Action for Racial Equity In the midst of a global pandemic that disproportionately affected communities of color, we took a hard look at ourselves and our own contribution to the status quo. We saw how we could use our power — as individuals, as a company and as an industry — to drive a lasting transformative movement toward greater equity. The r esult w as Action for Racial Equity , a four-pronged c ommitment o f C iti a nd t he Citi Foundation to invest more than $1 billion by 2 023 i n s trategic i nitiatives t o p rovide greater access to banking and credit in communities o f c olor, in crease in vestment in B lack-owned bu sinesses, e xpand a fford - able hou sing an d ho meownership am ong Black A mericans, an d a dvance an ti-racist practices i n o ur o wn c ompany a nd i n t he financial s ervices i ndustry. By November 2021 — one year into our three-year pledge — we had already invested $1 billion into initiatives expanding economic opportunity f or c ommunities o f c olor, putting u s o n t rack t o e xceed o ur o riginal $1.1 billion commitment set in 2020. Since t he l aunch o f Action for Racial Equity , we h ave b een e ngaged a cross o ur b usiness to t hink a nd a ct i n su pport o f e quity a nd our g oal o f c losing t he ra cial w ealth g ap and i ncreasing e conomic m obility i n t he United States. Throughout 2021, we worked on o ne o f o ur k ey m easures o f su ccess — institutionalizing t he c ommitment t o ra cial equity a cross t he fi rm. F or e xample, w e created t he D iverse F inancial I nstitutions Group, a d edicated t eam w ithin C iti t hat i s serving a s a h ub t o l ead a nd e xpand fi rm - wide e ngagement w ith m inority d epository institutions ( MDIs), di verse b roker-dealers and d iverse as set m anagers. W e’re a lso diversifying o ur t eams t o b etter s erve our c ommunities. W e s tarted t o d evelop a centralized F inancial I nclusion a nd R acial Equity S egment T eam w ithin U .S. Per sonal Banking t o d evelop t argeted a nd i nte - grated s egment s trategies, d rive s eamless customer-centric e xecution, a nd c hampion greater fi nancial i nclusion, ra cial e quity and c ustomer p rotection. We’re h arnessing o ur i nfluence t o encourage o ur l aw fi rm a nd a gency partners t o j oin u s i n e fforts t o a dvance racial eq uity. W e ob tained de tailed diversity d ata f rom t he U .S. l aw p artners who m ake u p m ore t han t wo-thirds o f o ur U.S. l egal s pend, e nabling u s t o i dentify opportunities t o i ncrease re presentation of d iverse a ttorneys o n C iti’s l egal m atters. And w e’re w orking w ith a dvertising a gency partners t hat c omprise t he l argest p ortion of o ur m arketing s pend t o in crease d iverse representation o f a gency t eams, i ncluding senior l eadership, t o h elp e nsure d iversity in C iti m arketing m aterials. We r ecognize t hat t o c ontinue c losing t he racial w ealth g ap, w e n eed a n a pproach that s parks i mmediate c hange w hile a lso creating e conomic s olutions t hat su pport systemic c hange f or t he l ong t erm. W e also r ecognize t he n eed t o h old o urselves accountable, s tarting w ith b eing t rans - parent a bout w here w e a re a nd w here we n eed t o c ontinue p ushing t o i mprove. That’s w hy w e c ommitted t o a third-party racial e quity a udit o f o ur Action for Racial Equity c ommitments. A dditionally, we w ere t he fi rst m ajor W all S treet bank t o p articipate i n t he M anagement Leadership f or T omorrow B lack E quity at W ork C ertification, w hich w as c reated to h elp g uide c ompanies a nd k eep t hem accountable f or m aking p rogress ar ound Black e quity. ( Learn m ore a bout t he certification i n t he Talent a nd D iversity , Equity & Inclusion s ection.) Our Action for Racial Equity commitments contribute to SDG 8 , which aims, among other things, to provide full and produc - tive employment and decent work for all and specifically contributes to target 8.3 , which supports productive activities, decent job creation, entrepreneurship, creativity and innovation, and the formalization and growth of micro-, small- and medium-sized enterprises through access to financial services . Our approach also supports target 8.10 : to strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all . The affordable housing components of Action for Racial Equity align with SDG target 11.1 , which includes providing access for all to adequate, safe and affordable housing and basic services . SDG Goal 8: Decent Work and Economic SDG Goal 11: Sustainable Cities and Communities Contents ESGatCiti SustainableFinance SustainableProgress Equitable&ResilientCommunities Talent&DEI RiskManagement&ResponsibleBusiness Appendices CITI 2021 ESG REPORT 66