Net zero involves rethinking our business and helping our clients rethink theirs. We can have the biggest impact by reducing Scope 3 financed emissions, 1 particularly for carbon-intensive sectors such as Agriculture, Aluminum, Cement, Coal, Commercial Real Estate, Iron and Steel, Oil and Gas, Power Generation and Transport. To reach our net zero target, we will need to work closely with our clients on their own transitions. Following our net zero announcement, we formed an internal Net Zero Task Force to help determine a framework, scope and the methodologies to guide our progress toward this commitment. For our Energy and Power loan portfolios, we conducted an initial assessment of base - line emissions, set interim 2030 emissions reduction targets, and developed initial transition plans. Learn more in the Climate Risk & Net Zero section and in our 2021 Task Force on Climate-related Financial Disclosures (TCFD) Report: Citi’s Approach to Climate Change and Net Zero . ESG Across Our Business Our ESG focus is essential to our firm-wide business strategy, and many of our busi - ness units have expanded their capacity and capabilities to serve the growing ESG-related needs of our clients. Across the firm, our business units are prepared to support and work with our clients through sustainable finance, providing a variety of products and services with environmental and/or social themes. We h ave E SG s pecialists i n B anking, C apital Markets and Advisory; Global Markets; Treasury and Trade Solutions; and Citi Global Wealth. We have expanded our global Social Finance specialist group and formed new teams to engage with clients on ESG goals and targets. Together, these businesses contribute to our $1 trillion sustainable fin ance commitment. ESG Principles and Guidelines In response to the increasing need for clients to see how we are addressing ESG — and in step with global best prac - tices — we have aligned our reporting with the frameworks and guidance of the Global Reporting Initiative and UN G uiding Principles Reporting Framework . We are also using three relevant sector standards from the Sustainability A ccounting Standards B oard , and we’re addressing the Principles for Responsible Banking . We also include examples of our work that align with the UN SDGs and the UN Global Compact . In addition, we recently released our 2021 TCFD Report , which further illustrates how climate-related risks and opportunities are central to our business. 1. Financed emissions are the GHG emissions generated by the operations and entities that financial institutions lend money to or invest in. Contents ESGatCiti SustainableFinance SustainableProgress Equitable&ResilientCommunities Talent&DEI RiskManagement&ResponsibleBusiness Appendices CITI 2021 ESG REPORT 9