The PCAF methodology is primarily focused on reporting financed emissions on an annual basis and relies on data of funds outstand - ing, not the total funds that a financial institution may have committed to the client in the reporting year. While we intend to continue disclosing per the PCAF requirements to provide this annual view of financed emissions associated with our activities, we are using “committed funds” data to more holistically attribute our clients’ emissions for the baseline financed emissions figures in our net zero plan. Consequently, we undertook an additional analysis of our Energy and Power loan portfolios using total committed funds to calcu - late baseline emissions from 2020 and establish 2030 emission targets. The use of committed funds in this context provides a more accurate reflection of the maximum emissions-generating activity that Citi has agreed to finance and is therefore better suited for the purposes of forward-looking emissions management and target setting. This approach results in discrepancies between the metrics we report for PCAF and for our net zero targets, but we believe the committed funds approach is better aligned with the way we expect to manage our net zero targets. * mt CO 2 e = metric tons of carbon dioxide equivalent. ** Omission of Scope 3 emissions for Power is explained in the “Scope 3 Calculation Methodology” in Appendix A (page 71) of our 2021 TCFD Report . *** Scope 3, Category 11: Use of Sold Product, for extractive and refining sectors. * Omission of Scope 3 emissions for Power is explained in the “Scope 3 Calculation Methodology” in Appendix A (page 71) of our 2021 TCFD Report . FPO TABLE Scope Power Energy Scope 1 4,261,747 17,308,063 Scope 2 164,059 518,594 Scope 3 N/A ** 40,113,950 *** Total 4,425,806 57,940,607 Scope Power Energy Scope 1 11,464,654 33,847,434 Scope 2 485,784 1,434,241 Scope 3 N/A * 108,478,743 Total 11,950,438 143,760,418 2020 ABSOLUTE FINANCED EMISSIONS: OUTSTANDING EXPOSURE (MT CO 2 E * ) 2020 ABSOLUTE FINANCED EMISSIONS: COMMITTED EXPOSURE (MT CO 2 E) To reach net zero, we must move from our baseline across a decarbonization pathway to our ultimate net zero target. Establishing 2030 targets are the first step in that journey. The next step is to develop an implementation plan to achieve targeted reductions in each relevant sector. We are evaluating a number of strategies and tools to drive towards the established goals, though they may not all be applicable for every sector or client. Some of the emissions reduction approaches and potential future tools include client engagement, capital allocation strategy and portfolio management tools. The table on the following page summarizes our current 2030 emission targets for Citi’s Energy and Power portfolios. These interim 2030 targets are a key component of our net zero plan for emissions in our client portfolio. Energy and Power Baseline Emissions and Interim Targets During 2021, we used the PCAF methodology to conduct an analysis of our Energy and Power portfolios using 2020 data. In alignment with PCAF requirements, this analysis is based on funds outstanding (drawn and not yet repaid) by clients during the year to provide a view of financed emissions associated with our activities during that year. Contents ESGatCiti SustainableFinance SustainableProgress Equitable&ResilientCommunities Talent& DEI RiskManagement&ResponsibleBusiness Appendices CITI 2021 ESG REPORT 41