organic. acquisition. Nosuchadjustmentswere madein CO expanding the use of “green power”, the increase in By putting conservation programs in place and overall energy consumption increased by 6.6 percent. building occupants expanded by 7 percent. The in square feet grew by 6 percent and number of During 2006 the overall portfolio size measured when the strategy is fully implemented. well for the long-term efficiency that will be gained efficiently than the existing configuration. This bodes better manage proximity risk and will operate more The new facilities will be geographically dispersed to (GHG Protocol Scope 3) commercial business air travel CO B 2 usiness Air Travel: emissions was limited to 5.2 percent. 2 emissions from > > > 195,071 metric 2006 tons 177,656 metric 2005 tons 75 CR 2006 local sources ofpower from renewable sources. tothedevelopmentour influencetocontribute of touse and lookforopportunities other countries continue tomonitormarkets power forgreen in (175 percent) forpurchasing energy. green We will into five countries, and far exceeded ourtarget we asopposedtoexpandingtheeffort three countries to concentratethepurchase power ofgreen in oftheyear, thecourse During adecisionwas made percent against a3percent goal. to reduce our CO target. power By applying green offsets we were able occupant, but didnotmeetour3percent reduction a slightreduction intheenergyconsumptionper of occupant/square foot. As aresult, we achieved retail outletsnegatively impactedthedensityratio centers; however, and theexpansionofdatacenters the occupancyratiosforoffice buildings andcall in 2006. 2006, During Citicontinued toimprove slightly higherconsumptionandCO taken toreduce consumptionandresulted in andretailof datacenters branchesoffsetactions As notedabove, theorganicgrowth inbothareas noted inthe2005data. errors There were alsosomeminoradjustmentsmadetocorrect suppliedby theEPA factors to conversion Program. ClimateLeaders year (boththe2005dataand 2006goals)asaresultofourswitch Note 1: An adjustmentwasmadetothedatafor the2005reporting Performance against2006 energygoals: purchase energy discretionary included in power is which green in countries Number of purchased Green power (note 1) per occupant CO (note 1) per occupant consumption Energy Item 2 emissions GJ/occupant kg/occupant actual 2 emissionsperoccupantby 1.6 52,283 MWh 2006 3,350 24.3 3 GJ/occupant kg/occupant goal 30,000 MWh 2006 3,303 23.8 2 emissions 5

T N E M N O R I V N E GJ/occupant kg/occupant 10,498 MWh 2005 3,406 24.5 3

occupant level in 2005. Citi’s vacancy rate of low-density usages, Citi improved from 221 RSF/ and data center space, both of which are typically 490 RSF/fte. In spite of organic growth in retail person while the industry average was reported at Citi occupied 217 Rentable Square Feet (RSF) per for Financial Institutions having branch networks. recent (2004) Real Estate Executive Board survey all building types to the data contained in the most data and compared the occupancy density across of space. In 2006 we took a different view of the would need an additional 70 million square feet financial institutions with branch networks, Citi centers at the same rate as the industry average for Citi were to use space to house office and operations In last year’s Citizenship Report we noted that if Efficient UseofResources and Future Planning section on pages 73-74. related to these efforts are included in the Evaluation efforts that were initiated in 2006. Our 2007 goals staff to broaden the already wide-reaching awareness be a greater emphasis placed on education of our processes designed to lower consumption. There will also continuing implementation of sound operating We will look at transformational technologies while reduction of greenhouse gases by 2011 still lies ahead. required to achieve our objective of a 10 percent during 2006, we realize that the “heavy lifting” While we are proud of the progress that was made Environmental goals for2007 footprint having apositive effect. indication thattheprograms beingputinplaceare provide astatisticallysignificant result, itisonemore variables thatwould need tobestandardized to Citi’s 6.75MWh/occupant. While there are many 23 companieswas 8.7MWh/occupantcompared to 23 financialinstitutions. The average across allofthe Environmental/Citizenship published by Reports per occupantranked, datawas extractedfrom To where ourenergyconsumption helpdetermine average of 4.0 percent 2.0 percent also compares favorably to the industry > > >

