RBC Blueprint for doing better...• Aboriginal epeople 1.6% 1.6% 1.6% * All figures refer to our...

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2008 Corporate Responsibility Report and Public Accountability Statement Royal Bank of Canada RBC Blueprint for doing better

Transcript of RBC Blueprint for doing better...• Aboriginal epeople 1.6% 1.6% 1.6% * All figures refer to our...

Page 1: RBC Blueprint for doing better...• Aboriginal epeople 1.6% 1.6% 1.6% * All figures refer to our worldwide operations, unless otherwise noted. ** Effective 2008, we have excluded

2008 Corporate Responsibility Report and Public Accountability Statement

Royal Bank of Canada

RBC Blueprint for doing better™

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2 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Contents

Contents

3 About this report

4 Profile

5 Vital statistics

6 Message from the CEO

7 Corporate responsibility at RBC

12 Governance and ethics 12 Practices,leadershipanddisclosure 13 Riskmanagement 14 Principles,codesandpolicies 17 Mutualfundgovernance

18 Economic impact 19 Employment 19 Smallbusiness 21 Communityeconomicdevelopment 24 Innovationandentrepreneurship 25 Purchasing

26 Marketplace 26 Productresponsibility 26 Developmentofproductsandservices 26 Greenproductsandservices 27 Responsibleinvesting 27 Responsiblelending 27 Consumerprotection,educationandresponsiveness 29 Accesstobankingandinsurance 29 Reachingouttoclients24/7 31 Microcredit

32 Workplace 32 Principlesandpolicies 33 Rewards 34 Diversityandinclusion 36 Engagement

38 Environment 39 Priorityactivities 39 Environmentalmanagement 40 RBCEnvironmentalBlueprint™:Reportcardon

2008commitments 41 Environmentalpriorities 48 SustainingtheRBCEnvironmentalBlueprint 49 Lookingahead–Prioritiesfor2009

50 Community 51 Approach 52 Donations 54 Sponsorshipofcommunityevents 56 Employeeactivityandcontributions 56 UnitedWay

57 Aboriginal people (summary)

59 Diversity (summary)

Public Accountability Statement ThisstatementhasbeenpublishedbyRoyalBankofCanada anditsprescribedaffiliatesanddeclarantsforthefiscalyear endedOctober31,2008.Theinformationrelatedtothis statementcanbefoundinthefollowingsections: 19 Smallbusiness 21 Communityeconomicdevelopment 29 Accesstobanking 50 Community 56 Volunteeractivity(employeeactivity andcontributions) 61 PublicAccountabilityStatementdeclarationand affiliates 61 RoyalBankMortgageCorporation 61 RBCLifeInsuranceCompany 62 EmploymentinCanada 62 Taxes 63 DebtfinancingforCanadianbusinesses 64 Canadianbankbranch/facilityopenings,closings andrelocations 65 CanadianATM(bankmachine)openingsandclosings

67 Global Reporting Initiative index

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3 RBC Corporate Responsibility Report and Public Accountability Statement 2008 About this report

About this report

TerminologyReferenceto“employees”includespeoplewhoworkforallRBCbusinessesandfunctionsaroundtheworld,asoutlinedonpage4ofthisreport.

Currency and measurementAll$referencesinthisdocumentrefertoCanadiandollarsunlessotherwisestated.U.S.dollarsareconvertedusingthefiscal2008average(C$1.00=US$0.969).Measuresusedinthisreportaremetric,exceptwhereotherwisestated.

Global Reporting Initiative WeusetheGlobalReportingInitiative(GRI)G3guidelines,theGRIFinancialServicessectorsupplement,aswellasstakeholderinputandexternalbestpracticestohelpstructureoursustainabilityreporting,bothinthisreportandonline.AGRIcontentindexcanbefoundatrbc.com/responsibility,andonpage67ofthisreporttohelpreaderscompareRBCtootherreportingorganizations.

Forward-looking statementsThisreportcontainsforward-lookingstatementswithinthemeaningofcertainsecuritieslawsincludingthe“safeharbour”provisionsoftheUnited States Private Securities Litigation Reform Act of 1995andanyapplicableCanadiansecuritieslegislation.Theseforward-lookingstatementsinclude,amongothers,statementswithrespecttocreditqualityduring2009inCanada,anticipatedprovisionforcreditlosses,consumerlendingandbusinessspendinginCanadianBanking,aswellasstatementswithrespecttoourenvironmentalprioritiesfor2009andourbankandinsurancebranchexpansionplans.Wecautionreadersnottoplaceunduerelianceonthesestatements,asanumberofimpor-tantfactors,includinggeneralbusinessandeconomicconditions;theimpactofcontinuingvolatilityinfinancialmarketsandlackofliquidityincreditmarkets,andourabilitytoeffectivelymanageourliquidityandourcapitalratioseffectivelyandimplementeffectiveriskmanagementprocedures;andourabilitytosuccess-fullyexecuteonourstrategiesandplans,couldcauseouractualresultstodiffermateriallyfromtheexpectationsexpressedinsuchforward-lookingstatements.Additionalinformationabouttheseandotherfactorscanbefoundinour2008AnnualReport.

Previous reports and additional informationPastCorporateResponsibilityReportsandPublicAccountabilityStatements,aswellasotherinformationrelevanttotheissuespresentedinthisreport,areavailableonrbc.com.

ScopeThisreportprovidesanoverviewofoursocial,economicandenvironmentalcommitmentsandimpactonthecommunitiesandcountriesinwhichwedobusiness.Itcomplementstheinformationonourfinancialconditionandperformanceprovidedinour2008AnnualReporttoShareholders.Thisreportisproducedforawiderangeofstakeholders.Weprovidemoredetailrelatedtostakeholder-specificissuesinour2008AnnualReportandonourwebsite,rbc.com.

Public Accountability StatementAllfederallyregulatedfinancialinstitutionsinCanadawithequitygreaterthan$1billionarerequiredtopublishannualpublicaccountabilitystatementsoutliningtheircontributionstotheCanadianeconomyandsociety.ThisreportincludesthepublicaccountabilitystatementforRoyalBankofCanada®anditsprescribedaffiliatesandthepublicaccountabilitystatementsforeachofRoyalBankMortgageCorporationandRBCLifeInsuranceCompany.OurCorporateResponsibilityReportandPublicAccount-abilityStatementcanberequestedinaprintedversionatnocost.Contact: TheEditor,RBCCorporateResponsibilityReportandPublicAccountabilityStatement

9thFloor,SouthTower RoyalBankPlaza 200BayStreet Toronto,Ontario Canada M5J2J5 Email:[email protected]

StakeholdersThisreportispublishedforallstakeholdersofRoyalBankofCanadaanditssubsidiaries,whichtogetheroperateunderthemasterbrandnameRBC®.Ourstakeholdersincludeemployees,clients,currentandprospectiveinvestors,suppliers,governments,regulators,non-governmentalorganizations(NGOs)andcommu-nitypartners.

Reporting periodAlldataandexamplescontainedinthisreportreflectactivitiesundertakenduring,orasattheendof,our2008fiscalyear(November1,2007–October31,2008),unlessotherwisenoted.

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4 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Profile

Profile

International Banking:WehavebankingbusinessesintheU.S.andCaribbean,aswellasglobalcustodyandinvestorservices.

Capital Markets:Ourdiversecapitalmarketsbusinessesprovidecorporate,government,andinstitutionaladvice,capital,andaccesstotheworld’sfinancialmarketsandinnovativeproductstohelpthemachievetheirgrowthobjectives.Byleveragingourlead-ershippositioninCanada,wehavebuiltastrongandgrowingU.S.mid-marketcapitalmarketsfranchise.OutsideNorthAmerica,wehaveestablishedourselvesasaleadingproviderofglobalfinancialservicesandarerecognizedasatop15globalinvestmentbank.Notableareasofstrengthincludeglobalfixedincomedistributioncapabilities,structuringandtrading,andforeignexchange.Inaddi-tion,wecontinuetobuildourglobalcapabilitiesinenergy,miningandinfrastructurefinance.

Corporate Support:ThisgroupcomprisesGlobalTechnologyandOperationsandGlobalFunctions.Together,theseteamscontributetoachievingenterpriseandbusinessobjectivesbyenablingthestrategiesofeachbusinessplatform,andbydrivinginnovativeprocessandtechnologyimprovements,enhancingclientservice,executingagainstRBC’sriskandcomplianceobjectives,andensur-ingthesafetyandsoundnessofourorganization.

Our business• RoyalBankofCanada(RYonTSXandNYSE)anditssubsidiariesoperateunderthemasterbrandnameRBC.

• WeareCanada’slargestbankasmeasuredbyassetsandmarketcapitalization,oneofNorthAmerica’sleadingdiversifiedfinancialservicescompaniesandamongthelargestbanksintheworldasmeasuredbymarketcapitalization.

• Weprovidepersonalandcommercialbanking,wealthandassetmanagementservices,insurance,corporateandinvestmentbankingandtransactionprocessingservicesonaglobalbasis.

• Wehavemorethan17millionpersonal,business,publicsector,andinstitutionalclientsthroughofficesinCanada,theU.S.and48othercountries.

• Weemploy80,100peopleinfull-andpart-timepositions.

Our structureCanadian Banking:WeprovidepersonalandbusinessfinancialservicesinCanada.ThroughourleadingnationaldistributionnetworkandthemostvaluablebrandinCanada,wereachapproxi-mately10millionclientsthroughourextensivebranchandbankmachine(ATM)network,proprietaryandspecializedsalesforces,onlinechannelsandcontactcentres.

Wealth Management:Ourbusinessesserveaffluentandhighnetworthclientsaroundtheworldandprovideassetmanagementandestateandtrustservicesdirectlytoclientsandthroughinternalpartnersandthird-partydistributors.ThissegmentcomprisesCanadianWealthManagement,U.S.&InternationalWealthMan-agementandGlobalAssetManagement.WeareamarketleaderinCanadianwealthandassetmanagement,andwehavestrongandgrowingbusinessesintheU.S.andinternationally.Withmorethan4,000financialconsultants,advisors,privatebankersandtrustofficersin24countries,wehelpclientsgrow,protectandtransfertheirwealth.

Insurance:WeprovideCanadianswithimprovedaccesstoinsur-ancechoicesthroughawiderangeofinsurancesolutionsincludinglife,health,travel,home,auto,andcreditorinsuranceservicestoindividualandbusinessclients.Theseproductsaredistributedthroughthird-partychannelsincludingindependentlifeinsuranceadvisorsandtravelagentsaswellasthroughourgrowingpropri-etarychannelssuchasretailinsurancebranches,bankbranches,callcentres,online,andourcareersalesforce.IntheU.S.,weofferlifeinsurance,annuityproductsandtravelinsurance.OutsideNorthAmerica,weoperateaspecialtyreinsurancebusiness.

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5 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Vital statistics

Environment 2008 2007 2006

Officepaperuse/FTE .059 .060 .054

Energyuseperm2–branches(MWh/m2) .308 .286 .270

Energyuseperm2–majorleasedpremises(MWh/m2) .515 – –

CO2eemissionsfromenergyuse***

(tonnes/m2) .092 .053 .050

CO2eemissionsfromemployee

travel(tonnes/FTE) .355 .382 .359

TransactionsassessedunderEquatorPrinciples 5 6 4

Community 2008 2007 2006

Investmentsincommunitycauses(totalofdonations $99.0 $82.8 $83.4andsponsorships) million million million

Donations $51.5 $47.7 $42.4 million million million

Communityandnational $47.5 $35.1 $41.0sponsorships million million million

Vital statistics*

Economic impact 2008 2007 2006

Revenue $21.58 $22.46 $20.64 billion billion billion

Marketcapitalization $62.83 $71.52 $63.79 billion billion billion

Taxesincurred $2.08 $2.09 $2.08 billion billion billion

Employeecompensation $7.8 $7.9 $7.3andbenefits billion billion billion

Goodsandservicespurchased $4.7 $4.4 $3.9 billion billion billion

Debtfinancingforbusinesses $144 $138 $120inCanada(authorized) billion billion billion

Marketplace 2008 2007 2006

Countriesweoperatein 50 38 36

Clients(approximate) 17 15 14 million million million

Bankbranches(Canada) 1,174 1,146 1,117

ATMs(Canada) 4,149 3,946 3,847

Bankbranches(UnitedStates) 439 350 282

ATMs(UnitedStates) 503 395 314

Bankbranches(Caribbean) 127 45 44

ATMs(Caribbean) 312 78 71

Bankbranches(China) 1 1 1

Workplace 2008 2007 2006

Employees 80,100 71,760 69,480

Employeesinfull-timeequivalent(FTE)positions** 73,323 64,815 60,539

Employees(Canada) 56,112 54,960 54,742

Employees(UnitedStates) 14,082 12,181 10,580

Employees(Caribbeanandotherinternational) 9,906 4,619 4,158

Amountinvestedinformaltraining(includingdirect $149 $166 $109andindirectexpenditures) million million million

Workforcediversity(Canada)• Women 69% 69% 70%• Womeninmanagement 54% 55% 55%• Visibleminorities 26% 25% 24%• Visibleminoritiesinmanagement 25% 24% 21%• Peoplewithdisabilities 3.8% 3.9% 3.2%• Aboriginalpeople 1.6% 1.6% 1.6%

* Allfiguresrefertoourworldwideoperations,unlessotherwisenoted.** Effective2008,wehaveexcludedstatutoryholidaypayforpart-timeemployeesfromourfull-timeequivalent(FTE)calculationconsistentwithourmanagementreportingframework.AllcomparativeamountsreflectthechangetotheFTEcalculation.

***Everyyearwestrivetoimprovethecoverageandrobustnessofourenvironmentalfootprintindicators.In2008,weexpandedourenergydatacoverageto65%ofourglobalfloorarea,comparedto35%in2007.WearenowabletoreportenergydatanotfullyavailableinprioryearsforpropertiesinCanada,theU.S.andtheBritishIsles.

For2008,wehaveincludeddataforsomeofourmoreemissionintensiveareas,suchasmajorleasedpremisesinCanada,theU.S.andtheBritishIsles(suchasdatacentres)andbranchesintheU.S.Duetothismorecomprehensivereportingin2008,ourreportedCO

2e

emissionsarehigherthanthosein2007.

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6 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Message from the CEO

Thatisnottosaythatworkplace,environmentalandcommunityprogramsarenotanimportantpartofcorporateresponsibilityaswell.Theyare,andtheyareintegraltoourabilitytoserveourclientswellandsupportourabilitytocreateasustainableglobalbusiness.RBC’scontinuedstrongperformanceintheseareasgivesourmorethan80,000employeesworldwidecauseforconfidenceandpride,andhascontinuedtoearnusrecognitionfromourstakeholders.

Somyanswertothequestionofwhethercorporateresponsibilitycansurvivetougheconomictimesisaresounding“yes.”Becausecorporateresponsibilityisn’tonlyabouthowacompanyspendsitsmoney:it’sabouthowacompanymakesitsmoney.Theonlywayacompanycansurvivetougheconomictimesisbymanagingitsfinancial,socialandenvironmentalperformance,andpayingcloseattentiontoallthree.

Thisyear,RBC’ssustainabilityreportingcompletesitsmigrationonline.Our2008CorporateResponsibilityReportandPublicAccountabilityStatementisnowavailableinelectronicformat,withamuchshorter2008CorporateResponsibilityReviewavailableinprint.WecontinuetoincludecorporateresponsibilityinformationinourAnnualReporttoShareholdersandenhanceourcommunica-tionswithnon-governmentalorganizations(NGOs),andprovidedetailed,directreportingtoanalystsandresearchersfromthesociallyresponsibleinvestmentcommunity.

Iinviteyoutoreadthisreportandvisitrbc.comforadditionaldetailsthroughout2009.Pleasetellushowwecancontinuetodobetter.

GordonM.NixonPresidentandChiefExecutiveOfficer

What is a bank’s responsibility? 2008wasayearofturmoilintheglobalfinancialmarkets,leadingsometoquestionwhether“corporateresponsibility”cansurviveintougheconomictimes.Theanswertothatquestionreallydependsonhowyoudefinecorporateresponsibility.

