Citigroup : ESG Report

ESG at Citi

Sustainable Finance

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

About This Report

A Note on Materiality, Metrics and Forward-Looking Statements

The disclosures included in this report are being provided to the public in an effort to provide transparency into our environmental, social and governance (ESG) initiatives, to respond to stakeholder requests, and to further enhance our stakeholders' understanding of ESG practices at Citi. Our approaches to the disclosures included in this report differ in significant ways from those included in mandatory regulatory reporting, including under U.S. Securities and Exchange Commission (SEC) rules and regulations and applicable stock exchange listings, and may consider different and broader definitions of materiality promulgated by other frameworks and reporting guidelines that take into consideration a wider range of factors. Thus, while certain matters discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality used

This report illustrates how we bring our mission of enabling growth and economic progress to life through our business. We focus on issues that we have determined to be relevant from an environmental, social and governance (ESG) perspective, which is a broader view than that used in our financial disclosures.

In preparing our ESG reports, we have historically referenced several disclosure frameworks. We are currently working to update our approach to reporting on sustainability matters to address our evolving regulatory obligations and will share an updated view based upon applicable criteria in future reporting. In this year's report, we reference the Task Force on Climate-related Financial Disclosures recommendations, relevant sector standards from the Sustainability Accounting Standards Board and the U.N. Guiding Principles

on Business and Human Rights framework (see related indexes). This report complements information published in our 2023 Annual Report, our 2023 Citi Climate Reportand our Environmental and Social Policy Framework.

All reporting and performance data are limited to information for the owned and operated facilities of Citigroup Inc. and its subsidiaries, unless stated otherwise. Additional information about Citi can be found on our website. For more information, please visit citigroup.com/global/our-impactor contact:

Enterprise Services and Public Affairs

Citigroup Inc.

388 Greenwich St. New York, NY 10013 sustainability@citi.com

for the purposes of complying with the U.S. federal securities laws, EU requirements and regulations, or any other regulatory purpose, even if we use the word "material" or "materiality" in this report.

Certain statements in this report are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to known and unknown risks, uncertainties, changes in circumstances, and assumptions that are difficult to predict and are often beyond our control and inherently uncertain. These statements are not guarantees of future results, occurrences or performance. Actual results and outcomes may differ materially from those included in this report due to a variety of factors, including, but not limited to the precautionary statements included in this report as well as the following factors: global socio-demographic and economic trends, climate- related conditions and weather events, energy prices and technological innovations, consumer and client behavior, data limitations and uncertainty, legislative and regulatory changes, potentially conflicting ESG-related initiatives from certain U.S. state and other governments, and other unforeseen events or conditions. Moreover, many of the forward-looking statements included in this report are based on assumptions, standards, metrics, measurements, methodologies, data and internal frameworks believed to be reasonable at the time of preparation, but should not be considered guarantees. In particular, assumptions, standards, metrics, methodologies

and frameworks for measurement, reporting and analysis of climate change continue to evolve, vary across jurisdictions and regulatory bodies and are the subject of proposed regulatory changes in multiple jurisdictions, which may have a material impact on our future measurement and reporting, as well as the results of the efforts set forth in this report. Additionally, certain information and metrics in these disclosures are reliant on methodologies and third-party information that we do not independently verify and which may continue to evolve. In particular, we note that standards for accounting for and measuring impact and greenhouse gas (GHG) emissions, as

well as measuring GHG emissions reductions, and how the use of voluntary carbon offsets may feature in GHG accounting, vary, including due to the underlying emissions factors, assumptions or other methodological features. To the extent that such methodologies or third-party information we use is subsequently determined to be erroneous or otherwise not in keeping with best practices, it may affect our disclosures and our reported progress on our emissions-reduction goals.

Other factors that could cause actual results to differ materially from those described in forward-looking statements can be found in this report, in our filings with the SEC, including, without limitation, the "Risk Factors" section of our 2023 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this document. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. This report contains statements based on hypothetical or severely adverse scenarios and assumptions, and these statements should not necessarily be viewed as being representative of current or actual risk or forecasts of expected risk. While future events discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality of the disclosures required under U.S. federal securities laws.

