Climate Change Data

Environmental Metrics

ESG Focus Areas

• Client Focus
• Responsible Banking
• Culture
• Building Community
• Governance

Environmental Achievements

• All paper used in the production of the CIBC 2018 Annual Report is Forest Stewardship Council® (FSC®) certified.
• Conducted 1,193 environmental and social risk assessments of our financial transactions as an integral part of our due diligence process
• Announced support for the Task Force on Climate-related Financial Disclosures

Social Achievements

• Launched new global community investment brand One for Change
• Invested more than $80 million in community organizations across Canada and the U.S., including $60 million in corporate contributions and $20 million in employee-led fundraising and giving
• Exceeded our goal of hiring more than 500 persons with disabilities
• CIBC’s Engagement score of 88 is 7 percentage points above the global financial services norm
• Issued Canada’s first social bond framework focused on corporations with a demonstrated commitment to women in leadership roles

Governance Achievements

• 31% women in boarded executive roles, within our goal range of 30%–35%
• 44% women on the CIBC Board of Directors, above our minimum target of 30%
• 100% of non-executive directors on the Board are independent
• 100% of employees completed CIBC ethical training on our Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Canadian consumer debt and the housing market
• Geo-political risk
• Disintermediation risk
• Acquisition risk
• U.S. banking regulation
• Anti-money laundering
• Commodity prices

Mitigation Strategies

• Conducting due diligence before completing the transaction, developing and executing appropriate integration plans, and monitoring performance following the acquisition
• Strategic risk reviews as well as investment in emerging channels, in data and analytics capabilities, and in technology and innovation in general, to meet our clients’ changing expectations, while working to reduce our cost structure and simplify operations
• Paying particular attention to markets and regions with existing or recent historical instability to assess the impact of these environments on the markets and businesses in which we operate
• Implementing procedures to ensure that relevant regulatory obligations with respect to the reporting of large cash transactions, electronic funds transfers, and cross-border movements of cash and monetary instruments, are met in each jurisdiction. In addition, all employees are required to complete CIBC’s AML/ATF training annually.
• Closely monitoring government actions which impact the Canadian housing market and the performance of our Canadian credit portfolios, and will take risk mitigation action as required

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNPRI, TCFD, UNEP-FI

Awards & Recognition

• Retail Banker International Best Branch Strategy award
• Forrester Research’s Mobile Banking benchmark study (top score for five consecutive years)

Environmental Metrics

ESG Focus Areas

• Conduct and culture
• Customer satisfaction and experience
• Governance and risk
• Information security and data privacy
• Financial and economic performance
• Changing regulatory landscape
• Digital product and service transformation
• Customer vulnerability and hardship
• Executive remuneration
• Climate change risks and opportunities
• Human rights
• Reconciliation

Environmental Achievements

• Exceeded our $3 billion target to facilitate climate change solutions
• Became the first New Zealand bank to raise funding through the issuance of a green bond with a €500 million deal.
• Launched the world’s first Green Tailored Deposit to be certified by internationally recognised Climate Bonds Initiative (CBI).
• Reduced the emissions intensity of our lending to the electricity generation sector over the last three years, from 0.38 tCO 2e/MWh in 2016 to 0.26 tCO 2e/MWh in 2019, ahead of our 2020 target of 0.30 tCO 2e/MWh, and well below the National Electricity Market average of 0.75 tCO2e/MWh.
• Committed to sourcing the equivalent of 100% of our global electricity consumption from renewable sources by 2025

Social Achievements

• Delivered financial literacy training to over 148,000 people
• Launched a series of Life Moments tools and resources to assist customers and their families going through challenging circumstances such as divorce, separation, serious illness or the loss of a loved one.
• Improved the way we support customers in vulnerable circumstances
• Extended the $100 million drought relief fund
• Committed $50 million to a flood relief fund
• Donated $250,000 to flood-affected communities
• Opened a new dedicated Agribusiness Centre in Naracoorte
• Simplified the home ownership experience through Customer Service Hub roll-out
• Supported the Salvation Army’s You’re the Boss program
• Introduced a new Gender Transition leave policy
• Westpac New Zealand Limited is the first bank to be accredited as a Living Wage employer in New Zealand

