global 2012 english

8/11/2019 Global 2012 English

1/82

PROMOTING FINANCIAL INCLUSION

VALUING OUR EMPLOYEES

ADVANCING ENVIRONMENTAL SUSTAINABILITY

2012GLOBALCITIZENSHIPREPORT


2/82

2012 GLOBAL CITIZENSHIP REPORT ii

About This ReportThis report covers the period January 1, 2012, toDecember 31, 2012 (our scal year 2012). It highlightsthe progress and goals of Citigroup Inc. and its

subsidiaries, unless stated otherwise, as they relateto corporate citizenship and provides supplementalinformation as published in our 2012 Annual Report .

Several Citi country ofces publish annual reportson their citizenship efforts. A library of archivedcountry-specic citizenship reports can be foundon our Global Citizenship website.

We report annually on our citizenship performanceour last report was published in April 2011. Reportingand performance data includes information on Citis

owned and operated facilities. For more informationon the citizenship initiatives described here, pleasevisit Citis website or contact:

Tyler DaluzCorporate [email protected]

Citigroup Inc.399 Park AvenueNew York, NY 10022

With 200 years of experience meeting the worldstoughest challenges and seizing its greatest opportu-nities, we strive to create the best outcomes for ourclients and customers with nancial solutions thatare simple, creative and responsible. Citi providesconsumers, corporations, governments and institu-tions with a broad range of nancial products andservices, including consumer banking and credit,corporate and investment banking, securities broker-

age, transaction services and wealth management.

In 2012, Citi celebrated our 200th anniversary. Our principlescommonpurpose, responsible nance, ingenuity and leadershipare the bridge

that connects our 200-year history with the future we want to create.An institution connecting over 1,000 cities, 160 coun-tries and millions of people, we are your global bank;we are Citi.

Citi has been included in the Dow Jones SustainabilityIndexes (DJSI World and DJSI North America) since2001 and the FTSE4Good Index since 2002. Ourcontinued inclusion in these indexes reects ourleadership in setting standards in sustainable growthand in achieving noteworthy environmental, social andeconomic performance.

Citicorp Revenues Citigroup Net Income Citigroup Net Revenues2012 Revenues: $70B

BY REGION BY BUSINESS$11.1B

$7.5B

$10.6B

North America

Asia

Europe, MiddleEast & AfricaLatin America

Global ConsumerBankingSecurities andBanking

Citi TransactionServices

$86.6B

2010 2011 20122010 2011 2012

$78.4B $70.2B

$0B

$4B

$2B

$6B

$10B

$12B

$8B

$0B

$40B

$20B

$60B

$100B

$80B

43%

21%

20%

16%57%

15%

28%
http://www.citigroup.com/citi/investor/quarterly/2013/ar12c_en.pdf?ieNocache=810http://www.citigroup.com/citi/about/global_citizenship.htmlhttp://www.citigroup.com/citi/about/global_citizenship.htmlhttp://www.citigroup.com/citi/about/global_citizenship.htmlhttp://www.citigroup.com/citi/about/global_citizenship.htmlhttp://www.citigroup.com/citi/investor/quarterly/2013/ar12c_en.pdf?ieNocache=810


3/82

2012 GLOBAL CITIZENSHIP REPORT ii

Letter from CEO Mike Corbat

Finally, our clients and customers are increasingly conductingtheir business in a digital environment. More and moregoods and services are exchanged with the swipe of a nger.Were working to spread the benets of digitization beyondthe afuent consumer. In Mexico, for example, Citi andBanamex (our Mexican subsidiary) partnered with the largestmobile network operator in Latin America to introduce mobilewallets targeted to reach 50 million unbanked and under-banked people.

All of our work, which you can read about in more detail in

this report, is underpinned by our dedicated employees. Ourdiverse and talented global workforce is able to provide awide range of ideas and solutions to clients. They are vitalto the success of our business, of our customers and of thecommunities we serve. And theyre the foundation of everyaccomplishment detailed in this report.

As one of the worlds largest and most geographically diversecompanies, Citi has special responsibilities. We take pride inthe various ways that our focused citizenship efforts areintegrated into our business operations.

For instance, we help our clients harness the many benetsof globalizationespecially by connecting them to the growthopportunities in the emerging markets. At the same time,were also increasing our commitment to nancial inclusionin developing areas. And through our partnership with theU.S. Overseas Private Investment Corporation, we have

provided 38 micronance institutions in 21 countries withaccess to capital to fund small loans to nearly one millionunbanked or under-banked borrowers.

With globalization comes urbanizationwhich offers greatopportunities for growth but also puts potential strain on ourinfrastructure and natural resources. Thus, as Citi continuesto emphasize the worlds top cities, our rm is committed toefcient and sustainable growth. In 2012, we expanded ourLeadership in Energy and Environmental Design (LEED )certied portfolio to more than 200 projects, the rst bankto pass that milestone, which contributed to signicantreductions in our greenhouse gas emissions, water useand waste from operations.

Mike CorbatChief Executive Ofcer


4/82

2012 GLOBAL CITIZENSHIP REPORT iii

and evaluate new business models to deliver asset-buildingproducts to recipients of Conditional Cash Transfers acrossLatin America and the Caribbean.

In the U.S., we continue to focus our efforts on enhancingnancial capability, job creation and affordable housing. Citipartnered with a coalition of nonprot economic developmentorganizations to launch the Urban Manufacturing Alliance(UMA), which is working to accelerate the growth of urbanmanufacturing and capitalize on the sectors ability to createstable, high-quality jobs in 16 cities across the nation. Addi-tionally, Citi was named the nations top affordable housinglender for the third year in a row by Affordable HousingFinance magazine.

As the global economy begins to stabilize, it is as importantas ever for us to remain strongly committed to nancialinclusion as both a citizenship priority and a business modelone that enables economic empowerment and adds vitalityto communities.

We embrace our role in promoting environmentally sustainablegrowth in three distinct ways. First, we ensure thatwe meet our ambitious goals to reduce our energy use (andgreenhouse gas emissions), our water consumption and waste.

Second, we use our considerable experience to help our clientsmanage their environmental and social issues. We feel that itis important to partner with our clients at a time of increasingbusiness risk tied to climate change and human rights.

Third, we develop environmental business opportunities thatcreate good returns. For example, in 2012, Citi consolidated itsposition as a global leader in alternative energy and renewableenergy. We provided advice to clients on important strategictransactions and in some cases partnered with them to nanceprojects. Also in 2012, we directed $8 billion under our $50Billion Climate Initiative, bringing the total to $44.37 billion,six years into the ten-year initiative. As we enter our thirdcentury, citizenship at Citi is as important as ever. While theglobal economy continues to change, we keep on looking forways to create shared value with all our stakeholders.

Citi is as local as we are global. Everywhere we operate, webring our world-class expertise to bear on providing nancialservices that meet the needs of individuals, families andcommunities.

We work in over 100 countries where many millions of peoplend themselves outside the economic mainstream. Providingthem with access to nancial know-how, services (such assavings and loans) and support is a citizenship priority and abusiness opportunity.

Corporate citizenshipmaking sure that we not only produceresults for our shareholders but also make a positive impact inthe communities where we have a presenceis at the core ofour business and important to our colleagues. We focus onthree areas where we can have the greatest impact: PromotingFinancial Inclusion, Advancing Environmental Sustainabilityand Valuing Our Employees.

Thought leadership and innovation drive our efforts topromote nancial inclusion and economic empowerment. Weput the strength of Citis business resources and people towork to enhance our philanthropic investmentsthrough theCiti Foundationand generate measurable positive impact.

The Citi Foundations signicant strategic giving complementsour innovative micronance and community development busi-ness initiatives. These are designed and implemented throughinventive partnerships, working with nonprots, small businessassociations, local governments, micronance institutions,local banks, multinational agencies, investors and, morerecently, technology providers.

In 2012, we made signicant progress in our micronancelending and community development initiatives. Highlightsincluded an $18.5 million loan to enlarge Indonesias micro-nance sector and investments in 14 groundbreaking U.S.community programs that could become national models fornancial inclusion.

Citi and the Citi Foundation donated $137 millionpart ofwhich was the continuation of a three-year $6 millionFinancial Innovation and Research Fund, in partnership withthe Inter-American Development Bank. The bank will test

Joint Letter from Pamela Flaherty and Bob Annibale

Pamela FlahertyDirector of Corporate Citizenship,President and CEO of the Citi Foundation

Bob AnnibaleGlobal Director, Citi Micronanceand Citi Community Development


5/82

PERFORMANCE

INTRODUCTION

DIVERSITY From recruit-ment to professional develop-ment and partnerships, Citi isbuilding a diverse workforcethat offers opportunities to all.Nowhere is progress moreevident than in our vibrant,staff-led Employee Network

program. Over 10 years, weveexpanded the programs earlyfocus on women and racialand ethnic diversity to include,

among others, military veter-ans, generational diversity andour gay, lesbian, bisexual andtransgender employees. It isone of my proudest achieve-ments that we now have morethan 70 networks around theworld. Ana Duarte McCarthy,Chief Diversity Ofcer, Citi

ENVIRONMENT Our colleagues and clients, aswell as many other stakeholders, want to knowhow were reducing the environmental footprint

of our own operations to see that we really do meanbusiness when it comes to sustainability. We canttalk the talk if we dont walk the walk. Don Callahan,Head of Operations & Technology, Citi

76

1

8

53

61

18 35

40

12

AWARDS &RECOGNITIONS

APPENDIX

COMMUNITY By focusingand applying our resources andexperience, we know thatwe can serve as a powerful and positive force to revitalizeunderserved communities withresponsible nancial solutions.

