Citigroup Inc., which had urged its shareholders to reject a resolution calling for a racial-equity audit earlier this year, announced Friday that it has reversed course.
In explaining the about-face, Citi C, +1.22% executive vice president Edward Skyler wrote in a blog post that the bank needs to assess its efforts to close the nation’s racial wealth gap, and that “measurement and transparency are important components of the work we are doing to advance diversity, equity and inclusion.”
The third-party audit will focus on the consumer-facing impact of the company’s Action for Racial Equity initiative, a $1 billion commitment meant to boost economic mobility for communities of color that Citi announced last year after George Floyd, a Black man, was murdered by police, sparking widespread protests against police brutality and racism. Components of the initiative include expanding access to banking and loans to minorities, investing in Black entrepreneurs, promoting Black homeownership and more.
See also: Companies that declared solidarity after George Floyd killing may be ‘woke washing,’ shareholder advocates warn
Skyler said Citi is working with the shareholder group that submitted the resolution as it considers its approach to the audit.
Continue reading Citi to conduct racial-equity audit, reversing its position on MarketWatch
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