76 CR 2006 post-consumer recycled. tons)forourU.S.metric operationswas 30percent 91 percent of the copy paper purchased (totaling 8,186 Paper Project with Environmental Defense, in 2006, copy paper. Building on our 2003 Recycled Copy option ismadeavailable, asisthecasewithrecycled comparable prices. In some cases, only the recycled available alongsideregular office products at by making more environmentally options friendly calendars. This program gives our businesses a choicerecycled products ranging from copy paper to procurement systemnow offers more than 1,100 In North America, ouronlineofficesupply reduce the number of devices we use by over 10,000.North America and is planned for rollout in 2007, will the initiative, which will target 47,000 employees infrequent service, and use less toner. WeThe estimate newer that digital devices use less energy, requireto less dispose of when they have reached their end of life.energy consumption as well as the number of devices By reducing the number of devices in use, we reduce of functions such as printing, copying, and scanning.devices — office equipment that supports a number impact through the deployment of multi-functional Procurement is working to reduce our environmental Office Products andServices as appropriate for each country. part of our RFP process globally and will be applied the rollout of the system, these questions are now a in North America as part of our RFP process. With Questionnaire, which was first implemented in 2006 the results of our Corporate Social Responsibility the data submitted to Citi by its suppliers, including enables Procurement to better understand and use global sourcing application in September. The system In support of these goals, Procurement deployed a processes to create greater operational efficiencies. in 2006 centered on improving and standardizing A number of goals set by Citi Procurement Services Supply ChainManagement T N E M N O R I V N E in oursystems. are usableensure thattherecycled colorcartridges attention willbefocusedontherequired testingto that product isnotyet widelyavailable. In2007, increased,cartridges andtherecycled version of In 2006, however, business demandforcolorprinter formonochrome printers.recycled black cartridges purchased by Citibusinesses weretoner cartridges business usagepatterns. Previously, mostofthe for several reasons, oneofwhichwas achangein percent to45percent. We didnotmeetthisgoal office suppliesfrom analready highlevel of44 increase ourpercentage totalspentonrecycled less than10percent. In2006we hadsetagoalto products, average incontrasttoanindustry of supplies inNorth went towardAmerica recycled In 2006, 32percent oftheamountspentforoffice 2006 Recycled OfficeSupply Spend 32% > > >