Andrew Ditton, Co-head ofCiti Community Capital

GOVERNANCE, ETHICS ANDGOVERNMENTRELATIONS

SERVINGCOMMUNITIES

SUPPORTINGCONSUMERS

ENVIRONMENTALSUSTAINABILITY OUR EMPLOYEES

2012 GLOBAL CITIZENSHIP REPORT


6/82

2012 GLOBAL CITIZENSHIP REPORT 1

Provide access to nancial services, plus knowledgeand support to those who would otherwise beexcluded from the economic mainstream.

Lead the industry in environmental performancereducing our operational impacts, developing andimplementing standards to manage the environ-mental and social risks of banking activity, andmitigating climate change through nancingalternative energy projects around the world.

Provide opportunity for our global and diversetalent base to succeed; and strive to recruit andretain diverse and engaged teams around the world.

We support our citizenship priorities with our productsand services, and through lending, investing and theexpertise of our people. Citis efforts are complement-ed by the Citi Foundations strategic giving.

Measuring PerformanceWe measure our performance in each of our socialand environmental priority areas and continue toreport data to provide comparisons and show trendsover time. Our reporting closely aligns with the GlobalReporting Initiative (GRI) 3.1 Guidelines, a widelyrecognized standard for best practice in sustainabilityreporting. The structure and transparency of thisreport reect the GRI Framework. Based on an internalreview, Citi determines this to be a B level reportagainst the GRI G3.1 Guidelines.

Citizenship Focus Areas and PrioritiesOur citizenship focus areas and priorities reect ourviews, and those of our stakeholders, along with therisks and opportunities of our business.

Corporate citizenship is a unifying theme at the coreof our operations. We focus our efforts on three areaswhere we can have the greatest impact:

Promoting Financial Inclusion

Advancing Environmental Sustainability

Valuing Our Employees

We keep a watch on global and local economicconditions, which can change rapidly and unexpectedly.Nevertheless, we maintain a commitmentto these priorities:

Treat customers fairly and support them in times ofnancial difculty. This is embodied in our commit-ment to responsible nance.

CITIZENSHIP APPROACH

Our approach to citizenship is based on our commitmentto responsible nancehow we dene business conductthat is transparent, prudent and dependable. Through ourcitizenship efforts, we aim to ensure that our actions arein the best interests of our clients, are designed to createeconomic value and are systemically responsible.

Citis Citizenship Efforts Recognizedin AsiaKorea: Best CSR Film in 2012Korea CSR Film Festival

Singapore: Social Responsibility Programof the Year, Silver Award 2012

Taiwan : CommonWealth MagazineBest Corporate Citizen Award, six consecutive years

Thailand: AMCHAM Thailand CSR CommitteeCorporate Social Responsibility ExcellenceRecognition Award, 20102012


7/82


CITIZENSHIP CHALLENGES AND ACHIEVEMENTS 2012

Achievements The Citi Foundation invested $76.5 million in

programs that support the economic empower-ment and nancial inclusion of more than1.1 million people globally.

Citi Micronance, Citi Indonesia and theU.S. Overseas Private Investment Corporationannounced an $18.5 million term loan to promotenancial inclusion of microentreprenuers and

small businesses in Indonesia. Citi Community Capital lent and invested more

than $5.3 billion in 255 transactions with commu-nities in the U.S.

Achievements For the fourth consecutive year in 2012, our

Home Affordable Modication program was atop performer as measured by success rates inpublic U.S. Treasury reports.

Introduced Plain Talk About Your Products , aneasy-to-read guide to account features andchecking-account fee disclosures.

Launched Citi ThankYou Rewards for SmallBusiness, which allows small business owners tocombine ThankYou Points earned from theirpersonal and business accounts.

Challenges Improving client risk management in

micronancing, amid a lack of credit bureauswith relevant and complete information.

Government nancial intervention, which maydisrupt competition or repayment culture.

Expanding the Citi Foundations capacity tomeasure the success of our thought leadershipgrants and understand the role these play infostering broader systemic change.

Ranked the number one U.S. lender by Affordable Housing Finance magazine for thethird consecutive year, with a lending volumeof $2.6 billion.

Challenges Continually ensuring that our actions are

in the best interest of our consumers.

Continuing to support affordable housingin a weak economy.

Offering adequate practical support tocustomers in nancial difculty.

SERVING COMMUNITIES

SUPPORTING CONSUMERS


8/82


ENVIRONMENTAL SUSTAINABILITY

OUR EMPLOYEES

Achievements Improved energy efciency across our opera-

tions by 8.8 percent on 2005 levels and reducedcarbon emissions by 21.7 percent from a 2005

baseline year. Developed a toolkit and mentoring program to

help our global network of Green Teams cham-pion environmental sustainability initiatives intheir ofces, regions and communities.

Expanded Biodiversity for Banks, a cross-sectorinitiative to manage biodiversity risks andimpacts in projects we nance, to include Citisclients in the mining and oil and gas sectors.

Completed our two-year term as Chair ofthe Equator Principles (EP) Association andcontinued to play a leading role in the EPupdate process.

Directed $8.02 billion toward the $50 BillionClimate Initiative in 2012, bringing the total to$44.37 billion.

Challenges Attaining business unit buy-in for a broader,

rm-wide Environmental and Social RiskManagement (ESRM) Policy that applies existinginvestment and corporate bank ESRM approachesto all Citi business units.

Recruiting local business advisors to helpGreen Teams identify, drive and execute localsite projects.

Achievements Celebrated Diversity Week, a global event designed

to increase awareness of diversity among ouremployees. Sixty-nine countries took part.

Supported our 74 employee networksrepresenting some 15,000 members across27 locations, including 14 new networks focused onmilitary veterans, women, and older, disabled andLGBT employees.

Provided training for 98 percent of employeesworldwide, with an average of 40 training hoursper individual.

Launched Live Well at Citi, an ambitious global

health strategy that helps promotes a culture ofhealth through programs that meet overallcompany objectives while serving differinglocal needs.

Celebrated Citis 200th anniversary on June 16,2012, by encouraging Citi employees to volunteerfor community projects focused on literacy,housing, environmental protection, nutrition,

health care and disaster relief. More than111,000 Citi employees and their families andfriends in 93 countries took part.

Challenges Implementing a series of repositioning actions

to further reduce expenses and improveefciency across the company. These actionswill result in a reduction of more than 11,000positions through the end of 2013.

Balancing respect for local customs, valuesand legislation with our social goals. In somecommunities, practices in communities where

we are located differ from commonly acceptedglobal standards for human rights.

Making our newly launched global learningportal available to employees in countrieswithout high-quality technology infrastructure.Also, balancing the demand for globally relevantprograms with the need for regionallyandlocallycustomized content.

CITIZENSHIP CHALLENGES AND ACHIEVEMENTS 2012


9/82


StakeholderGroup Communication Channel 2012 Examples

Clients andcustomers

We value the input of those who use our nancialsolutions, and we hold regular meetings with keyclients. Our Client Service department managescommunications with clients and customers, andour @AskCiti Twitter account provides instantaccess to customer service representatives.

We also measure customer satisfaction throughsatisfaction surveys, as well as commentssubmitted via email, phone, social media andwritten correspondence.

We track and manage relationships with institu-tional clients rm-wide, coordinating acrossbusiness units and product lines with individualaccountability for each touch-point of therelationship. We also engage with our clientsproactively through our application of theEquator Principles and Citis ESRM Policy to clienttransactions.

We conduct annual customer satisfaction surveysin our regions. See the Measuring ConsumerSatisfaction section of this report for moreinformation.

Investors Our Investor Relations department regularlyinforms and updates our investors on the compa-nys nancial and operational performance.

We engage with our investors through our AnnualReport, Proxy Statement , SEC lings, meetings andour Investor Relations website .

Employees Citi employees value our dedication to citizenship.Our Human Resources and Diversity departmentsinteract with employees through an intranetwebsite.

Our annual Voice of the Employee Survey gathersfeedback from employees on working at Citi.

Our annual Green Employee Survey gathers feedbackfrom our workforce on Citis environmental sustain-ability program and performance.

Governmentandregulators

Our Citigroup Global Government Affairs groupinteracts with elected ofcials and policymakersglobally through company outreach or industry

association activities, including lobbying, publicpolicy forums and public seminars.

Citis Global Compliance group maintains acontinuous constructive dialogue and partnershipwith regulators at all levels. The group advises onand coordinates regulatory examinations with thebusiness and other functions.

Citis public policy involvement in 2012 coveredareas such as cybersecurity, nancial transactiontaxing and free trade agreements.

We engage regularly with individual stakeholdersand institutions to share information, listen to ideasand concerns and rene our policies and practices.We count a broad range of customers, corporateclients, communities, employees, investors, nonprot

STAKEHOLDER ENGAGEMENTorganizations, regulators and suppliers as our stake-holders. Our engagement with these groups is ground-ed in an approach that is open and transparent,allowing for two-way dialogue and listening.

