ESG at Citi Sustainable Finance Climate Risk & Net Zero Sustainable Operations Building Equitable & Resilient Communities Talent & DEI Responsible Business Appendices Transforming Our Risk and Controls Environment Ethics and Culture at Citi Risk Management Human Rights Serving Our Customers and Clients Responsibly Responsible Sourcing environmental and social risks, including labor Our ESRM team collaborates with our concerns and impacts on water and biodiversity. Sustainability and Corporate Transitions team See the Human Rights section for a related to engage with clients working to transition example of our due diligence for a client in the toward more sustainable strategies and business gold-mining industry. models. This provides opportunities for in-depth discussions of specific sustainability topics, We also conduct sector-specific reviews to identifies ways of proactively mitigating environ- identify and mitigate emerging risks in our mental and social risks, and supports our clients existing portfolio. This process enables us to in their efforts to build a more sustainable better understand how our clients manage business. The breadth and depth of our ESRM environmental and social issues and provides team’s knowledge in these areas is a valuable valuable insight into the level of related risk tool to help us assess new transactions and to across our portfolio. advise our clients as we collectively work toward Engagement achieving our decarbonization strategies. For more information about the work Citi is doing to Client Engagement help clients transition to a low-carbon future, see Ongoing engagement with our clients is an the Financing the Low-Carbon Transition section. important part of our ESRM process. When we Industry Engagement first established our ESRM policy, our engage- ments were tied to specific, project-related We participate in many environmentally and financial transactions and their associated socially focused multistakeholder initiatives environmental and social risks and mitigation and organizations, such as the Roundtable on efforts. However, as we have developed Sector Sustainable Palm Oil and stakeholder review Approaches and Areas of High Caution over the of the TNFD (see Biodiversity Loss: A Growing years, we have added corporate-level reviews Risk). We are a founding signatory of the Equator and client engagements in a number of sectors. Principles Association, and we rejoined the These sector-specific risk review processes EP steering committee in 2022 as the North encourage dialogue between Citi and our clients America representative. about the material environmental and social risks associated with their operations, enabling us to develop a better understanding of prevailing industry practices and our clients’ performance and to work with our clients toward more sustainable practices, as needed. Citi 2022 ESG Report Page 74