Global Citizenship Report 2017

WHAT’S AHEAD The scale of the climate challenge necessitates a major evolution in environmental finance — one that enables rapid growth in technologies that reduce or avoid GHG emissions, such as energy storage and carbon seques- tration. While we know that slowing global warming is an important goal, it is also important to look at how to reverse the trend. This will require an unprecedented, cross-sector and international effort to quicken the pace of new technology adoption, while also working toward a responsible transition toward a low-carbon economy. Citi, along with our clients, will continue to work to understand these emerging market opportunities on behalf of our clients, in a way that also addresses the critical SDG development agenda. CITI SUPPORTS THE PARIS AGREEMENT Citi has been outspoken in our support of the Paris Agreement, the international plan to address climate change that has been signed by nearly 200 coun- tries. In May 2017, Citi CEO Michael Corbat, along with his counterparts in 30 other large companies, signed an open letter to the U.S. President that laid out the business case for the Paris Agreement. Even though it was announced that the U.S. would be with- drawn from the Paris Agreement, we have continued to voice our support for the global agreement due to the unique and widespread risks that climate change presents to society and to our business. We believe that U.S. participation in the agreement would strengthen American competitiveness in global markets, create jobs, and support investments and new market development by setting clear, long- term goals. Citi remains fully committed to contributing to climate change solutions and global collaboration. Regardless of whether the agreement is officially recognized as a commitment by the U.S. government, it will remain a guiding framework for public- and private-sector activity around the world and is a relevant piece of our strategic work on environmental finance. CITI GPS REPORT EXPLORES WATER FINANCING OPPORTUNITIES The world’s water resources are becoming increasingly strained and, in some areas, nearing crisis points. An estimated 800 million people lack access to clean water, while 4 billion people live with water scarcity at least one month a year. The water challenge will likely only grow in severity — the global demand for water is expected to nearly double over the next 15 years, and the effects of climate change and intensifying drought patterns will only compound the problem. New approaches to water are needed now more than ever, and water quality and conservation is one area of focus under our $100 Billion Environmental Finance Goal. Citi Global Perspectives and Solutions (GPS), our premier thought leadership product, examined the issue of water scarcity and paths forward in an April 2017 report entitled Solutions for a Global Water Crisis: The End of Free and Cheap Water . The report, which looks at both demand- and supply-side solutions, found that poor water management policies, insufficient infrastructure and a lack of effective pricing mecha- nisms are major contributors to a pending global water crisis. Vast investment in infrastructure to increase water efficiency is critical — according to the report, $7.5 trillion to $9.7 trillion is needed in investment for water and sanitation and related equipment around the world to address this issue. Citi 2017 Global Citizenship Report 87 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT     APPENDICES Environmental Finance     Inclusive and Resilient Communities