Citi Stakeholders and Engagement Activities
http://twitter.com/#!/askcitihttp://www.citigroup.com/citi/investor/quarterly/2013/ar12c_en.pdf?ieNocache=56http://www.citigroup.com/citi/investor/quarterly/2013/ar12c_en.pdf?ieNocache=56http://www.citigroup.com/citi/investor/quarterly/2013/ar13cp.pdf?ieNocache=56http://www.citigroup.com/citi/investor/overview.htmlhttp://www.citigroup.com/citi/investor/overview.htmlhttp://www.citigroup.com/citi/investor/quarterly/2013/ar13cp.pdf?ieNocache=56http://www.citigroup.com/citi/investor/quarterly/2013/ar12c_en.pdf?ieNocache=56http://www.citigroup.com/citi/investor/quarterly/2013/ar12c_en.pdf?ieNocache=56http://twitter.com/#!/askciti


10/82


StakeholderGroup Communication Channel 2012 Examples

Suppliers We communicate with our more than 14,000suppliers across 100 countries through ourProcurement group.

Our Statement of Supplier Principles , which promotesethical business practices, human rights and environ-mental sustainability is communicated to potentialsuppliers through the request for proposal process.

In 2012 we hosted several events and programsthat promoted a diverse supplier base. See SupplierDiversity section in Serving Communities.

Communityleadersand NGOs

Citi teams across a range of businesses andfunctions, including the Citi Community Develop-ment, Public Affairs, Government Affairs andLegal departments, as well as Citi Foundationstaff, maintain communication with communityleaders locally and nationally, including top staffof nonprots, elected ofcials and thoughtleaders.

The Community Development @ Citi website

houses information on our work to expandnancial inclusion and economic empowermentin underserved communities.

We also communicate via email and social mediaand conduct periodic public webinars to provideinformation on community development policyand practice. Citi executives and members of theCiti Community Development team serve on localand national boards and policy groups in the U.S.,and our team of international public affairsofcers manage these relationships in country.

We collaborate with NGOs on issues relevant toeach group, including nancial inclusion, environ-mental sustainability, community developmentand human rights.Our Corporate Sustainability group, CommunityDevelopment group and team of public affairsofcers in the countries where we operatemanage communications with NGOs.

See Thought Leadership examples throughout thisreport.

Several Citi executives engage with communityleaders and NGOs through their positions on boardsfor nonprot organizations. For example, FrancescoVanni dArchira, Global Head of Treasure and TradeSolutions and a member of Citis Institutional ClientsGroup Management Committee, serves on the Boardof Governors for Junior Achievement (JA) Worldwide

and is the Chairman of JA Europe. Bob Annibale,Global Director, Citi Micronance and Citi CommunityDevelopment, serves on the Board of Directors forthe Consultative Group to Assist the Poor.

Various examples of our work with nonprots onnancial inclusion and other community efforts, locallyand globally, can be found in the Serving Communities section.

Citi engages with environmental NGOs to understandpriority issues and to identify opportunities forpartnership and creative solutions.

Through the Asset Building Policy Network, a U.S.network of the countrys pre-eminent organizations

from the civil rights, nancial services, economicdevelopment and consumer advocacy communities,in 2012, Citi helped develop a set of policy principlesfor asset building, engaged in dialogue with regulatorsand federal agencies and integrated asset buildingand nancial services within communities of color.

Sociallyresponsibleinvestors(SRIs)

Citis Corporate Governance group and CorporateSustainability group meet inperson and scheduleconference calls with SRIs as needed.

Citi met with members of the Interfaith Center forCorporate Responsibility, a faith-based SRI, to discussquestions related to responsible lending, risk manage-ment, executive compensation and political contribu-tions.

Media Our Public Affairs department engages with themedia through interviews, forums, press releasesand reports.

The Citi News website hosts company announcements,achievements and statements.

Othernancialinstitutions

We communicate with competitors throughindustry events and benchmarking activities.

In 2012 we continued to collaborate with 75 + fellowEquator Principles other nancial institutions ondevelopment of the updated Equator Principles. Seethe Environmental and Social Risk Management sectionin Environmental Sustainability for more information.

STAKEHOLDER ENGAGEMENT

Citi Stakeholders and Engagement Activities continued
http://www.citigroup.com/citi/citizen/community/index.htmlhttp://www.citigroup.com/citi/news/news_list_view.htmlhttp://www.citigroup.com/citi/news/news_list_view.htmlhttp://www.citigroup.com/citi/citizen/community/index.html


11/82


Stakeholder Feedback Citi Response

GovernanceHow has Citi responded to shareholderssay-on-pay vote?

We designed a new program effective for 2013, structured around amore objective performance evaluation process, which was imple-mented in important respects in 2012. Incentive awards will be based ona rigorous scorecard approach driven by specic nancial metrics andstrategic objectives for both Citi and its major lines of business. Readmore about this new program in our 8-K lings .

Human rightsWhat is Citi doing to implement theUN Guiding Principles on Business andHuman Rights?

We are conducting an internal review of our human rights policies andapproach as part of the process of updating our Statement on HumanRights. We also have been active in the Equator Principles update(EP III), participating in discussions on how concepts such as HumanRights Due Diligence and Free Prior and Informed Consent for Indig-enous Peoples can be incorporated into EP III. Reporting on humanrights can be found on pages 14 15 and 49 50.

EmployeesExplain the decline in workforce diversity.

Since 2009, Citis total U.S. workforce has declined by 13.2 percent. TheU.S. female employee population fell by 16.7 percent, and the minoritypopulation declined by 14.7 percent, both closely in line with the overallworkforce contraction. However, during the same period, our minoritymanagement population has increased by 6.9 percent, with female

minority management employees growing by 4.1 percent.

Citizenship prioritiesHow were Citis citizenship priority areas ofPromoting Financial Inclusion, AdvancingEnvironmental Sustainability and Valuing OurEmployees identied?

Our citizenship reporting efforts span a 12-year history. During thistime we have conducted several materiality assessments that, inconjunction with our company history, values and business strategy,have yielded and reafrmed our three citizenship priority areas:Promoting Financial Inclusion, Advancing Environmental Sustainabilityand Valuing Our Employees. These priority areas guide and driveprogress of our citizenship efforts globally.

Environmental and social impactsHow is Citi addressing conict mineralsin its supply chain?

We are reviewing our supply chain strategy and taking steps to integrateinto it mechanisms to address conict minerals concerns. Our seniorprocurement executives are involved in the process, and we are working

with key suppliers to identify areas of risk and opportunity. Furtherreporting on our supply chain initiative can be found on page 43 .

Supporting consumersHow have Citis Net PromoterScores improved?

Putting the customer at the center of everything we do is critical to oursuccess. Citis Global Consumer Banking business is focused on listeningto customers in order to recognize their needs and provide genuinesolutions to help reduce the complexities of their nancial lives. Ourfundamental GCB performance measure is provided through NetPromoter Scores, and we continue to improve. For more information oncustomer satisfaction and our efforts to improve the consumer experi-ence, see pages 3539 .

CERES REPORT REVIEWWhile developing this report, we sought feedbackfrom Ceres, a network of investors, environmentalorganizations and other public interest groups workingwith companies and investors to address sustainabilitychallenges.

Ceres convened an independent group of experts onenvironmental, social and governance issues represent-ing a global range of stakeholders and constituencies.This group reviewed a draft of this 2012 CitizenshipReport and provided feedback on the materiality of ourreporting and on our 2012 performance. The feedbackis summarized in the table below and was used in thedevelopment of this report.

Citi Report Review Feedback and Responses
http://www.sec.gov/Archives/edgar/data/831001/000114420413010517/v335853_8k.htmhttp://www.sec.gov/Archives/edgar/data/831001/000114420413010517/v335853_8k.htm


12/82


ti, one of the worlds top credit card issuers, hascreased paperless statement penetration to 34%consumer credit card customers worldwide.

2011 2012

29.3% 34.5%

2010

25.2%

2009

20.4%

REDIT CARD E-STATEMENTSlobal Penetration Rates

2010 2011 2012

608,953total hours

789,000total hours

1,340,433total hours

=79,000 hoursor

TRAINING & DEVELOPMENTAverage Hours of Training

2010 2011 20120

20%

40%

60%

80%

EMPLOYEE SATISFACTIONResults from Citis Annual Voiceof the Employee Survey

67%73% 73%

73% Employ

Satisfaction R

DIVERSITY NETWORKSEmployee Opportunities and Support

Employee networks, organized and led by employ-ees, are organized according to afnity. They focuson cross-business networking opportunities andsupport employee growth and development.

27location

74networks

15,000members

Advancing Environmentalustainability

PromotingFinancial Inclusion

ValuingOur Employees

NVIRONMENTAL & SOCIALRISK MANAGEMENT (ESRM)

ansactions Receiving ESRM Review in 2012

Europe, MiddleEast and Africa125

U.S. andCanada54

Latin Americaand theCaribbean85

Asia andthe Pacic89

2010 2011 20120

$25M

$50M

$75M

$100M

$125M

$67.9M$78M $76.5M

$113.5M$125.3M

ANNUAL STRATEGIC GIVINGTotal Annual Citi and Citi Foundation Giving

SMALL BUSINESS LENDINGLending Totals (US)

EMPLOYEE VOLUNTEERINGTotal Volunteer Hours Contributed

0 0.25M 1M0.5M 0.75M

398,000 individuals have

met theirnancial goals

702,000 workingtoward their

nancial goals

GLOBAL MICROFINANCECiti & OPIC* Micronance Partnership

2010 2011 2012

Citi was thetop affordablehousing lenderfor the thirdyear in a row.