RBChasconsistentlyassertedthatourfirstresponsibilityasafinancialservicescompanyistohaveapositiveeconomicimpact:tomakeaprofit,provideshareholderswithagoodreturn,paytaxesandprovidesafeandattractiveemployment.Wedothisbyoperatingwithintegrityandethics,everyday.

Thishasalwaysbeen,andalwayswillbe,ourprimarycorporateresponsibility.

Our most fundamental social contribution is to do our jobs as bankers well.

Inourfirst“socialreport,”dated1985,mypredecessorRowlandFrazeesuccinctlylaidoutthecase.“Webelievethatourmostfundamentalsocialcontributionistodoourjobsasbankerswell,”hesaid.“Thefundamentalmeasureofthebank’scontributiontosocietyisthedegreetowhichitisfaithfultoandsuccessfulinpursuingitspurpose:toprovideworld-classbankingandfinancialservices,whilebeingasoundbusinessenterprise,ageneratorofbeneficialeconomicactivityandagoodcorporatecitizenofthecommunitiesinwhichitoperates.”

Wehavemaintainedthatphilosophytothisday.Wecontinuallystrivetodoourjobsasbankerswell,tohaveapositiveeconomicimpactandservethemarketplacewithintegrity.Beingagoodbankeralsomeanshelpingourclientschartthebestpathforwardinuncertaintimesbyprovidingstraightforwardfinancialadvice.

Thisapproach,coupledwithourconsistentfinancialstrength,soundriskmanagementpoliciesanddiversifiedbusinessmixhaveenabledustowithstandmanyofthemarketshocksandpressuresof2008.Ourbalancesheetisofhighquality,andwemanageitprudently.Wediversifyourexposureinavarietyofways,includinglimitingourexposuretoanysinglenameandtoanysinglesector.Ourliquiditypositionissolid,ourcapitalpositionisstrongandourseniordebtratingsareamongthehighestoffinancialinstitutionsglobally.Thisiscorporateresponsibilityinaction.

Message from the CEO

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7 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Corporate responsibility at RBC

StrategyRBC’sstrategicbusinessgoalsare:

• InCanada,tobetheundisputedleaderinfinancialservices

• IntheU.S.,tobealeadingproviderofbanking,wealthmanage-mentandcapitalmarketsservicesbybuildingonandleveragingRBC’sconsiderablecapabilities

• Internationally,tobeapremierproviderofselectbanking,wealthmanagementandcapitalmarketsservicesinmarketsofchoice.

Webelievethatourapproachtocorporateresponsibilityfullysupportsourbusinessstrategy,andthatbycontinuingtodemon-strateintegrityinourbusinesspractices,providingleadershipintheworkplace,marketplaceandcommunities,andbycaringfortheenvironment,wewillcontinuetoearntherighttobeourclients’firstchoice.

Twoofournewerfocusareasarediversityandtheenvironment,whilewecontinuetofocusoncommunityengagement.

• TheRBCDiversityBlueprintTMisacomprehensivestatementofourglobalstrategyandprioritiesandaguidefordoingbetterinthefutureintheworkplaceandthemarketplace.Youcanreadmoreonpage59ofthisreportandatrbc.com/responsibility/workplace.

• TheRBCEnvironmentalBlueprintTMisavisionofhowwearemovingforwardwithissueslikeclimatechange,biodiversity,forestsandwaterandlaysoutourworkplansforachievingthreepriorities:

• Toreducetheintensityofourenvironmentalfootprint

• Topromoteenvironmentallyresponsiblebusinessactivities

• Toofferenvironmentalproductsandservices

YoucanreadmoreabouttheRBCEnvironmentalBlueprintonpages38to49andatrbc.com/environment.

• TheRBCCommunityBlueprintTMisanexpressionofourcommitmenttosupportinglocalcommunitiesthroughdonations,sponsorshipsandemployeeparticipation.AsoneofCanada’slargestcorporatedonors,andwithatraditionofphilanthropythatdatesbackto1891,RBCsupportsthearts,ath-letics,healthandwellness,educationandsocialandciviccauses,andwewillcontinuetodosoundertheRBCCommunityBlueprintumbrella.Youcanreadmoreaboutoursupportforcommunitiesonpages50to56andatrbc.com/responsibility/community.

Corporate responsibility at RBC

We believe our first duty is to operate with integrity at all times so we can ensure the present and future well-being of our stakeholders. We strive to have a positive economic, environmental and social impact, providing responsible leadership in the marketplace, the workplace and in the communities where we live and work. This section of our report gives an over-view of how we view corporate responsibility at RBC.

VisionRBC’svisionis“alwaysearningtherighttobeourclients’firstchoice.”Inordertoaccomplishthis,wearecommittedtodoingbetterforourclients,ourinvestors,ouremployeesandourcom-munities,throughafocusedapproachtocorporateresponsibility,calledtheRBCBlueprintforDoingBetterTM.

ValuesAtRBC,ourwholecompany,includingeveryemployee,isrespon-sibleforbehavingresponsibly,whichisbuiltrightintoourCodeofConduct,whichreads:

“It is our duty as a corporate citizen to add value to society while earning a profit for our shareholders. RBC companies take respon-sibility for the effects of their actions, both social and economic.”

RBC’sfivecorevaluesaddressthebehavioursthatmakeacompanysustainable,andtheyarepartofeveryRBCemployee’strainingandcompensation:

• Excellentservicetoclientsandeachother

• Workingtogethertosucceed

• Personalresponsibilityforhighperformance

• Diversityforgrowthandinnovation

• Trustthroughintegrityineverythingwedo

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8 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Corporate responsibility at RBC

Structure, oversight and responsibility

Board oversight and responsibilityVariousboardcommittees,includingCorporateGovernanceandPublicPolicy,ConductReviewandRiskPolicy,andHumanResources,areresponsiblefordifferentsegmentsofsustainabilityratherthanonlyoneboardcommitteededicatedtosustainabledevelopmentorcorporateresponsibility.

Staff oversight and responsibilityIn2008,inordertorespondtoincreasedexternalexpectationsforintegratedsustainabilityprograms,initiatives,reportingandcom-munications,wecreatedanewCorporateCitizenshipdepartment,encompassingcorporateresponsibility,corporateenvironmentalaffairsanddonations.

Corporate responsibility priorities Economic impact•Providestrongreturnstoshareholders•Payfairshareoftaxes•Createemployment•Supportsmallbusinessandcommunityeconomicdevelopment•Fosterinnovationandentrepreneurship•Purchasegoodsandservicesresponsibly

Marketplace•Developandprovideproductsresponsibly•Provideaccesstobasicbankingservices•Protect,educateandlistentoconsumers

Environment•Reducetheintensityofourenvironmentalfootprint•Promoteenvironmentallyresponsiblebusinessactivities•Offerenvironmentalproductsandservices

Community•Providedonationswithalastingsocialimpact•Sponsorkeycommunityinitiatives•Enableemployeestocontribute

Workplace•Maintainprogressiveworkplacepractices•Providecompetitivecompensationandtotalrewards,andenablegrowththroughtraininganddevelopmentopportunities•Respectdiversityandpromoteinclusion•Fosteracultureofemployeeengagement

Avirtualteamofkeystaffinotherdepartmentsareresponsibleforprogramsandperformanceinissue-specificareas,includingFinance,InvestorRelations,GroupRiskManagement,Procurement,RealEstateOperations,HumanResources,CommunitySponsor-shipsandGovernmentRelations.MostofthesedepartmentsreporttotheChiefOperatingOfficer.

Employeesworldwideareresponsibleforcommunityrelationsatthelocallevel.Wehavemultiplebusinessunitsandeachhasitsownstructureforcustomerservice,qualitymanagementandgovernmentrelations.

Operate our business

with integrity

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9 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Corporate responsibility at RBC

anindependentinstitutionwhosemissionistodevelopanddissemi-nategloballyapplicablesustainabilityreportingguidelines.RBCnowreportsonlineonperformanceindicatorssuggestedbyGRI.

• RBCAssetManagement®isamemberoftheCanadianCoalitionforGoodGovernance,promotingbestcorporategovernancepracticesincompaniesitsmembersconsiderforinvestment.

• RBCisafoundingmemberoftheCanadianCentreforEthicsandCorporatePolicy.

• RBCisamemberoftheConferenceBoardofCanada,anditsCor-porateCommunityInvestmentCouncil,EffectiveWorkEnvironmentResearchCouncil,CorporateEthicsManagementCouncilandtheBusinessCouncilforSustainability.

• Intermsofworkplacepractices,RBCisamemberofanumberoforganizations,includingCatalyst,theCanadianCouncilofRehabilitationandWork,andtheVanierInstituteoftheFamily,theFinancialIndustryPartneringforAboriginalRelationships(FIPAR),theCanadianCentreforDiversity,andtheConferenceBoardofCanada.IntheUnitedStates,weareamemberoftheU.S.Confer-enceBoardCouncilonWorkforceDiversity,theFamiliesandWorkInstituteandtheUrbanFinancialServicesCoalition.

• Tosupportenvironmentalsustainability,weareamemberoftheExcelPartnership,theEquatorPrinciplesFinancialInstitutionsMembershipCommittee,ConferenceBoardofCanada’sBusinessCouncilforSustainability,CanadianBankersAssociationEnvironmentalIssuesSpecialistGroup,EnvironmentalBankersAssociation,CanadianBrownfieldsNetwork,OntarioMunicipalAffairsandHousingBrownfieldStakeholdersGroup,theUnitedNationsEnvironmentProgrammeFinanceInitiative(UNEPFI)anditsNorthAmericanTaskForce.

• RBCisafoundingmemberoftheCanadianAboriginalandMinoritySupplierCouncilandtheNationalMinoritySupplierDevelopmentCouncilintheUnitedStates.

Formoreinformation,seerbc.com/responsibility/approach/recognition

Stakeholders RBC’smajorstakeholdersincludeemployees,clients,currentandprospectiveinvestors,suppliers,governments,regulators,non-governmentalorganizations(NGOs)andcommunitypartners.ThissectionreviewsthemannerinwhichRBCengagesourstakeholders.

ClientsRBCencouragesclientstotelluswhattheythink,sowecanevalu-atehowwellweareearningtherighttobetheirfirstchoiceandweuseinformationgainedthroughpublicopinionsurveystodevelopproductandclientstrategies.

EachRBCbusinesstracksclientsatisfactionasakeymeasureofperformanceandusesfeedbacktomakeimprovements.Werecordproblemsnotedbyclientsinacentraldatabase,andweinterviewasamplingdirectlytofindouthowwelltheirissueswereresolved.

Recognition

AwardsAcompany’sreputationisbuiltinpartbywhatpeoplesayaboutit.WefeelprivilegedtohavereceivedthisrecognitionforRBC’scorporateresponsibilityprogramsandperformance.

• Global100MostSustainableCompaniesintheWorld2008

• Canada’sTop100Employersfor2009

• Canada’s10MostAdmiredCorporateCultures2008

• Canada’sBest50CorporateCitizens

IndicesRBCcontinuestobelistedonCanadianandglobalindicesusedbysociallyresponsibleinvestorstoidentifyfinancial,socialandenvironmentalleaders,includingthefollowingin2008:

• DowJonesSustainabilityWorldIndexandDowJonesSustainabilityNorthAmericaIndex(ninthconsecutiveyear)

• JantziSocialIndex(eighthconsecutiveyear)

• FTSE4GoodIndex(eighthconsecutiveyear)

• CarbonDisclosureLeadershipIndex(fourthconsecutiveyear).RBCwasamong67companiesandoneofonly18financialinsti-tutionsworldwidenamedtothishonourrollofworldleadersatunderstandingandmanagingthefinancialrisksandopportunitiesresultingfromclimatechange.Amongfinancialinstitutions,RBCwasrankednumberoneinCanada,andtiedforsecondbothinNorthAmericaandglobally.

AffiliationsRBCisinvolvedwithanumberofleadingorganizationsaroundtheworldtostewardcorporateresponsibility.

• In1988,wewereafoundingmemberofImagineCanada,aprogramtoencouragephilanthropyandvolunteering,andremainamembertothisday,withacommitmenttodonate1%ofourCanadianpre-taxprofitstocharity.

• RBCFoundation–USA(formerlyRBCDainRauscherFoundation)wasafoundingmemberoftheMinnesotaKeystoneProgramin1976,wherebusinessescommitatleast2%ofpre-taxearningstocharitablecontributionsinthecommunity.

• Since1997,wehavebeenamemberoftheCenterforCorporateCitizenshipatBostonCollege,aleadingresourceinNorthAmericaprovidingresearchandexecutiveeducationoncitizenshiptopics.

• WeareasustainingmemberofCanadianBusinessforSocialResponsibility,amembershiporganizationofCanadiancompanieswhohavemadeacommitmenttooperateinasocially,environmen-tallyandfinanciallyresponsiblemanner.

• Since2006,wehavebeenamemberoftheGlobalBusinessCoalitiononHIV/AIDS,TuberculosisandMalaria.

• Since2006,wehavebeenaGRIOrganizationalStakeholder.GRIis

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InvestorRelationscommunicatestheviews,concernsandperceptionsofinvestors,analystsandratingagenciestotheGroupExecutiveCommitteeandtheBoardofDirectors.WemeetwithshareholdersregularlyonbothanindividualandgroupbasisaswellasinpersonatourAnnualMeetingofCommonShareholders.Feedbackfromanalystsandinvestorsistakenintoconsiderationasweformulateourstrategyandpriorities.

Weinteractwiththeinvestmentcommunityinavarietyofwaysincludingourquarterlyandannualreportstoshareholders,ourquarterlyearningsstatements,analystcalls,variousexternalweb-sitesandourannualCorporateResponsibilityReportandPublicAccountabilityStatement.

WeregularlyprovideinformationtoCanadianandinternationalsustainabilityreportinginvestments(SRI)researchfirmsforthecreationoftheirindices,ratingsandrankingsforanalystsandSRIinvestors.RBCisincludedinanumberofSRIindicessuchastheDowJonesSustainabilityIndexandtheJantziSocialIndex.

SuppliersOurrelationswithmajorsuppliersaregovernedbyServiceLevelAgreements,withquarterlyreportsprovidinginformationoncustomerserviceandservicedeliverystandards.

GovernmentsRBChasongoingrelationshipswithlocal,provincialandfederalgovernments.Regionalpublicrelationsmanagersandrepresenta-tivesengagewithlocalelectedofficialsatthecommunitylevel.Atpresent,weadvocateonabroadrangeofissuesfromtaxation,agriculture,consumerissues,employmentandtraining,environ-ment,financialinstitutions,industry,internaltrade,smallbusiness,securitiesregulation,financialsectorpolicyandcompetitionpolicy.

Environmental organizations (NGOs)Weareactivelyinvolvedinstakeholderengagementontheenvi-ronmentalfront.Weliaisewithanumberofstakeholdergroupstodiscussenvironmentalissuesrelatedtopolicydevelopment,transactionreview,portfoliomanagement,operationalimpactsandbusinessdevelopmentopportunities.ThesegroupsincludetheCanadianBorealInitiative,DurrellWildlifePreservationTrust,ForestEthics,NatureConservancyofCanada,andRainforestActionNetwork.Weencourageclientsandthepublictocontactuswithinquiriesorconcerns.

Formoreinformation,seepage48

Weobtainclientfeedbackinanumberofformalandinformalwaystosupportthedevelopmentofhigh-calibreclient,marketingandchannelstrategies.Weconductcustomersatisfactionandloyaltysurveysandreportresultsquarterly.Weusefeedback/inputfromourClientCareCentreandOfficeoftheOmbudsmantoimproveourproductsandservices,andwetrackallissuestoensurethatsystemicproblemsarecorrected.Wegenerallyusethird-partysupplierstoadministerbothourexternalmarketbenchmarkingsurveysaswellasourinternallydesignedsurveystoourcustomers.

EmployeesRBChasconductedcomprehensiveemployeeopinionsurveyssincethelate1980s,coveringthefollowingareas:

• Rewardandrecognition

• Leadership

• Supportive/collaborativeteamenvironment

• Personaldevelopmentpossibilities

• Jobsatisfaction/opportunitytomakeadifference

• Workingenvironment(healthandsafety,socialclimate,etc.)