2005 44% 2004 37% 77 CR 2006 in early 2007. which 285 metric tons of FSC paper was purchased businesses, including the 2006 Annual Report, for specialized print projects that are required by our ability to use FSC-certified products for more of the Report since 2004. These activities will increase our us to source FSC-certified paper for the Citizenship chain-of-custody certification in 2005 and has helped primary suppliers, Central Lewmar, achieved FSC vendors also achieved FSC certification. One of our FSC product offerings in 2006, and three of our print number of paper mills used by Citi announced new a result of Citi’s interest in purchasing FSC paper, a an increase of over 200 percent from 2005. In part as Markets & Banking unit in 2006 was FSC certified, special publications and marketing) used by the Citi metric tons) of collateral paper (paper used for availability and variety. As a result, 15 percent (557 products, taking advantage of a trend towards greater of Forest Stewardship Council (FSC) certified paper In 2006 we significantly increased our procurement FSC-Certified Paper T N E M N O R I V N E a jointmarketing toofferafinancing agreement signed andCitiMortgage Electronics Corporation Solar: Sharp Global ConsumerGroup: projects, andfinancings: Below are examplesofsometheseinitiatives, from ourbusiness units. tosustainable developmentcontributions willcome programs andemployee giving, Citi’s primary responsibility that inadditiontoourcorporate environmental andabusiness standpoint. We believe thatmakeon opportunities sensefrom bothan approach toonethatalsocapitalizes a risk-based Citi’s environmental from focusistransforming V. Sustainable Enterprise period allowing clients to pursue upgrades. by the improved technology over a 15- to 20-year financing model amortizes the cost savings generated more efficient, cleaner technology. This innovative energy savings and then replace equipment with service companies to analyze and identify potential Citi’s Global Consumer Bank, works with energy carbon and other pollutants. CitiCapital, a unit of and other users, and reduce overall emissions of improve lighting and indoor air quality for students and thereby helping clients to realize cost savings, underwriting facility energy efficiency upgrades, institutions with more than 20 years experience in CitiCapital: now oneofitslargestgrowth businesses. as aboutiqueproduct lineforthecompany andis of Sharp’s systems, homesolarelectric whichbegan September 2006, willhelpdrive consumeradoption is hopedthatthisprogram, whichwas rolled outin dip intotheirsavings ortake outageneralloan. It system,the homesolarelectric ratherthanhaving to out ahomeequityloanorlineofcredit tofinance program totake enablesCitiMortgage customers installation costisapproximately $31,500, andthe in2004. atCitiMortgage senior managers The Electronics,Sharp Masazumi Nakayama, and conversations between CMB’s seniorbanker for during idea forthisuniqueprogram surfaced systems.purchase andinstallsolarelectric The convenient, easilyaccessible financingoptionto program thatprovides homeowners witha > > > CitiCapital is a leader among financial Inthesummerof2006, Sharp 78 CR 2006 underwriter in this category with 22 percent percent 22 with category this in underwriter leading a again was disposal.Citi waste solid sewerage, and control,and water recycling pollution for facilities billion, including $10.5 over totaling projects beneficial environmentally 115 U.S.financed Group Finance Public Group: Finance Public clients intheseareas. andserve positioned toactontheseopportunities across groups, thevarious sothatthebankisbetter andideasaboutalternative energy of information the taskforce was created toensure dissemination cells. With thisgrowing business segmentinmind, of transactionsinsolar, wind, biomass, andfuel of years, CMBhascompletedanincreasing number North PowerAmerican Group. Inthelastcouple is headedby HalClark, ofthebank’s Chairman industry, product, lines. andgeographical The group composed of27professionals spanningarangeof CMB created an Alternative Energy Task Force Alternative Energy Task Force: Citi Markets &Banking: consumer level. efficiency and renewable energymarkets atthe enable intheenergy ustocontinue toparticipate above, solarfinancingproduct described Sharp will hope development ofnew products, suchasthe consumer demandisrealized. Additionally, we outlets ifanincreaseor increase in distribution enhancements toaddfurther has theopportunity will continue toprovide andalso thisoffering consumer demandforthisproduct. CitiMortgage energy efficienthousing, there hasnotbeenbroad Although there isgrowing consumerdemandfor oftheborrower’sthe purpose qualifyingratio. energy efficiencyare countedasincomefor savingsproduct from soelectricity isstructured to lower- andmiddle-incomeconsumers. The product developed by FannieMaeandtargeted theEnergyEfficientMortgage,began offering a Energy EfficientMortgage: financing is making a significant contribution. CitiCapital’s portfolio of over US$1 billion in change through the reduction of greenhouse gases, by energy efficiency initiatives in addressing climate without capital outlays. Given the key role played In 2006, In Citi’s In2004, Citi InJuly 2006, T N E M N O R I V N E improvements. The transaction allows the District District improvements.the allows transaction The school Florida finance to used typically structure innovative an using transaction million $546 the managed lead Citi Florida. of State the and District, the U.S. Engineers, of Corps Army the between (CERP) Program Restoration Everglades Comprehensive billion $10.5 estimated the of part — projects restoration Everglades of construction begin to participation of certificates of issuance inaugural District’s Management Florida Water South the completed Citi volume). industry total of percent (27.9 financed sewerprojects and water in billion over $8.0 with underwriter leading a subcategory,also was Citi finance environmental sewerage, share. and largest market water the In and economic deterioration. economic and sewerutility, technical and of water years reversing major a at programs compliance environmental substantial for loans direct in million $670 provided also Group Finance Citi’sPublic projects. management organics projects, and recharge system, groundwater water recycled a fund to program paper commercial tax-exempt million $75 a implemented Citi Empire, Inland the of resources.behalf On natural its managing aggressively is Agency Utility Empire Inland California’s shrinking, supplies water and growing population the With envisioned. than sooner years benefits environmental achieve to > > > 79 CR 2006 “ centers.through agricultural Currently, family-based and sunflower; and(iii)extensive agriculture on cultures like castoroilplant, jatropha, soy, cotton, smaller companies; (ii)intensive focused agriculture with andpartnerships contracts withlargesuppliers acquisition ofvegetable oilsinthemarket through supplychainisbasedonthree pillars:material (i) producer of biodiesel in Brazil. Brasil Ecodiesel’s raw was established in2003andisnow thelargest markets in2006.and international The company Ecodiesel’s US$177millionIPOintheBrazilian Biodiesel IPO: — transformation.” of smallfarmers. We are confidentthatthisis a social vehicle oftrue the soilandenvironment through technicalassistanceandtraining producing oilseedsinasustainable manner, theconservation of ensuring allover thecountry,thousands ofsmallfarmers isalsodedicatedto in additiontopromoting socialinclusionandincome generationfor environmental benefitstocommunities. TheBrasilEcodieselproject, lives, potentialtotransform economic,an enormous bringing social, and for globalwarming. When produced inaresponsible way, Biodieselhas renewable fuelthat drasticallyreduces emissions ofpollutantsresponsible environmental values asitsbasicguidingprinciples. Biodieselisalready a resourcesnecessary fortheexpansionofourproject, whichhassocialand We are extremely pleasedtohave inobtainingthe Citiasapartner Brasil Ecodiesel CEO Nelson Silveira