$2.2B $2.6B$2.9B

PHILANTHROPIC IMPACTGlobal impact from nancial inclusion andeconomic empowerment Citi Foundation grants

AFFORDABLE HOUSING LENDINGRecent Lending Totals (U.S.)

KEY PERFORMANCE INDICATORS

Training Investment: $184 Million

Our classroom and online training programs cover:leadership and management; business andproduct-specic content; new hire onboarding;professional development; technology; compliance,vendor and human capital spend.

2011 2012

38hours

40

hours

2010

34.5hours

LEAN ENERGY FINANCING& INVESTMENT

ur goal, announced in 2007, is to direct50 billion over 10 years toward activitiesat mitigate climate change.

At the end of 2012 Citi surpassed its 2012 goalby lending a total of $9.6 billion.

$137MTotalgiving

CitiFoundationgiving

B $10B $20B $30B $40B $50B

$9.4B base2007

$50Bgoal

2017

$8B committedin 2012

$44.4B totalcommitted

$340.9Mprovided byCiti & OPIC

38 micronance institutionsfunded in 21 countries

Small loans provided to morethan 960,000 borrowers

91% of microloanborrowers are women

*U.S. Overseas Private Investment Corporation

Total of $9.6Blended in 2012

Total of $7.9Blended in 2011

$0B $8B

$7Bgoal 2011

$8Bgoal 2012

$9Bgoal 2013

$16B $24B

$17.5BTotal lended

GHG EMISSIONS REDUCTIONreenhouse Gas Footprint Goals and Actuals (Net)

370,000

,183,037

,049,977

881,277

787,500

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3

2 0 1 4

2 0 1 5

bsolute CO 2 emissions (Mt)

0% reduction goal for 2011

25% reduction goal for 2015

21.7%reduction


13/82


Focus Area Investments People Served*

Financial capability andasset building $25,301,000 808,000

Micronance $12,066,000 13,000

Enterprise development $11,364,000 80,000

College success $6,963,300 48,000

Youth education andlivelihoods $5,937,000 82,000

Neighborhoodrevitalization $9,870,000 80,000

Disaster response $1,280,000 n/a

Financial insight & other $3,750,000 n/a

Total $76,531,300 1,111,000

* projections

Citi Foundation 2012

Global Micronance$340.9M provided by Citi and the Overseas PrivateInvestment Corporation (OPIC).

38 micronance institutions funded in 21 countries.

Small loans provided to more than 960,000 borrowers.91% of microloan borrowers are women.

In 2012, diverse supplier spending increased by 47 percent.U.S. Diverse Supplier Spendsince 2008

Supporting Credit Card HoldersAt the end of 2012, Citi was assisting more than900,000 credit card holders manage their debt.

Consumer SatisfactionWe measure customer satisfaction globally. Forexample, in China 65 percent of Citibank customersand 58 percent of Citigold customers providedpositive feedback and were willing to recommendCiti to friends and relatives.

Preserving Homeownershipand Affordable HousingCiti nanced more than 19,500 affordable housingunits completed in 2012, 4,600 designated forseniors throughout the U.S., through $3.5 billion 1

in loans from Citi Community Capital.

SUPPORTING CONSUMERS

2008 2009 2010 2011 2012

Diverse spend(millions) 973 928 542 426 626

SERVING COMMUNITIES

Detailed performance data on our citizenship efforts are presented in this section.For more information on our programs and initiatives in each of these areas, pleasesee the corresponding section of this report.PERFORMANCE

1. In 2012, Citi provided $3.5 billion in loans for affordable housing projects in theU.S. Affordable Housing Finance magazine named Citi the top affordable housinglender with a total of $2.9 billion lent due to the exclusion of some of Citis lendingactivity that was outside the scope of the publications ranking.


14/82


PERFORMANCE

2005 2006 2007 2008 2009 2010 2011 2012RSF 2 84,881,317 85,707,001 90,094,469 88,047,671 81,413,280 77,561,668 74,223,099 73,098,302

Seats 388,829 395,722 437,276 442,621 408,263 386,415 373,675 382,188Headcount 381,148 380,101 416,485 400,228 385,289 382,844 390,045 332,740

ABSOLUTE INDICATORS 3 2005 2006 2007 2008 2009 2010 2011 2012Electricity (GWh) 2,134 2,282 2,435 2,434 2,266 2,116 2,077 2,008

District heating(steam & chilled water) 87 87 92 67 77 78 66 61

Energy Purchased (GWh)Scope 2 2,221 2,368 2,527 2,501 2,343 2,195 2,143 2,069

Natural gas (GWh) 185 176 186 174 173 165 147 11

Fuel oil (GWh) 52 56 54 51 70 52 43 55

Energy Consumed (GWh)Scope 1 238 232 240 225 243 217 190 173

Total Energy (GWh) 2,459 2,600 2,767 2,726 2,586 2,411 2,333 2,242

GREENHOUSE GAS (GHG)EMISSIONS 2005 2006 2007 2008 2009 2010 2011 2012

Direct CO 2e (GHG Scope 1) 47,111 46,331 47,532 44,684 49,342 43,265 37,773 35,570

Indirect CO 2e (GHG Scope 2) 1,141,878 1,215,778 1,261,203 1,244,026 1,115,871 1,048,797 1,026,172 993,687

Total CO 2e (mt) 1,188,990 1,262,109 1,308,735 1,288,710 1,165,213 1,092,061 1,063,945 1,029,257

Green power offsets (CO 2e) 5,953 25,904 30,223 57,084 47,309 42,084 56,882 98,450

Net CO2e (mt) 1,183,037 1,236,205 1,278,512 1,231,626 1,117,904 1,049,977 1,007,063 930,807

SCOPE 3 EMISSIONS 5 2005 2006 2007 2008 2009 2010 2011 2012

Business air travel CO 2e (mt) N/A N/A N/A 127,000 87,000 100,243 119,179 123,302

Thermal Power Plant Emissions

30-year plant life CO 2 (mmt) N/A N/A N/A N/A N/A 0 7.4 0

60-year plant life CO 2 (mmt) N/A N/A N/A N/A N/A 0 14.8 0

WATER & WASTE

Total water consumption (m 3) 7,314,005 7,576,269 7,650,336 8,366,491 7,356,900 6,406,576 6,937,563 6,732,680

Waste diverted from landll (mt) 15,911 18,442 18,115 19,754 20,084 20,014 20,015 20,832

Waste stream to landll (mt) 64,775 65,874 68,082 62,852 53,731 45,438 42,197 38,679

Total waste (mt) 80,686 84,316 86,197 82,606 73,815 65,452 62,212 59,511

RELATIVE INDICATORS 2005 2006 2007 2008 2009 2010 2011 2012Total Energy Consumed

KWh / RSF 29 30 31 31 32 31 31 3

KWh / Seat 6,325 6,571 6,327 6,260 6,335 6,241 6,244 5,867

KWh / Headcount 6,452 6,842 6,643 6,812 6,712 6,299 5,982 6,739

Net CO 2 eMetric tonnes / RSF 0.0139 0.0144 0.0142 0.0140 0.0137 0.0135 0.0136 0.0127

Metric tonnes / Seat 3.04 3.12 2.92 2.78 2.74 2.72 2.70 2.44

Metric tonnes / Headcount 3.10 3.25 3.07 3.08 2.90 2.74 2.58 2.80

Environmental Footprint 1ENVIRONMENTAL SUSTAINABILITY

1. Data in this table will differ from prior years reports due to accuracy improvementsin historical consumption data, as well as the recalculation of all emissions using themost up-to-date eGRID (U.S.) and WRI (non-U.S.) GHG conversion factors forpurchased electricity.

2. RSF is rentable square footage. This value is a 12-month average of the totalowned/leased portfolio, excluding sublet space in which utilities are consumed bynon-Citi tenants.

3. All absolute indicators and CO 2e emissions are rounded to whole number values.4. The metrics in this table are included in the Independent Accountants Report,

a limited assurance report issued by KPMG, an independent third party.

5. Business Air Travel Emissions: These emissions tend to uctuate with the growth ofour business, and we continue to implement IT solutions such as video conferencingto help reduce our business travel footprint. Thermal Power Plant Emissions: Project-specic emissions are calculated for both a 30- and 60-year plant lifetime,and are derived from the plants capacity and heat rate, the carbon content of thefuel, and projected capacity utilization. We report the percentage of lifetime emissionsequivalent to the percentage of total project costs nanced by Citi. In 2012, we did notnance any thermal power plants (the reported power sector project nance dealswere for solar and wind projects).


15/82


16/82


FY2012 Consolidated Employer Information Report (EE01)*

U.S. WorkforceCitigroups total U.S. workforce has declined by 13.2percent since 2009. The U.S. female employee popula-tion fell by 16.7 percent, and the minority population

declined by 14.7 percent. However, the minority

Global Female WorkforceCitis global female representation fell from55 percent at the beginning of 2009 to 53 percentin December 2011 and remained at 53 percentthrough December 2012.

PERFORMANCE

Diversity

*Data as of July 2012

management population (covering executives, seniormanagers, rst-time managers and midlevel managers)has increased by 6.9 percent since 2009, with female

minority management employees growing by 4.1 percent.

