Citigroup reverses course, agrees to conduct racial equity audit

Citigroup Inc. has committed to conduct a racial equity audit to evaluate its efforts in helping to address the racial wealth gap in the U.S., according to a blog post on the bank's website.

With the decision, Citi has become the first Wall Street bank to agree to an external audit to see how its work impacts non-white stakeholders and communities of color.

"Measurement and transparency are important components of the work we are doing to advance diversity, equity and inclusion, both at our bank and through our contributions to our communities and society more generally," Edward Skyler, executive vice president at Citi, said in the Oct. 22 blog post.

The audit will be conducted by attorneys at Covington & Burling LLP and will include input from a range of stakeholders, including colleagues involved in implementing the bank's $1 billion-plus Action for Racial Equity initiative and civil rights organizations.

Earlier in 2021, Citi urged its shareholders to reject a proposal by CtW Investment Group, now known as SOC Investment Group, calling for a racial equity audit. However, during a congressional testimony in May, Citi CEO Jane Fraser said the bank was reconsidering the audit proposal.

"By agreeing to a third-party racial equity audit, Citi is taking a critical step toward confronting centuries-old harms against marginalized communities that are still present to this day," Dieter Waizenegger, executive director of SOC Investment Group, said in the post.

Asset management giant BlackRock Inc. also agreed to an independent racial audit earlier in 2021, following a shareholder request.