ESG at Citi

Sustainable Finance

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

This past year once again underscored the important role Citi plays in helping the clients and communities we serve navigate their biggest economic and societal challenges. Amidst an uncertain macro environment, rising geopolitical tensions, technological advancements and

the urgency of the energy transition, our global network uniquely positions us to address many of these critical issues.

Despite market headwinds, we made progress last year on our $1 trillion sustainable finance goal, and we have now financed and facilitated $441 billion in environmental and social finance activity since 2020. In the past year, these projects included supporting water purification in Vietnam, increasing access to affordable solar energy in Kenya, and working with manufacturers producing the inputs needed for electric vehicles, green hydrogen and renewable energy. We also financed nearly $6.5 billion in U.S. affordable housing in 2023, making us the number one affordable housing lender in our home market for the 14th year in a row.

Our targeted capital continues to spur innovation and entrepreneurship that lifts communities around the world. In 2023, the Citi Foundation's inaugural Global Innovation Challenge provided $25 million to 50 community organizations working to improve food security and strengthen the financial health of low-

income families and communities. The Citi Impact Fund helped entrepreneurs working in underserved communities navigate a challenging macroeconomic environment, whilst financial inclusion innovations such as the Citi® ATM Community Network and the Citi Start Saving® platform continue to expand financial access for families across the U.S.  

Growing economic opportunity is vital to our mission, and it will remain integral to our business. Last year, we exceeded the goals we set as part of our Action for Racial Equity initiative - a three-year, $1 billion commitment to help close the racial wealth gap in the U.S. But we know our work is not done. For instance, our Diverse Financial Institutions Group continues to play a leading role in providing access to capital and revenue-generating opportunities for Minority Depository Institutions and diverse broker-dealers. We also earned a spot on the Billion Dollar Roundtable, a list of U.S.-based corporations that voluntarily spend $1 billion or more annually with certified diverse suppliers. These commitments are now embedded in our business and core to how we operate.

We strive to adhere to the highest ethical standards in our business and to make thoughtful decisions about how we manage risks for our company and our stakeholders. A key part of our role in maintaining the public's

trust is to uphold our guiding principles for fair, equitable, dependable and nondiscriminatory access to financial services and products.

Partnership and consensus-building between the public and private sectors remain critical to this work, particularly the journey toward net zero. In our role as a global bank, we will continue to push for necessary government frameworks and policies that help facilitate and accelerate transition finance and its successful deployment. And we must stay mindful of economic realities. We are committed to working side by side with our clients in financing their transitions to low-carbon business models. At the same time, we must support clients who are supplying the energy that meets the world's near-term needs. These activities are not mutually exclusive and must be addressed simultaneously.

At the core of our success are the more than 200,000 talented Citi colleagues around the world. We remain committed to building a

workforce that reflects the diversity of the clients and communities we serve, and we foster a culture of belonging where all colleagues feel valued and empowered to bring their authentic selves to work. This is not only the right thing to do, it also ensures that we deliver the best of Citi to our clients.

I invite you to read the following report and learn more about the impact of our work around the world and within our organization.  We recognize that the biggest challenges confronting our society come with both risk and upside, and we must continue to act swiftly, transparently and ethically to make measurable progress for everyone.

Jane Fraser

Chief Executive Officer

ESG at Citi

Sustainable Finance

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

Earned a seat at the Billion Dollar Roundtable by spending

$1B

annually with certified diverse suppliers

Facilitated clean energy access in Africa, supporting Sun King on a first- of-itskind securitization deal helping to finance affordable solar systems in Kenya

Financed and facilitated renewable energy, green building and energy efficiency activities under the Sustainable Finance Goal, estimated to result in over 770,000 metric tons of avoided greenhouse gas emissions annually

Announced an innovative sustainable aviation fuel emissions- reduction agreement with American Airlines to support low-carbonsolutions

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

ESG

at Citi

Citi's mission is to serve as a trusted partner to our clients by responsibly providing financial services that enable growth and economic progress. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients.

