Royal Bank of Canada 2009 Corporate Responsibility Report and Public Accountability Statement Contents About this report 3 Community 55 ™ Profile of RBC 4 The RBC Community Blueprint 56 Donations 56 Vital statistics 5 Education 58 Message from the CEO 6 Environment 58 Health and wellness 59 Corporate responsibility at RBC 7 Arts and culture 60 Vision 7 Amateur sport 60 Values 7 Social services 62 Strategy 7 Employee contributions 62 Priorities 7 Diversity 63 Structure 8 Donations: How we give 64 Recognition 8 Affiliations 8 Aboriginal people (summary) 65 Stakeholders 9 Diversity (summary) 68 Reporting 10 Royal Bank of Canada Public Accountability Statement 71 Governance and ethics 12 Practices and leadership 12 Royal Bank Mortgage Corporation Risk management 14 Public Accountability Statement 77 Principles and policies 15 RBC Life Insurance Company Mutual funds and governance 19 Public Accountability Statement 77 Economic impact 20 Global Reporting Initiative Index 78 Return to shareholders 20 Taxes 20 Employment 21 Small business 21 Economic development 24 Innovation and entrepreneurship 28 Purchasing 29 Marketplace 30 Access to banking and insurance 30 Symbols used in this report: Product responsibility 34 Consumer protection 35 For more information online Workplace 37 Canada Principles and policies 38 Diversity and inclusion 40 r United States Rewards 41 Caribbean Engagement 43 Environment 45 United Kingdom Environmental management 46 Charting our progress 46 See Aboriginal people (summary) RBC Environmental Blueprint 2009 Interim Report Card 47 See Diversity (summary) Priority environmental objectives 48 Equator Principles 49 ™ Sustaining the RBC Environmental Blueprint 50 Priorities for 2010 50 Our environmental footprint 51 SOFT Footprint Report 53 2009 Corporate Responsibility Report and Public Accountability Statement Contents 2 About this report Scope Currency and measurement This report provides an overview of our social, economic and All currency amounts in this document are in Canadian dollars environmental commitments and impact on the communities unless otherwise stated. U.S. dollars are converted using the and countries in which we do business. It complements the fiscal 2009 average (C$1.00 = US$.858). Measures used in this information on our results of operations and financial condition report are metric, except where otherwise stated. provided in our 2009 Annual Report to Shareholders. This report is produced for a wide range of stakeholders. We provide more Global Reporting Initiative detail related to stakeholder-specific issues in our 2009 Annual We use the Global Reporting Initiative (GRI) G3 guidelines, Report and on our website. the GRI Financial Services sector supplement, as well as stakeholder input and external best practices to help structure Public Accountability Statement our sustainability reporting, both in this report and online. All federally regulated financial institutions in Canada with A GRI content index can be found on our website and on equity greater than $1 billion are required to publish annual page 78 of this report to help readers compare RBC to other public accountability statements outlining their contributions reporting organizations. to the Canadian economy and society. This report includes the public accountability statement for Royal Bank of Canada and Forward-looking statements its prescribed affiliates and the public accountability statements This report contains forward-looking statements within the for each of Royal Bank Mortgage Corporation and RBC Life meaning of certain securities laws including the “safe harbour” Insurance Company. Our Corporate Responsibility Report and provisions of the United States Private Securities Litigation Public Accountability Statement can be requested in a printed Reform Act of 1995 and any applicable Canadian securities version at no cost by contacting: legislation. These forward-looking statements include, among others, statements with respect to credit quality during 2010 in The Editor Canada, anticipated provision for credit losses, consumer RBC Corporate Responsibility Report and lending and business spending in Canadian Banking, as well as Public Accountability Statement statements with respect to our medium-term objectives, our Royal Trust Tower vision, our strategic goals and priorities and environmental 77 King Street West, 12th Floor objectives for 2010, and our bank and insurance branch Toronto, Ontario expansion plans. Canada M5W 1P9 We caution readers not to place undue reliance on these statements, as a number of risk factors – many of which are Email: [email protected] beyond our control and the effects of which can be difficult to predict – include credit, market, operational liquidity, and Stakeholders funding risks, including general business, economic and This report is published for all the major stakeholders of financial market conditions, including the ongoing impact Royal Bank of Canada and its subsidiaries, which together from the market environment, the lack of liquidity in certain operate under the master brand name RBC®. Our major markets, the level of activity and volatility of the capital markets, stakeholders include employees, clients, current and including recessionary conditions in Canada, the United States prospective investors, suppliers, governments, regulators, and certain other countries in which we conduct business. non-governmental organizations (NGOs) and community Our ability to successfully execute on our strategic goals and partners. priorities, could cause our actual results to differ materially from Reporting period the expectations expressed in such forward-looking statements. All data and examples contained in this report reflect activities Additional information about these and other factors can be undertaken during, or as at the end of, our 2009 fiscal year found in our 2009 Annual Report. (November 1, 2008 – October 31, 2009), unless otherwise noted. Previous reports and additional information Terminology Past Corporate Responsibility Reports and Public Accountability Reference to “employees” includes people who work for all RBC Statements, as well as other information relevant to the issues businesses and functions around the world, as outlined on page presented in this report, are available on our website. 4 of this report. rbc.com rbc.com/pas rbc.com/responsibility 2009 Corporate Responsibility Report and Public Accountability Statement About this report 3 Profile of RBC Our business > Insurance: Insurance comprises Canadian Insurance, U.S. > Royal Bank of Canada (RY on TSX and NYSE) and its Insurance and International & other. In Canada, we offer our subsidiaries operate under the master brand name RBC. products and services through our growing proprietary channels, including retail insurance branches, call centres, > We are Canada’s largest bank as measured by assets and and our career sales force as well as through independent market capitalization, and among the largest banks in the insurance advisors and travel agencies. In the U.S., we offer world, based on market capitalization. products through independent marketing organizations, call > We are one of North America’s leading diversified financial centres, financial institutions and our career sales force. services companies, and provide personal and commercial Outside North America, we operate in reinsurance markets banking, wealth management services, insurance, corporate globally. and investment banking and transaction processing services > International Banking: We offer a broad range of financial on a global basis. products and services to individuals, business clients and > We employ approximately 80,000 full- and part-time public institutions through our banking businesses in the U.S. employees, who serve more than 18 million personal, and Caribbean. We also provide an integrated suite of business, public sector and institutional clients through products to institutional investors worldwide through our offices in Canada, the U.S. and 53 other countries. joint venture, RBC Dexia Investor Services (RBC Dexia IS), of which we have a 50% ownership interest. Our structure > Canadian Banking: We provide personal and business > Capital Markets: Our diverse capital markets businesses financial services in Canada. Through our leading national provide corporate, government and institutional advice, distribution network, we reach more than 10 million clients capital, and access to the world’s financial markets and through our extensive network of branches and automated innovative products to help them achieve their growth teller machines (ATMs), proprietary and specialized sales objectives. By leveraging our leadership position in Canada, forces, online channels and contact centres. we have built a significant U.S.-dollar fixed-income and currencies presence, and expanded our equity sales and > Wealth Management: We serve affluent and high net worth trading businesses. Notable areas of strength include global clients in Canada, the United States, Latin America, Europe fixed-income distribution capabilities, structuring and and Asia with a full suite of investment, trust and other wealth trading, and foreign exchange. In addition, we continue to management solutions. We also provide asset management build our global capabilities in energy, mining and products and services directly, through other RBC distribution infrastructure finance. channels and through third-party distributors to institutional and individual