• Identificationwithcorporatevaluesandstrategy

WeconductacomprehensivesurveyacrossallofRBCeverytwoyears,resultinginorganizationalandlocalprioritiesandactionplans.Atargeted,sample-basedsurveyisconductedinthefollow-ingyeartofollowuponactionplans.

Thesurveyisbasedonacomprehensiveengagementmodel,whichwehavesubsequentlylinkedtoclientloyaltyandfinancialperformancetodemonstratethevaluechainrelativetoemployeeengagement.Onanannualbasiswelookatourengagementscoresandthedriversofengagement(acrossapproximately100items),includingtrendanalysisandexternalbenchmarkinganddevelopactionplanstoaddressanygapsoremergingissuesidentified.Resultsarepresentedtoseniorexecutivemanagement,totheBoardofDirectorsandtoindividualunitmanagers,butarenotdisclosedoutsideofRBC.

Investors/shareholdersInvestorRelationssetstheoverallinvestorstrategyandmanagesallrelationshipsandcommunicationswiththeinvestmentcom-munity,whichincludesinvestors,financialservicesanalystsandratingagencies.Theinvestorsconsistofallclasses(common,preferredandfixedincome)andtypes(institutionalandretail)spanningallgeographies.Thisgroupalsooverseesratingagencystrategy,relationshipsandcommunicationsinordertoachievehighdebtratingsforRBC.

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11 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Corporate responsibility at RBC

• Sustainability survey submissions: RBChasperformedastrategicreviewofSRIresearchers,ratingagenciesandanalystsworldwideinordertofocusourenergyandresourcesontheindicesthataremostrelevanttoourstakeholders.Weevaluatedthemostprominentresearchcompaniesandratingagencies,aswellasanumberofsmalleroremergingagenciesfromregionalmarkets.Weanalyzedtherelevanceofeachtoourprioritygeographicmarkets,aswellasthelikelihoodofourshareholdersorpotentialshare-holdersusingresearchfromcompaniesoragenciesinmarketsinwhichwehavelittleornopresence.Fromthislist,weselectedtwointernationalandoneCanadianresearchagencytowhichwewouldproactivelyrespond.Wecontinuetoenhanceouronlinereportingatrbc.com/responsibilityinordertoprovidesufficientinformationaboutoursustainabilityperformanceforalltheotherresearchcompaniesandratingagencies.Wewillenhancethescopeofouronlinedisclosureasnewmetricsemergeandasexpectationsofshareholders,clients,NGOsandemployeeschange.

• Issue-specific reports:RBCprovidesdetaileddisclosureonareasofinterestthatfallunderthe“sustainability”banner,withreportsthatareproducedforspecificstakeholders.Forexample,wemakeoursubmissiontotheCarbonDisclosureProjectpublic,andproduceanannualDiversityProgressReport,whichisavailableinprintandonline.Canada’sLobbyist Registration Actrequiresustoreportonourlobbyingactivitiesaswellasthoseofotherswhoengageinadvocacyonourbehalf.Wearerequiredtofileareporteverysixmonthsabouttheissuesinwhichweareengaged,underthePresidentandCEO’ssignature,listingouremployeesandcon-sultantswhoareinregularcontactwithgovernmentofficialsandthetopicsdiscussed.

Navigating rbc.com/responsibilityThestructureofourwebsiteisdesignedtobeintuitive,basedaroundkeyissues.Forincreasedtransparency,comparabilityandeaseofnavigation,thesitehasbeenorganizedintocategoriesthatwehaveusedsince2005,whicharealsocommonlyusedbyothercompanies.Youcanaccessinformationonourwebsiteinanumberofways:

• Usethemenuontheleft-handside.

• FollowthelinksfromourGRIindex.

• DownloadaPDFofour2008CorporateResponsibilityReportandPublicAccountabilityStatement.

• Downloadthecontentsofthefullwebsite.

Future reporting plansIn2009,weplantoimproveouronlinereportingbycreatinganeasieruserinterfacethatwillallowourstakeholderstoselectthecontentthatintereststhemandcreatetheirownPDFreport.

Sustainability reportingRBChasadoptedamulti-prongedapproachtosustainabilityreporting,usingarangeofformatsdesignedtobeaccessibletovariousaudiences.Oursustainabilityreportingsuiteincludes:

• rbc.com/responsibility:Ourwebsiteisthecornerstoneofoursustainabilityreportingandisgearedtothewidestrangeofourstakeholders:consumers,employees,non-governmentalorganiza-tions,communitypartners,studentsandcorporateresponsibilitypractitioners.WepostcontentfromourprintreportsandmajorsurveysubmissionsinHTMLformat,sothatstakeholderscanfindthelevelofinformationthatisrightforthem.Thewebsiteprovidesat-a-glanceinformationforthecasualreader,withdrill-downinformationforthosewhowantmoredetails,andisupdatedyear-round.Tobeenvironmentallysustainable,wehavereducedthelengthofourprintedreportsovertheyears.

• Corporate Responsibility Report and Public Accountability Statement:Thisannualreportisgearedtosociallyresponsibleinvestors,employees,NGOs,regulators,electedofficialsandcor-porateresponsibilitypractitioners.Itsummarizeskeyinformationtakenfromrbc.com/responsibility,andincludesanoverviewofourpoliciesandapproachtobusinessintegrity,aswellasayear-endsnapshotofoureconomic,socialandenvironmentalimpactintheworkplace,marketplaceandcommunities.ItcontainsourannualPublicAccountabilityStatementand,asof2008,isavailableonline.Printcopiesareavailableatnocost,onrequest.Contact: TheEditor,RBCCorporateResponsibilityReportandPublicAccountabilityStatement9thFloor,SouthTowerRoyalBankPlaza200BayStreetToronto,OntarioCanadaM5J2J5Email:[email protected]

• Corporate Responsibility Review: Thisshortpublicationisgearedtoconsumers,thegeneralpublicandemployees.ItsummarizesourCorporateResponsibilityReport,indicateswhereotherinformationcanbefound,andisavailableinprintandonline.

• Quarterly and Annual Reports to Shareholders and Management Proxy Circular: Thesepublicationsaregearedtoinvestorsandanalysts,andprovidedisclosureaboutourfinancialperformance,aswellasinformationrelatedtocorporategovernance,executivecompensation,riskmanagementandcorporateresponsibility.

• Global Reporting Initiative (GRI):WeobservethereportingguidelinessuggestedbytheGlobalReportingInitiative.Bothourwebsiteandthis2008CorporateResponsibilityReport/PublicAccountabilityStatementcontainaGRIindexshowingwhereallofourGRI-relatedsustainabilityinformationcanbefound.Seepage67.

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12 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Governance and ethics

Governance and ethics

•Meetingsofindependentdirectorsareheldfollowingeachregularlyscheduledboardmeeting.

•Aminimumshareownershiprequirementof$500,000fordirectorsensuresstrongalignmentoftheirinterestswiththoseofshareholders.

•Increasedminimumshareownershiprequirementsforexecutiveofficersfurtheralignmanagementandshareholderinterests.ThePresidentandCEOmusthaveshareholdingsworthatleasteighttimesthelastthreeyears’averagebasesalary.Thisrequire-mentextendsfortwoyearsintoretirement.ThestandardforothermembersofGroupExecutiveissixtimesthelastthreeyears’averagebasesalary,excepttheHeadofCapitalMarkets,whomustholdsharesworthatleasttwotimesthelastthreeyears’averagesalaryplusbonus.Theserequirementsextendforoneyearintoretirement.

• APerformanceDeferredShareProgramstrengthensthealignmentoftheinterestsofmanagementwithshareholdersbytyingseniormanagement’srewardstotheperformanceofRBCrelativetoaNorthAmericanpeergroupofcompetingfinancialinstitutions.

•Thenumberofstockoptiongrantsawardedtomanagementwasreducedbyapproximately70%since2003.

•AllmembersofeverycommitteeoftheBoardofDirectorsareindependent:theAuditCommittee,HumanResourcesCommittee,CorporateGovernanceandPublicPolicyCommittee,andConductReviewandRiskPolicyCommittee.

•FortheAuditCommittee,morestringentindependencecriteriaapplytomembers;fourindividualshavebeendesignatedasauditcommitteefinancialexpertsandapolicylimitingtheserviceofourAuditCommitteemembersontheauditcommitteesofothercompanieswasadoptedin2004.

•TheAudit,HumanResources,andCorporateGovernanceandPublicPolicycommitteeshavesoleauthoritytoretainandapprovethefeesofindependent,externaladvisors.TheHumanResourcesCommitteeretainsanindependentcompensationconsultant.

“Integrity in all that we do” is a key value at RBC. It permeates our sound corporate governance and disclosure practices, our effective risk management framework, and the principles and policies that guide our decision-making. We believe that by oper-ating with integrity, we can fulfill our responsibilities to our stakeholders and maintain their trust.

Priorities• Demonstratesoundcorporategovernanceprinciples

• Providecleardisclosureoffinancialresults,anddisclosereliableperformancedataonkeynon-financialitems

• Complywithallapplicablelawsandregulationsineverycountryinwhichweoperate

• Conductbusinesswithhonestyandintegrity

Practices, leadership and disclosureRBC’sdynamicapproachtocorporategovernanceisresponsivetothechangingregulatoryenvironmentandanticipatesbestpractices.OurgovernancestructuredeterminesthefundamentalrelationshipsamongthemembersoftheBoardofDirectors,management,shareholdersandotherstakeholders.Itdefinestheframeworkinwhichethicalvaluesareestablishedandthecontextinwhichcorporatestrategiesandobjectivesareset.

Thestrengthofourgovernancestartsatthetopwithanindepen-dentChairmanandexperiencedandwell-informeddirectors,whogiveprioritytostrategicplanning,ensurethatstandardsexisttopromoteethicalbehaviourthroughouttheorganization,anddrivecontinuousimprovementingovernancepractices.

PracticesOurgovernancepoliciesandpracticessupporttheabilityofdirec-torstosupervisemanagementandenhancelong-termshareholdervalue.OverthepastfewyearsRBChasadoptedmanysignificantandleadinggovernancepractices:

•DirectorsarerequiredtotendertheirresignationsfollowingtheAnnualMeetingiftheyfailtoreceivemajorityshareholdersupport.

•OurcomprehensiveDirectorIndependencePolicyhascontinuedtoevolveinresponsetobestpracticesandregulatoryrefinements.Fourteenofthe15directorscurrentlyservingareindependent.

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13 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Governance and ethics

Enterprise risk management frameworkRBC’senterpriseriskmanagementframeworkprovidesanover-viewofourenterprise-wideprogramforidentifying,measuring,controlling,andreportingonthesignificantrisksthatfacetheorganization.ThisenterpriseapproachensuresthatRBCremainsincompliancewiththerequirementssetoutbyourmainregulator,theOfficeoftheSuperintendentofFinancialInstitutions(OSFI)aswellasotherrelevantlawsandregulations.TheConductReviewandRiskPolicyCommitteeofourBoardofDirectorsreviewsandapprovestheframeworkannually.

TheenterpriseriskmanagementframeworkprovidesaconsolidatedoverviewofriskmanagementatRBC,includingriskprinciples,riskappetite,risktypes,andriskmanagementprocessesandtools.WithinRBC,theframeworkpromotesagoodunderstandingoftheroles,responsibilitiesandauthoritiesforthemanagementofrisk,andsupportstheuseofacommonrisklanguage.Theabilitytoarticulatewhatourrisksareandhowtheyaremanagedisimpor-tantbothforinternalunderstandingandalignmentandtoensureanaccurateandconsistentRBCviewofriskthroughavarietyofreportinganddisclosuremechanisms.

Formoreinformationonourriskmanagementpractices,seeour2008AnnualReporttoShareholders

Reputation risk frameworkOurreputationriskframeworkisoneofasetofrisk-specificframeworkssupportingtheenterpriseriskmanagementframe-work.ReviewedannuallybytheConductReviewandRiskPolicyCommitteeofourBoardofDirectorsandmostrecentlyinOctober2008,thereputationriskframeworkprovidesanoverviewofourapproachtothemanagementofreputationrisk,includingdefinitions,principles,sourcesofrisk,themechanismsinplacetopreventandmitigatereputationriskandtherelatedorganizationalandoversightresponsibilities.

Effectivereputationriskmanagementrequiresbothproactivemeasurestopreventthecompromiseofourreputationonanongoingbasisandreactivemeasurestomitigatetheimpactofissuesandincidentswhentheyarise.WehaveanumberofkeypreventativemeasuresinplaceincludingourCodeofConduct(seepage14)andproactivestakeholderengagementwherebywemaintainrelationshipsoftrustwithallstakeholders.WeuseanumberofresponsivemeasurestoprotectandenhanceourreputationincludingtheescalationprotocolsestablishedthroughourEnterpriseComplianceManagementprogramandourBusinessContinuityandCrisisManagementapproach.

LeadershipThemeasuresdescribedonpage12buildonourpreviousgover-nanceinitiatives,whichinclude,amongmanyothers:

•EnsuringindependentleadershipoftheBoardofDirectorsbybeingfirstamongourpeercompaniestoseparatethepositionsofChair-manandCEOin2001

•Establishingboardanddirectorevaluationprocedures,withwrittenpeerreviewstocomplementthepeerassessmentpracticeofone-on-oneinterviewswiththeChairman.Inaddition,eachBoardcommitteeassessesitsowneffectivenessannually

•Adoptingapolicylimitinginterlockingdirectorshipsofboardmembersin2002

•PermanentlydiscontinuinggrantsundertheDirectorStockOptionPlanin2002

•BeingamongthefirstmajorCanadiancompaniestoexpensestockoptionsinfinancialstatements,whichwehavedonesince2003

•Providingacontinuouseducationprogramfordirectorssotheyremainknowledgeableandinformedabouttheever-changingbusi-nessandregulatoryenvironmentandthespecializedandcomplexaspectsoffinanceandourbusinessoperations.

DisclosureInkeepingwithourgoalsofcontinuouslyimprovinggovernanceandprovidinggreatertransparencyandsimplicityinourcommu-nications,wehaveenhanceddisclosureinourManagementProxyCircularinrecentyears,including:

•Moredetailonthecompensationpaidtoindividualdirectorsandtheirshareownership

• Easy-to-read,three-yearoverviewsofnamedexecutiveofficers’compensation

•Aggregatecompensationoftopexecutivesasapercentageofmarketcapitalizationandapercentageofnetincomeafter-tax

•DescriptionofhowthePresidentandCEO’scompensationalignswithcorporateperformance

•Detailsofcomparatorcompaniesusedforbenchmarkingofbothcorporateperformanceandexecutivepay

•Increaseddisclosureregardingexecutivepensionsandthevalueofretirementplansfortopexecutives.

Formoreinformation,seerbc.com/governance,our2008AnnualReportandourManagementProxyCircular

Risk managementRiskisinherentinvirtuallyallaspectsofourbusiness,andsoundriskmanagementpracticesarefundamentaltoourlong-termsuc-cess.Ourmanagementofriskisacorecompetencysupportedbyastrongriskmanagementcultureandaneffectiveenterpriseriskmanagementframework.

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14 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Governance and ethics

• Fiduciaryrisk

• Theenvironment

•Developmentofproductsandservices

• Anti-moneylaundering

• Anti-terrorism

• Taxhavens

• Economicsanctions

• Reportingirregularities

• Politicalcontributionsandlobbying.

Code of Conduct AllRBCemployeesworldwidearegovernedbyourCodeofCon-duct,whichwasestablishedmorethan20yearsago.WereviewtheCoderegularlyandupdateitasneededtoensureitcoversallaspectsofouractivitiesandisclearandeasyforouremployeestounderstandandfollow.RBCrequiresallemployeestosuccessfullycompleteaweb-basedlearningprogramandtestortofollowanalternativeprocessapprovedbyourHumanResourcesAdvisoryService,sothattheyknowandunderstandtheCode’sprinciplesandcomplianceelements.EmployeesmustreviewtheCodeandacknowledgeadherencetoitatleastonceeverytwoyears.Inad-dition,thecompany’smostseniorofficersandselectothersmustcompletetheacknowledgementannually.

