Global Citizenship Report 2017

Citi’s Support for Global Climate-Related Disclosures Climate change is one of the most critical issues of our time. It is already affecting many industries and regions globally, and the related impacts are only expected to increase. In order to increase the amount of reliable information about financial institutions’ exposure to climate-related risks and opportunities, the G20 Financial Stability Board (FSB) formed a Task Force on Climate-related Financial Disclosures (TCFD) in December 2015. Chaired by Mark Carney, Governor of the Bank of England, and Michael Bloomberg, Founder of Bloomberg L.P. and Bloomberg Philanthropies and former mayor of New York City, the TCFD developed recommendations for voluntary climate-related financial disclosures that are consistent, comparable, reliable, clear and efficient, and that provide useful information to lenders, insurers and investors to support good decision-making. Citi was an early supporter of the TCFD recommendations, and when the group issued its Final Recommendations Report in June 2017, Citi CEO Michael Corbat, along with over 100 other company heads, signed a statement of support for the recommendations. Following the publication of the TCFD recommendations, which included disclosure requirements for the financial industry and other sectors, 16 leading global and regional banks — including Citi — announced that they will work together with the United Nations Environment Programme Finance Initiative (UNEP FI) on a pilot project to implement the TCFD recommendations related to scenario analysis and strengthen their disclosure of climate-related risks and opportunities. This collaborative, UNEP FI-led pilot project is in progress and will enable banks to work together toward TCFD-aligned climate-related disclosures in a credible, timely and cost- effective manner. The pilot will look at both the transition risks (e.g., due to changes in policies and adoption of new technol- ogies such as electric vehicles) and physical risks (e.g., from drought or more frequent extreme weather events) of climate change, and how those risks could impact our business under three global warming scenarios: 1.5 o C, 2 o C, and a business-as- usual scenario of 4 o C. The pilot project is just the beginning of our journey to incorpo- rate climate scenario analysis into our strategy and reporting. Through this pilot, we hope to learn and iterate over time to improve upon the methodologies and metrics that we use to measure and report on climate risks and opportunities. TCFD in This Report Citi is committed to transparency and reporting on our sustainability and citizenship efforts. We have a long history of reporting on climate-related issues, including in a number of the areas recommended by the TCFD, and have expanded upon relevant information in this report. In the TCFD index, we have highlighted where content that directly relates to the recommendations can be found throughout the report. There are areas of the TCFD recommendations that Citi is still actively working to address, including the use of climate scenario analysis. Assessing climate-related risks is an area where Citi has been increasingly focused. Through the UNEP FI pilot project, we are expanding upon our climate risk assessment efforts by using climate scenario analysis, a key part of the TCFD recommendations, as a tool to measure climate-related risks and opportunities and their potential business implications under a range of different future climate conditions. Early results of the pilot project are expected in spring 2018, after which Citi will expand our reporting on climate-related disclosures as appropriate based on the outcomes of the pilot. Citi 2017 Global Citizenship Report 7 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT    APPENDICES Letter from Our CEO    Citi at a Glance    Citizenship Approach     Our Material Issues    Stakeholder Engagement