As a global financial institution, Citi connects millions of people across countries and cities worldwide. For more than 200 years, we have been using our resources and expertise to help our clients and communities navigate change and sustain their businesses for the future. We recognize that the economic success of our company is inextricably linked with the well-being and economic health of our people, our clients and our communities.

We view integrating and managing environmental, social and governance (ESG) issues as an essential component of our strategy to help increase innovation, business resiliency, risk mitigation and value generation, and as a pillar of our long- term business success. The same is true for our clients and communities, and we work to support both in achieving their goals. These issues create opportunities for our business and are also incorporated into our environmental and social risk management processes.

With this in mind, we have identified topics that we believe are most important to our business, clients and communities. These include climate change; sustainable finance; strengthening communities; financial inclusion and employee Diversity, Equity & Inclusion - all of which contribute to our business objectives, as well as global sustainable development objectives.

Our approach to and progress on these priorities and other areas of ESG are detailed throughout this report. We remain committed to transparency

New York, New Yorkand accountability, and to sharing our progress and learning along this journey.

Integrating

Our Approach

At Citi, our ESG commitments are integrated into our businesses and long-term priorities

• they are part of the work we do helping our clients and communities navigate the challenges and embrace the opportunities of our rapidly changing world. Across the firm, our teams are prepared to support our clients with services and products that help them as they seek to achieve their goals. This approach is embedded in each of our five interconnected businesses:Services, Markets, Banking, Wealthand U.S. Personal Banking.

Sustainability and Climate Change

Citi has committed to achieving net zero greenhouse gas (GHG) emissions by 2050. We made this commitment in 2021 and have since laid out emissions-reduction plans for our financing by 2023 in six sectors in our loan portfolio: Auto Manufacturing, Commercial Real Estate, Energy, Power, Steel and Thermal Coal Mining. 

Citi is working on executing our climate commitments, while engaging our clients and supporting them as they seek to decarbonize their businesses. We are advising clients who are investing in clean energy technologies, while at the same time working with clients who are key to global energy security and to communities around the world where access to and cost of energy is a top concern.

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

Integrating Our Approach

ESG Governance at Citi

Stakeholder Engagement at Citi

Corporate Responsibility Awards:

Sustainable Finance Awards:

Points of Light: The Civic 50

for the 11th consecutive year

Asiamoney: Best Bank for

CSR - Singapore

Disability:IN:

Disability Equality Index

Scored 100 out of 100

Military Times: Citi Salutes

Listed as Best for Vets Employer

Chief Executives for Corporate

Purpose®: The CEO Force For Good:

Giving in Numbers™

Top quartile

JUST Capital: JUST 100 U.S. Companies

Named to the list for the fifth consecutive year, at #5 in 2024

International WELL Building

Institute: WELL Certified Buildings Award

Ranked in the 97th percentile compared to peers

WELL Concept Leadership

Health & Safety Leadership

Advancing Health in ESG Leadership

Commitment & Engagement

Human Rights Campaign:

Corporate Equality Index

Scored 100% for the 19th consecutive year

U.S. Chamber of Commerce

Foundation: Citizen

Awards Finalist

Best Corporate Steward Category

#1 U.S. Lead Underwriter

in 2023 for global sustainable finance

bonds, according to Dealogic

The Banker: Investment

Bank of the Year for

Sustainable Bonds

Global Finance Sustainable

Finance Awards

Outstanding Leadership in Social Bonds

Outstanding Leadership in Transition/

Sustainability - Linked Loans

Latin America Sustainable Finance

Award - Mexico: Citibanamex

Outstanding Leadership in

Green Bonds - North America

Outstanding Leadership in Transition/

Sustainability-Linked Loans - North America

North America Sustainable

Finance Award - U.S.