RBC’sCodeofConductincludesthefollowingprinciples:

• Upholdingthelaw• Confidentiality• Fairness• Corporateresponsibility• Honouringourtrustinyou• Objectivity• Integrity• Individualresponsibility

Privacy WehavehadaformalPrivacypolicysince1991toensurethatthepersonalandfinancialinformationofourclientsandemployeesisprotected.

Formoreinformation,seepage27

Know your client (client due diligence) RBChaslongrecognizedtheimportanceofimplementingandmaintainingadequatecontrolsandprocedurestoensurethatonareasonableandpracticablebasis,weknowwithwhomwearecon-ductingbusiness.Weperformduediligenceonnewandexistingclients,andcomplywithapplicableregulatoryguidanceconcerninganti-moneylaundering,anti-terrorismandeconomicsanctions,aswellaswithsuitabilityrequirementsthatprotectourclients.

Enterprise Compliance Management (ECM) FrameworkInordertoachieveworldwidecompliancewithgoverninglegis-lationandotherapplicablelaws,regulationsandregulatorydirectivesandexpectations,RBChasadoptedacomprehensiveECMFrameworkthatisconsistentwithregulatoryguidancefromOSFIandotherregulators.Theframeworkisdesignedtopromotetheproactive,risk-basedmanagementofregulatoryrisk.Itappliestoallourbusinessesandoperations,legalentitiesandemployeesgloballyandconfirmsthesharedaccountabilityofallemployeesacrosstheorganizationforensuringwemaintainrobustandeffectiveregulatoryriskandcompliancecontrols.

Business continuity and crisis management RBCusesabest-in-classBusinessContinuityManagementprogramtoensurethatourbusinessesorunitsareadequatelypreparedtodealwithanydisruptionofservicetoclients.Weconductriskassessmentsofallareasannually,furthersupportedwithcontin-gencyplansandperiodictesting.

RBC’sEnterpriseCrisisManagementteam,comprisedofseniorexecutivesfromacrosstheorganization,isresponsibleforensur-ingcontinuedservicetoourclients.Theyaresupportedbyaglobalnetworkofregional,business-lineandlocalincidentmanagementteams.Theseteamsareoncallroundtheclocktoaddressanysitu-ationthatmayposematerialrisktostaff,corporatereputationorourabilitytoserveclients.Weconductregularcrisissimulationstotestthereadinessandtimelyresponsetoallemergencysituations.

Formoreinformation,seeour2008AnnualReporttoShareholdersandManagementProxyCircular

Principles, codes and policiesFinancialservicecompanies,perhapsmorethananyotherbusi-ness,dependonconfidenceandtrust.Asaglobalorganization,RBCrespectsandcomplieswithlawsandregulationsthatgovernourbusinessesinthejurisdictionsinwhichweoperate.RBChasenterprise-widepoliciesandprocessestosupporttheassessmentandmanagementofrisks,includingpoliciestoaddressissuessuchastheenvironment,privacy,moneylaundering,terrorismfinancing,economicsanctions,lendingtopoliticalparties,andfiduciaryrisk.Weregularlyreviewpoliciesandcontrolstoensurecontinuedeffectivenessandalignmentwithrelevantlawsandregulations.Wealsoadheretoanumberofotherprinciples,codesandpoliciestoensureweoperatewithintegrity,includingourCodeofConduct,whichgovernsthebehaviourofouremployeesandinformshowweconductallourbusinessesoperations.Thissectioncoverskeyprinciples,codesandpolicies,including:

• Codeofconduct

• Privacy

• Knowyourclient

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15 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Governance and ethics

Anti-money laundering RBCcompaniesarerequiredbyvariousregulatorstoapplyappropriatescrutinyandmonitoringmeasurestoclientsinordertomonitorforpossiblemoneylaundering,especiallyforclientswhosebusinessactivitiesareknowntobesusceptibletocriminalactivityorhavebeendesignatedashighriskformoneylaundering.OurGlobalAnti-MoneyLaundering(AML)ComplianceGroupisdedi-catedtothecontinuousdevelopmentandmaintenanceofpolicies,guidelines,trainingandriskassessmenttoolsandmodelstohelpouremployeesdealwithever-evolvingmoneylaunderingandter-rorismfinancingrisks.

RBCactivelyparticipatesinglobalindustrygroupsdealingwithanti-moneylaunderingandanti-terroristfinancing.WeconsultwithCanada’snationalfinancialintelligenceunit,theFinancialTransac-tionsandReportsAnalysisCentreofCanada,toensurethatweareeffectiveinourreportingofprescribedtransactions.Toenhanceouranti-moneylaunderingcapabilities,wehaveimplementedrobustsoftwaresystemstodetect,trackandanalyzetransactionsforsuspiciousactivities.

RBCpromotesemployeeawarenessandcompliancewithanti-moneylaunderingandanti-terroristfinancingcontrolsthroughweb-basedtraining,presentations,employeecommunicationsvehicles(newsletters,websites,meetings,etc.)andconferences.Annualanti-moneylaunderingtrainingismandatoryforallemploy-eesincludingseniorexecutives.

Anti-terrorism Aspartoftheglobalfightagainstterroristfinancingactivities,countriesaroundtheworldhaveenactedregulationsaimedatcombatingterrorismthattypicallyprohibitdealingswithcertainentitiesandindividualsandrequirefinancialinstitutionstofilereportswithregulatorsandotherauthoritiesasrequired.

RBCunitsandtheirdirectors,officers,andemployeeswillnotknowinglyenterintotransactionswith,orprovideorassistinpro-viding,directlyorindirectly,financialservicesto,orforthebenefitof,states,entities,organizationsandindividualstargetedbyap-plicableanti-terrorismmeasures.

Inordertoeffectivelymeettheserequirements,wehaveimple-mentedautomatedsystemsforscanningclientnamesagainstvariousterroristandcontrollistsdaily,aswellasscanningofpay-mentsagainstgovernmentcontrollists,asperterroristfinancingregulations.

Fiduciary risk RBCbusinessesandsubsidiariesareexpectedtoidentify,assess,manageandmitigateanyfiduciaryriskinherentinourbusinessandoperationsorarisingfromourspecificactivitiesandrelationshipswithclients.

Employeesengagedinfiduciaryrelationshipsmusthavetheappro-priatelevelofknowledgeandtrainingnecessarytodischargetheirfiduciarydutiesandmustmeetallregulatorylicensingorregistra-tionrequirements.Clientcommunicationcampaignsandmarketingmaterialssenttoclientsinrelationtofiduciarydutiesmustbereviewedandapprovedfromafiduciaryriskperspective.

The environment RBCfirstadoptedaformalenvironmentalpolicyin1991,andweupdateitregularly.OurpolicyappliestoallofRBC’soperations,including:

• Environmentalimpactsofproductsandservices

• Suppliersandserviceproviders(e.g.,contractors)

• Otherkeybusinesspartners(e.g.,non-managedoperations,jointventurepartners,etc.).

Ourenvironmentalpolicyincorporatesanumberofcomponentsthataredrafted,implementedandupdatedregularly.Forinstance,ourCodeofConductaddressesthebehaviourweexpectofouremployeeswithregardtotheenvironment.Weaskvendorstosup-plyuswiththeirownenvironmentalpoliciesandpractices,whichweconsiderinthesupplierselectionprocess.Wealsohavespecificenvironmentalriskmanagementpoliciesforvariousbusinessesincludingagriculturalbusinesses,residentialmortgages,businessandcommercialmarketsandprojectfinance.

In2007,welaunchedtheRBCEnvironmentalBlueprint™,whichcoversourpolicy,prioritiesandobjectives.Theblueprintisover-seenbyaCorporateEnvironmentalAffairsgroupthatworkswithexecutivesandstaffinbusinessandfunctionalunits.

Formoreinformation,seepages38to49

Development of products and servicesRBChasaformalpolicythatsetsoutadefined,rigorousprocessforlaunchinganynewproductorsignificantlychanginganexist-ingone.Weevaluateproductsforarangeofrisksandensuretheyalignwithclientneeds,ourCodeofConduct,lawsandregulations,andvoluntaryconsumerprotectioncodesthatwehavesigned.ApprovallevelswithinRBCcorrespondtothelevelofriskidentifiedforaparticularproductorservice.

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16 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Governance and ethics

Political contributions and lobbying RBC’spolicyonpoliticaldonationsisoutlinedinourCodeofConductasfollows:

[RBC] will make only those contributions permitted by law to a political party, candidate, or campaign and only as an expression of responsible citizenship – not to “purchase” favours or to gain improper advantage. Contributions to political parties, riding associations, and candidates are not included in the corporate philanthropy program. …Employees are encouraged to take their citizenship seriously and to participate in general political processes such as school board, municipal, provincial and/or federal elections, etc.

RBCdoesnotmakecorporatedonationstofederalpoliticalpartiesthroughanypartofourcompanyinCanada.RBCmakespoliticaldonationstoprovincialparties,totheextentpermittedbylawand/orinternalpolicy.Ourparticipationinprovincialpoliticaldonationsislimitedandrestricteddependingupontherespectiveprovinceandterritory.Politicaldonationstomunicipalpoliticiansarenotpermitted.

IntheUnitedStates,RBCdoesnotprovidepoliticaldonationstoanypartyatanylevelofgovernment,orPACs(PoliticalActionCom-mittees).However,ourU.S.employeesarepersonallypermittedtoraisemoniesthroughfederalandstatePACsforindividualcandi-dates.FundsdonatedbyemployeesarereportedtotheFederalElectionCommissionandtoappropriatestateregulators,suchastheNorthCarolinaBoardofElections.

RBChasacreditpolicyrelativetolendingtopoliticalpartiesorcandidatestoensurethatallrequestsaretreatedinafair,consistentandequitablemanner,whilefreeingusfromperceivedpoliticalbiasandresultantreputationrisk.

CertainemployeeswholobbyonbehalfofRBCmustregisterwiththeOfficeoftheCommissionerofLobbyingofCanada,undertheLobbying Act.AlistofallregisteredlobbyistsinCanadaispubliclyavailable,includingRBClobbyists.Inaddition,RBCemployeeswhohaveconversationswithseniorfederalpublicofficeholderswithrespecttolegislativeproposals,bills,resolutions,regulations,policies,programsorgrants,contributionsorotherfinancialben-efitsmustreporttheseconversationstotheLobbyistsRegistryonamonthlybasis.

Tax havens RBCoperatesin50countries.RBCsupportsthelawsenactedbyCanadaandtheotherjurisdictionswhereweoperatethataredesignedtodetertaxevasion,taxfraud,moneylaunderingandothercriminalactivities.RBC,oursubsidiariesandemployeesareexpectedtocomplywithalllawsandregulationsthatgovernourbusinessesinthevariousjurisdictionsinwhichweoperate.Whilecomplyingwithapplicablelaws,wearrangeourbusinessaffairsinamannerthatbestmeetstheneedsofourstakeholders.

Wealsocontributetotheefforttoeliminateabusesoftheglobalfinancialsystembypractising“KnowYourClient”rules,implement-ingthroughoutourglobalnetworkarobustanti-moneylaunderingcomplianceregime,adheringtoaCodeofConduct,andworkingwithinternationalorganizationstoenhancepoliciesandrulesthatgoverntheglobalfinancialsystem.

Economic sanctions RBCbusinesses,andallourunitsglobally,aswellasourdirectors,officers,andemployeeswillnotknowinglyconductbusinesswithstates,entities,organizationsandindividualstargetedbytheeconomicsanctionsofthejurisdictionswherewearelocatedorwhereweoperate.Inaddition:

• Wewillnotknowinglyconductbusinesswithstates,entities,organizationsandindividualstargetedbytheeconomicsanctionsofotherjurisdictionsthatareapplicabletothembyreasonoftheircountryofincorporationorofcitizenship,totheextentprovidedbysucheconomicsanctions.

• Wewillnotknowinglydoanythingthatcauses,assists,orpromotes,orisintendedtocause,assistorpromote,anyactwhichtheywouldbeprohibitedfromdoingdirectly.

Reporting suspected irregularities RBCemployeesaroundtheworldhavethedutytoreportsuspectedbreachesofourCodeofConduct,otherirregularitiesanddishonesty.Wehavelong-establishedprocessesthatenableemployeestodoso,andourCodeofConductprotectsemployeesfromretaliationforanyreportmadeingoodfaith.Specifictofinancialreportingpractices,theRBCReportingHotlinewasestablishedsoemployeesandthirdpartiesaroundtheworldcanreportsuspectedirregu-laritiesorwrongdoingrelatingtoaccounting,auditingorinternalaccountingcontrolsdirectlytotheRBCOmbudsman,anonymously,confidentiallyandwithoutfearofretaliation.

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17 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Governance and ethics

Mutual fund governanceBuildingonalongtraditionofindependentfundgovernance,RBCAssetManagementandtheBoardofGovernorsofRBCFundshavebeenleadersinthedevelopmentandimplementationofarulerequiringallCanadianmutualfundsandinvestmentfundstohaveanindependentreviewcommittee.Theintentoftheruleistoenhancefundgovernancepracticesintheinterestsofinvestorsbyrequiringindependentreviewofconflictsofinterestthatmayariseinfundmanagement.RBCAssetManagementisalsoanactivememberoftheInvestmentFundsInstituteofCanadaandafoundingmemberoftheCanadianCoalitionforGoodGovernance,organizationsdevotedtopromotingtheinterestsoftheinvestingpublic.

InMay2008,RBCacquiredVancouver-basedfundmanagerandinvestmentmanagementfirmPhillips,Hager&NorthInvestmentManagementLtd.(PH&N).PH&Nisanactiveadvocateforbestpracticesincorporategovernance.Thecompanyhasacomprehen-siveproxyvotingpolicy,engagesdirectlyongovernanceissueswithcompanieswhosesharesareheldinitsclients’accounts,andhasbeenamemberoftheCanadianCoalitionforGoodGovernancesince2004.

PH&NandRBCAssetManagementInc.puttheirclients’interestsfirst,throughacultureofdeliveringvalue,choiceandtransparency.BothfirmsaremembersoftheSocialInvestmentOrganization,anon-profitorganizationdevotedtopromotingsociallyresponsibleinvestinginCanada,andbothoffermutualfundsforsociallyresponsibleinvestors.

Formoreinformation,seeMutual Funds and Governance: Taking Care of Your Investments,apublicationdevelopedforRBCAssetManagementclientsandotherstakeholders,atrbcam.com/regulatory/mutual-funds-governance

Voluntary codes Wehavesignedandadheretoanumberofvoluntarycodesofconductintheareaofconsumerprotection.Voluntarycodesofconductarenon-legislatedcommitments,voluntarilymadebycompanies,associationsandotherorganizationsusedasaformofconsumerprotectioninplaceofgovernmentlegislation.

Formoreinformation,seerbc.com/voluntary-codes-public-commitments

External principles, charters and initiativesRBCsubscribestoorparticipatesinanumberofexternallydevel-opedeconomic,environmentalandsocialprinciples,chartersandinitiatives.Theyinclude:

• TheEquatorPrinciples

• TheUnitedNationsEnvironmentProgrammeFinanceInitiative

• InternationalChamberofCommerceBusinessCharterforSustainableDevelopment

• TheGlobalReportingInitiative

• Imagine,aCanadianinitiativetoencouragecorporatephilanthropyandvolunteerism(RBCisafoundingmember)

• TheCanadianStandardsAssociation’sStrategicSteeringCommit-teeonBusinessManagementandSustainability.

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18 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

low-tomoderate-incomegroupsandsmallbusinesses.RBCBankmeetsand,inmanyinstances,exceedstheserequirements.Inaddition,wehelpstimulateeconomicactivityinsomelesspros-perouscommunitiesbyprovidingcreditandfundingspecializedprograms.Ourprogramssupporthomeownership,financialliteracyandeconomicdevelopmentforlower-incomeearnersandneighbourhoods.

