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 Salient Human Rights Risks: Stakeholder Impacts RESPECTING THE RIGHTS OF INDIGENOUS PEOPLES Citi has recognized the rights of Indigenous Peoples as an Area of High Caution under our ESRM Policy since 2008. This designation The UNGP Reporting Framework refers to a company’s “salient” human rights issues as those that are at risk of provides special attention, focus and respect within our due diligence the most severe negative impact through the company’s activities or business relationships. This table illus- practices. For more information about this Area of High Caution, see trates which stakeholders could be impacted by the human rights risks we have identified as most salient to our Environmental and Social Policy Framework. our company. Shaded rows indicate risks related to the Areas of High Caution defined in our ESRM Policy. In 2022, Citi established a new Sector Approach for Agribusiness. Citi has a long-standing ESRM Sector Approach for our clients in the Palm Suppliers’ Customers and Those Affected Oil and Forestry industries. In 2022, we expanded this standard to cover Human Rights Risks Citi Employees Employees Clients by Clients’ downstream palm oil processors, refiners and traders, and the soy and Operations beef production and supply chains in sensitive ecoregions across Latin America. Among other things, this updated Sector Approach helps Adequate standard of living; right to us to more effectively evaluate these clients’ respect for the rights of property Indigenous Peoples. Conflict risk When agribusiness activities overlap with Indigenous Peoples’ territory or traditional lands, this can lead to conflicts and the need Environmental justice for companies to seek free, prior and informed consent for Indigenous Peoples. As part of our updated Sector Approach, agribusiness clients Discrimination in the provision of that operate in or source from sensitive regions are evaluated against financial services independent certification from industry organizations — specifi- Diversity and inclusion; discrimination cally the Roundtable on Sustainable Palm Oil, the Round Table on in the workplace Responsible Soy and the Forest Stewardship Council — or, in the case of the beef industry, clients are evaluated against the Accountability Indigenous Peoples Framework. These external certifications and standards require that companies have processes that ensure free, prior and informed consent Information security; privacy for Indigenous communities, among other environmental and social principles and criteria. Certified companies are evaluated by a third- Labor practices (including modern party auditor on an annual basis to ensure continued compliance. slavery) Resettlement Security practices Citi 2022 ESG Report Page 78
Global ESG Report 2022 Citi Bookmarked Page 77 Page 79