Climate Risk and Net Zero When we consider the risks related to climate change, we apply a double materiality perspective, looking at both the impact of climate change on our business and our business’s impact on the climate. Citi’s business is exposed to numerous climate risks given our role as one of the largest fi nanciers o f t he g lobal ec onomy, including c arbon-intensive in dustries. T his means that as we address and mitigate risks, we must take into account how we will protect and strengthen our business while ensuring t hat o ur c lients b ecome p art o f the s olutions t hat a re needed t o t ransition to a l ow-carbon ec onomy. We prioritize regular reporting about our progress and approach in relation to climate risk, as we believe transparently sharing our journey is an important contribution we can make both to the broader industry and to our clients. Citi has disclosed climate-related metrics and targets f or o ur environmental fi nance activities and our operations for well over a decade, and we released our first Climate Change Position Statement in 2007. Since then, o ur c ommitment t o t his i ssue h as only grown, as evidenced by our strategic approach, a lignment w ith g lobal st an - dards and the continued evolution of our Environmental a nd So cial R isk M anagement (ESRM) Policy in response to the changing risk l andscape. First established in 2003, our ESRM Policy applies t o a ll C iti e ntities g lobally a nd provides a framework for how we identify, mitigate and manage the potential risk to Citi associated with the environmental and social risks of our clients’ activities. It guides o ur fi nancing dec isions f or c ompa - nies a nd p rojects w ithin e nvironmentally sensitive a nd/or h igh-carbon se ctors. It a lso provides us with opportunities to advise our clients on climate-related risks. To learn more about our ESRM Policy and related due d iligence, s ee t he Environmental a nd Social R isk M anagement s ection . In addition to establishing internal poli - cies and practices, we also align with external s tandards t o s trengthen o ur processes, r eporting a nd e ngagement. We h ave s upported t he r ecommendations of t he Task Force on Climate-related Financial D isclosures (TCFD) since they were released in 2017. Our objective is to understand the potential financial risks from climate change to Citi, our clients and communities; how Citi and our clients may b e c ontributing t o c limate c hange; a nd how we can help our clients transition to a low-carbon ec onomy. Find out more about our implementation of t he T CFD r ecommendations i n o ur 2021 TCFD R eport . In addition, this ESG Report includes a TCFD in dex indicating where climate-related content in response to TCFD recommendations can b e f ound t hroughout this report and other public documentation. Our TCFD Report: Citi’s Approach to Climate Change and Net Zero To find more detailed climate-related disclosures, see our 2021 Task Force on Climate-related Financial Disclosures Report: Citi’s Approach to Climate Change and Net Zero . The report discloses our work to implement the TCFD recommendations across the four pillars of Governance, Strategy, Risk Management, and Metrics and Targets and includes our initial net zero plan for our Energy and Power loan portfolios. PARTICIPATION IN NET ZERO FRAMEWORKS Citi is a member of multiple industry groups that enhance our understand ing of — and ability to act on — climate-related issues. These groups include the Partnership for Carbon Accounting Financials (PCAF), the Net-Zero Banking Alliance (NZBA) and the Glasgow Financial Alliance for Net Zero (GFANZ). Learn more about these in our 2021 TCFD Report . Contents ESGatCiti SustainableFinance SustainableProgress Equitable&ResilientCommunities Talent& DEI RiskManagement&ResponsibleBusiness Appendices CITI 2021 ESG REPORT 37