Citi was the underwriter ofBrasil Citiwas theunderwriter

T N E M N O R I V N E carbon credit market. credit carbon the for eligible potentially it making emissions, carbon of percent 78 to up reducing and engines, diesel regular in adaptation any of need the without fuel diesel mineral substituting fuel, alternative and renewable truly a is It fat. animal as well as plant, soy, as castor such sunflower,and oil vegetable any with produced be can Biodiesel 130,000 by 2007. Ecodiesel, anumber thatisexpectedtoreach product contribute toBrasil 27,800 families > > > 8 0 CR 2006 a leadingChinesemanufacturer ofphotovoltaic investment inJiangsu Linyang SolarfunCo., Ltd., Also in2006, madeanequity CVCInternational employment totheregion. much in Oswego needed facility County is bringing area. Biofuels oftheNortheast The construction markets theimportant ofthetristate States serving “destination” United ethanolplantinthenortheast York facility, Biofuels, Northeast willbethefirst completed attheendof2007, Permolex’s New inupstateNew under construction York. When Alberta, Canada, andalarge-scaleethanolfacility ethanolproducer withexisting operations American L.P.,Permolex International aleadingNorth In June 2006, CVCIfundedaninvestment in biofuels, solar, andclean technology markets. $75 millioninSDIPclassifiedinvestments inthe Citi invested through fundsapproximately various in companieswithintheSDIPscope. In2006, invested orcommittedapproximately $150million Since theinceptionofSDIPin2004, Citihas world. developing and developed the both in investments makes and Investments, Alternative Citi of unit a (CVCI), International Citi of Capital Venture part is SDIP (SDIP). Program Investment Development Sustainable its through markets credit reduction emission GHG and technologies, efficiency/clean forestry,energy sustainable management, water and energy, waste renewable in investments (SDIP): Program Investment Development Sustainable Citi Alternative Investments: regulations. environmental with comply to failure a and services inefficient by characterized been has past the in which industry, management waste Mexico’s professionalizing in role important an playing is PASA sites. treatment waste at disposal to pickup from cycle, management waste complete the for technologies new develops and services out carries PASA 2005. of end the at markets international and Mexican the in (PASA) Ambiental Promotora of IPO million US$115 the for arranger lead IPO: Ambiental Promotora Citi makes private equity equity private makes Citi Citi was the joint joint the was Citi T N E M N O R I V N E in the emerging markets.in theemerging As aresult ofthese acidplants, nitric coalminesandlandfillsprimarily SCC focusesonreducing GHGemissionsfrom developer calledSindicatumCarbonCapital(SCC). gasemissionreductiongreenhouse credits project In early2007aninvestment was madeina and alternative energy. promising new togeneraterenewable technologies an earlystageinvestor incompaniesthatdevelop based in Vancouver, Columbia. British is Chrysalix CleanEnergyFund,commitment totheChrysalix Finally, inJune 2006, SDIPmadeamaterial December 2006. fund Solarfun’s toitssuccessfulIPOin growth prior solar cellsandmodules. The investment was usedto the community. from toseekways theresort canenhance theresort which looksbeyond minimizingnegative impacts live in thearea; and afocuson “regenerative design,” that peoplewhowork atLoreto Bay canafford to Regional Affordable HousingStrategy toensure totheresort;electricity implementationofa tosupply ofa20MWwindfarm construction blocks madefromearth localadobe-like material; sustainable features are theuseofcompressed across ofdevelopment. allfacets Among themany environmentalincorporate andsocialcomponents development, hasbeenplannedto andtheresort modelforsustainable resort an international in North America. Loreto Bay seekstobecome sustainable community resort underdevelopment With 6,000homesplanned, theproject isthelargest Villages ofLoreto Bay inBajaCalifornia, Mexico. ownership interest. The company isdeveloping the effectively providing CPIwitha50percent of convertible debtintheLoreto Bay Company, sustainable development investment —$50million capital.proprietary In2006, CPImadeitsfirst and high-net-worth clients, aswell asCiti’s own investstrategies capitalonbehalfofinstitutional in real estateprojects globally. Itsthree flagship Alternative Investments, makes equityinvestments InvestorsCiti Property under theKyoto Protocol. emission reductions, SCCgeneratescarboncredits > > > (CPI), aunitofCiti 8 1 CR 2006 using thefollowing platforms: Financial Smith Barney implementSRI Advisors intheportfolios.the ESGrisks while alsoachieving theirsocialgoalsandevaluating governments tohelpthem meettheirfinancialgoals institutional investors aswelland ascorporations clients. Financial workAdvisors withindividual and oftheirdiscussionswith are includingSRIaspart and visibility, Financial SmithBarney Advisors As theissueofsustainabilitygainsinimportance equity pricing. impactson andtheassociatedmaterial performance ofESG andopportunities elucidates therisks than debatingamoralissue, thisapproach simply on performance “extra-financial” issues. Rather become widelyusedtorefer tooverall corporate has Social andGovernance (ESG) performance standards. Recently, Environmental, the term companies toensure ethical they meetcertain whileatthesametimescreening of performance designedtodeliverportfolios anacceptable level objectives by helpinginvestors create diversified investing (SRI)seekstoreconcile thesetwo ontheirportfolios.return Sociallyresponsible these investors areasonable are alsolookingtoearn in ways they considertoberesponsible. Mostof they oppose, companiesthatbehave andsupport to avoid companiesthatprofit from activities holdings toreflect theirsocial values. They wish Investing: Financial andSociallyResponsible Advisors Global Wealth Management:

