ESG at Citi Sustainable Finance Climate Risk & Net Zero Sustainable Operations Building Equitable & Resilient Communities Talent & DEI Responsible Business Appendices Our Net Zero Commitment Our Approach to Managing Climate Risk Reducing Climate Risk in Our Financing Portfolio Analysis engage with clients on the most material climate risks they face and their management plans for and Measurement adaptation and mitigation of those risks. As of the end of 2022, the CRAS has been piloted Citi aims to understand the transition and across multiple sectors, including Energy and physical risks that we and our clients are Power. Results from the scorecard serve as exposed to by conducting climate scenario inputs into the Net Zero Review Template, and analysis, measuring the GHG emissions we are working to embed the CRAS into our associated with our financing portfolio and risk management processes to help inform evaluating portfolio decarbonization pathways. our decision-making moving forward. More In 2022, we measured progress against our 2030 information about our CRAS tool is available in emissions reduction targets for our Energy and our 2022 TCFD Report. Power loan portfolios and established new 2030 targetsfor four additional sectors. Citi uses climate risk scenario analysis, including stress testing, to assess the potential To help Citi understand the climate risk profiles impact of climate-related risk drivers on our risk of our individual corporate clients, we have profile across a range of plausible climate-re- developed the CRAS: an assessment and lated pathways. See our 2022 TCFD Report for a scorecard for climate risk. Using both quantitative discussion of our most recent climate scenario and qualitative metrics, this scorecard will help us analyses. We continue to make prog- Thermal Coal Mining Credit Exposure ress reducing our financing for thermal coal mining and $1.091B coal-fired power genera- $765M* tion. For more information 30% reduction $586M about our related policy from baseline 46% reduction commitments, see our from baseline 2022 TCFD Report and our Environmental and Social Policy Framework. 2020 (baseline) 2021 2022 *This figure has been updated as part of a facility-level data review exercise that identified a few facilities that were excluded from the originally reported exposure. Citi 2022 ESG Report Page 33