Return to shareholdersItisimpossibletoestimatethenumberofpeoplewhosharedirect-lyorindirectlyinownershipofRBC.RBCsharesareheldbypensionfunds,insurance,trustandinvestmentcompaniesinadditiontoindividualinvestorsandrepresentavastpoolofsavings.SuchwidespreadownershipofRBC,directlyandindirectly,heightensourresponsibilitytoearnareasonablereturnforshareholdersontheirinvestments.Byperformingprofitably,RBCcontributestothefinancialsecurityofmillionsofpeople.

TaxesOurtaxexpenseof$2.08billionin2008includesincome,capital,property,payroll,business,municipalandgoodsandservicestaxes.

Economic impact

Companies both large and small contribute to the economies of the communities and countries in which they do business through taxes, philanthropy, and their day-to-day business decisions and actions. RBC aims to have a positive economic impact by providing attractive returns to shareholders, creating employment, supporting small business and economic development, fostering innovation and entrepreneurship, and pur-chasing responsibly.

Priorities 2008 Performance highlights

Providestrongreturnstoshareholders •Seeour2008AnnualReporttoShareholders

Payfairshareoftaxes • Incurredtaxexpenseof$2.08billionworldwide

Createemployment • Providedemploymentto80,100people,with$7.8billioninemployee compensationandbenefits • Supportedorganizationsthatpromoteliteracyandhelpunemployed orunderemployedpeoplesecurejobs

Supportsmallbusinessandcommunityeconomicdevelopment • ServedmorethanhalfamillionsmallbusinessclientsinCanada, theUnitedStatesandtheCaribbean • Contributed$99milliontocommunitycausesworldwide

Fosterinnovationandentrepreneurship • AnnouncedplanstolaunchtheBlackBerry*PartnersFund,a US$150millionventurecapitalfund,toinvestinmobileapplications andservicesforBlackBerryandothermobileplatforms • Developedinnovativefinancingsolutionstohelpfundmajor infrastructureprojectsinCanadaandtheUnitedKingdom

Purchasegoodsandservices • Purchasedgoodsandservicestotalling$4.7billionfromsuppliers ofallsizesworldwide

IssuesTheglobalfinancialcrisisof2008substantiallyalteredtheeconomicenvironmentformanyofourstakeholders.

WhileRBCwasnotabletoescape2008withoutsomelossesrelatedtothemarketenvironment,wegeneratedmorethan$4.5billionofearningsandareturnonequityof18.0%.RBC’sfinancialstrength,soundriskmanagementpoliciesanddiversifiedbusinessmixenabledustowithstandmanyofthemarketshocksandpressuresof2008.Ourstrategyofactivelymanagingadiversi-fiedportfolioofbusinessesandtheexecutionofourrevenueandcost-efficiencyinitiativesenabledustocontinuetogeneratevalueforourclientsandshareholders.

Formoreinformation,seeour2008AnnualReport

IntermsofhelpingourclientsintheUnitedStates,herearesomehighlightsfrom2008:

• In2008,RBCBank™joinedotherbanksintheUnitedStatestopartnerwiththeDepartmentofHousingandUrbanDevelopmenttoofferloanssecuredbytheFederalHousingAdministrationforthoseborrowerswhowillhaveanincreasedmortgagepaymentasaresultofanARM(adjustableratemortgage)reset.

• IntheUnitedStates,undertheCommunity Reinvestment Act,wearerequiredtoprovideacertainamountinloanstofacilitatecom-munitydevelopment,andtoensureaccesstobankingservicesfor

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19 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

LeadershipCanada

• RBCisamarketleader,servingapproximatelyoneineveryfourbusinessclientsinCanada.

• Wehaveover750RBCaccountmanagers,businessandpersonal,dedicatedtomanagingtheneedsofsmallbusinessownersinCanada.

• WearethemarketleaderforwomenentrepreneursinCanada,withapproximately19%marketshare.

United States• RBCBankhasapproximately160bankerswhoservesmallbusi-nessincluding60accountmanagersdedicatedtobusinessbankingand100accountmanagersdedicatedtothecommunitybankingsegment.

• Our430plusbankingcentremanagersalsohavebusinesssegmentgoals.

Caribbean• RBCservesmorethan1,000smallbusinesscustomersintheCaribbean.

Access to credit and moreRBCiscommittedtohelpingsmall,commercialandcorporatebusinessesprosper.Providingdebtfinancingorcreditisoneofthewayswehelpbusinessestogrowandsucceed,whethertheyarestarting,maintainingorexpandingtheiroperations.

RBCoffersahostofcreditsolutionstailoredtomeettheneedsofdiversebusinessesatvariousstages.AspartofourannualCana-dianPublicAccountabilityStatement,RBCdisclosesthenumberofbusinessclientswelendtoacrossCanada,andtheamountofcreditmadeavailabletothem.Youcanfindthisinformationonpage63ofthisreport.

Butaccesstocreditisonlyoneneedofsmallbusinessclients.Wealsostrivetomeetotherneedsbyprovidingthebestpossibleproducts,adviceandexpertise.Forinstance,in2008RBCstream-linedtheprocessforCanadiansmallbusinessclientstoaccessU.S.bankingservicesthroughRBCBank’sSmallBusinessSolu-tionsCentre.

Not-for-profit organizationsNot-for-profit(NFP)organizationsareasignificantandgrowingeconomicforceincountriesthroughouttheworld.InCanada,thevalueadded,orgrossdomesticproduct,ofthecorenon-profitsectoramountedto$29.6billionin2004,themostrecentyearforwhichstatisticsareavailable,accountingfor2.5%ofthetotalCanadianeconomy.Thisshareincreasesto6.9%whenhospitals,universitiesandcollegesareincluded*.

* Source:StatisticsCanada,SatelliteAccountofnonprofitInstitutionsandVolunteering.

EmploymentInadditiontoprovidingemploymentto80,100peopleworldwide,RBCalsosupportsprogramsforpeoplewhoareunemployedorunderemployed.Ittakesskills,opportunitiesandcontactstolandtherightjob,soRBCsupportsorganizationssuchas:

• NeilSquireSociety’sEmployAbilityProgram,whichassistsphysicallydisabledadultsinCanadaseekingemployableskills,educationandconfidence

• ReginaAdultLearningCentre,dedicatedtoworkingwithyoungat-riskadultstogivethemthenecessaryskillsandexperiencetosuccessfullyentertheworkplaceorapost-secondaryeducationalfacility

• WinnipegSalvationArmy’sWorkReadinessProgramwhichhelpsrecipientsofincomeassistancefindajobandbecomeself-sufficient

• Eva’sPhoenixinToronto,atransitionalhousingprojectandsuccessfulworkingmodelfortrainingandemploymentofhomelessyouth

• TheCommunityServicesCouncil’sVibrantCommunitiesInitiativeinSt.John’s,Newfoundland,whichconnectsindividualslivinginthecity’slowestincomeneighbourhoodswitheageremployersandcommunityagenciestoattainpermanentjobs

• YouthEmploymentServices,aleadingCanadianyouthorganizationwithinnovativeprogramsthatempowerdisadvantagedandvulnerableyouth

• SHAD,aprogramthatmentors600high-potentialyouththroughanationalsummerinternshipprogramat12universitycampusesacrossCanada.RBChasbeenSHAD’sleadcorporatesponsorforthepast25years

• Seattle-basedFareStart,whichgiveslow-incomeresidentsanopportunitytotrainandbeplacedinlong-termemploymentinthefoodindustry

• TwinCitiesRISE!programthathelpslow-incomeindividualsescapepovertybypreparingthemforliving-wagejobsintheMinneapolis-St.Paulmetropolitanarea

• Athree-yearcomputerskillsprogramthatbenefitsyouthacrosstheEasternCaribbean

• AcomputerizedlearningenvironmenttopromotecomputerliteracyatSt.Michael’sSchoolforBoysinTrinidadandTobago,aninstitu-tionforabusedandtroubledboys.

Small businessRBCwasfoundedontheinitiativeofeightHalifaxmerchantsbackin1864,andwehaverecognizedtheimportanceofsmallbusinesseversince.RBChasoverhalfamillionsmallbusinessclientsinCanada,theUnitedStatesandtheCaribbean.Attheheartofourcommitmenttotheseclientsisourpledgetolisten,understandandrespondtotheirneedsandtoprovidetailoredsolutions.

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20 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

Support for agricultural businessesCanadaRBCisCanada’slargestnon-governmentprivatelendertoagricul-tureandagribusinessandservesmorefarmersandfarmfamiliesthananyotherfinancialinstitutioninthecountry.We’vebeencommittedtotheagricultureindustryforover135years,offeringflexibleandresponsivefinancialservicesandspecializedagricul-tureaccountmanagerstomeetfarmers’andagribusinesses’needs.WesupportCanadianfarmersbyproviding:

• Specialized products and services.Farmsandagribusinessesaredifferentfromjustaboutanyotherbusiness.That’swhyRBCcreatedasuiteoffarmfinancingandaccountoptions.RoyFarmmortgages,andtermandoperatingloans,AgriInvestandFarmchekaccountsaswellasotherspecializedservicesmeettheneedsofagricultureandagribusinessclients.

• Dedicated specialists.AcrossCanada,farmersandagribusinesseshaveaccessto228dedicatedRBCaccountmanagerswhoknowagricultureandunderstandthefarmbusinessintimately.

• Education.Wehelpkeepfarmersinformedontheeconomicsandmanagementoftheirbusiness.Ourwebsiteandpublicationscoveravarietyofagriculturalbusinesstopicsincludingstrategy,riskmanagement,technology,andfarmfinance.OurAgriculture Business Reviewispublishedthreetimesayeartoprovideinforma-tion,ideasandsolutionsforfarmersandagribusinessesinCanada.ThepublicationincludesarticlesbyRBCassociateandrenownedagriculturaleconomistDr.DavidKohlinwhichhetacklesthetoughquestionsinfarmfinanceandmanagement.ThroughtheRBCAgri-SpeakingSeries,wetakerenownedspeakerstoourclients.Forinstance,Dr.KohlandJoleneBrownhavecrossedthecountrymanytimestospeaktogatheringsofRBCclientsandproducersaboutfarmbusinessmanagementandfarmsuccession.

• Community involvement.OurcommitmentreachesintoCanada’sruralcommunities.Forover45years,our4-HInterprovincialExchangehashelpedyoungCanadiansgetfirst-handagriculturalexperienceinotherpartsofthecountry.Manyofourstaffmembersaredirectlyinvolvedasleadersin4-Hclubsintheirlocalcommunities.Inaddition,manyofouremployeesareinvolvedinchaptersoftheCanadianAssociationofFarmAdvisorsandotherindustryorganizations.

United StatesIntheUnitedStates,RBCBanksupportsagriculturalbusinessesbyfacilitatingannualoperatingrequirements,equipmentloansandrealestatepurchasesforlocalfarmers.Wedothisthroughconven-tionallendingchannelsaswellasFarmServiceAgencyGuaranteedLendingPrograms.Throughourvariousdeliverychannels,weareabletomeettheneedsofclients,deliveringthepersonalizedserviceofasmallerbank,withtheproductsandbackingofamuchlargerbank.

RBCsupportstheNFPsectorbyprovidingcustomizedservicesandexpertise,aswellasotherformsofsupport.ManyofourclientsusetheRoyalBusinessCommunityAccount®,whichoffersbothlowfeesandflexibilityforday-to-dayactivities.

Morethan30RBCaccountmanagersacrossCanadaarededicatedexclusivelytotheNFPsector.Inadditiontobringingspecializedknowledge,advice,productsandnetworkingopportunitiestotheirNFPclients,theyarepassionateabouttheirclients’causes.Morethan90%ofourNFPaccountmanagersvolunteerintheircommunities.

RBCprovidesadditionalsupporttotheNFPsectorbyhostingandsupportingeducationandnetworkingsessions,providingeduca-tionmaterialsinfraudmitigationandgovernance,andsponsoringorganizationssuchastheCanadianSocietyofAssociationExecutivesandCommunityFoundationsofCanada,dedicatedtomanagingmanyofCanada’smostprogressiveassociationsandfoundations.

Knowledge expertsTherearen’tone-size-fits-allsolutionsforsmallbusinessclients.Weserveadiversityofindustries,andhavededicatedspecialiststomeettheirneeds.Forinstance:

• Wetailorproductsandservicesforprofessionals,franchiseownersandpublicsectororganizationsinCanadaandtheUnitedStates.

• ConsistentwiththechangesoccurringwithintheCanadianmanu-facturingsector,wehaveexpandedourcapabilitiestoservethebroadersupplychainsector.Wehavealmost250supplychainspe-cialistslocatedacrossCanadadedicatedtoservingmanufacturingandsupplychaincompanies,includingwholesale,transportationandlogistics.

• Wearethemarketleaderinhelpingknowledge-basedindustriesinCanada,withalmost50specializedaccountmanagersandriskmanagersdedicatedsolelytothissector.

• WearethemarketleaderforwomenentrepreneursinCanada.OurWomen’sChampionsNetworkismadeupoffrontlinesalesleadersfromacrossthecountry.

• Weprovidetailoredservicesandadvicetohelpyoungpeoplestartandgrowtheirbusinesses.

• In2008,wehelpedretailbusinessownersacrossCanadabyhostingeventswhereweprovidedspecializedadviceandpaneldiscussions.WealsosponsoredtheRetailCouncilofCanada,andlaunchedtheRetailSecuritySelfAssessmentguidebookinpartnershipwiththeRetailCouncilofCanada.

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21 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

Community economic development

DonationsIn2008,RBCsupportedinitiativesacrossNorthAmericaandtheCaribbeanthathaveapositiveeconomicimpact,suchas:

• Helpingdisadvantagedpeopleaccessfinancialservices

• Helpingat-riskyouthdevelopjobskills

• Helpingcreateeconomicprosperityincommunities

• Helpingstudentsordisadvantagedpeoplestarttheirownsmallbusinesses

• Supportingnewventures

• Helpingcreatecapacityandinnovationinthebusinesssector.

Basic needsIt’snearlyimpossibleforcommunitiestothrivewhentheircitizensarehungryorhomeless.RBCsupportsprogramsthathelpmeetbasicneeds.In2008,RBCandouremployeesgaveover$417,000tohelpreplenishfoodbanksandsoupkitchensacrossCanada.IntheU.S.,RBCBankcontributedUS$25,000tosupportfoodbanksinNorthCarolina.

RBCemployeesaroundtheworldarealsoinvolvedinfooddrivesandotherinitiativestohelpmeetbasicneeds.InSwitzerland,forinstance,employeescollectfundsthroughcasualdays.In2008,thesefundswerematchedbyRBCanddonatedtoFundaciónFiambre,aColombiancharitythatprovidesadailylunchandasafeplaceforchildrenlivinginthepoorestareaofBogota.

Self-sufficiencyRBCprovidesservicesandsupportsprogramsthathelpdisadvan-tagedpeopleacquireskills,findjobsandbuildassets.

Basic literacyCountlessstudieshaveshowntheimportanceofbasicfunctionalliteracytoeconomicwell-being.That’swhyRBCsupportsinitiativeslike:

• RoomtoRead,whichpartnerswithlocalcommunitiesthroughoutthedevelopingworldtoestablishschools,librariesandotheredu-cationalinfrastructurewiththeaimofinterveningearlyinthelivesofchildrenandbreakingthecycleofpoverty–onechildatatime.

• PLAN,foundedin1937asFosterParentsPlan.RBCsupportsamobilelibraryinnorthernBrazilthathelps500ruralchildreneachyear.

• TheannualChildren’sBookFairinSuriname,intheCaribbean,promotespositivereadinghabitsinchildrenbetweenages4and12.Everyyear,theweek-longfairattractssome25,000to30,000visitors.

• TheChildren’sBookFestivalinAruba,aone-weekeventwhichreachessome6,500elementaryschoolchildren.

Resources for entrepreneurs

Guide books RBCprovidesinformationtobusinessownersatallstagesoftheirlifecycle,helpingthemmanagetheirbusinessandpersonalfinancialmatters.In2008,wepublishedguidebookson:

• Startingabusiness

• Growingabusiness

• Businesssuccessionplanning

• Personalfinancialmanagementforbusinessowners

• Retailbusinesssecurityself-assessment.