1) 3)  2)  A mutual fund advisory program,A mutual fundadvisory which includes leadingSRImutual funds; by theFinancial Advisors. which are essentially “green” tailored portfolios Individual portfolio managementprograms,Individual portfolio Separately managedaccountprograms; and Increasingly, investors want theirequity T N E M N O R I V N E “

corporate Environmental,corporate Social ofenhanced opportunities able totake advantage ofthe andresearch,platform we are Through ourinvestment the transitiontosustainability. Citi leadthefinancialsectorin arena, tobehelping Iamthrilled eight years intheinvestment environmental fieldandthelast company, andourplanet.” add value forourclients, our to are substantialopportunities Citi research predicted: There practice isshowing justwhat area. Ourresponsible investing inthis ofpoorperformance risks well asmanagetheinvestment and Governance performance, as Having spent20years inthe > > > — Bruce Kahn Bruce Smith Barney Financial Advisor

8 2 CR 2006 Arbor Day Foundation, planted a tree for each each for tree a planted Foundation, Day Arbor National the with partnership in implemented campaign, The statements. electronic to paper from clients its transition to 2006 in campaign a introduced Barney Smith footprint, environmental direct its reduce to effort Citi’s of campaign: paperless Barney Smith suffer, andlistedalternative energyproviders, sustainable builders, assomeofthe andrecycling enterprises ofitskindissuedinchange—the first thatare mostlikely Australia—focusedontheindustries toprosper or America’s oiladdiction, theadvent ofcarbonlimits, andinvesting inclimatechange. onclimate A report Likewise, ofwell-received inatrio andtimelyreports, ouranalystslooked atethanolasanantidotefor Citi SustainabilityMiningIndex, toevaluate whichcompaniesare creating ordestroying value. ability toaddordestroy value forcompaniesglobally, theresearch teamdeveloped tool, aproprietary the development; health, safetyandenvironment (HSE)inoperations; andsustainabilitygovernance—have the examining how ofsustainable thefive development—commodityfactors exposure; exposure; country mine theresearch traditionalfinancialanalysiswithsocialissues.which honors thatbestintegrates report In Citi Investment Research’s onminingentitled report from previous years’ Euro-focus. such assustainable mining, climatechange, carbonlimits, andethanolthatare globalinscope, adeparture light onitsimpactclients’ portfolios. This year CitiInvestment Research ontopics issuedSRIreports Interest inSRIisspreading beyond European markets, by andreports CitiInvestment Research are shedding Citi Investment Research market andtodivine theimpactSRIissueshave onearnings, balancesheets, andcashflows. analyticframeworka stringent toaddinvestment discountedby whatiscurrently the insightstodetermine the investor istoberewarded from afinancialpointofview. CitiInvestment Research analyzesSRIusing revenues, R&D, capitalspending, onadvertising investment, return andpotentialliabilities—inshort, how to guideclientsby identifyingwhatinvesting ofmarket inthesecompaniesreally share, meansinterms While SRIhasbecomeawatchword forsociallyconsciousinvestors, CitiInvestment Research works potential winners. T N E M N O R I V N E As part part As Towards Sustainable Mining replicating this successful initiative. successful this replicating consider to units business Citi other encouraged has that argument an — business the for savings cost in also saved, but paper and planted trees in only not resulted initiative This participate. to opted that clients 116,500 than more the of > > > earned the Farsight theFarsight earned Award, 8 3 CR 2006 our goalsfor2007. goals” thatwe didnotmeetbut willcontinue towork onin2007. Below isanoutlineofourprogress todateand realized over oftheyear thecourse thatthesewere thewrong goalsormetrics; inothercases, we hadset “reach progress inmeetingmostofthem. There were somegoals, however, thatwe tomeet. failed Insomecaseswe social performance. Itwas ourfirst year ofpublishing goalsformany oftheseareas, and we are pleasedwithour of2006weAt thebeginning setarangeofgoals, bothquantitative andqualitative, forourenvironmental and VI. Evaluation/Future Planning supplies procurement Recycled office countries) procurement (# Green power procurement Green power emissions/occupant CO consumption/occupant Energy Indicator 2006 Investment Program Development Sustainable Stakeholder dialogues 2

and 2007Quantitative Goals spend 45% of 5 MWh 30,000 occupant 3,417 kg/ GJ/occupant 23.8 2006 Goal

spend 32% of 3 MWh 52,283 occupant 3,350 kg/ GJ/occupant 24.3 Actual 2006 T N E M N O R I V N E

