Corporate Social Responsibility and how it creates additional value to a company reputation

1. Corporate Social Responsibility and how it creates additional value to a company reputation Swati Patel Head of Corporate Citizenship, EMEA Citi March 6, 2008

2. 0-81-122 145-175-185 195-194-144 190-190-190 153-0-0 Citizenship • Also known as corporate social responsibility (CSR), sustainability, corporate citizenship, triple bottom line • We’ve agreed to call it citizenship • Requires a record of achievement in economic, social and environmental areas “Citizenship is the positive impact that Citi has on society and the environment through its core business activities, its philanthropy, volunteerism and public policy engagement.”

3. 0-81-122 Community Shareholders Employees 145-175-185 Export market Regulators Government 195-194-144 190-190-190 Financiers NGOS 153-0-0 Insurers Media Clients Citizenship: A Multi-Stakeholder Process The Complex Web of Key Stakeholders Share Price Performance and SRI Investors Employer of choice Company Conscious Consumer Brand and Reputation

4. There are Two Major Ways we Convey our Leadership Our business practices Our proactive citizenship Programmers E.g.: Equator Principles, environmental footprint E.g.:the Citi Foundation, community programmes , volunteerism

5. Our Business Practices • Citi was one of three companies to establish these principles four years ago to create higher standards in project finance • Citi committed to 10 guiding principles, for example, not to lend to projects where the borrower cannot comply with environmental and social policies • Today there are 33 signatories who represent 80% of all project financing world-wide • Being a leader in this field, gives Citi a competitive edge in assessing environmental and social issues and thereby winning client mandates Climate Change & Sustainability $50bn commitment over the next 10 years • In Greece, Citi has launched an innovative investment product which allows investors to invest in renewable energy • Clinton Climate Initiative (CCI) to implement the new Energy Efficiency Building Retrofit Programme in partnership with large city Governments • Established Leadership in Energy and Environmental Design (LEED) certification as a target for all new operation centres and offices • Conduct equity research related to climate issues that helps inform investors on risks and opportunities associated with the issue. Citi Investment Research issued 70+ climate related notes in 2006 Carbon Principles • Applicable to US utility companies finance for fossil-fired generation – 200 MW

6. Our Proactive Citizenship Programmes Citi Foundation – 3 Pillars of Engagement 2006 Citi Foundation giving totalled $91 million • Microfinance and Micro Entrepreneurship – helps individuals to become economically self sufficient • Small and Growing businesses – leading to economic expansion and job creation • Education – prepare young people for personal and professional success • Financial Education – helps individuals make informed financial decisions • Environment– focus on sustainable enterprises that generate jobs and stimulate economic growth while preserving the environment Community Programmes Volunteerism

7. Romania Turkey Sweden UK Italy South Africa Tanzania Greece Nigeria Russia Jordan Lebanon Poland Focus on Microfinance • Hope Worldwide • LEAP Africa Nordics: focus on Job Creation • Stockholm School of Economics Focus on employability of youth • UK CAF, JA, BRAC • Cittadinanzattiva • Junior Achievement Focus on young people • Strong focus on Financial Education • Junior Achievement “ My Finances” Focus on youth education for the world of work • Regional Universities • Jordon River Foundation • SOS Children’s Villages Middle East Focus on Higher Education • Access to university education Black Economic EmpowermentIndex (BEE) Focus on Fin Ed and microfinance for women • FSWW/TEGV Focus on Basic financial education • FINCA • Helenic Children’s Museum • Lambrakis Foundation • JA Romania • Assoia Ovidu Rom Access to education for individuals at risk EMEA: Citi Foundation Focus

8. Community engagement in Russia • In partnership with Focus Media working with 3 universities and 30 Charities/NGO’s in: St Petersburg, Nizhniy Novgorod, Yekaterinburg • Project Goal : Provide an opportunity for 100 university students to understand how a charity/NGO operates . At the same time enabling the students to develop skills like: leadership, budgeting, planning. • Out comes- Community: • 30 Charities better equipped to support the needs of the local community • stakeholders like corporations and local and national government will better understand the needs of the local community. • Which in turn will Increase the NGO’s capacity to work with young people • Outcome - Individual: • Developing their skills through active engagement in the Community • Prospect of a career in the NGO sector Focus Media / Citi Intern Programme