Online tipsIn2008,RBCcomplementedanalreadywiderangeofonlineresourcesbyintroducingtipsdesignedtohelpaspiringentrepre-neursandexistingbusinessownersfindtheinformationtheyneedfortheirbusiness.Thetopicscoveredatrbc.com/tipsinclude:

• Beingyourownboss

• Creatingabusinessplan

• Determiningyourbusinessstructure

• Registeringyourbusiness

• Openingabusinessdepositsaccount

• Makingsenseoftaxes.

Cash flow management toolThisonlinetoolhelpsbusinessownersmanagetheircashpositionsbycreatingavarietyofrealisticcashflowprojectionsthrough“whatif”scenarios.Italsoprovidesrecommendationsforimprov-ingcashflow.

Business succession informationSuccessionisagrowingconcernforbusinessowners.In2008,RBCintroducedaseriesofseminarsandeventsinninelocationsacrossCanadaforbusinessowners,farmersandagribusinesses.Theseeventsprovidedparticipantswithvaluableinformation,includingaccesstoexpertsinavarietyofareas,andresourcestheycanusewhenconsidering“nextsteps.”Inaddition,RBCpublishedtwonewcomprehensiveguidebooksonbusinesssuccession.

CICA/RBC quarterly reportsRBCsponsoredandhelpedestablishtheCICA/RBC Business Monitor,aquarterlyreportbasedonsurveysconductedbytheCanadianInstituteofCharteredAccountants(CICA).Thereportincludesanswersfromleadingcharteredaccountants,withtheoverallgoalofobtainingabarometerofeconomicactivity.

SeminarsIntheUnitedStates,RBCBankoccasionallyhostslocaleducationseminarsforbusinesscustomers.Recentseminarshavedealtwithsharedresponsibilityforriskmanagement.

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22 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

• MoneyMatters,AFinancialLiteracyandEmpowermentLeadershipSeminarsponsoredbyRBCBankhelpscommunitycollegestudentsdevelopafinancialplan,applyforfinancialaidearlyandlookforscholarshipopportunities.

• CommunidadesLatinasUnidasenServicio(CLUES),whichprovidescomprehensiveeducationandemploymentservicesandhelpsclientsprogressfromlowlevelsofeducation,unemployment,andlimitedeconomicstabilitytoimprovedliteracy,jobs,financialknowledgeandthebuildingofassets.

Caribbean• Wecontinuedtosupportapubliceducationinitiativethatconsistsofinfomercialsonvariousfinancialsubjectsincludingapplyingforasmallbusinessloan,choosingtherightmortgage,creatingapersonalbudgetandbuildingcredithistory.

• Throughourmortgagesubsidiary,wehostededucationalsymposiaonmortgages.

Home ownershipThepastyearhasshowntheimportanceoftakingaresponsibleapproachtomortgagefinancing.

• InCanada,RBCoffersmortgageproductsthathelpfirst-timebuy-ersachievehomeownership.Forinstance,ourEquityProgramforNewImmigrantsenableseligiblenewimmigrantswhomaynotmeettraditionalcriteriatoobtainmortgagefinancingbydemon-stratingtheirabilitytoservicetheloanthroughotherresources.WefacilitatehomeownershipbyparticipatingintheOntarioAffordableHousingProgramandthePartnershipEnhancementFlexibilitiesProgramoftheCanadianMortgageandHousingCorporationinAlberta.

• IntheUnitedStates,RBCBankpartnerswithlocaleconomicdevelopmentagencies,communityleaders,realestateexperts,creditcounsellorsandotherstocreateprogramsandenhance-mentsthatcouldhelppromotehomeownershipforlow-incomeborrowersinthesoutheasternU.S.FromJanuarytoJuly2008,weprovided1115loanstotallingUS$231million.

• In2008,theRBCTaxCreditEquityGroupinvestedUS$532millionintothedevelopmentofapproximately6,700unitsofaffordablehousingintheUnitedStates.RBCtakesa99%equityownershippositionintheU.S.affordablehousingprojectsdevelopedunderthisprogram.SeveralofthehousingprojectswerecertifiedunderLeadershipinEnergyandEnvironmentalDesign(LEED).

• In2008,attherequestoftheNorthCarolinaCommunityDevelop-mentInitiative(NCCDI),RBCBankestablishedanaffordablehousing“JumpStart”creditproduct.WitharepaymentcommitmentfromtheNCCDI,RBCprovidesnon-profitdeveloperswithconstruc-tionfundingforuptothreehomesforlow-wealthhomebuyers.

• In2008,onceagain,RBCsupportedHabitatforHumanityacrossNorthAmericawithemployeevolunteersandcorporatedonationshelpingtobuild24homes.Wearethefoundingpartneroftheorganization’sSustainableBuildingProgram,whichaimstoincreasethenumberofenergy-efficienthomesconstructed.

Financial literacyIn1924,RoyalBank®developedourfirstbudgetbook,thefirstofmanymoneymanagementtoolscreatedtohelpcustomersorganizetheirfinances.Intheyearssince,RBChascontinuedtopromotefinancialliteracyamongthepublicandourcustomers,includinganunderstandingaboutcredit,debtandsavings.In2008,wesup-portedahostoffinancialliteracyinitiativesaroundtheworld:

Canada• TheRBCLifeskillsEducationProgram™helpsmorethan18,800Canadianteacherseducatestudentsingrades4to12aboutfinancialliteracy,planningandmanagement.FromJuly2007toJune2008,1,794freekitsweredistributed,thankstomorethan$110,000fromRBC.Theprogram’sscholarshipcomponentreceivesover17,000applicantsandisawardedto10studentsannuallywhowishtopursuenon-traditionalcareersintheartsandthetrades,whilerecognizingacademicachievement.

• JuniorAchievement’s(JA)EconomicsofSuccessprogramincludesseminarsandeducationalmaterialsoncareerplanningandfinancialawareness.Over700RBCvolunteersdeliveredthispro-gramacrossCanada,reachingover7,500studentsin2008.

• AstheofficialsponsoroftheOlympicsSchoolProgram,RBCsup-portsthedevelopmentofOlympic-themedcurriculaforelementary,middleandhigh-schoolstudents.TheOlympicsSchoolProgramreachesover10,000teacherseveryyear.RBCandtheOlympicsSchoolProgram’sfinancialliteracymodulesforstudentsandteacherswillbeavailableinNovember2009.

• YourMoney(previouslyThere’sSomethingAboutMoney),asemi-nardevelopedbytheCanadianBankersAssociationinpartnershipwiththeFinancialConsumerAgencyofCanada,isdeliveredinclassroomsacrossCanadabyRBCemployees.In2007–2008,50RBCemployeesvolunteeredtohelp3,456highschoolstudentsunderstandtopicssuchashowtohandlecreditorstartabusiness.

• InCalgary,MomentumCommunityEconomicDevelopmentSoci-ety’sMoneyManagementprogramdeliversworkshopstopeoplelivinginlow-incomesituationswithagoalofsupportingindividu-alstotakecontroloftheirpersonalfinancesanddevelopmoneymanagementknowledgeandskills.

• InWaterloo,Lutherwood’sYouth$aveprogramhelpsyouthfromfamilieswithlowerincomesgainfinancialliteracyskillsandhelpsthemearnmoneytosavetowardsauniversityeducation.

United States• HowtoDoYourBanking,afinancialeducationseriessponsoredbyRBCBankforhighschoolstudents,reached1,827studentsthrough11schoolsinthe2007–2008schoolyear.

• SavvyCents,afinancialliteracyeducationprogramdevelopedandunderwrittenbyRBCBank,helpsparticipantsofallagesandfinancialknowledgelevelstosetfinancialgoals,budgetandbuildwealth.

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23 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

organizationsthathelpskilledimmigrantsfindemploymentandsucceed,suchas:

• CareerBridge*,aninnovativepaidinternshipprogramthatrespondstoCanada’slabourmarketdemandforinternationallyqualifiedprofessionalsandtotheaspirationsofqualifiedimmigrantseagertoworkintheirprofessionalfieldsinCanada.Since2003,approxi-mately300employershaveprovidedmeaningfulworkexperiencestoover920CareerBridgeinterns,including73internshipsatRBC.

• ImmigrantAccessFund,anot-for-profitgroupthatraisesfundstoprovidemicro-loanstointernationallytrainednewcomersinCalgaryforaccreditation,trainingandupgradingofskills

• TheTorontoRegionImmigrantEmploymentCouncil,amulti-stakeholdercouncilworkingtoimproveaccesstoemploymentforimmigrantssotheyarebetterabletousetheskills,educationandexperiencetheybringwiththemtoCanada.InpartnershipwithTRIEC,RBCisakeysponsoroftheannualImmigrantSuccessAwardsthatrecognizesTorontoregionemployersandindividualsthatrecruit,retainandpromoteskilledimmigrantsintheworkplace.

• S.U.C.C.E.S.S.,amulti-serviceagencyinBritishColumbiathatpromotesthewell-beingofallCanadiansandimmigrants,encour-agingtheirparticipationinthecommunitybyofferingsocial,employment,businessandeconomicdevelopment,trainingandeducation,andhealthservices.

Aboriginal communitiesRBCsupportsthecreationofwealthandeconomicsustainabilityinAboriginalcommunitiesbyfacilitatingthedevelopmentofknow-ledgeandresourcescriticaltosuccess.WepromoteAboriginalinterests,forgingpartnershipswithAboriginalpeoples,businessesandgovernmentsbasedonunderstanding,trustandrespect.RBCencouragesdialoguebetweenbusinesses,governmentsandindividualstoidentifyandresolverelevanteconomicissues.

In2007,inresponsetoanationalchallengebyNationalChiefPhilFontaine,RBCsignedaMemorandumofUnderstandingwiththeAssemblyofFirstNations,andprovidedatwo-yearactionplanthatoutlinedcommitmentstovariousinitiativesdesignedtosupportcommunityandsocialdevelopmentandcreateeconomicopportunitiesforFirstNationscommunitiesacrossCanada.RBCcommittedtoincreasepartnershipswithFirstNationsgovernmentandbusiness;increaseandexploreinvestmentpotential;establishandfosterprocurementpracticesthatbenefitFirstNations;anddevelopandenhancehumanresourcesdevelopmentandlabourforcedevelopmentactivitieswithFirstNationscommunitiesandpeople.

Wesupportprogramsthatpromotelearningandskillsdevelop-mentamongAboriginalpeoples,whichleadstogreatereconomicself-sufficiency,including:

• TheAboriginalHumanResourceCouncil,formedin1998asanationalpublic/private,not-for-profitorganizationwithamandatetoadvancethefullparticipationofAboriginalpeopleinCanada’slabourmarketonanationallevel

Economic growth

DevelopmentWehelpstimulateeconomicgrowthbyinvestinginprogramsthatenableeconomicdevelopmentwithasocialpurpose.

CanadaRBCsupportstheCentreforInformationandCommunityServicesofOntario,adiverseandmulti-serviceagencythatstrengthenscommunitiesbyprovidingacost-effective,culturallysensitiveprofessionalservicethatempowersimmigrantsandrefugeestosettleandintegrateintoCanadiansociety.

WealsosupportTheFoundationforRuralLiving,createdtoensurethereisastrongintermediaryorganizationbetweenruralcom-munitiesandlocalcharitiestohelpfostercommunityeconomicdevelopmentandbuildasustainablecapacityforgrowthamongcharitiesinruralareasofOntario.

United StatesRBCBankhelpscommunitiesaccesspublicandprivatefinancingsourcesforeconomicdevelopment,andwealsoprovidedirectfinancing:

• Ourlong-standingpartnershipwiththeRockyMount/EdgecombeCommunityDevelopmentCorporationinRockyMount,NorthCarolina,fosterscommunityeconomicdevelopment,individualassetdevelopmentandprosperity.

• In2008,RBCBankparticipatedinanumberofloanconsortiainNorthCarolina,SouthCarolina,FloridaandAlabamatoprovidefinancingforcommunitydevelopmentprojectsthatbenefitlow-andmoderate-incomepopulations.AsofJuly2008,wehadfinanced98projectsthatwilldeliver5,900unitsofaffordablehousingwithfundingofUS$5.3million.

• RBCBankactedasthememberbankfor15non-profitdeveloperswhosubmittedAffordableHousingApplicationstotheFederalHomeLoanBankofAtlanta.These15projectsrequestedUS$8.5millioninsubsidy/grantsforUS$68.8millionintotalprojectcosts,togenerate693unitsofaffordablehousinginthreestates.

• Weparticipateineconomicdevelopmentloanpoolstofostersmallbusinessgrowthanddowntowndevelopmentinseveralofourmarkets,includingGreenville,Winston-SalemandRockyMount,NC.WemadeavailableUS$700,000ofatotalUS$20millionloanpoolservicingBirmingham,Alabama.

NewcomersRBCbelievestherearesignificanteconomicbenefitswhennewimmigrantssucceedintheiradoptedcountry.InCanada,wehaveadaptedourcredit,banking,marketing,recruitingandtrainingpracticestohelpmakethishappen.In2008,wecreatedabankingpackagetailoredtotheneedsofnewcomers,increasedthenumberofscholarshipawardsfornewCanadiansfromsevento12,anddevelopedanumberoftoolsandresourcestohelpnewcomerssucceedintheiradoptedcountry.Wealsosupportedanumberof

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24 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

Project.IntheUnitedKingdom,ourinfrastructurefinanceteamemploysover100professionalsandisamarketleaderforaddedvalueadvisoryservicesandfundingforU.K.andotherEuropeaninfrastructureprojects.WehaverecentlycompletedtwosocialhousingtransactionsforCircleAngliaandAffinitySutton,raisingover£525million.ThesearethefirstmajorbondissuesfortheRSL(RegisteredSocialLandlord)sectorforanumberofyears.Wearealsoincreasinglyactiveinadvisingon,andfunding,infrastructureacquisitions.RecentexamplesincludeBelfastCityAirportandFreightliner,andinthesecondarymarketforPPPequity(actingforboththebuyandsellsides).Amarketleaderandinnovatorinthedevelopmentofefficientfundingstructures,RBChelpedfundprojectsthatincludesocialhousing,governmentoffices,schools,hospitals,transportationservices,andothers.

• WesupporttheRobinHoodFoundationwhichpartnerswithmorethan140ofthebestpoverty-fightingnon-profitorganizationsinNewYorkCity.

• IntheCaribbean,wepartnerwiththeTrinidadandTobagoManu-facturingAssociationandtheMinistryofTrade&IndustrytoshowcaseregionalbusinessattheannualTrade&InvestmentConvention.Wealsohostasemi-annualforumtobringvariousstakeholderswithintheconstructionsectortogethertodiscussissuesaffectingtheindustry.

Innovation and entrepreneurshipRBCtakesaleadershiproleinsupportinginnovationandthecommercializationofresearch,andwesupportprojectsandorga-nizationsthatpromotelearning,innovationandentrepreneurship,suchas:

• TheCanadianYouthBusinessFoundation(CYBF),anationalleaderinyouthentrepreneurshipthroughmentorshipandfinancialsup-port,whichresultsinsustainableeconomicdevelopment

• TheCanadianInstituteforAdvancedResearch(CIFAR)whichincubatesideasthatcangoontorevolutionizetheinternationalresearchcommunity.CIFARprovidesleadingscholarswiththetime,direction,freedomandinspirationtopursuefundamentalquestionsconcerningsociety,technology,andtheverynatureofhumanityandtheuniverse

• TheCouncilforEntrepreneurialDevelopment,promotinghigh-growth,high-impactentrepreneurialcompaniesinNorthCarolina’sResearchTriangleregion

• TheRBCNextGreatInnovatorChallenge™,anannualcontesttoencouragecollegeanduniversitystudentsfromacrossCanadatothinkofinnovativeideasabouthowfinancialservicesaredeliv-ered.RBCwasthefirstmajorCanadianfinancialinstitutiontohaveapublicblogandavirtualagent,bothofwhichwerelaunchedaspartoftheChallenge.RBCp2p™,asiteforandbyyoungadults,isbasedonawinningideafromthefirstChallenge.

