Stepping up to Make a Difference 20

Public Accountability Statement 2002 Stepping Up to Make a Difference 20 02 fference D TO VIEW THE ONLINE VERSION GO TO http://www.cibc.com/pas Stepping Up to Make a Difference contents 4 Chairman’s Message 7 Corporate Governance 10 Community 13 Corporate donations 14 CIBC Youthvision™ 20 Community support 30 Employee as Ambassador 33 Employee initiatives 34 CIBC Run for the Cure™ 36 CIBC World Markets Children’s Miracle Day™ 40 United Way and more 40 Employer of choice 44 Employment in Canada 45 Taxes in Canada – fiscal year 2002 46 The Environment 49 Corporate Environmental Management Program 50 Environmental credit risk management 51 Environmentally responsible procurement 53 Facilities and operations management 53 Donations 56 Employee as Ambassador 58 Affordable Accessible Banking 62 Branches 64 President’s Choice Financial™ 66 ABMs 71 Special needs 74 Aboriginal banking 75 CIBC Ombudsman 76 Support for Small Business 83 The future of small business 84 CIBC Small Business Banking 85 New initiatives in 2002 87 Accreditation 88 Donations and sponsorships John Hunkin, Chairman and Chief Executive Officer At CIBC, innovation and accountability are at the heart of our core values – and go beyond delivering strong financial results to our shareholders. This includes being responsible to our customers, employees, and the communities where we operate. CIBC’s goal is to make a positive difference through our actions, from employee volunteerism and charitable contributions to the products and services that we provide. PAS02_3-6 1/9/03 3:37 PM Page 3 At CIBC, accountability is one of our core values – and it goes well beyond delivering strong financial results to our shareholders. It includes a responsibility to all of our stakeholders – customers, employees and communities, as well as shareholders. CIBC employees pictured on front cover from top left, clockwise: Robert Gioacchini, Annette Phillips, Clovis Metcalfe, Fanny Ali CIBC employees pictured above: Hugh Bennet, Subangi Sivathasan PAS02_3-6 1/9/03 3:37 PM Page 4 CIBC chairman and chief executive officer John Hunkin at Commerce Court in Toronto. At CIBC our mission is clear: To make a positive impact on the lives of Canadians by offering them superior financial solutions, while playing a leading role in the social and economic growth of our communities. PAS02_3-6 1/9/03 3:37 PM Page 5 CHAIRMAN’S MESSAGE Stepping Up At CIBC, accountability is our commitment to make a difference to all stakeholders – to deliver quality and value to customers, to earn the respect of our employees, to foster strong, healthy communities, and to work diligently to exceed the expectations of shareholders. In 2002, CIBC stepped up its efforts to build a high-performance organization that In 2002, CIBC stepped up delivers sustainable, superior returns by creating long-term value for our customers its efforts to build a high- and shareholders, by instilling increased employee satisfaction, and strengthening performance organization that our commitment to the communities we serve. delivers sustainable, superior returns to its stakeholders. As one of Canada’s leading corporations and as a good corporate citizen, our mission is clear: To make a positive impact on the lives of Canadians by offering them superior financial solutions, while playing a leading role in the social and economic growth of our communities. Over the past several years, we have taken the initiative to strengthen our corporate governance system and enhance the policies and procedures that support our ability to provide shareholders with financial and operational transparency. Responsible stewardship of the environment is also an important priority. CIBC’s longstanding environmental policy reflects our commitment to responsible conduct, both to protect and conserve the environment and to safeguard the interests of our stakeholders from environmental risk. In 2002, CIBC became one of two Canadian banks listed on the Dow Jones Sustainability World Index, which tracks the performance of 300 sustainability- driven companies in 64 industry groups in 23 countries around the world. Affordable Accessible Banking Banking in the 21st century is changing. Today, our customers want more choice, more convenience and the freedom to pick the delivery channel that works best for them – going to a branch, visiting an ABM, picking up the telephone or clicking a mouse. Our customers also want a greater selection of affordable banking products and services to meet their financial needs more effectively. We’ve responded by 5 PUBLIC ACCOUNTABILITY STATEMENT 2002 PAS02_3-6 1/9/03 3:37 PM Page 6 CHAIRMAN’S MESSAGE providing a wider choice of Smart Simple Solutions™ to allow customers to weigh the options and pick the solution that is right for them. Supporting