Citi Perspectives Spring 2020

Citi Perspectives  | 33 overall emissions reductions in their business. To date, the task of identifying appropriate environmental projects (or selecting suitable sustainability partners to manage the process) has placed a significant administrative burden on firms. At the same time, most companies use commercial cards as part of their travel program in order to benefit from rebates, improve efficiency and control, and maximize travel policy adherence, including policies aimed at limiting unnecessary travel. Integrating reforestation with a T&E program is therefore an ideal solution for companies eager to introduce a streamlined sustainable travel program that retains the efficiency and control advantages of a T&E card program while simplifying the reforestation process. The Sustainable Card Solutions creates a simple, streamlined way for companies to contribute to reforestation process initiatives. How sustainable commercial cards work Working with Mastercard, Citi is offering a solution 5 that enables corporates to meet their reforestation objectives as part of their commercial card program. The program, which focuses on forestry programs globally, is pledging with program partners to plant 100 million trees over five years. Reforestation is acknowledged as an effective and inexpensive way to positively counteract climate change. The solution places no additional administrative burdens on companies and has no upfront capital requirements as it is funded by part of the rebate earned from the program. By using recycled plastic and a unique design, the cards powerfully communicate the corporate’s sustainability agenda and efforts to mitigate climate change to both internal and external stakeholders. The process flow for sustainable commercial cards is straightforward. As usual, the company employee uses their commercial card for business purposes, including travel. When the corporate receives their rebate, they are given the option to invest a percentage of their rebate in reforestation projects (pre- selected by the client) in partnership with Citi. At that time, a rebate percentage is calculated, showing the corporate how many trees could be planted with a given percentage of the rebate, allowing the corporate to determine the scale of its ambitions in directing proceeds from its rebate toward reforestation. Finally, the NGO partner shares a detailed report demonstrating fund allocations and the environmental impact of new reforestation. How is the program set up? Mastercard, as part of its established Mastercard Priceless Planet Coalition, is bringing together partners to unite corporate sustainability efforts and make meaningful investments to preserve the environment. The coalition, which includes reputable experts with demonstrated sustainable forestry experience worldwide, will manage and provide oversight 3 Source: https://www.nytimes.com/2019/09/19/climate/air-travel-emissions.html 4 Source: https://www.nature.org/en-us/what-we-do/our-priorities/tackle-climate-change/climate-change-stories/how-nature-can-help-heal-our-planet/ 5 This is not a carbon offset program but opts to direct funds to forestry programs.