2018 Global Citizenship Report Citizenship at Citi Solutions for Impact How We Do Business Appendices A What’s Inside “We consistently assess Citi’s role in response to three questions: What are we doing to help create inclusive and resilient communities? How can we use our voice to help drive dialogue toward solutions? Is Citi walking the talk — are we doing the right things within our own firm? The short answer to all three Citizenship at Citi of these questions continues to be the same: pg. 5 Letter from Our CEO that we can and should do more.” pg. 7 Citi at a Glance — Michael L. Corbat, CEO pg. 9 Citizenship Approach Solutions for Impact pg. 23 Inclusive and Resilient Communities pg. 45 Environmental Finance 1 How We Do Business pg. 59 Environmental and Social Risk Management pg. 67 Human Rights pg. 75 Operations and Supply Chain pg. 91 Digital Innovation pg. 101 Talent and Diversity pg. 121 Ethics and Culture ABOUT THIS REPORT This report illustrates how we bring our mission to life through our business; it covers our corporate citizenship activities and performance for 2018. Our report- ing focuses on the issues we determined to be of greatest importance through a materiality assessment completed in 2017. This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. We also used the United Nations (UN) Global Compact and the UN Guiding Principles on Business and Human Rights frame- works to guide our reporting. (See related indexes.) Appendices We have embedded the UN Sustainable Development Goals (SDGs) into relevant sections of the report. Additionally, we include an index that indicates where pg. 133 Sustainable Progress report content is specifically aligned to the recommendations of the G20 Financial Strategy Scorecard Stability Board’s Task Force on Climate-related Financial Disclosures. Finally, this pg. 135 GRI Content Index report supplements information published in our 2018 Annual Report. pg. 151 Task Force on Climate-related All reporting and performance data are limited to information for the owned and Financial Disclosures Index operated facilities of Citigroup Inc. and its subsidiaries, unless stated otherwise. pg. 153 United Nations Global Additional information about Citi can be found on our website. For more informa- Compact Index tion on Citi’s citizenship initiatives, please visit citi.com/citizenship or contact: pg. 155 United Nations Guiding Global Public Affairs Principles Reporting Citigroup Inc. Framework Index 388 Greenwich Street pg. 160 Assurance New York, NY 10013 [email protected] 2 Citizenship at Citi IN THIS SECTION pg. 5 Letter from Our CEO pg. 7 Citi at a Glance pg. 9 Citizenship Approach 3 FPO photo 4 CITIZENSHIP AT CITI • Letter from Our CEO Letter from Our CEO Citi at a Glance One of the questions I’m most frequently asked is: One profound implication of the widening income Citizenship Approach “What keeps you up at night?” divide is evident in our polarized politics. In so many places around the world, political discourse — though I have a short list of items I put into this category, never all that civil in tone — has devolved into little some specific to Citi and others that extend beyond more than a series of “I’m right and you’re wrong” our firm. The widening income gap in the U.S. and shouting matches. Compromise is seen as a sign globally has ranked high on that list for many years, of weakness, or worse, disloyalty. Not surprisingly, and has risen even higher in recent years as we see talking over and past each other hasn’t led to much new consequences of this fundamental division play effective action being taken to address the root out all around us. challenges we face as a society. 5 I worry greatly about this dynamic, and believe there We were the first firm to disclose our unadjusted pay is an opportunity for Citi and others in the private gaps between women and men globally, and between sector to lead a more constructive dialogue and work minorities and non-minorities in the U.S. toward solutions. With that in mind, we consistently assess Citi’s role in response to three questions: • What are we doing to help create inclusive and resilient communities? At Citi, we have • How can we use our voice to help drive dialogue learned that there are toward solutions? • Is Citi walking the talk — are we doing the right times when we need things within our own firm? to take a stand when The short answer to all three of these questions continues to be the same: that we can and should our values and mission do more. Our mission of enabling growth and are on the line. economic progress will never be complete, but year after year, my colleagues and our firm keep pushing ourselves in the right direction. Internally, we have taken steps to mirror many of the changes we need to make as a society. We have also taken the UN Sustainable Development Goals as guideposts and inspirations to continue to do In this report, you will find no shortage of big chal - more — as much as we can. We believe we have a role lenges — local, national, regional and global — to play across all 17 goals, but can drive the greatest described in daunting detail. You will also find impact on seven: Gender Equality; Affordable and specific examples of the creative solutions my Citi Clean Energy; Decent Work and Economic Growth; colleagues are continuously conceiving with our Industry Innovation and Infrastructure; Sustainable clients and communities to address them. Those Cities and Communities; Climate Action and last but challenges range from climate change, to the urgent not least, Partnerships for the Goals. need for exponentially more infrastructure invest- ment globally, to an affordable housing crisis in the The last goal, #17 related to partnerships, is at the U.S. that has widened even further a gap that dispro - heart of everything we do. We know no one person, portionately affects low-income people and families company, nation, or community can do enough and communities of color. That gap is a primary alone. That’s why, when we bring others to the table contributor to the economic inequality I cited above to work with us and start a dialogue, we start to that pervades our society and our politics. achieve an important goal of our own: leadership. At Citi, we have learned that there are times when we need to take a stand when our values and mission are on the line. We were the first bank to announce a Commercial Firearms Policy in the U.S. that promotes responsible business practices at the point of sale. Michael L. Corbat, CEO 6 CITIZENSHIP AT CITI Citi at a Glance Letter from Our CEO Responsibly provide Serve as a Create • financial services trusted partner economic value Citi at a Glance Citizenship Approach Supporting clients in more than Digital and mobile at the core of a 160 countries and jurisdictions simpler, better client experience Diverse workforce of 204,000 to More than 200 years serve our customers and clients of experience Institutional Global Consumer Clients Group Banking Largest proprietary global network Serving over 110 million customers with a client base of 13,000 and a presence in 98 countries A digital leader in credit cards, retail Facilitates ~$4 trillion of transaction banking and wealth management across flows daily 19 markets Serves more than 90% of global Growing Commercial Bank that serves Fortune 500 companies midsized clients with cross-border needs Citizenship Approach Executing a business Reporting transparently ! Taking a stand on model that adds and learning through ? issues that matter value to society dialogue and driving solutions Maintaining a focus on ethical Catalyzing innovation through decision-making and responsible strategic philanthropy business practices and employee engagement 7 Citi’s Value Proposition A Mission of Enabling Growth and Progress What You Can Expect from Us and What We Expect from Ourselves Citi’s mission is to serve as a trusted partner to our communities around the world. We provide financing clients by responsibly providing financial services and support to governments at all levels, so they can that enable growth and economic progress. Our core build sustainable infrastructure, such as housing, activities are safeguarding assets, lending money, transportation, schools and other vital public works. making payments and accessing the capital markets on behalf of our clients. We have 200 years of expe - These capabilities create an obligation to act responsi- rience helping our clients meet the world’s toughest bly, do everything possible to create the best outcomes, challenges and embrace its greatest opportunities. and prudently manage risk. If we fall short, we will take We are Citi, the global bank — an institution connect- decisive action and learn from our experience. ing millions of people across hundreds of countries and cities. We strive to earn and maintain the public’s trust by constantly adhering to the highest ethical standards. We protect people’s savings and help them make the We ask our colleagues to ensure that their decisions purchases — from everyday transactions to buying pass three tests: they are in our clients’ interests, a home — that improve the quality of their lives. We create economic value, and are always systemically advise people on how to invest for future needs, responsible. When we do these things well, we make such as their children’s education and their own a positive financial and social impact in the commu - retirement, and help them buy securities such as nities we serve and show what a global bank can do.