By applying green power measures efficiency offset energy andretailbranches centers growth indata Organic Comments major factorinthisdecrease of ourrecycledspend, wasa were asignificantproportion which black tonercartridges, Decreased business useof expanded tofive than rather countries inthree concentrated Green power purchasingwas three countries in green power opportunities We saw greatly expanded reduce emissionsperoccupant offsets, we were able to > > > √ X Scorecard X X √

by 4% consecutive data) 24 monthsof buildings (thosewith consumption incore Lower energy 2007 Goal new investments Close atleast3-4 dialogues Convene 1-2 5 (5% increase) 54,897 MWh

84 CR 2006 to thefinancialsector and socialissuespertaining environmental of emerging Continue tostay apprised initiatives employees onsustainability Expand communications to office buildings ofowned construction LEED Silver for new More SDIPinvestments ESRM Policy Greater communication of program training Expand andrenewESRM revise theEPs Work withotherEPFIsto intheEPs participation Expand financialinstitution 2006 goal 2006 Qualitative Goals sustainable growth ofCiti the thatwillsupport program Establish andcommunicate acomprehensiveconservation building design andenergy calculationsfor N Include footprint on theenvironment employees consumption awareness oftheimpactenergy toraise acrossCitiRealtyServices Conduct training communicationContinue toemployees toexpandinternal onsustainabilityissues issues andclientsonhumanrights suppliers itintoemployee statementby trainings, incorporating Implement humanrights sessions, ESRMtraining andengagingwith Develop oftheCMBESRMPolicy anddisclosea public version globally programs training intoexistingrisk CMBESRMtraining Integrate Develop sector-specific guidancenotes for implementingourESRM Policy Policy Sustainable Forestry toimprove withareputable organization regardingour implementationofandprovide guidancetoourbankers Partner issues,Engage clientsonsocialandenvironmental risk includingclimatechange 2007 Qualitative Goals U.S. banktodevelop ahumanrightsstatement. sustainability issuefor banks, andin2006we were thefirstmajor As anexample, we recognized thathumanrightsisemergingasakey wayimportant we stay informed onemergingsustainabilitytopics. We continued toengage witharange ofNGOsandSRIs, whichisone goal.better communicationcontinues oftheseefforts tobeanimportant 325,000 employees remain unaware ofCiti’s environmental work, and employees onCiti’s environmental initiatives. However, many ofour We launchedCitiEnvironmental Awareness Week in2006toeducate standard. LEED Silver; adatacenterinEurope isalsobeingbuilttotheLEEDSilver major officebuildingiscurrently beingconstructedinNYCthatwillbe Although nonew buildingshave beencompletedsincethisgoal wasset, a investment in2005. Citi madethree significantinvestments underSDIPin2006, upfrom one internally willcontinue tobe achallenge andgoal. to affected businessunitsandgeographies. Communication ofthispolicy Policy wascommunicated through broader trainingandoutreach efforts and new trainingsessionswere developed levels for varying ofexpertise. expanded to many additional employees beyond the project finance sector, outreach toclients, NGOs, andSRIs. Citi played aprincipalrole asco-drafterofEP2andinthesubsequent had toreadopt therevised EPs. ago. accomplishment,This isanimportant asalloftheoriginalEPbanks 2007, compared with41bankswhohadadoptedtheoriginalEPsayear 45 bankshave adoptedtherevised EquatorPrinciples(EP2)asof April 2006 results A totalof556employees received ESRMtrainingin2006. The trainingwas 2 O andCH 4 gasesinaccordancewiththeEPA program ClimateLeaders T N E M N O R I V N E

√ √ √ √ √ √ √ √ 85 CR 2006 disabilities aswell asmature adults Awarded peoplewith toBanamexforhiring Mexico Inclusive Company Award — List of100BestCompanies United States Working Mother Scored 100% United States EqualityIndex— Corporate Human RightsCampaign ofemployee15,000 hours volunteer service Gold level recognition formore than United States The President’s Volunteer Service Awards — Citibank forproviding financialeducation United States U.S. ofthe Department Treasury — GO Direct Partnership, ofRecognition:Certificate Federation ofHongKong Industries Hong Kong Certificate of Merit — Green Enterprise of the Year: Citi, CitiFoundation forFY2005— Contributors Most Generous LocalNeighborWorks “More thanHouses” campaign United States 2006 Partner Award — The Habitat forHumanityInternational Financiera Compartamos United KingdomCiti, Banamex& Times Sustainable Banking Awards — Sustainable Dealofthe Year: Financial