Governance Achievements

• Implemented 11 recommendations as part of our Royal Commission program with a further 11 currently being implemented.
• Implemented 40% of the recommendations from the CGA action plan
• Centralising our complaints management
• Enhancing consequence management and remuneration governance
• Introducing new board and committee processes
• Made significant changes to executive remuneration to respond to shareholder feedback received on the 2018 Remuneration Report

Climate Goals & Targets

Environmental Challenges

• Repercussions from the Royal Commission into Misconduct
• Heightened regulatory scrutiny
• Increased competition
• Ongoing digital adoption
• Shifting economic environment
• Lower economic growth
• Historically low interest rates
• Increased competition from international banks, non-banks and niche players
• Significant costs associated with remediating customers, improving governance and responding to regulatory change
• Lower interest margins
• Decline in wealth management and insurance revenue
• Increased regulatory and compliance costs
• Uncertainty around APRA’s capital requirements
• Potential for further regulatory actions and costs
• Earnings headwinds of low interest rates and higher compliance costs
• Reputational challenges

Mitigation Strategies

• Stepping up on our programs of work to address the issues
• Investing more in risk and compliance
• Refunding customers where we’ve got it wrong
• Raising capital through an institutional placement and a share purchase plan to raise around $2.5 billion
• Reducing the final 2019 dividend to 80 cents per share
• Exiting the financial planning business
• Implementing the new Banking Code of Practice
• Implementing new policies and approaches for supporting vulnerable customers
• Implementing a number of new controls and compliance processes
• Roll-out of a major new technology system – the Customer Service Hub
• Achieving productivity goal by delivering $405 million in savings
• Simplifying our processes
• Renegotiating supplier arrangements
• Automating back-office operations
• Simplifying our organisational structure
• Improving the identification, escalation, and resolution of non-financial risk issues
• Enhancing end-to-end lending processes
• Improving the efficiency and effectiveness of committee meetings
• Clarifying and strengthening resources under the ‘Three Lines of Defence’ approach to risk management
• Improving awareness and protection for whistle-blowers
• Multi-year investment program called the “Service Revolution”

Supply Chain Management

Supplier Audits: 98 suppliers assessed against Responsible Sourcing Code of Conduct

Responsible Procurement

• Responsible Sourcing Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Greenfield renewable energy projects

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, AA1000 AccountAbility Principles Standard, TCFD

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers (PwC)

Sustainable Products & Innovation

• Green deposits
• Sustainability-linked loans
• Green bonds
• Green Tailored Deposit

Awards & Recognition

• Ranked #9 globally by the Dow Jones Sustainability Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Community
• Tax Transparency
• Corporate Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Investors finding it difficult to access appropriate data and information; issuers failing to understand what information investors need; investors using different ESG information in their investment research and raising different questions with issuers; and issuers’ needs and interests differing in terms of the ESG issues that they see as important.

Mitigation Strategies

• This Guidance aims to: — make companies more aware of the importance of providing high quality ESG information, and engaging investors on sustainability-related issues; — stimulate interest in the innovation opportunities opened by this new economic paradigm; — help issuers and investors to navigate the complex landscape of ESG reporting; — enable richer data flows and dialogue on ESG between issuers and investors; — support the consolidation of sound global reporting standards; and — enable investors to make better informed investment decisions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, IIRC, SASB, UN Global Compact, CDP, CDSB, TCFD

Certifications: ISO 14001, OHSAS 18001 (or ISO 45001)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Serving national strategies
• Furthering social wellbeing
• Assisting rural vitalization
• Supporting the real economy
• Promoting green development
• Improving corporate governance
• Addressing climate change
• Protecting client rights and interests

Environmental Achievements

• Developed nearly 45 innovative green insurance products
• Offered more than RMB 8 trillion worth of green insurance
• Invested RMB 150 billion in green projects
• Planted more than 120,000 trees across an area of over 133.3 hectares at Sanjiangyuan
• Implemented a carbon-inclusive action plan at CIIE, cutting 3,300 tons of carbon emissions

Social Achievements

• Improved agricultural insurance services, benefiting 30.32 million farmers
• Expanded Huiminbao program to 53 million participants
• Implemented more than 60 critical illness insurance projects, benefiting 100 million clients
• Long-term care insurance served 93.5 million people
• Medical insurance cooperation projects benefited more than 160 million clients
• Donated RMB 50.08 million for public welfare purposes