Small Business Small businesses across Canada make a vital contribution to this country’s economic growth. In today’s economic environment, conditions for Canadian small business growth have never been better. Entrepreneurs are taking the Canadian economy forward and CIBC is behind them, supporting their growth in regional and national markets, and helping them to establish themselves competitively on the global stage. CIBC Small Business Banking serves the interests of our small business customers by developing and managing innovative banking products and services. In 2002, CIBC introduced a broad range of initiatives and enhancements to better support our small business customers – versatile solutions that will save them more time, so that they can accomplish their goals more effectively. Supporting Community and Employee Volunteer Activities Community giving is at the heart of CIBC. Through the volunteer efforts of our employees and corporate donations, CIBC contributes to Canadian communities on a national, regional and local level. Volunteer activities of CIBC employees are an important part of our contribution to communities. Through our Employee as Ambassador Program, CIBC encourages community spirit by donating to community organizations where employees volunteer. We’re also proud to support their significant fundraising efforts, resulting in millions of dollars for the CIBC Run for the Cure, the CIBC World Markets Children’s Miracle Day and the United Way. Stepping Up CIBC is a strong and vibrant organization with core strengths – innovation, commitment, accountability and resolve – that are evident as we step up to make a difference to our stakeholders and to contribute in a meaningful way to the enrich- ment of Canada’s communities. J.S. Hunkin Chairman and Chief Executive Officer 6 PUBLIC ACCOUNTABILITY STATEMENT 2002 PAS02_7-9 1/9/03 3:38 PM Page 7 Corporate Governance Leadership in corporate governance is a journey, not a destination. At CIBC, strong governance practices are the defining feature of the Board of Directors and the under- lying philosophy of its directors, as well as management. Good governance requires constant review, continuous adjustment, proper structure and principled execution. Recognizing the importance of these obligations for protecting and enhancing shareholder value in the long term, the board maintains an effective system of corporate governance to accomplish these objectives. PAS02_7-9 1/14/03 3:16 PM Page 8 CORPORATE GOVERNANCE Corporate Governance CIBC(1) constantly monitors, reviews and evaluates its governance system, and takes the steps necessary to strengthen policies and practices to make the board more effective and accountable for its activities. In the last 12 months, the CIBC Board of Directors has: • Announced the separation of auditing and consulting work. • Mandated that all non-auditing work be approved by the board’s Audit Committee. • Instituted a CIBC-wide prohibition on the awarding of any information technol- ogy or systems implementation projects to CIBC’s auditing firms, and • Expensed stock options to provide greater financial transparency to investors. In addition, the board also initiated an extensive review of the shareholders’ auditors, including the practice of retaining two firms of auditors to express an opin- ion on the bank’s consolidated financial statements. As part of that review, the Audit Committee, independently of management but with management’s assistance, established a review process that included assess- ing submissions from the four global accounting firms. Following this process, the Audit Committee unanimously recommended to the board that one firm – Ernst & Young LLP – be retained to audit CIBC’s 2003 consolidated financial statements. The three auditing firms that were not recommended are now eligible to compete for other consulting engagements with the bank. This recommendation was approved by the Board of Directors in October. The former auditors resigned their office in December. Ernst & Young LLP is acting as CIBC’s auditor until the next annual meeting in February 2003 where their appointment will be put to the shareholders for a vote. All of the actions taken in 2002 support CIBC’s board and management’s commitment to provide the bank’s shareholders with enhanced financial and operational transparency. They also reflect our ongoing determination to manage the organization with a tough, investor-focused mindset, and to do what is necessary to protect and enhance the long-term value of our shareholders’ investments. A firm belief in the principle of strong corporate governance goes to the very heart of CIBC. In 1999, a special board task force, convened by incoming chairman and chief executive officer John

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