ESG at Citi Sustainable Finance Climate Risk & Net Zero Sustainable Operations Building Equitable & Resilient Communities Talent & DEI Responsible Business Appendices ESG Across Citi ESG Governance at Citi Our Material ESG Issues Stakeholder Engagement at Citi The Risk Management Committee provides Ethics and Business Practices oversight of and reviews key risk policies, We work to maintain the public’s trust by including those related to environmental, social adhering to the highest standards of ethical and climate risk. For more information on the conduct. We ask our colleagues to ensure that roles and responsibilities of this committee, see their decisions pass three tests: they are in our the Risk Management Committee charter. clients’ interests, create economic value and are Although not a standing committee of the Board, always systemically responsible. When we do the Transformation Oversight Committee these things well, we make a positive financial provides oversight of management’s remediation and social impact in the communities we serve. of the issues identified in the October 2020 Ethics and responsible business practices are consent orders with the Federal Reserve Board among the most material ESG issues for Citi and Office of the Comptroller of the Currency. and our stakeholders. The Compensation, The changes being made through the Performance Management and Culture Transformation process will continue to improve Committee oversees the incentive compen- our overall governance processes. sation structure for senior management at Citi, The Global ESG Council provides a senior as well as management’s efforts to foster and management forum for oversight of our support the desired culture and promote ethical ESG commitments and priorities. In 2022, decision-making within the organization. The the Council reviewed sustainable finance committee also oversees efforts to promote progress, climate data governance, updates diversity and inclusion in the workplace in hiring, on progress toward our net zero operations retention and staff development practices at goal and our sector target-setting process for Citi. To learn more about the responsibilities emissions reductions in our lending portfolio. of the committee, see the Compensation, Council members also oversaw our progress Performance Management and Culture on workforce DEI representation goals and our Committee charter. Diversity, equity & inclusion, including repre- Specifically, driving the delivery of sustainable Action for Racial Equity external audit results. The Ethics and Culture section of this report sentation of women and U.S. Black colleagues finance under our $1 trillion goal is included in provides more information about efforts to at the Assistant Vice President to Managing the scorecard for our CEO. In 2022, we expanded oversight by our Board of Director levels, continue to be included in Directors and codified alignment of ESG issues encourage a culture of ethics at Citi. scorecards for our senior executives. Citi also Developing a net zero operations plan is on the to certain Board Committees, such as our Remuneration incorporates shareholder and stakeholder scorecard of our Head of Enterprise Services and Net Zero Plan, climate risk management and input on executive pay into our Compensation Public Affairs. Developing and operationalizing the controls and processes around climate and ESG-related goals are incorporated into a Philosophy. our Net Zero Plan for our financing and 2030 ESG disclosures. number of executive scorecards, which aggregate targets are also on the scorecard of the CEO key elements of performance management tied Executive scorecards for certain members of the Institutional Clients Group (ICG), Head to the determination of incentive compensation of executive management and other senior of Enterprise Operations & Technology, Chief for these executives. managers include progress on our Net Zero Plan Risk Officer and Global Co-Heads of Banking, and target setting, our $1 Trillion Sustainable Capital Markets and Advisory (BCMA). For more Finance Goal and climate risk management. information, see our 2022 TCFD Report. CCiitti 2i 200222 E2 ESSG RG Reeppoorrtt PPaagge 7e 7