Governance Achievements

• Established an ESG Committee and an ESG Office
• Formulated an Environmental, Social and Governance Plan (2023-2025)
• Improved information disclosure, rated “A” by the Shanghai Stock Exchange
• Enhanced risk management systems
• Strengthened anti-corruption measures

Climate Goals & Targets

Environmental Challenges

• Extreme weather risks impacting insurance payouts and investments
• Long-term climate change risks affecting various business lines
• Stricter climate-related policies and legal requirements impacting traditional industries
• Rapid technological advancements and market shifts creating challenges in insurance pricing and investment
• Reputational risks associated with climate change responses

Mitigation Strategies

• Developed scientific models to assess catastrophe risks and incorporated climate change into risk assessment and pricing
• Conducted climate scenario analyses and stress tests
• Developed new climate-related products and optimized actuarial models
• Formulated Guidelines for Sustainable (Green) Insurance Standards
• Incorporated ESG factors into investment research and decision-making
• Improved risk identification and management for high-carbon emission projects
• Increased the share of green investment
• Improved holistic risk management systems
• Implemented an Emergency Response Plan for Major Natural Disasters

Supply Chain Management

Supplier Audits: 528 suppliers for centralized procurement

Responsible Procurement

• Supplier entry and rating management systems
• ESG commitment from suppliers
• Open, fair, and impartial supplier selection
• Anti-commercial bribery agreement in procurement contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Stricter climate policies
• Technological advancements
• Market shifts

Opportunities

• Demand for green insurance products and services
• Growth in green finance market
• Increased efficiency of resource use

Reporting Standards

Frameworks Used: GRI Standards (2021), TCFD, UN SDGs, FTSE Russell's and MSCI's ESG rating standards, UNPRI, UNPSI, GIP, HKEX ESG Reporting Guide (2022), Guidance on Climate Disclosures, Guidelines of the Shanghai Stock Exchange for Self-disciplinary Supervision of Listed Companies No. 1-Operational Standardization

Certifications: ISO 27001, ISO 29151

Sustainable Products & Innovation

• Green insurance products
• ESG-themed investment products

Awards & Recognition

• Fortune Global 500
• Forbes China ESG 50
• Social Responsibility of the People's Enterprises-Green Development Award
• ESG Star Green Company
• Annual Green Finance Award
• Carbon Neutrality Action Leadership-Outstanding Climate Communication Impact Award
• Green and Low-carbon Company
• Role model award by Yicai's China Corporate Social Responsibility List
• First Shanghai Philanthropy Award
• EAA and EIE Award
• Outstanding insurer with social responsibility
• Best insurer with responsible investment
• Excellent social responsibility report of the year
• Corporate ESG Impact Model Award
• Model Chinese Employer Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social
• Risk Management
• Data Reporting

Environmental Achievements

• 80% of European corporate respondents report that their companies have begun preparing for CSRD compliance.
• 65% of European corporate respondents currently secure third-party assurance for environmental metrics.
• 93% of European corporate respondents who have set or plan to set time-bound quantitative ESG goals, have set an environment-focused ESG goal.

Social Achievements

• 78% of European corporate respondents have established a dedicated internal ESG working group or committee.
• 37% of European corporate respondents commonly secure third-party assurance for social metrics.
• 76% of European corporate respondents with time-bound ESG goals have social-focused goals.

Governance Achievements

• 81% of European corporate respondents whose companies provide ESG education to their boards indicate that ESG is a full board agenda item at least once annually.
• 78% of European corporate respondents tie ESG metrics to executive remuneration.
• 45% of European corporate respondents indicate that their company’s Nomination Committee considers ESG expertise and knowledge when identifying board candidates.

Climate Goals & Targets

Environmental Challenges

• Rapid pace of European ESG regulations and escalating disclosure requirements.
• Need for robust data collection processes to meet growing demands.
• Limited investor understanding and lack of standardization of ESG requests.
• Difficulty in allocating resources to respond to numerous third-party ESG data requests.

Mitigation Strategies

• Conducting gap assessments, double materiality assessments, allocating dedicated resources, and engaging third-party consultants to prepare for CSRD compliance.
• Establishing dedicated internal ESG working groups or committees to coordinate data collection and ensure representation across the business.
• Developing a hierarchy of responses or using a decision tree to prioritize third-party survey responses.
• Upskilling and educating investor relations teams to improve communication and alignment with investor expectations.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD, TCFD, ESRS