Global Citizenship Report 2017

Transactions Reviewed Under Citi’s Statement on Human Rights In 2017, the ESRM team screened 328 total transactions during the initial marketing phase, and of those, 27 were flagged as requiring additional due diligence for human rights risks. This screening does not include other human rights risk assessments the ESRM team does as part of annual client reviews or portfolio reviews. The specific types of risks we uncovered are outlined in the table below. Of the 25 transactions flagged for additional human rights due diligence, 14 proceeded to close after we confirmed the clients were managing and mitigating the potential risk appropriately. Transactions may not reach financial close for a number of reasons, not solely due to ESRM review. Examples of transactions flagged for further review include a project loan to finance construction of a new mine in Latin America that neighbors indigenous communities and an export credit loan for an infrastructure project in Asia with resettlement impacts. Citi engages with NGOs to communicate about our processes and invite feedback. While in recent years banks have come under increasing pressure to disclose specific findings related to client projects, we are bound by legal requirements and business ethics related to confidentiality that limit our ability to disclose such information without client consent. Addressing requests for transparency will continue to be a balancing act between protecting the confidentiality of our clients’ information and disclosing information to stakehold- ers as appropriate to advance the protection of human rights. In 2017, we did respond both informally and in writing to several inquiries related to client activities from NGOs such as BankTrack, Friends of the Earth and the Business and Human Rights Resource Centre, and we encouraged our clients to do the same (see case study on the following page). Providing Access to Remedy The UN Guiding Principles call on governments and compa- nies to play their respective roles in ensuring that victims of human rights abuse have access to effective remedies. Remedy can take many different forms, including apologies, financial or non-financial compensation or efforts to prevent future harm through policy commitments and changes in operational practice. The purpose of remedy is to help make victims whole again or to restore them, as much as possible, to their lives and enjoyment of their rights before those rights were violated. Remedy can also help ensure that they and others will not suffer similar harms in the future. IDENTIFYING HUMAN RIGHTS RISKS IN TRANSACTIONS * There were 27 transactions requiring additional human rights due diligence in 2017. Of those, 14 closed after risk review. In this table, one transaction may be reported under more than one human rights risk. Human Rights Risk Risk(s) Identified Requiring Additional Human Rights Due Diligence* Transactions that Closed After Risk Review Indigenous Peoples 16 7 Labor 3 1 Resettlement 10 6 Security Practices 1 1 Water 5 4 Other 2 1 50