N O I T I N G O C E R D N A S D R A W A

magazine—

Europe Commitment toFemale Talent — NowOpportunity — CityFocus for Best companiesfordiversity United States — Enterprise Black gender equality Awarded toBanamexforhaving bestpracticesin Mexico Family Responsive Company Award — employees’ business andprivate lives Third place award of recognizes theharmonization Czech Republic Women andMen— for Best Company withEqualOpportunities engagement Re-awarded Junior Achievement-European United Kingdom BITC Awards 2006— Edutainer project: South and Africa Tanzania United Kingdom Big Tick Award — (Banks in Action Programme) Silver level: Junior Achievement South Africa Star of Africa Award (EducationCategory)— Silver level: Save theChildren South Africa Star of Africa Award (HealthCategory)— InvestmentCitigroup Corporate Banking OfficeofDiversity

86 CR 2006 Most Sustainable Corporate Image Most Sustainable Corporate Award 2006 Indonesia Indonesia’s Most Admired Company — Program. Ownership, Wealth (WOW) Homeownership For ofCBCF’s Continued Support With United States Congressional Black Caucus Foundation — IT inRetailBanking— Banking Technology Awards 2006: Bestuseof (Category: Motivation: Banamex) (Category: CustomerFocus: Latin America) Latin Trade andMexico Best Employers inLatin America, Deal ofthe Year 2006— BRAC: Securitization Deal Awards 2006 BRAC: The Asset Triple-A Houseand BRAC’s $180millionsecuritization CFO Asia 10 MostOutstandingDealsof2006:

magazine

IndiaCitibank, N.V. IFR N O I T I N G O C E R D N A S D R A W A

United States Index company — Equality 100% Corporate 2006 Most Admired Company Taiwan CommonWealth ofRecognition Certificate Citizenofthe Corporate Year 2005-2006: India Economic Times — Employer ofChoicefor Women Australia Workplace Agency (EOWA) — for Equal Opportunity Women inthe Black Enterprise Black United States 40 BestCompaniesFor Diversity — Gay, Lesbian, StraightEducationNetwork United States Respect Award —

Magazine Magazine—

87 87 CR 2006 3.4 3.1 Report Parameters 2.10 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 Organizational Profile 1.2 1.1 Strategy andAnalysis Sustainability Reporting Guidelines PR =Partially reported FR DR Proxy AR In additiontotheCitizenshipReport, referenced otherreports Guideinclude: intheGRIReporting Sector SupplementsforSocialPerformance and Environmental Performance. Initiative. We have Guidelinesaswell ontheG3Sustainability Reporting reported astheFinancialServices Citi developed withreference the2006CitizenshipReport totheguidelinesdeveloped by theGlobalReporting = Foundation Report (http://www.citigroupfoundation.com/citigroup/corporate/foundation/annual.htm) =Foundation Report = (http://www.citigroup.com/citigroup/corporategovernance/ar.htm)Annual Report =Diversity (http://www.citigroup.com/citigroup/citizen/diversity/annualreport.htm) Report contents regarding thereport orits Contact pointfor questions Reporting period reporting period Awards received inthe ownership regarding size, structure, or the reporting period Significant changes during organization Scale of thereporting Markets served legal form Nature of ownership and the organization operates Number of countries where headquarters Location of organization’s organization Operational structure of the and/or services brands,Primary products, Name of theorganization risks, andopportunities Description of key impacts, strategy the organization andits Relevance of sustainability to =2007Proxy Statement(http://www.citigroup.com/citigroup/corporategovernance/ar.htm) X E D N I T N E T N O C I R G AR pg.22 AR pg.22 AR pg.22 pg. 13 Cover PR pgs. 6-7 AR pgs. 4&5 pgs. 4-7 pg. 90 Cover pgs. 86-87 28-29 AR pgs. 22-23 AR pgs. 22, 37 AR pgs. AR pg.22

4.4 4.3 4.2 4.1 Governance 3.12 GRI Content Index 3.10 3.9 3.8 Report Scope andBoundary committees underthe organization, including Governance structure of the in thereport of theStandard Disclosures Table identifyingthelocation information inearlier reports any re-statements of Explanation of theeffect of calculations techniques andthebasisof Data measurement facilities, etc. ventures, subsidiaries, leases Basis for reporting onjoint governance body directions to thehighest recommendations or and employees to provide Mechanisms for shareholders executive members independent and/or non- governance bodythatare members of thehighest state thenumberof unitary board structure, For organizations thathave a is also anexecutive officer the highest governance body Indicate whether theChairof responsible for specific tasks highest governance body pg. 80 Proxy pg. 8 Proxy pg. 24 PR Proxy pgs. 4-6 Proxy AR pg.116 pg. 88 pg. 75 pg. 75 pg. 75