9. South Africa Banking on our Future – 20 Citi employees trained to deliver the Operation Hope International Banking on our Future curriculum. The employees will deliver Financial Education based on this curriculum to students in the area of Gauteng – These students come from the most underserved community in South Africa and this initiative enables them to learn about managing their finances – and on the road to economic empowerment. Poland Kronenberg Foundation at Citi Handlowy launched a nationwide Programme called "A Week For Saving Money". The initiative is carried out under the patronage of the Commission of Financial Supervision. The main objective of the Programme is to promote saving money and the effective use of financial resources. As many as 270 schools from all over Poland entered the competition for the best Polish celebration of the World Savings Day. 135 thousand students took part in the Programme. in nationwide and regional media as well as on the Internet. Russia Financial Services Volunteer Corps (FSVC) and the Citi Foundation announced the participation of 10 bankers from Russia and Ukraine in the seventh annual Bank Management Internship and Training Programme (BMIT), a Programme that delivers technical and practical understanding of effective credit and operational risk management. Turkey “Learning-by-doing’ Programme that teaches students how business and enterprise works. 203 students from vocational and high schools participated in the JA Company Programme . The purpose of the project was to create awareness of the importance and need of economical literacy and entrepreneurship on behalf of the young generation. Bahrain Citi Foundation grant enables physically challenged youth of Bahrain to take part in the “Citibank Diploma in Banking for the physically challenged,” a training Programme which offered students high quality, lifelong vocational and entrepreneurship training in Banking and Finance to meet current and future employment requirements. Financial EducationIn 2004 Citi made a 10 year, $200 million global commitment to financial education. To date Citi has invested nearly $85million in Financial Education Programmemes in 72 countries. In 2006 Citi Foundation contributed $26million in Financial Education Programmes in 70 countries

10. Microfinance and Micro EntrepreneurshipCurrently 2.5 billion people (40% of global population) do not have access to basic financial services • Integra Project Goal : to reduce poverty and discrimination among “at risk” women through the creation of economic empowerment through micro loans and business development plans. Out comes- Community:Better working rights for women and helping to create a social economy in the local community Outcome - Individual:Developing their skills through active engagement in the Community. Prospect of a career in the NGO sector. • Citi Micro Entrepreneurship Awards Year of Microcredit 2005: Citi Foundation in Partnership U.N. implemented the Global Micro entrepreneurship Awards (GMA) Programme in 30 countries. The Programme brought substantial global attention to the role that microfinance plays as an effective poverty alleviation tool. In the following 2 years Citi Foundation continued with the Citi Micro Entrepreneurship Awards In 2006 Citi support for CMA in 23 countries $1.3 mission In 2007 Citi support for CMA in 27 countries $1.5million More information on the Citi Micro Entrepreneurship Awards at www.citimicroawards.com In 2006, the Citi Foundation made 1,172 grants to support organisations that help build and strengthen communities in 56 countries

11. Volunteerism • The Power of Volunteering Employees Around the Globe • Global Community Day 58 000 Citi employees, friends and family members in more than 450 cities in 100 countries participated in Citi’s 2007 Global Community Day Volunteer Day: Permanent employees can take one Volunteer Day each calendar year to volunteer for organisation of their choice • Volunteer Incentive Programme: Employees who volunteer 50 or more hours in a 12-month period for an eligible organisation will be recognised – Citigroup will contribute US$500 to that organisation Citi leading “ENGAGE” campaign: • the campaign is focused on increasing employee engagement across the world • Citi is working in collaboration with a number of corporates, including KPMG and Freshfields, to create volunteering opportunities across cities in Europe • Business case for employee engagement: building skills, increasing moral, team building, retention rates. Employer of Choice survey: “Do employees really care about Corporate Social Responsibility?” 78% of employees would rather work for an ethical and reputable company than receive a higher salary. In competing for employees employers increasingly need to demonstrate their CSR commitment in order to attract and retain talent.

12. Conclusions • Citizenship/CSR policies are an integral part of a company’s responsibilities to the community and environment. Equally, however, CSR is a business opportunity that benefits not only the community and environment, but also our key stakeholders e.g. shareholders, employees and NGO’s. 1 2 • Multinationals, and financial institutions in particular, given their influence on financial flows, have a critical role to play in promoting social inclusion. 3 • Citi’s CSR approach is focused on responsibility to our community, our people and our franchise; it is part of our DNA.

13. Any Questions?