2017 Global Citizenship Report Executive Summary

We knew it was critical to gain insight directly from the Evenki community to understand their perspec- tives on the case against the indigenous leader and to evaluate the company’s social license to operate near Evenki traditional territory. We engaged a social consultant to travel to the remote region and conduct interviews with community members and nongovernmental organizations (NGOs), as well as with company and government representatives. The consultant’s report revealed a complex web of issues stemming from decades of exploration by various mine operators, as well as more current concerns regarding the impact of Petropavlovsk’s activities. Importantly, the due diligence found there to be constructive dialogue in recent years between the company and the indigenous community, and paved the way for improved relations through an enhanced stakeholder engagement strategy. Before launching the bond, we encouraged the company to be more responsive and transparent regarding allegations in the public domain. The company agreed to implement a multifaceted action plan to enhance its approach to stakeholder engagement in line with the International Finance Corporation’s Performance Standards. Petropavlovsk was also receptive to our suggestion that the bond offering fully disclose to investors the risks related to its interactions with the Evenki community as poten- tially relevant to its ability to obtain project-related licenses and permits, and thus, to the viability of its operations. What’s Ahead As part of the Equator Principles update process, Citi is participating in the Equator Principles Social Risk working group, which aims to strengthen the way banks evaluate client stakeholder engagement, including risks related to issues that affect Indigenous Peoples. In addition, as we seek to improve our response to human rights risks across our portfolio, we will continue researching emerging technologies that improve the effectiveness of grievance mecha- nisms and seek opportunities to work with our clients to implement those technologies as appropriate. An emerging issue Citi is paying increasingly close attention to is the role of human rights defenders. Whether they are community leaders, human rights activists, journalists or NGOs, these people do important work to advance human rights issues and expose abuses by governments, companies and others, which helps inform our own human rights due diligence. Defenders’ voices draw attention to important issues of which Citi and other financial institutions need to be aware so we can ask the right questions, enhance our client and transaction screenings and work with clients to address any potential impacts related to projects we finance. Citi 2017 Global Citizenship Report Executive Summary 15