Job Category Gender White Black Hispanic Asian

Native Hawaiianor other Pacic

IslanderNative

AmericanMulti-racial

Total byGender Total

Executives/senior managers

Female 4 0 0 0 0 0 0 4 26

Male 18 1 1 2 0 0 0 22

First/Midlevelmanagers

Female 5,025 759 934 928 4 22 17 7,689 17,682

Male 6,897 519 944 1,601 4 16 12 9,993

ProfessionalsFemale 5,325 1,042 1,152 1,667 8 27 40 9,261 22,651

Male 8,087 789 1,290 3,129 17 30 48 13,390

TechniciansFemale 917 194 212 203 4 3 5 1,538 3,475

Male 1,187 188 263 277 3 9 10 1,937

Sales workersFemale 3,868 1,047 1,406 688 23 29 33 7,094 12,562

Male 3,301 540 925 651 15 19 17 5,460

Administrativesupport

Female 12,284 5,058 4,496 1,474 41 119 99 23,571 31,829

Male 4,407 1,473 1,672 611 24 29 42 8,258

Craft workersFemale 0 1 0 0 0 0 0 1 10

Male 1 5 1 2 0 0 0 9

OperativesFemale 111 53 22 74 0 0 0 260 573

Male 114 76 45 77 0 0 1 313

Laborers &helpers

Female 0 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0

Service workersFemale 0 0 0 0 0 0 0 0 0

Male 0 0 0 0 0 0 0 0

TotalsFemale 27,534 8,154 8,222 5,034 80 200 194 49,418

88,808Male 24,012 3,591 5,141 6,350 63 103 130 39,390


17/82

2012 PROGRESSExtended new Code of Conduct training to all employees.

Engaged with stakeholders on Citis policies on and approachto military equipment (including cluster munitions) and theEquator Principles.

Contributed to public policy conversation, including the needfor effective cybersecurity legislation.

GOVE NANCE,ETHICS ANDGOVERNMENTRELATIONS



18/82


GovernanceBoard CompositionAs required by the New York Stock Exchange and CitisCorporate Governance Guidelines , at least two-thirdsof the members of Citis Board of Directors are inde-pendent directors. Diversity is among the criticalfactors that the Nomination, Governance and Public

Affairs Committee considers when evaluating thecomposition of the board. For a company such as Citi,which operates in more than 100 countries around theglobe, diversity includes race, ethnicity and gender, aswell as the diversity of the communities and geogra-phies in which Citi operates. Included in the qualica-tions for directors listed in the companys CorporateGovernance Guidelines is whether the candidate hasspecial skills, expertise and background that wouldcomplement the attributes of the existing directors,taking into consideration the diverse communities and

geographies in which the Company operates.At the end of 2012: Ten of 12 directors (83 percent) were independent.

Three directors were female, nine male.

Two directors were African American or Hispanic.

Citi had board membership across six sectors:government, nancial services, other private sector,non-U.S. based, nonprot and academia.

The Citi Holdings Oversight Committee was dissolvedin early 2012 and its responsibilities were transferredto the Risk Management and Finance Committee of theBoard of Directors. The new Executive Committee actson behalf of the board if a matter requires Boardaction before a full board meeting can be held. The vestanding board committees are: Audit; Executive;Nomination, Governance and Public Affairs; Personneland Compensation; and Risk Management and Finance.

At Citi, we aspire to the highest standards of corporate governance andethical conduct. We do what we say we will do, report results with accuracyand transparency and maintain full compliance with laws, rules andregulations that govern our businesses.

A charter for each committee outlines the mission,membership qualications and duties for committeemembers.

Executive CompensationAs a result of the say-on-pay vote at our annualmeeting in 2012, we immediately enhanced ourefforts to solicit feedback from shareholders to betterunderstand their concerns. In meetings with nearly20 shareholders led by Board and Committee ChairmanMichael ONeill, members of the Board and/or manage-ment spoke with investors who collectively heldmore than 30% of Citis common shares. We alsoheld meetings with proxy advisory rms to determinewhether the views of the proxy advisors regarding Citispay practices were similar to the views of Citi share-holders as expressed during our meetings with them.

While investors had varying perspectives, all investors

asked that the existing connection between pay andperformance be enhanced. In response, we enhancedthe formal set of guiding principles reected in ourCompensation Philosophy and have taken multiplesteps to address investor concerns.

Under these guiding principles, our executivecompensation programs are intended to achievefour equally important major objectives: Enhance shareholder value

Attract and retain the best executive talent

Manage risks to Citi through sound incentivecompensation practices

Implement evolving regulatory guidance.

The full Citi Compensation Philosophy is available online.

The full Board of Directors Personnel andCompensation Committee Report for 2012 canbe found on page 42 of Citis Proxy Statement .

GOVERNANCE, ETHICS AND GOVERNMENT RELATIONS
http://www.citigroup.com/citi/corporategovernance/data/corpgovguide.pdfhttp://www.citigroup.com/citi/investor/data/comp_phil_policy.pdfhttp://www.citigroup.com/citi/investor/quarterly/2013/ar13cp.pdf?ieNocache=56http://www.citigroup.com/citi/investor/quarterly/2013/ar13cp.pdf?ieNocache=56http://www.citigroup.com/citi/investor/data/comp_phil_policy.pdfhttp://www.citigroup.com/citi/corporategovernance/data/corpgovguide.pdf


19/82


When our shareholders spoke in 2012 about Citiscompensation structure, we listened. We stepped upour efforts to solicit feedback from investors to betterunderstand their concerns. As a result of this process,we are introducing a new compensation structure thatmore strongly connects compensation with perfor-

mance, emphasizes strong risk management and isboth competitive and in line with regulatory standards. Michael ONeill, Chairman of the Board of Directors,

Chairman of the Personnel and Compensation Committee

Ethics

Citi Code of ConductThe Citi Code of Conduct sets forth Citis minimumstandards of conduct, expectations of professionalbehavior and responsibility and key regulatory require-ments and policies. We consider the Code to be thecornerstone of our Ethics Program, and employeesare encouraged to use it as a guide to nd answers toethical dilemmas they may encounter. The Citi Boardof Directors reviews and approves the Code, which ispublicly available in 26 languages here . The Code,which was rst published in 1997, is updated periodi-cally to reect changes in rules, regulations, policiesand best practices. We expect to publish a revisedCode in late 2013.

All employees receive the same Code of Conduct,regardless of their business unit or geographic loca-tion. Employees sign on to the Code when they jointhe company and periodically complete training onit. In early 2012, we made new Code training availableto all employees and developed training for nonem-ployees. This training is currently being rolled outto existing nonemployees, and newly hired nonemploy-ees will be provided Code of Conduct training whenthey join Citi.

Citi encourages employees to communicate theirconcerns. We prohibit retaliatory actions againstanyone who, in good faith, raises questions aboutethics, discrimination or harassment; who reportssuspected violations of laws, regulations or policies;or who participates in a subsequent investigation ofsuch concerns.

Citi employees have ve ways to report ethical con-cerns anonymously to the Citi Ethics Ofce, includinga toll-free global hotline available 24 hours a day, sevendays a week in multiple languages. Information on howto raise a concern can be found here . Complaints canbe made anonymously, and all contacts and investiga-

tions are treated as condentially as possible.A Code of Ethics for Financial Professionals supple-ments the Code of Conduct. It applies to all nanceprofessionals and administrative staff in a nance role.

AntiMoney Laundering (AML) ProgramMoney laundering undermines condence in theinternational nancial system and presents a reputa-tional risk to Citi. In support of our efforts to combatmoney laundering and terrorist nancing and tocomply with the Bank Secrecy Act, the USA PATRIOTAct and other applicable legal and regulatory require-ments, Citi maintains a global team of more than700 global antimoney laundering compliance ofcersaround the world.

Citi supports detailed antimoney laundering policiesand programs and sophisticated technology to monitorfor possible suspicious activity for our businessesglobally. These programs are subject to regular audits,both internal and external. In the last year, weveenhanced our global AML risk assessment to further

rene and more effectively address our geographicand product-specic AML risks.

Supplier PrinciplesAnother Code of Conduct is provided to suppliers, whomust agree to adhere to it. This Code encompassesCitis Statement of Supplier Principles . This statementencourages suppliers to promote social responsibility,ethical business practices, human rights in the work-place and environmental sustainability. The Statementof Supplier Principles is communicated to all potential

suppliers through Citis request for proposal process.In addition, Citis Supplier Selection and ManagementPolicy requires all sourcing professionals to requestthat their suppliers understand and have the capacityto support the Statement of Supplier Principles.

http://www.citigroup.com/citi/investor/corporate_governance.htmlhttp://www.citigroup.com/citi/investor/ethics_hotline.htmlhttp://www.citigroup.com/citi/investor/data/codeofethics.pdf?ieNocache=991http://www.citigroup.com/citi/citizen/people/diversity/supplierprinciples.htmhttp://www.citigroup.com/citi/citizen/people/diversity/supplierprinciples.htmhttp://www.citigroup.com/citi/investor/data/codeofethics.pdf?ieNocache=991http://www.citigroup.com/citi/investor/ethics_hotline.htmlhttp://www.citigroup.com/citi/investor/corporate_governance.html


20/82


Human RightsWe promote human rights and are guided by funda-mental principles such as those described in the UnitedNations Universal Declaration of Human Rights, theInternational Labour Organization Core Conventionsand the UN Guiding Principles on Business and Human

Rights. We reect these principles in our policies andour conduct toward employees, suppliers, clients andthe countries where we do business. Citis Statementon Human Rights is available here .