IFR: Americas ESG

Financing House

ESG Investing: Best Bank for

ESG Research

four-time award winner

Environmental Finance

Awards:

Lead Manager of the Year,

Sustainability Bonds - Corporate

Lead Manager of the Year,

Green Bonds - Corporate

Lead Manager of the Year,

Green Bonds - Supranational,

Sub-Sovereign and Agency (SSA)

Affordable Housing Finance:

#1 Affordable Housing Lender

in the U.S.

for the 14th consecutive year

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

As countries transition to a low-carbon economy, Citi continues to support clients and facilitate the investment and activity that is critical to advancing the transition while ensuring an ample and affordable energy supply to meet the world's current needs. That includes advising and financing our clients as they seek to decarbonize, financing climate technologies and working toward an orderly and inclusive transition.

The low-carbon transition will drive significant financing and advisory opportunities, and Citi is positioning our business to access these opportunities.

At our own sites, we are working to reduce our environmental footprint and reach net zero emissions by 2030. We have achieved our 100% renewable electricity sourcing goal and are making progress toward our energy, water and waste goals.

Diversity, Equity &

Inclusion and Talent

Management

We are committed to creating a company that reflects the diverse communities we serve. This ensures that we have a multitude of perspectives to understand our clients' challenges and opportunities and help them prosper.

We strive to ensure that Citi remains a great place to work - where people can thrive professionally and personally. Our commitment to Diversity, Equity & Inclusion is seen throughout our business, including Citi and the Citi Foundation's Action for Racial Equity initiative to help address the racial wealth gap.

Our Chief Diversity, Equity & Inclusion Officer and Head of Talent Management oversees our efforts to promote Diversity, Equity & Inclusion in the

workplace. Reporting to the Global Head of Human Resources, the Chief Diversity, Equity & Inclusion Officer and Head of Talent Management works in partnership with senior management, particularly with members of the Executive Management Team, who co-chair our Inclusion Networks.

Community Investing

We contribute to building the long-term strength and resiliency of the clients we serve and the communities where we operate. Underlying our approach is the notion that complex societal challenges require multifaceted solutions.

We believe we can play a part in helping to address economic and social challenges in the communities we serve around the world. By investing in the communities where we do business, we can help support scalable advances in financial inclusion, jobs and small business development, community solutions and crisis response. The Community Investing and Development (CID) team draws on this work by leveraging a toolkit that uses our business, people and voice, including equity investing, financial access solutions and expertise, fulfillment of U.S. Community Reinvestment Act regulatory obligations, volunteerism and Citi Foundation philanthropy.

CID is an integrated group that works across businesses and functions at Citi to catalyze positive social impact in communities around the world.

The Citi Foundation is a separate legal entity funded by Citi to promote economic progress and improve the lives of people in low-income communities around the world. The Citi Foundation invests in efforts that increase financial inclusion, catalyze job opportunities for youth and reimagine approaches to building economically vibrant communities.

ESG

Governance

at Citi

Good governance is a fundamental principle at Citi, and we aim to incorporate best practices. We strive to report on our activities with accuracy and transparency and comply with the laws, rules and regulations that govern our businesses. Our corporate governance structures, policies and processes promote a culture of accountability and ethical conduct across our firm.

Board of Directors

The Citi Board of Directors has ultimate oversight of our work to identify, assess and integrate environmental and social-related risks and opportunities throughout Citi, including our climate-related work and Diversity, Equity & Inclusion and Talent Management efforts. The Board receives reports from key personnel on our progress and key issues on a periodic basis.

Standing committees of our Board include:

• Audit Committee
• Compensation, Performance Management and Culture Committee
• Executive Committee
• Nomination, Governance and Public Affairs Committee
• Risk Management Committee
• Technology Committee

The Nomination, Governance and Public Affairs Committee receives reports from management on our activities pertaining to environmental

sustainability, climate change, human rights and other environmental and social issues, as well as our strategy for engagement with external stakeholders. For more information on the roles and responsibilities of this committee, see the Nomination, Governance and Public Affairs Committee Charter.