Formoreinformation,visitnextgreatinnovator.com

• FrontiersFoundation,anot-for-profitAboriginalvoluntaryserviceorganizationthatpromotestheadvancementofeconomicallyandsociallydisadvantagedcommunitiestoprovideaffordablehousingandimprovementsineducation

• RBCAboriginalStudentAwardsProgram,whichhasprovided77scholarshipstotalling$866,000sincetheprogram’sinceptionin1992.Eightstudentsreceivedawardsin2008.Awardrecipientsarealsoconsideredforsummerandpost-graduateemploymentopportunitieswithRBC

• MiziweBiikAboriginalEmploymentandTrainingCentre,committedtoimprovingthesocio-economicstatusofAboriginalpeoplethroughaccesstotrainingandemploymentopportunities,businessdevelopmenttrainingandsupportservices,andemploymentcounselling.RBCdirectedoursupporttoasmallbusinesscer-tificatecourseandasmallbusinessmicro-loansprogramforAboriginalentrepreneurs

• CAREERS,inpartnershipwithAlbertacommunityeducationsys-temsandindustrytoachievecareersuccessforyouthandmeetinterdependentneedsofyouthemployabilityandskilledlabourshortages

• TheCanadianCouncilforAboriginalBusiness,anationalnon-profitorganizationthatprovidestoolsandresourcestopromotethefullparticipationofAboriginalpeopleandcommunitiesinCanada’seconomy.

ForacompleteoverviewofallourAboriginalinitiatives,seepage57ofthisreport

PartnershipsOftenacollectiveeffortismorepowerfulthanindividualones.That’swhyRBCsupportspublic/privatepartnerships(PPP)thatpromoteeconomicdevelopment.Herearehighlightsfrom2008:

• RBCcontinuedtosupporttheGreaterHalifaxPartnership,whichbringstogetherover150privatesectorcompanies,threelevelsofgovernmentandskilledbusinessprofessionalsdedicatedtoenga-gingthecommunityinthegrowthofGreaterHalifax’seconomy.

• RBCBankisafoundingsponsoroftheCarolinasGatewayPartner-ship,auniqueregionaleconomicdevelopmentgroupfortheRockyMount,NorthCarolinametropolitanarea.Thepublic/privatepartnershiphelpedtransitiontheareafromtextileandtobaccopro-cessingjobstofoodprocessing,pharmaceuticals,transportationanddistribution.Inall,over8,000newjobsandUS$800millioninnewprivateinvestmenthavebeenattractedtotheareainthelastdecade.TheMilkenInstituterecentlyrankedtheareathenumberonesmallcityforhigh-techjobsintheU.S.

• Aroundtheworld,RBCadvisesandfundshospitals,schools,roads,bridges,andotherinfrastructureprojectsthroughpublic/privatepartnerships,withofficesinLondon,Toronto,Sydney,NewYork,ParisandMadrid.InCanada,weadvisedthesuccessfulbidderandhelpedtofinancetheKelowna&VernonHospitalsProject,NorthwestAnthonyHendayDrive,andtheAutoroute30Highway

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25 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Economic impact

Practices and highlightsWepromotefairpurchasingpracticesandstrivetosupport,wher-everpossible,thecommunitiesinwhichweoperate.RBCdoesnotlinkourclientrelationshipstoourvendorrelationships,recognizingthatopencompetitionbasedonvaluemustbethebasisforallsuc-cessfulrelationships.

WeareafoundingmemberoftheCanadianAboriginalandMinoritySupplierCouncil.RBChasbeenamemberoftheCouncil’sU.S.affili-ate,theNationalMinoritySupplierDevelopmentCouncil,since2002.

In2009,wewillimplementanewresponsibleprocurementpolicy,whichwillincreasetheduediligenceregardingsocialandenviron-mentalfactorsinourprocurementactivities.

PoliciesOurProcurementGroupisresponsibleforsourcingsignificantprod-uctsandservices.Ourprocurementpoliciesareinclusiveandaimtopromotesustainablebusinesspracticesandeconomicdevelop-mentwherepossibleandappropriate.WeconsiderandranksocialandenvironmentalpoliciesandpracticesamongothercriteriawhenawardingcontractsthroughourRequestsforProposal(RFP)process.Tomaintainthehigheststandards,wereviewourpurchas-ingguidelinesannually.

AsappropriatetoaspecificRFP,ourProcurementGroupmayaskprospectivevendorstodetailextensivecorporateandfinancialinformation,includingthedeclarationofconflicts,lawsuitsoradministrativecomplaintsandcharges,industryexperience,andreferences.

WhenapotentialvendorapproachesRBC,theyarerequiredtosupplyuswithinformationabouttheirsocialandenvironmentalpoliciesandpractices.Theresultsofallinquiriesarerankedandweighted,andareconsideredwhenStrategicSourcingselectsthevendorand/orproducts.TheRFPcoversapotentialsupplier’s:

• Labourstandards/employmentpractices

• Occupationalhealthandsafetyrecord

• Internalenvironmentalpoliciesandpractices

• Humanrightsperformanceandrecord

• Externalaudits/assurance(e.g.,AA1000)

• Abilitytoprovideinformationsecurity/physicalsecurity

• Abilitytoprovideaccessibilityforpeoplewithdisabilities(forinfor-mationtechnologysuppliersre:applications,software,etc.)

• Manufacturingprocess,disposal,packaging,productuseandmaintenanceoftheproduct.

Afterweawardbusinesstoaspecificvendor,weaskthemtosignalegalSupplierAgreementthatincludescomprehensive,explicitclausescoveringwarranties,indemnities,confidentialityanddisclaimers.

• Since1969,wehavebroughtinvestmentdollarsaswellasourknowledgeandexpertisetobuddingsoftwareandtechnologycompaniesservingthefinancialservicesandothersectors.Throughdirectandindirectinvestments,wecurrentlyhavealmost$700milliondedicatedforinvestmentinemergingtechnologycompaniesaroundtheworld.

• In2008,RIM*,RBCandThomsonReuterslaunchedtheBlackBerryPartnersFund,aUS$150millionventurecapitalfundthatinvestsinmobileapplicationsandservicesfortheBlackBerry*platformandothermobileplatforms.TheFundisdesignedtoadvancetheindustrybyfosteringdevelopmentanddrivingtheentrepreneurialspirittocreatethemostinnovativemobileofferingsforcustomers.Todate,theFundhasinvestedinbuzzd,alocation-sensitivecityguideandsocialnetworkformobiledevices;Digby,aleadingmobilecommerceserviceprovider;andWorldMate,acompanythathaspavedthewayformobiletravelinnovation.

Research and sharing of knowledgeFinancialinstitutionshaveadutytocontributetopublicpolicydiscussionofeconomicandsocialissueswhentheyhaverelevantknowledgeandexperience.RBC’sinvolvementinsomanysectorsofNorthAmericaneconomiclifegivesusauniqueperspective.Ourviewsareoftensoughtbylegislatorsandotherpublicservants,andbyotherparticipantsinpublicdiscussion.

RBCmaintainsasubstantialeconomicsresearchprogram,bothcorporatelyandwithinourvariousbusinesses.Oureconomistsexamineconditions,developmentsandtrendsinCanadaandabroad,andsharetheirfindingsandanalysesextensivelythroughpublications,speechesandbriefings.RBCisalsofrequentlycalledupontoprepareandsubmitbriefstoawidevarietyofgovernmentcommissionsandtaskforces.WehaveconsistentlyemphasizedtheimportanceofandneedforimprovedproductivityinCanada,especiallyinthecontextofworldwideeconomiccompetition.

PurchasingIn2008,RBCspent$4.7billionongoodsandservicesfrominterna-tional,national,regional,andlocalsuppliersofallsizes.

Goods and services purchased($ billions)

2006

2007

2008

3.9

4.4

4.7

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26 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Marketplace

Marketplace

Product responsibility“Responsibility”maynotbethefirstthingyouthinkofwhenitcomestohowabankdevelopsitsfinancialproductsandservices–atleastnotthesamewayyoumightbeconcernedabouthowyourchild’stoysaremanufactured,orhowyourcarwasdesigned.Butmortgagesandloans,bankaccounts,insuranceofferingsandcreditcardsareallconsideredproducts,too,andatRBC,weensurethatalltheproductsandserviceswedevelopforourclientsalignwithourvisionandvaluesandareguidedbyourcomprehensiveCodeofConduct.

Development of products and servicesRBChasaformalpolicythatsetsoutadefined,rigorousprocessbeforewelaunchanynewproductorsignificantlychangeanexist-ingone.Weevaluateproductsforarangeofrisksandensuretheyalignwithclientneeds,ourCodeofConduct,lawsandregulations,andvoluntaryconsumerprotectioncodesthatwehavesigned.ApprovallevelswithinRBCcorrespondtothelevelofriskidentifiedforaparticularproductorservice.

Green products and services Oneofourprioritiesistoprovideproductsandservicesthathelpourclientsmitigatetheirenvironmentalimpact.Thisincludeson-linebanking,andelectronicstatementsandbillpayment.In2008,wecontinuedtoofferincentivesforclientstoswitchoffpaperstatements,haveahomeenergyaudit,buyalower-emissioncar,andswitchtogreenpower.Wealsoinvestincleanenergyfundsandprovideinvestmentbanking,financing,andadvisoryservicestotherenewableenergysector.

Formoreinformation,seepages46to47

It’s been said that corporate responsibility isn’t so much about how a company spends its money, but how a company makes its money. At RBC, we believe that our first duty is to operate with integrity for our clients, earning their trust in every transaction, in every part of our business.

Priorities 2008 Performance highlights

Developandprovideproductsresponsibly • Addedmoregreenbankingoptions • Expandedsociallyresponsibleinvestmentoptionsbyacquiring PH&NandAccessCapitalStrategiesLLC

Protect,educateandlistentoconsumers • Enhancedcustomerandemployeeawarenessofprivacyand informationsecurity • Enhancedcapacityforgivingadviceinordertomeetclients’banking, insuranceandfinancialneeds

Provideaccesstobasicbanking • Expandedline-upofbankingproductsandservicesdesignedfor newcomerstoCanada • ExpandedbranchandATMnetworkinCanada,theUnitedStatesand theCaribbean • Launchedatelephoneservicethatcanassistclientsinmorethan 150languages

Issues• Access to credit:Theworld’seconomicchallengesareaconcerntoourclients.InCanada,wearefortunatetohaveoneofthesoundestbankingsystemsintheworld,andhavehadsignificantlyfewerlossesthanthoseexperiencedbyothercountries.However,theCanadianeconomyisvulnerabletoworldevents,andsoRBCisworkingcloselywiththeCanadianfederalgovernmenttofindwaystoimproveliquidityinthefinancialmarkets.RBC’sfinancialstrength,soundriskmanagementpoliciesanddiversifiedbusi-nessmixenabledustowithstandmanyofthemarketshocksandpressuresof2008.Inspiteofthechallengesof2008,RBCdidnotchangeourlendingpoliciesandpractices.Weareopenforbusiness.Ourjobistohelpclientscreateconfidenceinthefuturethroughgoodadviceandaccesstofinancing,andwehavethou-sandsofcommittedpeopleinourbranchesandcallcentresacrossNorthAmericaandtheCaribbeantohelp.

• Access to banking:InCanada,federalregulationsareinplacetoensurethatpeopleareabletoobtainabasicbankaccount.RBCrespectstheseregulationsandwegofurtherbyfacilitatingaccesstobankingthroughspecializedprograms,products,servicesandlocationsfortraditionallyunderservedgroups.

• Information Security:Thedramaticriseinclients’useofonline,telephoneandATMbankingoverthepastfewyearsisassociatedwithincreasedriskoffraudandsecuritybreachesthatareoutsideourcontrol.Wemitigatethatriskwithstringentpractices,educationandonlineguaranteesthatprotectourcustomers.

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27 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Marketplace

RBChasanumberofanti-corruptioncontrolswhichrequireustoapplyappropriatescrutinyandmonitoringmeasurestohigh-riskclientswhosebusinessactivitiesareknowntobesusceptibletocriminalactivityorhavebeendesignatedashighriskformoneylaunderingorfinancingofterrorism.

Forafulloverviewofourriskmanagementpoliciesandprotocols,seeour2008AnnualReport

Consumer protection, education and responsiveness AtRBC,wearealwaysearningtherighttobeourclients’firstchoice.Weachievethisinpartbymaintainingvigilantfraudpreven-tionandconsumerprotectionmeasures,byprovidingtimelyandrelevantinformation,andbylisteningandrespondingtoclients.

Protection and education

Privacy and information securityRBCisdedicatedtosafeguardingtheprivacyandconfidentialityofpersonal,business,financialandotherinformation.Infact,itisoneofourhighestprioritiesandremainsacornerstoneofourcommit-menttoourclients,employeesandotherstakeholders.

Wehavehadaformalprivacypolicysince1991,overseenbyourChiefPrivacyOfficer,andweuserigoroussecuritysafeguardsandinternalcontrolstoensuretheprivacyandsecurityofinformationentrustedtous.In2008,wecontinuedtobuilduponourrobustframeworkformanagingprivacy,informationsecurity,andrecords/contentmanagementbyfocusingonimportantareassuchasclientandemployeeawareness.ThisincludesthedevelopmentofaPhishingResourceCentreandaMakeYourDaySafersitetohelpeducateourclientsonhowtorecognizefakewebsites,emailandotherscams,aswellasafocusonemployeeeducationanddevelopment.Wealsoenhancedourpublicwebsitetomakeiteasierforconsumerstoobtainimportantinformationaboutpri-vacy,informationsecurity,andfraudpreventionfromonecentralsite.Visitthesiteatrbc.com/privacysecurity.

IntheUnitedStates,RBCBankalsohostedaseriesof“Shred-A-Thons”in2008,whereweofferedfreedocumentshreddingservicesandeducationalliteraturetoconsumersandbusinesses.Hundredsofthousandsofpoundsofpersonalidentitypaperswereshreddedandconsumersreceivedinformationaboutidentitytheft.

Fraud preventionRBChasstringentsecuritypoliciesandpractices,supportedbyaround-the-clockresourcestoprevent,detectandinvestigatepo-tentialfraud.Ourguaranteesforonlinebankingandself-directedbrokerageclientsoffer100%reimbursementforfundslostthroughunauthorizedtransactionsintheiraccounts.Wecontinuetofocusonoperationsintroducingsimplerprocesseswithpositiveresults–asevidentinasignificantdecreaseintheturnaroundtimeforfraud

Responsible investingAsinvestorscontinuetoexpressaninterestinsociallyresponsibleinvesting(SRI),RBChasreinforceditscommitmenttoofferingproductsthatincorporateenvironmental,socialandgovernance(ESG)criteriaintheinvestmentprocess.

• RBCAssetManagementhelpsfinancialadvisorsmeettheneedsofclientswhowanttoscreentheirinvestmentstoensuretheyareinvestinginaresponsiblemanner,usinginformationprovidedbyJantziResearchAssociates.Inaddition,ourclientshaveaccesstoalltheSRIfundsintheCanadianmarketplacethroughournetworkofadvisors.

• InCanada,RBCAssetManagementoffersthreeSRIfunds–theRBCJantziBalancedFund™,theRBCJantziCanadianEquityFund™andtheRBCJantziGlobalEquityFund™.

• In2008,morethan10,000RBCretailbankingemployeesinCanadaweretrainedonSRIproductsthroughaspecialpublication,aroad-show,webcasts,andin-branchpresentations.Almost600ofourWealthManagementinvestmentadvisorshaveattendedin-depthpresentationsonSRItrendsandfunds.

• In2008,weexpandedourSRIoptionsthroughtheacquisitionofPhillips,Hager&NorthInvestmentManagementLtd.,whichmanagesthePH&NCommunityValuesFunds.

• ThroughVoyageurAssetManagementInc.,weacquiredcertainassetsofBoston-basedAccessCapitalStrategies,LLC(AccessCapital)in2008.AccessCapitalinvestsindebtsecuritiesthatsup-portcommunitydevelopmentservinglow-andmoderate-incomeindividualsandcommunitiesacrosstheU.S.

