ESG at Citi Sustainable Finance Climate Risk & Net Zero Sustainable Operations Building Equitable & Resilient Communities Talent & DEI Responsible Business Appendices Our $1 Trillion Goal Financing the Low-Carbon Transition Financing Social Impact (Continued from page 13) In a challenging year for the bond market overall, Sustainable Finance Across the global sustainable debt market declined in Our Organization SUSTAINABILITY SERIES FROM CITI GLOBAL PERSPECTIVES & SOLUTIONS 1 2022 for the first time since 2020. Yet despite Delivering on our sustainable finance goal is an rising interest rates and economic uncertainty, From water and climate change to electric vehicles and agriculture, Citi Global Perspectives sustainable/ESG debt issuance remained integrated effort across our organization. Many & Solutions explores the challenges and solutions on the path toward achieving the resilient compared to non-ESG debt issuance.2 Citi business units — including Banking, Capital Sustainable Development Goals. Markets and Advisory; Global Markets; Citi Our 2022 progress toward the $1 Trillion Global Wealth, Trade and Treasury Solutions; In 2022, Citi GPS published reports on: Sustainable Finance Goal was partially Citi Community Capital; and Citi Commercial reflective of current market conditions. As seen Bank — are dedicated to delivering products and Climate Finance — Mobilizing the Public and Private Sector in the reporting on page 14, sustainable finance services that can contribute to our sustainable to Ensure a Just Energy Transition goal activities from the M&A and debt capital finance goal. In recent years, we have also A cumulative total of $125 trillion in capital investment is markets businesses declined year over year, created teams such as the Sustainability and needed for the global economy to reach net zero by 2050. contributing to the overall decline in annual Corporate Transitions team, which engages progress compared to 2021. with our clients to support their low-carbon Food Security — Tackling the Current Crisis and Building transition efforts; the Clean Energy Transitions Future Resilience We are seeing consistent sustainable finance team, which provides advisory services and Food insecurity continues to impact almost a third of the global activity that meets multiple sustainability raises capital for companies developing energy population, and a sustainable, long-term solution for global criteria and blurs the lines between environ- transition technologies; and we also continue to food security is not possible without also tackling climate change, mental and social impact. These transactions expand and deepen the scope of the Citi Social which has significant impacts on food production. illustrate the interrelated areas of impact in Finance team, which partners with business sustainable finance. Moreover, while we are units across Citi to help drive innovative efforts Energy Transition — Gaining Momentum on the Path seeing consistent volumes in the pure-play on social finance activities in emerging markets. to Net Zero social finance space, we are seeing more This report examines a range of economic and political challenges, demand for blended finance instruments, as For additional information on how our teams within and among countries, that continue to impact the reliance well as increasing focus on energy transition. engage with clients on their sustainability and on fossil fuels and the global energy transition. We will continue to closely monitor the social transition journeys, see Low-Carbon Transition finance market and identify opportunities. and Social Finance. Food and Climate Change — Creating Sustainable Food Systems Overall, we remain committed to advancing for a Net Zero Future sustainable finance activity and staying on The global food system — agriculture and food production track to achieve our target of financing and collectively — is responsible for one-third of human-induced facilitating $1 trillion by 2030. global greenhouse gas emissions. Citi GPS analyzes four potential solutions to reduce emissions. Eliminating Poverty — The Importance of a Multidimensional Approach in Tackling SDG 1 To make progress towards poverty reduction, we need to 1 “U.S. Sustainable Bond Market Well Positioned Despite General Slowdown in Bond Financings” (March 13, 2023), White & Case, https://debtexplorer. consider ways to mobilize more investors and businesses whitecase.com/leveraged-finance-commentary/us-sustainable-bond-market-well-positioned-despite-general-slowdown-in-bond-financings#!. to adopt this goal. 2 ESG Flows and Markets (December 2022), Institute of International Finance, page 2, https://www.iif.com/portals/0/Files/content/Research/IIF%20 ESG%20Flows%20and%20Markets_Nov-Dec.%202022_v1.pdf. Citi 2022 ESG Report Page 17