The Audit Committee has oversight over the controls and procedures related to Citi group- level ESG and climate-related reporting.

See theAudit Committee Charterfor more information on the roles and responsibilities of this committee.

The Risk Management Committee of the Board provides oversight of the Citi Risk Management Framework and risk culture and reviews our key risk policies and frameworks, including updates on climate-related topics. For more information on the roles and responsibilities of this committee, see the Risk Management Committee Charter.

In addition, the Board's Transformation Oversight Committee provides oversight of management's remediation of the issues identified in the October 2020 Consent Orders with the Federal Reserve Board and Office of the Comptroller of the Currency. The changes being made through the Transformation process will continue to improve our overall governance processes.

The Global ESG Council provides a senior management forum for oversight of our ESG commitments and priorities, including sustainable finance progress, climate data governance, updates on progress toward our net zero financing and operations goals. Council members also oversee our efforts on Diversity, Equity & Inclusion and Talent Management.

Ethics and Business Practices

We work to serve our clients and maintain the public's trust by adhering to the highest standards of ethical conduct. We ask our colleagues to ensure that their decisions pass three tests: they are in our clients' interests, create economic value and are always systemically responsible. When we do these things well, we make a positive financial and social impact in the communities we serve.

Ethics and responsible business practices are among the highest priorities for Citi and our stakeholders. The Board's Compensation, Performance Management and Culture Committee oversees the incentive compensation structure for senior management at Citi, as well as management's efforts to foster and support the desired culture and promote ethical decision- making within the organization. The committee also oversees efforts to promote diversity and inclusion in the workplace in hiring, retention and staff development practices at Citi. To learn more about the responsibilities of the committee, see the Compensation, Performance Management and Culture Committee charter.

The Ethics at Citi sectionof this report provides more information about efforts to encourage a culture of ethics.

Remuneration

ESG-related goals are incorporated into several executive scorecards, which are key elements of performance management tied to the determination of incentive compensation for these executives.

Scorecards for multiple members of the Executive Management team and senior management include progress on our Net Zero Plan and target setting, our $1 Trillion Sustainable Finance Goal by 2030 and climate risk management.

Certain positions have specific scorecard elements, for example:

• CEO - Driving the delivery of environmental and social finance under our $1 Trillion Sustainable Finance Goal; and
• Chief Risk Officer, Head of Enterprise Services and Public Affairs, and Head of Banking - Supporting the development and operationalization of our Net Zero Plan and applicable 2030 targets and driving the delivery of environmental and social finance under the $1 Trillion Sustainable Finance Goal.

Moreover, climate change strategy and risk management performance goals are incorporated into annual goals and performance review processes for a number of our senior executives and their teams that are responsible for developing and executing our strategies around climate change. For further detail, please see the 2023 Citi Climate Report.

Climate Risk & Net Zero

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

Integrating Our Approach

ESG Governance at Citi

Stakeholder Engagement at Citi

Stakeholder

Engagement

at Citi

Citi embraces an ethos of openness and inclusivity, with an appreciation for diverse perspectives. We strive to incorporate the interests of a wide array of stakeholders into our business, which helps us expand our opportunities and fulfill our potential. We believe that sharing knowledge and resources can help us provide the best services and products for our clients and support the long-term resiliency of our business.

We hold ourselves accountable to our commitments and are transparent with our stakeholders about the progress we are making. This table describes the types of activities we undertake to engage with our stakeholders.

Citi had previously conducted an assessment identifying our most relevant, or "material," reporting topics for stakeholders from an ESG perspective in line with the recommendations of the Global Reporting Initiative (GRI) framework. We provided the results of this assessment

in our 2022 ESG Reportby topic and key stakeholder groups. The standards applied for this assessment considered views of materiality that differ from the definition of materiality applied for purposes of complying with SEC requirements or other emerging regulatory reporting frameworks. As we work to update our sustainability reporting approach in response to evolving regulatory obligations, we will share our updated approach to these assessments in our future disclosures.

