Corporate Citizenship

We use our comprehensive Environmental and Social Risk Management (ESRM) Policy to screen transactions, help our bankers advise clients, and promote environmentally and socially sound ways of doing business.

ESRM Policy

Established in 2003 and updated periodically, Citi's ESRM Policy is built on the framework of managing risk first and foremost on the ground at the project level. The Policy applies to a broader range of financial projects in various sectors that meet certain financial thresholds¹ and have a known use of proceeds tied to a specific physical project or asset.

For transactions in emerging markets, the Policy requires adherence to the International Finance Corporation (IFC) Performance Standards and IFC Environmental, Health and Safety (EHS) guidelines, which provide pollution prevention, safety and best-practice guidance to 63 specific sectors. Find these guidelines here.

¹The threshold is $5 million for a Citi equity investment, $10 million for project finance transactions, and $50 million for corporate loans, acquisition finance, and debt and equity placements or underwritings.

Incorporated into the ESRM Policy are a number of Citi-specific sector- or issue-standards, including:

• Sustainable Forestry Policy Sector Standard
• Nuclear-Related Transactions Sector Standard
• Mountaintop Removal Mining Environmental Diligence Process
• Carbon Principles (for U.S. coal-fired power plants)

Citi's Environmental and Social Policy Review Committee (ESPRC) provides guidance on ESRM issues. The Director of Corporate Citizenship and the Vice Chairman of Global Banking co-chair the committee. Members are senior managers from Citi business units.

Good Practice & Market Leadership

In 2010, Citi was elected Chair of the Equator Principles Financial Institutions Steering Committee. The Equator Principles (EPs) now comprise more than 70 global financial institutions from all regions of the world, and have become the gold standard for managing the environmental and social risks in project finance. Citi was among the founders of the Principles.

Citi has led the Equator Principles Association's participation in the International Finance Corporation Performance Standards update. In addition, Citi was instrumental in proposing and managing the first-ever Strategic Review of the Principles, designed to produce a multi-year strategic vision to ensure the EPs continue to be viewed as the gold standard.