In 2011, the UN Human Rights Council endorsed theGuiding Principles on Business and Human Rights,which includes the Protect, Respect and RemedyFramework . This framework conrms:

The State duty of governments to protecthuman rights

The corporate responsibility to respecthuman rights

The need for access by victims to effective remedy

We participated in the consultation process for thedevelopment of the Guiding Principles and theFramework. We had planned to update our Statementon Human Rights to incorporate these principles,but we decided to conduct a more in-depth internalengagement process prior to publishing the update.We will publish the update in 2013.

Our Environmental and Social Risk Management(ESRM) Policy, which helps us manage risks in theprojects we nance, incorporates key human rightsprovisions. The policy requires ESRM-covered transac-tions in emerging markets to comply with the Interna-tional Finance Corporations Performance Standardson Environmental and Social Sustainability. Thesestandards cover issues such as the involuntary

resettlement of affected people and public consultationwith affected communities and vulnerable groups,including the special rights and protections ofindigenous peoples. Our ESRM Policy also prohibitsnancing transactions involving harmful child laborand forced labor. Reporting on human rights issues

is part of our ESRM review process. Our performancein this area can be found on page 46 .

Anti-Bribery and Anti-CorruptionThe Citi Anti-Bribery and Corruption Policy prohibitsany improper payment or promise of payment, or theprovision of anything of value to foreign ofcials forthe purpose of obtaining or retaining business orinuencing ofcial action.

Government Relations andPublic PolicyCiti Global Government Affairs (GGA) advocatespolicies and positions on Citis behalf to lawmakersand other government ofcials across the globe. GGAis part of Global Public Affairs and comprises threeteams: State and Local Government Relations (SLGR),Federal Government Affairs (FGA) and InternationalGovernment Affairs (IGA). Headquartered inWashington, D.C., the group has professionalsbased throughout the world.

GGA partners with Citis global functions and business-es to identify key issues that can impact how weoperate both in the U.S. and around the world, frompatent reform and trade law to efforts to reform thenancial regulatory system.

Political ContributionsCiti makes contributions in accordance with establishedguidelines set forth in our Political Contributions andLobbying Statement as permitted under federal, stateand local laws to help elect candidates whose viewsand positions are favorable to Citi, our industry andultimately the free-market economy.

These contributions come from the voluntary,employee-funded Citigroup PAC or, when permitted,from corporate funds. Citigroup PAC contributes tocandidates who support a strong private sector andpromote entrepreneurship. Citi does not use corporatefunds for independent expenditures and has requested


Recognition for Citis Head ofGlobal Government AffairsCandi Wolff, Executive Vice President and Head ofGlobal Government Affairs, was named one of theTop 25 Most Inuential Women in Washington byNational Journal and a Woman to Watch in bankingby American Banker .
http://www.citigroup.com/citi/citizen/humanrights/http://www.business-humanrights.org/SpecialRepPortal/Home/Protect-Respect-Remedy-Framework/GuidingPrincipleshttp://www.business-humanrights.org/SpecialRepPortal/Home/Protect-Respect-Remedy-Framework/GuidingPrincipleshttp://www.business-humanrights.org/SpecialRepPortal/Home/Protect-Respect-Remedy-Framework/GuidingPrincipleshttp://www.business-humanrights.org/SpecialRepPortal/Home/Protect-Respect-Remedy-Framework/GuidingPrincipleshttp://www.citigroup.com/citi/citizen/humanrights/


21/82


conrmation from the business and trade associationsto which it pays dues that no portion of Citis duesare used to fund independent expenditures. To ensurecompliance with applicable laws and public disclosureobligations, all political contributions are reviewed andapproved by Citis Global Government Affairs group andGeneral Counsel.

Citi makes available to its shareholders and stakehold-ers a list of all corporate political contributions andcontributions made by Citigroups PAC. The U.S.Political Contributions list for 2012 can be found here .

Public Policy InvolvementCiti advocates public policies in the U.S and abroadthat value our business, our customers and employeeswhile furthering our efforts to have a positive impacton society. Our GGA staff actively lobbies on nancial

and economic issues that impact our company, clientsand our ability to do business. In particular, Citi isfocused on nancial reform efforts, consumer protec-tion issues, tax reform, expanding trade opportunities,strengthening data security protections and similarprobusiness initiatives. GGAs lobbying efforts includedeveloping messages and devising legislative strate-gies to educate stakeholders and policymakers on howproposed regulations and legislation will impact Citi,the nancial industry and the global business commu-nity. Through our efforts, we help legislators make

informed decisions that will affect our employees andour operating environment. Our guidelines for lobbyingcan be found in our Political Contributions and Lobby-ing Statement .

GGA provides support to Citis businesses and func-tions implementing consumer protections, helpingveterans and undertaking socially responsible andcommunity-driven initiatives. We also work with

outside groups to advance certain strategies, includingnancial trade associations (such as the AmericanBankers Association) and business coalitions (such asthe U.S.- Korea Free Trade Agreement Business Coali-tion). Identifying associations and coalitions that shareour goals allows us to develop a broad strategy withlike-minded companies to educate policymakers andstakeholders on key issues of concern.

GGA professionals are required to attend training onapplicable laws and internal compliance policies andare expected to demonstrate the highest standards ofprofessional integrity.

Corporate TaxesOur approach to taxes emphasizes both strong internalcontrols and transparency with relevant authorities.Internal controls include regular assessments of the

nancial impact of taxes on corporate and businessoperations and the reporting processes for such taxes.Transparency includes open communication with taxauthorities and developing real-time working relation-ships, where possible. This approach, together withappropriate tax planning, is part of Citis culture ofresponsible nance.

At Citi, this culture also includes working closely withregulators and tax authorities to ensure that theimpact of tax laws and regulations is understood. Weare active participants in industry bodies, providinginput into consultation processes on tax developmentsimpacting our industry and participating in ongoingdiscussions on the impact of U.S. corporate tax reformon U.S. multinationals. These discussions cover theeffect of a corporate tax rate reduction on operationsin the U.S. market and the potential effects of subject-ing operations in foreign markets to a single level tax(i.e., in the host country).

http://www.citigroup.com/citi/investor/corporate_governance.htmlhttp://www.citibank.com/citi/corporategovernance/data/ccpcs.pdfhttp://www.citibank.com/citi/corporategovernance/data/ccpcs.pdfhttp://www.citibank.com/citi/corporategovernance/data/ccpcs.pdfhttp://www.citibank.com/citi/corporategovernance/data/ccpcs.pdfhttp://www.citigroup.com/citi/investor/corporate_governance.html


22/82



Trans Pacic Partnership: For more than two years,landmark free trade agreement negotiations, knownas the Trans-Pacic Partnership (TPP), have beenunderway among 11 countries representing well overhalf of global trade. The rules and commitments formarket access being negotiated will provide bothprotections and new business opportunities for Citiand our clients. Citi has been a central player in thesenegotiations from the outset.

After contributing heavily to efforts that led tothe passage of free trade agreements with Korea,Colombia and Panama, Citi became a co-chair ofthe U.S. Business Coalition for the TPP and providesleadership on behalf of the U.S. nancial sector to

emphasize the need for a comprehensive andforward-leaning TPP agreement. GGA helped facili-tate a letter signed by 10 business associations fromthe TPP countries, encouraging the leaders of thosecountries to make the TPP a top priority in theirrespective trade agendas.

GGA also sponsored a TPP press brieng on CapitolHill with U.S. Trade Representative Ron Kirk andmembers of Congress, where Citi spoke on behalfof the U.S. Business Coalition for the TPP, notingthat Citis 200 years of experience has taught thatfree markets are the most effective engines foreconomic growth.

CASE STUDY: PUBLIC POLICY INVOLVEMENT

Citi Public Policy Involvement in 2012

Cybersecurity: Citi makes it a priority to protectcustomer data in the face of emerging cyber threats,

the explosive growth of Internet and mobile banking,and the increasing sophistication of computerhackers. Our global stature presents a unique setof challenges as we navigate state, national andinternational cybersecurity standards and laws. Wehave worked closely with attorneys general, statelegislators and members of Congress to discussthe need for effective cybersecurity legislation, aswell as consistent standards. We are also workingthrough nancial trade associations and otherinformal business coalitions to educate lawmakers

on the nancial services sectors current cybersecu-rity compliance and the negative impact of enactingredundant regulations.

Financial Transaction Tax: Policymakers on bothsides of the Atlantic have discussed implementinga nancial transaction tax (FTT). Some Europeancountries have already put a form of FTT in placenationally, and there is continued debate on themerits of a coordinated tax at the EU level. Elevenout of 27 EU Member States, including the U.K.,have made clear that they are opposed and willnot participate. The interest in new transaction taxesis driven by a belief that the nancial sectorandparticularly bankshas not adequately shared thecosts of the economic crisis and by a desire to createa disincentive for certain types of trading. OurGGA team is involved closely in industry advocacy,ensuring that the impacts of such a tax on thenancial sector and on the wider economy areunderstood fully by policymakers, and challengingthe assertion that the sector is undertaxed. Incoordinating with businesses and local bankingassociations in the EU, GGA is helping raiseawareness among nance ministries and the EUinstitutions of the potentially negative impactsan FTT would have on jobs and growth.