Our Approach to Stakeholder Engagement on ESG Topics

Sustainable Operations

Building Equitable & Resilient Communities

Diversity & Talent

Responsible Business

Appendices

Financing the Low-Carbon Transition

Social Finance in Emerging Markets

Supporting Affordable Housing

Our $1 Trillion Goal

Sustainable Finance

At a time of unprecedented pressure and opportunity to address rising environmental and social challenges, sustainable finance remains a critical tool for supporting action on these issues. Investors, companies and governments alike recognize the role the financial services sector can play in mobilizing capital and advising clients to support their transition to a more sustainable, inclusive and low-carbon economy.

The COP 28 U.N. Climate Change Conference in Dubai underscored the need to mobilize much more capital quickly to close the financing gap for efforts to help address climate change and other sustainable development goals.

This need for financing represents an opportunity for both governments and the financial sector to respond with mobilization of capital. For example, in 2023, the EU introduced the Green Deal Industrial Plan for the Net Zero Age, which provides a framework and billions from existing EU funds to decarbonize the bloc's economy.1,2 Driven by tax credits in the U.S. federal Inflation Reduction Act of 2022, investors poured more than $303 billion into the U.S. clean energy sector alone in 2023.

Transition finance, or investments to help decarbonize high-emitting and hard-to- abate industries, is viewed as the next multi- trillion-dollar opportunity. Governments are

advancing public-private partnerships to help enable an orderly and inclusive transition to

1. low-carboneconomy.3 Across the financial sector, private equity firms have launched multi-billion-dollar transition funds investing in renewable energy, clean technology and decarbonization efforts, and banks are ramping up their capacity to support clients as they navigate the energy transition.

Ongoing macroeconomic headwinds, geopolitical tensions and regulatory focus, coupled with increased scrutiny on ESG, continued to influence the global sustainable finance market through much of 2023. Yet despite these challenges and stagnating global bond issuance overall, the issuance of green, social, sustainability and sustainability-linked bonds globally, trended upward in 2023. New issuance volume increased by about 14% to just under $866 billion. Green bonds were dominant, representing 59% of overall GSSSB issuance.4 Analysts predict the sustainable finance market could approach $1 trillion in 2024, based on increasing urgency around the transition to a low-carbon economy.5

We continue to support clients seeking to invest in the low-carbon transition, while positioning our business to access these opportunities. Citi remained a trusted advisor to debt issuers in 2023, leading sustainable bond issues across more than

Budapest, Hungary

1. "EU Unlocks $270B for Green Deal Industrial Plan to Boost Net Zero," CarbonCredits.com (Feb. 23, 2023),https://carboncredits.com/eu-unlocks-270b-for-green-deal-industrial-plan-to-boost-net-zero/#:~:text=The%20European%20Commission%20(EC)%20set,the%20U.S.%20Inflation%20Reduction%20Act.
2. "Understanding the Green Deal Industrial Plan: A Comprehensive Introduction to Europe's Net-Zero Age," FiscalNote (Aug. 30, 2023), https://fiscalnote.com/blog/green-deal-industrial-plan-net-zero-europe#:~:text=The%20Plan%20provides%20a%20framework,achieve%20the%20EU's%20climate%20targets.
3. "What is transition finance, and why it matters," GreenBiz (Jan. 24, 2024),https://www.greenbiz.com/article/what-transition-finance-and-why-it-matters.
4. "The signs are good: the market is warming up for new records," Environmental Finance (Feb. 20, 2024), https://www.environmental-finance.com/content/the-green-bond-hub/the-signs-are-good-the-market-is-warming-up-for-new-records.html#:~:text=Without%20doubt%2C%202023%20was%20a,of%20%24117%20billion%20in%202021.
5. "Key 2024 sustainability trends driving the year ahead," S&P Global (Jan. 15, 2024),https://www.spglobal.com/esg/insights/featured/special-editorial/key-2024-sustainability-trends-driving-the-year-ahead.