Global Citizenship Report 2017

In addition to our formal Statement on Human Rights, Citi’s Environmental and Social Risk Management (ESRM) Policy, adopted in 2003 and summarized in our Environmental and Social Policy Framework, guides our approach to assessing environmental and social issues related to financing our clients’ business activities. In 2017, we updated our ESRM Policy and due diligence practices in response to the lessons we learned from financing the Dakota Access Pipeline (DAPL) — especially regarding the consultation of Indigenous Peoples in relation to a project’s impact on land or cultural heritage. In addition to our involvement with DAPL, we consulted external human rights experts and conducted extensive stakeholder engagement to inform the policy update, which has prepared us to better identify potential adverse impacts to Indigenous Peoples affected by projects we finance and to engage our clients on the mitigation and management of those impacts. For more information about the changes to our ESRM Policy, see the Environmental and Social Risk Management section. Our Salient Human Rights Risks Human rights has emerged as one of our most material citizen- ship issues in recent years. However, concern for human rights is not new to Citi, and we have spent more than a decade working on the most salient human rights risks for our company — those related to our business or the activities of our clients and other business partners that pose the greatest risks to people. We evaluate human rights risks that could arise across our value chain, including in our operations and in our clients’ operations, ranging from data protection and privacy to discrimination in lending. However, we have determined that our most salient human rights risks are those related to our financing of client activities that might impact people in local communities, including workers and vulnerable groups. We identified most of these risks under our ESRM Policy as “Areas of High Caution” several years before the advent of the UN Guiding Principles. To identify these areas, we focused on the most severe potential risks posed to people by our clients’ activities. Our work to address these risks has included helping to found and govern the Equator Principles framework to enhance and standardize risk management across the banking sector, establishing an internal ESRM team, and developing our risk identification and mitigation policies and procedures. GRI INDICATOR: 102-41 The salient issues we routinely screen for in financed activi- ties covered by our ESRM Policy include risks to Indigenous Peoples’ rights; labor violations, such as forced labor and human trafficking or child labor; resettlement of project- impacted local communities; and concerns for how project sponsors engage public or private security forces around project sites. (See page 49 for more about how we manage these risks.) Respecting the Human Rights of Our Employees Every Citi employee is expected to adhere to our Code of Conduct, which includes a commitment to human rights, and to participate in relevant trainings. Our Code of Conduct prohibits unlawful discrimination, harassment and other behaviors that infringe on individual rights. This policy applies to all employees as well as suppliers, clients and community partners globally. Diversity and inclusion are of particular concern, especially in countries where there is no legal protection against discrim- ination based on characteristics such as gender, gender identity, race, ethnicity, age or sexual orientation. Although diversity and inclusion issues are not always discussed in terms of human rights, they are essential to human dignity, which human rights aim to protect. Championing diversity and inclu- sion not only aligns with our core values, it is also vital to our business success. Citi prohibits discrimination and harassment of our employees in all forms regardless of whether or not individual protections are legally mandated in the countries and communities where we operate. In fact, we know that even in locations where antidiscrimination laws exist, there is still a need for companies to ensure they are doing their part to respect individual rights. To put our values into action, during 2017, we made online unconscious bias training available to all employees, expand- ing on the pilot we initially deployed in 2016. The training has been completed by more than 80 percent of our employees. In signing the UK Women in Finance Charter, we established a goal to have 30 percent of senior management roles in our Europe, Middle East and Africa region held by women by 2025. For more information on our diversity and workforce initiatives, see the Talent and Diversity section. We work to provide a respectful and inclusive work environ- ment, and we investigate and take action on all violations. For instances where our employees feel aggrieved or have Citi 2017 Global Citizenship Report 47 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS     SOLUTIONS FOR IMPACT    APPENDICES Conduct and Culture    Digital Innovation    Talent and Diversity    Human Rights     Environmental and Social Risk Management    Operations and Supply Chain