23/82

2012 PROGRESSCiti Community Capital nanced 19,500 housing units, including 4,600 designatedfor seniors, for a total of $3.5 billion in loans throughout the U.S.Citi Micronance provided an $18.5 million loan to propel the micronancesector in Indonesia.Citi Community Development invested $2.8 million in 14 innovative programsthat have the potential to serve as national models for achieving nancial inclusion.The Citi Foundation invested $76.5 million to support nancial inclusion andeconomic empowerment programs globally. These programs placed 1.1 millionpeople on the path to meeting their nancial inclusion goals, 35 percent of whichwere able to achieve these goals.

SERVINGCOMMUNITIES



24/82


In the United States, Citi Community Developmentleads our commitment to achieve economic empower-ment and growth for underserved individuals, familiesand communities by expanding access to nancial

services and building sustainable business solutionsand innovative partnerships. In addition, Citi Commu-nity Capital offers nationally recognized expertise innancing all types of affordable housing and commu-nity reinvestment projects.

Globally, Citi Micronance develops commercial rela-tionships with a wide group of stakeholders, includingmicronance institutions, local banks, fund managers,multilateral agencies, corporations, public sectorclients and investors to expand access to nancialservices for the unbanked and underserved.

We team up with community-based organizations,public agencies and suppliers to revitalize communitiesand create economic opportunity.

Our commercial activities are complemented by theCiti Foundations investments in partners that promotenancial inclusion and economic empowerment. TheFoundation provides support to nongovernmentalorganizations working on the ground and on thoughtleadership and innovation programs that promote thescaling of proven ideas.

Two other important partners in our efforts to servecommunities are our employees and our diversesupplier base. We encourage employees to participatein activities that complement our community activity(see Employee Volunteering and Engagement,page 32 ), and we actively seek to work with a widerange of diverse suppliers and consultants, includingminorities, women, veterans and people with disabili-ties. These partnerships strengthen the communitieswe serve and create value for our shareholders.

Financial InclusionFinancial inclusion is central to the way we dobusiness and a key component of our commitmentto responsible nance. We work across Citi business

linesand with community groups, governments,institutions, networks and nonprot organizationstodevelop initiatives that expand economic opportunityand access for underserved communities, includingthe 2.5 billion people in the world without access toformal nancial services. Using this collaborativeapproach, we:

Work with nancial intermediaries to test newways of serving unbanked and underservedcommunities and ultimately increase our reachin these communities

Help consumers build their own nancialcapability by pairing nancial education withaccess to appropriate products and servicesso they can adopt positive nancial behaviors,develop nancial assets and strengthen theirresiliency against unforeseen circumstances

Finance affordable housing and communityinfrastructure projects that create a solid founda-tion for nancial stability and success

Make it possible for microentrepreneurs andsmall business owners to start and sustain theirbusinesses and create jobs

Enable young people to obtain skills and advancededucations that prepare them for productivelivelihoods and increase their earning potential

Each client and community we work with globally has individual needs. Byproviding effective nancial solutions and engaging in creative communityproblem solving, we are as local as we are global.

In promoting nancial inclusion, we serve clients and communities thathave difculty accessing mainstream banking services. Our work centerson individual banking services, small business solutions, affordable housingnance and micronance sector support.

SERVING COMMUNITIES


25/82


26/82


SERVING COMMUNITIES

CASE STUDIES: MICROFINANCE

Boosting Micronance in China

Since 2010, Citi and the Citi Foundation haveprovided nearly $300,000 in funding to strength-

en the capacity of the Micronance Departmentof the China Foundation for Poverty Alleviation(CFPA). In 2010, the CFPA set an ambitious goalof serving over 100,000 clients across China overthree years. With our funding and support, theCFPA was able to build sound IT and risk manage-ment systems, improve its risk reporting, expandinternal staff capacity and develop a nancialeducation curriculum for its clients, enabling it tosurpass its goal by serving 126,000 people from14 provinces by the end of 2012.

Extending Our U.S. OPIC Partnershipto Help Microentrepreneurs

Since 2006, Citis partnership with the U.S.Over seas Private Investment Corporation (OPIC)has funded $340.9 million through 38 micro-nance institutions in 21 countries, which in turnprovide more than 960,000 borrowers with smallloans91 percent of borrowers are women and 44percent live in a rural setting.

Most recently, in 2012, Citi Indonesia, Citi Micro-nance and OPIC provided an $18.5 million termloan to fund the growth and strategy of BankAndaras micronance business and to promotethe nancial inclusion of microentrepreneurs andsmall businesses in Indonesia. Bank Andara is aforce multiplier for low-income households andsmall entrepreneurs in rural Indonesia. This loanis a part of Citis and OPICs joint global initiativeto support micronance lending in emergingmarkets worldwide.

Citi Micronance is also working closely with the CitiFoundation on strategic research and philanthropicefforts designed to help the micronance industryinnovate and develop new products and services topromote nancial inclusion and attract new investorsto the global micronance and U.S. community devel-

opment nance industries.The ability to store and transfer money, as well asto make small payments using mobile phones, hasthe potential to lift millions out of poverty, just asthe Green Revolution did in the 1960s. Our partner-ship with Citi, a global banking leader, will accelerateimplementation of these new services in a smartand safe way.

Raj Shah, United States Agency for InternationalDevelopment (USAID) Administrator

CASE STUDY: MICROFINANCE

Reaching Unbanked and UnderbankedCustomers in Mexico

Citi and Banamex, our Mexican subsidiary, part-nered with Amrica Mvil, the largest mobilenetwork operator in Latin America, to introducemobile wallets, which enable unbanked customersto make and receive payments on their mobile

phones. This innovative mobile payments solutiontargets more than 50 million unbanked andunderbanked individuals in Mexico and is becom-ing an important contributor to nancial inclusionin this country.

The mobile wallet productcalled Transferislinked to simplied bank accounts and is beingreplicated in 18 markets in the region. Throughthese accounts, customers can work with the bankto address their diverse nancial needs in what isusually their rst relationship with the formalnancial sector. The partnership will providenancial services to over 250 million AmricaMvil customers in the largely unbanked region.Transfer was awarded the 2012 best e-Businesssolution in the nance category by the businessnews channel CNN Expansin.

Citi Praised for Work with OPICIn 2012, Citi won the Business in the CommunityInternational Award for Excellence for CitiMicronances partnership with the OverseasPrivate Investment Corporation (OPIC) to addressthe 2.5 billion people around the world who lackaccess to nancial services.


27/82


28/82

SERVING COMMUNITIES

STAYING ENGAGEDCiti recognizes that solutions to many complexcommunity challenges require sustainedinvestment and collaboration over time. Hereare some examples of how our long-termcommitments have made a real difference:

Kindergarten to College

Since introducing Kindergarten to College, therst universal college savings account programin the U.S., with the City and County of SanFrancisco in 2010, close to 8,000 accounts havebeen opened, and all 72 San Francisco UniedSchool District elementary schools are nowparticipating in the program. Kindergarten toColleges combination of matched savings with

nancial education that is integrated into thepublic school curriculum reects our commit-ment to removing barriers to higher educationand to combining access to nancial tools withknowledge.

Platform to Employment

In the U.S. almost 4.8 million people are long-term unemployed, or out of work for more thansix months. Platform to Employment connects

long-term unemployed individuals who haveexhausted their unemployment benets withemployers who need to recruit skilled workers.Citi Community Development provides partici-pants with nancial counseling and creditrebuilding assistance to help them overcomethe signicant nancial challenges faced duringunemployment. The program has a provensuccess rate80 percent of the graduates whocomplete the program get jobs. As a result, CitiCommunity Development, in partnership with

the AARP Foundation and Walmart Foundation,is making the program available in 10 additionalcities in 2013, beginning with Chicago, Cincin-nati, Dallas and San Diego. The program isbeing expanded to address the specic needs ofunemployed workers over 50 years of age andmilitary veterans.


CASE STUDY: FINANCIAL CAPABILITY

Mobile-Based Apps Promote U.S.Consumer Financial Capability

Technology has been rapidly changing the way

people access information and learn. To leveragetechnologys ability to transform consumersnancial behaviors to save and increase theirassets, the Citi Foundation provided funding tohelp initiate the MyMoneyAppUp Challenge, anational competition that harnessed the creativityof entrepreneurs, software developers, studentsand the public to design next-generation mobileapplications that help consumers better managetheir nances.

A partnership among the U.S. Department of theTreasury, the Center for Financial Services Innova-tions (CFSI) and the Doorway to Dreams Fund(D2D), the Challenge garnered more than 300unique ideas and concepts and produced some 100new app proposals. To bring the apps to fruition,CFSI and D2D launched the FinCapDev competi-tion, in which app designers could access expertadvice and resources to develop functional appprototypes that the public will be able to use toimprove nancial management. In support of theCiti Foundations More than Philanthropyapproach, we engaged technology and marketingexperts within Citi as advisors on this program.

Citi Community Development received theE Pluribus Unum Prizes Corporate LeadershipAward from the Migration Policy Institute for ourwork with CASA de Maryland to provide microloansto cover naturalization fees for immigrants in theState of Maryland.

The American Bankers Association honored Citiwith its rst ever Community Commitment Award in the Economic Development category for ourcollaboration with The WorkPlace for the innovativePlatform to Employment program.


