Forests provide essential goods and services to both local and global communities and markets. As a financial institution with business relationships across the forestry sector and within many countries that are key producers of forest products, Citi is connected with, and committed to, the efforts to sustain healthy forest ecosystems. We pay special attention to impacts on forests in our risk assessment process via our Sustainable Forestry Sector Standard, and we promote sustainable forestry projects through our businesses and Citi Foundation.

To promote sustainable finance in the forestry sector, Citi has taken the following steps:

• In March 2006, revised its Environmental and Social Risk Management (ESRM) Policy to include a Sustainable Forestry Policy, including requirements for independent certification in certain operations and high-risk geographies.
• The ESRM Unit launched a Global Forestry & Finance training program in 2007 with assistance from external experts, including Rainforest Alliance. Half-day workshops were held in Malaysia, Brazil, and New York which provided senior bankers and risk officers with an overview of the certification process required for various Forest Product Obligors, as well as expert discussion on the definition of high conservation value forest (HCVF), deforestation trends and conflict management with affected communities.
• Citi maintains key partnerships with organizations deeply involved in promoting sustainable forestry, such as the Ecologic Development Fund, World Resources Institute's Global Forest Watch Program, Rainforest Alliance's Smartwood Program, and World Wildlife Fund. A Citi ESRM Unit representative currently sits on WWF's Global Forest & Trade Network Advisory Board and provides overall guidance and feedback on GFTN's strategy in North America, to ensure the Network's continued leadership and impact in promoting the sustainable forestry sector.