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51 CITI INVESTS 1B TO ADDRESS RACIAL WEALTH GAP Citi and the Citi Foundation announced the Action for Racial Equity initiative has already invested $1 billion in strategic initiatives to help close the racial wealth gap and increase economic mobility in the United States in year one of a three-year commitment. Announced in September 2020, Citi's Action for Racial Equity is a comprehensive approach to 1) provide greater access to banking and credit in communities of color, 2) increase investment in Black-owned businesses, 3) expand affordable housing and homeownership among Black Americans, and 4) advance anti-racist practices in its company and the financial services industry. Citi is on track to far exceed its original $1.1 billion commitment. Citi and the Citi Foundation's initial goals through the end of 2023 included: » $550 million to support homeownership for people of color and affordable housing by minority developers » $350 million in procurement opportunities for Black-owned business suppliers » $50 million in impact investing equity for Black entrepreneurs » $100 million to support Minority Depository Institutions (MDIs) » $100 million in Citi Foundation grants to support community change agents addressing racial equity Citi exceeded its procurement goal for its investments in Black-owned suppliers, and the company is on track to meet the other commitments by the end of 2023. "We are meeting the challenge of helping close the racial wealth gap with urgency," said Jane Fraser, CEO, Citi. "In just one year since launching Action for Racial Equity, we have already invested $1 billion into initiatives expanding economic opportunity for communities of color. ere is still more work to be done to advance anti-racist practices both within our firm and across the industry, and we look forward to continuing to evolve our approach to driving diversity, equity, and inclusion for our colleagues, clients, and communities." Building on the momentum of progress shared earlier this year, Citi has deepened its commitments in the last six months. Among the progress detailed below, Citi is creating a Diverse Financial Institutions Unit, a centralized team within the company focused on supporting MDIs that serve communities of color. e new team will support the recently launched Citi MDI Rotational Program, a first-of-its-kind initiative which embeds Citi's executives within MDIs for up to a year to share expertise and help grow their business. Citi is also among the first 50 companies and first major U.S. bank to participate in the Management Leadership for Tomorrow (MLT) Black Equity at Work Certification, which was created to hold companies accountable for making progress around equity. Furthermore, Citi announced its commitment to conduct a third-party racial equity audit to assess its efforts to help close the racial wealth gap in the United States. "Since making our Action for Racial Equity financial commitments last year, we've been able to activate our teams across different businesses and deepen our efforts rather quickly," said Mark Mason, CFO, Citi. "While we've seen great progress in a short period of time, our commitment doesn't stop here. We will continue to identify ways we can leverage our capabilities and embed racial equity in our day-to-day practices and use our influence to generate positive, measurable and meaningful impact in our business and in our society." "Lack of wealth generation opportunities and access to affordable housing continue to plague Black and Brown communities, and our mission is to create equitable access to capital to help fill that void," said Dr. Kase Lawal, Chairman, Unity National Bank. "We're thrilled to have the continued support and partnership of Citi, including their equity investment and embedded senior counsel, to help grow our business. Together, we can find more opportunities to drive economic value and impact in the communities we serve." "MLT is excited to expand our work with Citi, one of our longest-standing partners, to include the MLT Black Equity Certification," said John Rice, Founder and CEO, Management Leadership for Tomorrow. "is comprehensive framework and roadmap will help Citi advance its commitment to becoming an anti-racist institution with the same level of rigor that they apply to all aspects of the business." As part of Action for Racial Equity, Citi's businesses are focused on four key outcomes: » Goal #1: Expand Banking And Access To Credit In Communities Of Color » Goal #2: Invest In Black Entrepreneurship » Goal #3: Invest In Affordable Housing And Promote e Growth Of Black Homeownership » Goal #4: Strengthen Citi's Policies And Practices In Order To Become An Anti- Racist Institution Industry Updates