4.13 4.12 4.11 Commitments to External Initiatives 4.8 4.6 4.5 bodies positions ingovernance which theorganization has advocacy organizations in and/or national/international Memberships inassociations endorses organization subscribes or initiatives to whichthe principles, orother and social charters, economic, environmental, Externally developed Precautionary approach implementation the status of their and social performance and economic, environmental, principles relevant to values, codes of conduct, and statements of mission or Internally developed are avoided ensure conflicts of interest highest governance bodyto Processes inplace for the organization’s performance executives, andthe body, senior managers, and of thehighest governance compensation for members Linkage between

> > > pg. 41 Proxy pg. 41 Proxy 55, 61-64, pgs. 59-69, 71-76 pgs. pgs. 13, 54 Proxy pg.4 pgs. 35-42 Proxy

88 CR 2006 EN26 Products andServices EN18 EN17 EN16 Emissions, Effluents, and Waste EN8 Water EN7 EN6 EN5 EN4 EN3 Energy EN2 Materials Environmental Performance Indicators 4.17 4.16 4.15 4.14 Stakeholder Engagement extent of impactmitigation products andservices, and environmental impacts of Initiatives to mitigate and reductions achieved greenhouse gasemissions Initiatives to reduce weight greenhouse gasemissions by Other relevant indirect weight greenhouse gasemissions by Total direct andindirect source Total water withdrawal by reductions achieved energy consumption and Initiatives to reduce indirect these initiatives requirements asaresult of and reduction inenergy based products andservices, efficient or renewable energy Initiatives to provide energy- improvements conservation andefficiency Energy saved dueto by source primary Indirect energy consumption by energy primary source Direct energy consumption materials that are recycled input Percentage of materials used engagement raised through stakeholder Key topics andconcerns engagement Approaches to stakeholder with whomto engage selection of stakeholders Basis for identification and engaged by theorganization List of stakeholder groups pg. 74 PR pg.74 pgs. 71-76 PR pg.78-81 pg. 75 pg. 74 pg. 74 pgs. 77-78 pgs. 6-7 Proxy pgs. 56,61 pgs. 6-7, 41 Proxy pgs. 55-56 pg. 55 pg. 41 Proxy pg. 55 pgs. 59-69 pgs. 71-76 pgs. 69, 75

X E D N I T N E T N O C I R G IB1 Investment Banking RB 3 Fostering Social Capital RB1 Retail Banking SUP 1 Suppliers SOC1 Performance to Society INT7 Equal Opportunity INT4 Compensation INT3 Employment andSocial Protection INT1 Internal Social Performance CSR6 Participation CSR4 Sensitive Issues CSR2 CSR1 Management System Social Performance Financial Services Sector Supplement: SO6 Social Performance: PublicPolicy LA13 Diversity andEqual Opportunity Social Performance: Charitable contributions Employee profile remuneration Senior management Employee satisfaction Internal CSR policy Stakeholder dialogue issues Management of sensitive CSR organization CSR policy country and related institutions by political parties, politicians, in-kind contributions to Total value of financialand indicators of diversity membership, andother group, minority group according to gender, age employees percategory bodies andbreakdown of Composition of governance relevant elements) Investment policy (socially benefit Lending withhighsocial (socially relevant elements) Retail bankingpolicy Screening of majorsuppliers

pg. 70 54, 59-69 pgs. PR pg.15 5-12, 36 DR pgs. pgs. 59-69 18-21 PR pgs. 23-25, 29 pgs. 18-21, pg. 27 PR DR 33-56 FR pgs. pg. 36 PR DR 35-44 Proxy pgs. pg. 39 pgs. 5-18 PR DR 55-56, 61 pgs. pgs. 59-69

F5 F4 F3 F2 F1 Environmental Performance Financial Services Sector Supplement: F12 F7 competency inaddressing for improving staff Description of process(es) process(es) in riskassessment environmental aspects raised compliance with implementation of and monitoring clients’ Description of processes for business line applied to each core assessment procedures are which environmental risk State thethreshold(s) at business lines environmental risks incore for assessing andscreening Description of process(es) business lines polices appliedto core Description of environmental the core business lines broken down according to products andservices specific environmental Total monetary value of risks andopportunities regarding environmental companies/business partners with clients/investee Description of interaction opportunities environmental risks and pg. 68 pgs. 59-69 pg. 59 pgs. 59-69 pgs. 59-69 78-83 PR pgs. 78-83 64, 66-67, pgs.

89 CR 2006

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