Global Citizenship Report 2017

Responsible Sourcing Our commitment to responsible, ethical and sustainable business practices extends to our supply chain, as many of our most material issues are also relevant to our suppliers. Responsible sourcing is a critical part of the Operations and Supply Chain pillar of our Sustainable Progress Strategy, and we set high standards of performance across our global supply chain. We also strive to engage a diverse set of suppli- ers and provide opportunities for them to partner with us in delivering products and services to our clients. Enterprise Supply Chain Our Enterprise Supply Chain (ESC) team works with our business units to support the supplier selection process, implement sustainable supplier initiatives and mitigate environmental and social risks in our supply chain. During 2017, we conducted various training sessions for ESC employees, including a session exploring Citi’s sustainability goals, as well as one discussing how the UN Sustainable Development Goals influence our approach to global inclusion and sustainability activities that the Supply Chain Development, Inclusion and Sustainability team engages in and supports. In 2015, we identified three priority areas in our supply chain to focus on through our third party utilities process as part of our Sustainable Progress Strategy: paper and paper products, information technology (IT) hardware and e-waste disposal, and travel and logistics. Position statements that provide guid- ance on implementation procedures for each of these topics were developed and disseminated. During 2017, the Supply Chain Development, Inclusion and Sustainability team worked with the Third Party Utilities team, procurement global leads, and regional and category champions to further socialize these statements and strengthen policy adherence aligned to the Global Operating Procedures. We will continue to implement employee training and guidance on best practices in 2018. SUSTAINABLE PAPER SOURCING In the U.S., Citi consumes approximately 25,600 tons of paper annually for our direct mail and marketing print for Branded Cards. Historically, the direct mail supply chain and supplier relationships have been managed by a third-party print management company, giving Citi little visibility into the sourcing of paper and related environ- mental impacts. In December 2016, Citi transitioned to a direct-to- supplier relationship model. By fully leveraging our scale and purchasing power, we are reducing costs by millions of dollars, and we have implemented a “right paper” philosophy. Our ESC Global Print, Cards & Fulfillment Sourcing team and Branded Cards print production team have worked with every vendor in our direct mail supply chain and the paper merchant and mills to establish a complete end-to-end Forest Stewardship Council (FSC) certification process. As a result, since the beginning of 2017, every element of Citi’s Branded Cards direct mail packages in the U.S. uses paper sourced in the most environmentally responsible manner available to the industry, with a formal chain of custody so Citi can trace the paper all the way back to the planting of the trees. We are now working to implement the sustainable sourc- ing practices and chain of custody across our statement and transactional print supply chain, which accounts for another 13,700 tons of paper annually. Most of the vendors in this supply chain are already FSC-certified, and the paper being sourced is already mostly FSC compliant. We are now working to ensure appropriate chain of custody at each step in the process. Citi 2017 Global Citizenship Report 67 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