Accountability, Culture and Talent Our t ransformation i s u nderpinned b y a fu ndamental r eset o f o ur a pproach t o culture a nd t alent, t o s trengthen r isk management a nd o ur c ontrol e nviron - ment. W e b elieve t his w ill a llow u s t o b uild a c ulture o f e xcellence i n w hich w e e ach take o wnership f or m anaging r isk a nd controls a nd w here w e c ontinue t o t ake pride i n w orking t ogether t o a lways d o the r ight t hing f or o ur c lients, c olleagues and c ommunities. To achieve this, we introduced a new set of Leadership P rinciples in 2021, to help us embed the behaviors and conditions we need in order to sustain the changes we are making as part of our transfor - mation. To further embed the Leadership Principles, Citi is deploying a three-year, firm-wide culture change program, designed to change the way we work by introducing small, everyday habits that we can all adopt to make Citi a stronger, simpler and more enjoyable place to work. We are working to ensure that we have the right number of employees with the right skills in place to achieve risk and control excellence, and that we use our employee development programs, promotion and performance management processes and compensation to reinforce and incentivize that excellence. Our compensation struc - ture captures individual impacts on risk and control, and each of our employees has a related performance goal they are working t oward. Ethics and Culture at Citi Each of our employees shares a common responsibility to earn and maintain our clients’ trust by applying our values and principles every day, to everything they do, wherever Citi operates. We expect our employees to prioritize excellence — for our clients, in our operations, and in our risk and controls environment — and to provide our products, services and expertise in a systemically responsible manner, while complying with all applicable laws, regu - lations and Citi policies. To reinforce this, we establish and communicate our core values and principles through our Mission and Value Proposition, our Leadership Principles, Citi’s Code of Conduct, various training and development opportunities, employee engagement initiatives and communications from our senior leaders. Tone from the Top We foster a culture of ethics through our governance framework, programs and efforts that embed our culture and expectations for behavior throughout the organization. Our approach begins with a strong “tone from the top,” start - ing with our Board of Directors. With oversight from the Ethics, Conduct and Culture Committee of the Board , our senior leaders consistently reinforce a culture of ethics, appropriate conduct and accountability within the organization, and empower our employees to make ethical decisions, escalate issues and adhere to Citi’s standards of conduct. WE ASK OUR COLLEAGUES GLOBALLY TO ENSURE THAT THEIR DECISIONS PASS THREE TESTS: • They are in our clients’ interests. • They create economic value. • They are always systemically responsible. These three tests help our colleagues to responsibly deliver on our core activities of safeguarding assets, lending money, making payments and accessing capital markets on behalf of our clients — each of which creates an obligation to act with integrity, to do everything possible to create the best outcomes for our clients, and to prudently manage risk. The tests demon - strate our commitment to using good judgment and taking pride in doing the right thing — even when it’s not the easiest thing. Contents ESGatCiti SustainableFinance SustainableProgress Equitable&ResilientCommunities Talent&DEI RiskManagement&ResponsibleBusiness Appendices CITI 2021 ESG REPORT 106