29/82


SERVING COMMUNITIES

Revitalizing NeighborhoodsCiti invests in infrastructure that makes our neigh-borhoods attractive places to live and generatesopportunities for economic advancement forresidents. Innovative nancial solutions developedthrough multistakeholder partnerships have the

power to generate scaled investment in servicesthat make a difference in a community, such ashigh-quality affordable housing, health care centersand excellent schools.

CASE STUDY: NEIGHBORHOOD REVITALIZATION

Preserving Affordable Housingin New York

Citi provided $250 million in nancing for theconstruction, rehabilitation and preservation ofaffordable housing in New York. Financing is alsobeing provided by the New York City HousingDevelopment Corporation and the New YorkCity Department of Housing Preservation andDevelopment.

This nancing will create or preserve nearly 6,000units of much-needed low- and moderate-incomehousing throughout New York State, including theconstruction of approximately 3,000 affordableapartments in New York City. The nancing repre-sents one of the largest one-time investments inaffordable housing in Citis history.

This unique collaboration draws on the strengthsof the participating institutions and brings togeth-er tools that allow for low-interest rate lendingto developers of affordable housing. In keepingwith NYCs Greener Greater Buildings Plan, all ofthe properties nanced under this program willbe retrotted with energy-saving features.

This initiative will provide much needed capitalfor affordable housing for communities acrossNew York City and State and reects CPCsrenewed focus on our core mission of creatingsound rental housing for lower-income familiesand rebuilding communities.

Rafael E. Cestero, President and CEO, CommunityPreservation Corporation (CPC)

CASE STUDY: FINANCIAL STABILITY

Expanding the Economic OpportunitiesAssociated with Citizenship

In the U.S., it pays to become a citizen. The

median income of naturalized citizen householdsis 37 percent higher than those of noncitizens. * This indicates that naturalization leads to oppor-tunities for higher income and achieving otherhousehold goals. Thats why Citi has joined anumber of community partners to supportaspiring citizens so that they can realize theeconomic benets of citizenship.

Maryland: We worked with CASA de Marylandto initiate the successful Citizenship Marylandprogram to empower eligible immigrants. CitiCommunity Development provided support andtechnical advice to local Community DevelopmentFinancial Institutions that provide microloansto cover naturalization fees.

New York: Building on the CASA model, CitiCommunity Development in collaboration withthe City of New York launched NYCitizenship inSchools. This program brings together publicand private partners to provide free naturalizationapplication assistance, legal guidance, access

to microloans and nancial education for eligibleimmigrant parents of New York City schoolchildren.

San Francisco: Citi Community Developmentworked with San Franciscos Mission Asset Fund toexpand its Lending Circles for Citizenship program,which enables low-income individuals to savetoward the costs of applying for naturalization.

*Source: Income, Poverty, and Health Insurance Coverage in theUnited States: 2011


30/82


SERVING COMMUNITIES

In 2012, Citi Community Capital lent and invested morethan $5.3 billion in 255 transactions with communitiesin the United States.

In 2012, Citi was the topaffordable housing lenderfor the third year in a row.We are honored that our strong commitment toaffordable rental properties enabled Citi to be rankedthe number one U.S. lender by Affordable HousingFinance magazine in 2012 for the third consecutiveyear, with a lending volume of $2.6 billion.

Affordable HousingCiti Community Capital offers the most comprehen-sive services and products for nonprot and for-protaffordable housing developments. Its responsible lendingsolutions include predevelopment loans, constructionnancing and permanent nancing. Citi is the highest-rated and most experienced affordable housing lender,with more than 19,500 units nanced and completedin 2012, serving families, seniors and veterans.

THOUGHT LEADERSHIP:NEIGHBORHOOD REVITALIZATION

Connecting Policy to Performance

In an innovative public-private partnership, Citi

Community Development and PolicyMaplaunched an interactive, web-based tool in 2012that offers a simple yet powerful way to examinethe state of every congressional district in thecountry. Developed for legislators and theiradvisers, as well as for community organizationsand local residents, mydistrictdata.com provideseasy access to a series of on-demand reportsbased on economic, employment, nancial,educational and housing conditions. By makingcritical data accessible and actionable, this tool

will strengthen the connection between thenational agenda and the local issues that driveit, noted Bob Annibale, Global Director, CitiMicronance and Community Development.

Serving Small Businessesand Creating JobsSmall businesses are a critical component of a strongeconomy and generate opportunities for reinvestmentin their communities by creating jobs. Citi has multiplelending programs for small businesses, both conven-

tional and nonconventional, with the goal of responsiblyproviding loans to as many small business customersas possible. Small business clients have an opportunityto access this capital through loans, lines of credit andother conventional products.

Through Citis Commercial Banking business, we servethe needs of more than 100,000 small to medium-sized enterprises in 30 countries. From 2011 to 2012,Commercial Banking loans for these companies roseby 7 percent globally, excluding the impact of foreignexchange uctuations.

In the U.S., we have more than doubled our lendingto entrepreneurs from 2009 to 2012. Weve alsoresponded to a call from the U.S. Small BusinessAdministration to provide access to lending andcapital that will help create jobs and speed economicrecovery by committing to lend $24 billion to smallbusinesses across the U.S. in 2011, 2012 and 2013.At the end of 2012, we surpassed our annual goalby $1.6 billion, lending a total of $9.6 billion to smallbusinesses, a 21 percent increase from 2011. Citis

total small business lending over the rst two yearsof the pledge is now at $17.5 billion.

We also collaborate with local technical assistanceproviders to offer expertise to new and expandingsmall businesses as they work to grow their companies,their incomes and their employee bases.

Serving Our Military and Veterans: Citi Salutes Building on a proud tradition of providing careeropportunities and best-in-class customer serviceto service members, veterans and their families, in2012 Citi launched Citi Salutes, a rm-wide initiativeencompassing all of Citis programs, products andpartnerships that support the veteran and militarycommunities.


31/82


32/82


SERVING COMMUNITIES

In 2012, Citi Salutes and Citi Community Developmentworked with CredAbility and three national veteransservice organizations to develop CredAbility ReCon-nect, a free, online nancial education and counselingprogram for active-duty, retired and separated servicemembers, survivors and their families.

An employee-directed funding program was alsolaunched to support local organizations serving veter-ans, service members and military families. Also in 2012,several national mentoring programs were launched toempower Citi employees to support the successfultransition of veterans to rewarding civilian careers.

PhilanthropyWe strive to put our money, talent, experience andproducts to work in low-income communities where wecan help accelerate economic opportunity, and to ndways to include more people in the nancial system.We support specic causes that t our mission ofnancial inclusion and those where philanthropiccapital can seed the development and testing of newideas with the potential to attain scale. To that end,we contribute in three distinct ways:

The Citi Foundation supports the economic empower-ment and nancial inclusion of low- to moderate-income people in the 90 countries where Citi hason-the-ground operations.

Corporate Contributions include nancial donations tononprot organizations in a range of disciplines, includ-ing community development, culture and the arts,diversity, environmental sustainability and education.

Disaster Response supports preparedness, immediaterelief and rebuilding efforts, all of which contribute tothe long-term economic recovery of communities.These efforts are supported by both Citi and theCiti Foundation.

The Citi FoundationIn 2012, the Citi Foundation gave $76.5 million in 90countries to support the economic empowerment andnancial inclusion of low- to moderate-income peoplein communities where Citi operates. Through our

More than Philanthropy approach, we put thestrength of Citis business resources and people towork to enhance our philanthropic investments andgenerate measurable positive impact.

During 2012, our programs enabled 1.1 million individu-als to work toward specic nancial inclusion andeconomic empowerment goals. Of these, more than35 percent will achieve their nancial inclusion goals,while the remainder will make signicant stridestoward improving their nancial prospects. Approxi-mately 55 percent of all investments are aligned withour goal to support research and thought leadershipefforts that encourage practitioner innovation, shapethe industry dialogue and promote public policydevelopment. To learn more about the Citi Founda-tions giving in 2012, see Performance .

We use a results-oriented measurement frameworkthat informs the way we assess the impact of theprograms we fund. Every grant is carefully tracked toidentify ways to ensure success and understand whatworks and why. This framework helps us dene more

clearly the results we seek in each of our core focusareas and enables us to work with our grantees toimprove outcomes.

In 2012, to better understand our inuence, weengaged the Center for Effective Philanthropy toconduct our rst ever grantee perception survey.Grantees rated us highly for our interactions withthem, particularly for our clear communicationson our impact goals and strategies, and noted thatthey receive signicant in-kind support in additionto cash grants, highlighting the effectiveness of our

More than Philanthropy strategy. They also notedopportunities for improvement. In 2013, we will striveto continue simplifying our grant-making processesand improve our technology platforms to facilitatecloser partnerships.

In 2012, the Citi Foundationinvested $76.5 million tosupport 744 programs servingover 1.1 million people across90 countries around the world.


33/82


SERVING COMMUNITIES

Citi Foundation Focus Area

Financial Capability and Asset BuildingSound money management skills, along with access toand use of appropriate nancial products like credit andsavings, enable people to achieve their goals and build

and preserve assets.Our grants support initiatives that increase the numberof low- to moderate-income adults and youth who adoptpositive nancial behaviors and accumulate and preservenancial assets.

Neighborhood Revitalization (in the U.S.)Affordable housing and vibrant local economies andcommunities are critical to ensuring that low- to moderate-income people have the chance to maximize economi

global 2012 english

Documents