Global Citizenship Report 2017

Green, Social and Sustainability Bonds Citi was the fourth-largest underwriter of all green, social and sustainability bonds globally in 2017, helping our clients raise over $28 billion through socially responsible bonds to meet their environmental and sustainability goals. For example, Citi served as co-lead manager for a $1 billion sustainability bond issued by the Development Bank of Japan in October 2017, the largest socially responsible investment bond ever issued by a Japanese government entity. Additionally, our U.S. Municipal Finance business issued $1.3 billion in green municipal bonds. Citi also cofounded the Green Bond Principles, which provide issuers with guidelines encouraging transparency, and we are an active member of its Social Bond Working Group. In 2016, as part of that working group, we worked on the release of the Social Bond Guidance document to support the growth of the emerging markets for social bonds, which finance projects that produce clear socio-economic benefits, and sustainable bonds, which support both social and environmental benefits. Citi has been an active part of these nascent bond markets, and while social and sustainable bonds are not counted toward our $100 billion goal, they are an important part of our growing sustainable finance business. Public Finance National and sub-national governments are often on the front lines in responding to climate change and Citi provides financial solutions, including loans and bonds, to help them invest in clean water, transportation and energy infrastruc- ture to meet the needs of their citizens. For example, in March 2017, Citi structured a buyer’s credit financing solution with the Export Credit Agency of Spain to enable the Republic of Panama to finance its purchase of additional train cars for the first line of the Panama Metro System. The new cars will increase access to mass transit in Panama City, helping to decrease greenhouse gas emissions in the country. Citi’s community lending and investing activity also includes financ- ing of affordable housing. In the U.S., through Citi Community Capital, we invested more than $4.7 billion in affordable housing projects. LEED certified affordable housing projects, such as the $27.9 million Citi provided to finance the construc- tion of LEED Gold certified MLK Plaza in New York City, are counted toward our $100 billion goal. Commodities Citi’s commodities team and energy trading desk, Citigroup Energy Inc. (CEI), helps clients obtain renewable energy credits, works on commodities derivatives and provides hedges for renewable energy project financing deals. These services help enable our clients to achieve their financial and environmental goals for a range of renewable energy generation projects. CEI has also played a role in helping Citi meet our own energy needs sustainably. In 2017, CEI teamed up with Citi Realty Services to sign a deal that will secure 50 percent of all energy needs for a Citi data center in Roanoke, Texas, from renewable sources. The deal will allow us to fix our retail utility rate and utilize renewable energy at an attractive price point, and provides a useful transaction model for other entities looking to ramp up their renewable energy mix. TCFD RECOMMENDATIONS AND CLIMATE OPPORTUNITIES Citi has been a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and its recommendations for improved disclosures of the financial impacts of both climate-related risks and opportunities. The TCFD’s Final Recommendations Report, released in 2017, notes that: “Organizations that pro-actively seek opportunities in new markets or types of assets may be able to diversify their activities and better position themselves for the transition to a lower-carbon economy.” This focus on climate opportunities as well as risks is well aligned with Citi’s Sustainable Progress Strategy. In addition to managing environmental and social risks and our own emissions and operational footprint, Citi has also focused on the opportunity to help our clients address the challenges presented by climate change through the provision of environ- mental finance. Trillions of dollars in investments for renewable and other clean technologies are needed to help the world transition to a low-carbon economy that is environmentally sustainable in the long term. In addition, investments are needed to help mitigate the impacts of climate change and make our commu- nities more climate resilient. Through our $100 Billion Environmental Finance Goal and our previous $50 Billion Climate Finance Goal, we have actively worked to increase the availability of sustainable financing for activities that reduce climate change impacts and create environmental solutions in collaboration with our clients and other stakeholders for well over a decade. For more details on the ways in which we are respond- ing to the TCFD recommendations, and managing climate risks and opportunities, see the TCFD Index. Citi 2017 Global Citizenship Report 83 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT     APPENDICES Environmental Finance     Inclusive and Resilient Communities