• IntheU.S.,RBCWealthManagement®hasaspecializedteamoffinancialconsultantsbasedinSanFrancisco,providinganinvest-mentconsultingplatformfocusedonenvironmental,socialandgovernanceinvestmentstrategies.Thisgroupworkswithhighnetworthindividuals,foundations,endowments,unionsandpen-sionfunds,andconsultsonapproximatelyUS$1billioninassets.ClientshaveaccesstoacustomizedESGinvestmentplatformthatincludescustomportfolioscreening,cleantechprivateequity,shareholderengagementandmission-relatedinvesting.

Responsible lendingRBCprovidescreditandbankingservicestocompaniesinmanyindustries.Ourriskmanagementpoliciesandprocessesprovideassurancethattheseservicesareproperlydesignedandsoldtoappropriatecustomersegmentsandindividuals.Wealsohavepoliciescoveringareasofparticularconcern,suchasenvironmentalresponsibilityandanti-corruption.Forinstance,RBCwillnotsupportorfinancetransactionsthataredirectlyrelatedtotradeinormanufacturingofmaterialfornuclear,chemical,andbiologicalwarfare,landminesorclusterbombs.RBCisasignatorytotheEquatorPrinciples,asetofvoluntaryguidelinesaddressingenvironmentalandsocialrisksassociatedwithprojectfinance,asoutlinedonpage45.

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28 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Marketplace

istiedtoemployees’performancemanagementandcustomersatisfactiontraining.Wesetandmonitorquantitativetargetstoimprovecustomersatisfactionandloyalty.Ourextensiveresearchevaluatesalldriversofclientloyaltyandsatisfaction,includinghowRBCcomparestoourkeycompetition.

Clients surveyed(thousands)

Canada U.S. Caribbean

2008 492 0* 16.5

2007 492 135 –

2006 415 97 –

* U.S.operationswerefocusedontheintegrationofAlabamaNationalBanCorporationin2008.

Acting on feedbackTheysaywhatgetsmeasuredgetsimproved.Everyyear,RBCbusinessestrackclientsatisfactionandusefeedbacktomakeimprovements.Clientresearchhelpedprovidedirectionforanum-berofnewinitiativesorimprovementsin2008.Somearehighlightedbelow.

Canada• Moregreenbankingoptionssuchaspaperlessstatements

• BankingproductsandservicestailoredfornewcomerstoCanada

• Newbankingchannelsandfunctionalities

• Productfeaturesthatrewardcustomersfortheirloyalty

• NewFamilyFinancialKittohelpparentsofyoungchildrenorganizetheirfamily’sfinancialfuture

• Enhancedcapacityforgivingadviceinordertomeetclients’bank-ingandfinancialneeds

• Morerelevantmarketingandcommunicationmaterials

• Enhanceddisabilityinsuranceproductwiththeoptiontoconverttoalong-termcareinsurancepolicybetweentheagesof55and65

• Introductionofanew,combinedtermandcriticalillnessinsuranceoption

• Improvedresponsetimeandresolutionofclientinvestigationrequests

United States• RemoteDepositCaptureletsclientsencodedeposititemsfromtheirplaceofbusinessinsteadofhavingtovisitthebank

• Redesignedwebsiteforeasiernavigationbasedoncontemporaryarchitecturestandards

• Newbillpaymentplatformgivesclientstheabilitytoreceivebillingelectronically

Caribbean• NewCustomerExperienceBlueprintandClientExperiencePro-grammeservesasanoperationalframeworkthatcoversallaspectsofacustomer’sexperiencewithRBC,enablingustobetterattract,serveandretaincustomers.

claimsresultinginaquickerreimbursementtoourclients.Wecontinuetotailorfraud-educationinitiativesincludingup-to-datetipsandalerts,brochuresandclientpresentations.

IntheCaribbean,weofferfraudmonitoringinanumberofcoun-trieswhereweoffercardservices.Thisinitiativebeganin2007andhasmadeRBCuniqueinmanycountriesintheregion.In2008,wesetuptheonlyfull-scaleFraudMonitoringDepartmentamongTrinidadandTobago’sbanks,usingtheRisknetfraudmonitoringtool.Risknetisafraud-controlproductusedformanagingcardfraud.

Treating customers fairlyRBCabidesbyanumberof“marketconduct”rulesandregulationsdesignedtoprotectfinancialservicesclients,suchastheCanadiancostofborrowingandotherdisclosurerequirements,U.S.fairlendingrequirementsandU.K.TreatingCustomersFairly(TCF)regime.Inaddition,theCanadianbankingindustryhasdevelopedanumberofvoluntarycodestoprotectconsumers,towhichourCanadianbusinesseshavecommitted.

Formoreinformation,seerbc.com/voluntary-codes-public-commitments

Know Your Client rulesKnowYourClientrulesarekeytotheprotectionofallourclients.Ouremployeesarerequiredtomakeallnecessaryeffortstounderstandaclient’sprofile,andfinancialandpersonalobjectivesbeforemakingrecommendationsrelevanttotheirbanking,investment,insuranceandotherfinancialservicesneeds.Ourduediligencealsocoverscompliancewithapplicablesecurities,consumerprotection,anti-moneylaundering,anti-terrorismandeconomicsanctionslegislation.

Formoreinformation,seepages14to16

Mutual funds governanceOurgoalistohelpdevelopandfollowbestpracticesinthemutualfundindustry.RBCAssetManagementisamemberandouremployeesareactiveleadersintheInvestmentFundsInstituteofCanada.RBCAssetManagementisalsoafoundingmemberoftheCanadianCoalitionforGoodGovernance.OurpublicationMutual Funds and Governance: Taking Care of Your Investmentshighlightsourcommitmenttoindependentfundgovernanceandtoprotectingtheinterestsofmutualfundinvestors.

ResponsivenessRBChasafullyembeddedclientloyaltystrategy,ofwhichclientsatisfactionistheendgoal.Ourstrategyincludesthreeparts:organizethecompanyaroundclients;makeiteasyforemployeestoserveclients;andincreaseclientloyalty.

Client satisfactionWehaveawell-establishedcustomersatisfactionresearchprogramtomeasureclientloyaltyonaregularbasis.Thismeasure

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29 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Marketplace

Branches in local communities RBChasprogramsforassessingtheimpactofanydecisionstoaddorremovebranchesinlocalcommunities.InCanada,wecomplywithfederallegislationinourcommitmentto:

• Provideclientsandcommunitieswithfourmonths’advancenoticeofnetworkreconfigurations/branchclosures(sixmonths’noticeinthecaseofruralcommunitieswherethereisnootherfinancialinstitutionwithina10kmradius)

• Ensurecommunityleadersandpublicofficialsareawareofourreconfigurationinitiativesandhaveanunderstandingofservicealternativesfortheaffectedcommunities.

United StatesRBCBankhas439bankingcentresandover500ATMsservingthesoutheasternU.S.In2008,weadded103bankingcentrestoourfootprintwiththecompletionoftheAlabamaNationalBanCorpora-tion(ANB)inGeorgia,AlabamaandFlorida.WeoffertelephoneandInternetbanking,andourcustomerscanusetheirPocketCheckandcreditcardsatmorethan800Presto!ATMslocatedinPublixSuperMarkets.Wespecializeinservingindividuals,businesses,businessownersandprofessionals,andweoffercustomersthenewoptionofremotedepositcapture,whichallowsthemtotransmitscannedchequestousforpostingandclearing.Busyconsumerswithwirelessglobalpositioningsatellitedevicescannoweasilylo-cateanRBCbranchorATManywhereincontinentalNorthAmerica.

Caribbean WiththeacquisitionofRBTTin2008,RBCincreaseditspresenceintheCaribbeanto127branchesand312ATMs,includinganumberofATMSinoff-sitelocationssuchasgasstations,publictransporthubsandsupermarkets.AcrosstheCaribbeanwehaveATMsthatdispenseU.S.currencyandwearetheonlyTrinidadandTobagobankthathasU.S.currencyATMs.InseveralCaribbeancountries,RBCclientscanbankviatelephoneoronline.

Account openingRBCiscommittedtoensuringtheprocessofopeninganaccountisasstraightforwardaspossible,whilestillmeetingregulatoryrequirements.Usingplainlanguageandavailableinmultiplelanguages,ourdocumentsclearlyoutlinetherequirementsforopeninganaccountandmeetingourverificationoffundspolicy.

In2008,RBCadoptedanewworkflowsystemthatautomatestheprocessingofformsrequiredtoopenanaccount.Ratherthanpapermovingviamail,formsandsupportingdocumentationarenowscannedatthebranchlevelandforwardedelectronicallyinamoreaccurateandtimelyfashion.Thishassignificantlyreducedtheamountoftimeittakestoopenanaccount.

In2008,RBCBankintheU.S.introducedtheOneDegreeSalesPlatform,reducingthetimerequiredforopeninganewaccountfrom30minutestosixminutes.

Client complaint processOurformalprocessforhandlingclientconcernsisoutlinedonourwebsiteandinourStraightTalk®brochures.IfclientsbelieveanissuetobeunresolvedfollowingreceiptofaresponsefromtheRBCrepresentativedealingwiththeirconcern,theymayappealtotheOfficeoftheOmbudsman,whichexaminesdecisionsmadebyRBCcompaniesandreviewstheircompliancewithproperbusinessprocedures.TheOfficeensuresclientsgetafairandimpartialhear-ingandaretreatedwithconsiderationandrespect.Wealsorespectthedignityandprivacyofallpartiesinvolvedintheproceedings.CertaindisputesthatremainunresolvedafterbeingreviewedbytheOmbudsmanmaybedirectedtoanumberofagenciesandregu-latorslistedonrbc.comandinourStraightTalkbrochures.

Access to banking and insurance

Reaching out to clients 24/7RBCisaleaderinintroducingconvenientalternativesforpeopletoaccesstheirmoneyandfinancesanywhere,anytime.Wecontinuetoexpandandimproveourbranchnetworks,includingonlineandtelephonebanking,andfull-servicebankingmachines,asoutlinedintheMarketplacechartonpage5.

CanadaWeopened28newbankbranches/facilitiesin2008andexpecttoopenasmanyas25morein2009.Overhalfofourbranchesareopenextendedhours,andwecontinuetolookforopportunitiestoofferextendedhourswhereverthereisademand.Wecontinuedtoexpandourretailinsurancebranchnetworkwith14newlocationsaddedin2008.WehavethelargestsalesforceinCanada,includingmobilespecialistswhogotoourclients’homesanydayoftheweekaclientchooses.Theseincludemortgagespecialists,insurancerepresentatives,investmentandretirementplanners,andspecial-izedsalesforcesforbusinessandcommercialclients.Ourclientscanbankonlineorbyphone,oruseourATMsanytimetheywant.In2008,weintroducedMobileBanking,whichletsclientsaccessRBC®OnlineBankingovertheirInternet-enabledmobilephoneorhandhelddevice.

Banking and insurance network in Canada

Branches Bank machines (ATMs) Insurance branches

2008 1,174 4,149 35

2007 1,146 3,946 21

2006 1,117 3,847 9

Online banking client enrollments*

(millions)

2008 4.8

2007 4.2

2006 3.5

* IncludespersonalandbusinessclientsinCanadaenrolledforonlinebankingservicesasofeachfiscalyear-end(October31).

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30 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Marketplace

Morethan700ofourbranchATMsinCanadaarewheelchairaccessible.OurATMsurrounddesignexceedsthekneespacerequirementoutlinedintheCSAbarrier-freedesign,sothatpeopleinwheelchairshaveeasieraccess.In2008,clientshadaccessto745“talking”RBCbankmachinesacrossCanada.ClientscaneasilyfindatalkingATMusingthesearchtoolonourwebsite.

Telephone bankingRoyalDirect®hasaspecialnumberthatcanbeaccessedusingateletypewriter(TTY)device,givinghearing-impairedclientsinCanadaandtheUnitedStates24/7accesstoourtelephonebankingservices.RelayServicescanalsobeusedtotalktoarepresentativeaboutbankingneeds,particularlyformorecomplexrequirements.

Online bankingOurgoalistomakeourwebsitesaccessibleandusableforourclients.Ouronlinestandardsenableaccessusingabroadrangeoftechnologiessuchasdifferentbrowsersincludingadaptivedevicesusedbypersonswithdisabilities.RBCisapioneerinapplyingthewebcontentaccessibilityguidelinesdevelopedbytheWorldWideWebConsortium.

Print materialsRBCclientscanreceiveprintmaterialsinanumberofalternativeformats,includinglargetype,audiocassettes,Brailleande-text.Morethan800RBCclientsreceiveBraillestatements.In2008,weimprovedthesestatementsbasedoncommunityfeedbackandnewstandards.

SeniorsRBCissensitivetothespecificbankingandinsuranceneedsandconcernsofthegrowingpopulationofseniors.Weofferspecializeddepositandinsuranceoptionsforseniors,includingfreebankingandmonthlyrebatesonbankaccounts.WealsoprovidetrainingandpresentationmaterialtoemployeesacrossCanada,enablingthemtomeetwithgroupsofseniorstodiscussfinancialfraud.

IntheU.S.,throughtheacquisitionofANBin2008,RBCBankintro-ducedanew,no-feechequingaccountforseniorsthatpaysinterestonbalancesover$1,000andprovidesfreebasiccheques.

Students and youthRBCoffersavarietyofbankingandcreditproductstailoredtomeetyoungpeople’sneeds.Forclientsunder19inCanada,theRBCLeo’sYoungSaversAccount®includes15freedebittransactionsmonthlyalongwitheducationalmaterialsandaccesstotoolstohelpyouthandtheirparentsincreasetheirfinancialawareness.In2008,RBClaunchedtheFamilyFinancialKitforparentsofCanadianchildrenaged0to5toassisttheminbetterorganizingtheirfinances,protectingtheirfamilyfromtheunexpected,andplanningfortheirchildren’sfutureandeducation.

Special groupsRBCprovidesbankingaccesstoahostoftraditionallyunderservedgroupsthroughcustomizedproducts,services,channelsandcommunity-basedprograms.

Low-income and underserved clientsRBCiscommittedtoprovidingbankingaccesstolow-incomeandpreviouslyunderservedclientsthroughinitiativeslike:

• Ourlow-costCanadiandepositaccount,oneoftheindustry’smostflexible,offering15monthlydebittransactionsforalow,flatfee

• Affordablemortgageoptionsandfirst-timebuyerworkshopsintheU.S.

• AccesstobasicbankingforremoteAboriginalcommunitiesofferedthroughinnovativepartnershipswithlocalagents

• U.S.branchofficesthatservicelow-andmoderate-incomecom-munities.InJuly2008,19%ofourU.S.bankbrancheswereinsuchcommunities.

People with disabilitiesForclientswithdisabilities,RBC’sgoalistoensureequalaccesstopremisesandservices.RBChasastrongrecordofmakingaccessibilityimprovementsandinvolvingourclientsandotherstakeholdersintheprocess.In2008,welaunchedAccessibleRBCBanking,adedicatedwebsitethatinformsclientsongeneralaccessibilityissuesandRBCstandardsandtools.

Formoreinformation,seerbc.com/accessibility

BranchesWe’recommittedtoapplyingbarrier-freedesignstandardswhereverweoperateandapproximately90%ofRBCbankandinsurancebranchesinCanadaandtheU.S.arewheelchairacces-sible.IntheCaribbean,thevastmajorityofourbranchesarewheelchairaccessible.Ourphysicallocationsareauditedperiodi-callyforaccessibilitytoidentifyandremovebarrierstopeoplewithdisabilities.InCanada,everynewRBCbranchmustbewheelchairaccessibleand,whereverpossible,weexceedlegalrequirementsforaccess.AllRBCU.S.bankingandadministrativefacilitiesbuiltorrenovatedsince1990havemetorexceededAmericans with Disabilities Act(ADA)requirements.

ATMsRBCworkedwiththeCanadianStandardsAssociation(CSA)toshapetheindustrystandardforbarrier-freeATMs,andwewerethefirstbankworldwidetoprovideaudio-enabledATMs.OurprototypehasbeenadoptedasthedefactostandardbyboththeCSAandotherstandardsbodiesaroundtheworld.

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31 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Marketplace

Aboriginal communitiesInadditiontoeightCanadianbrancheslocatedonreservesandsixbranches“Northof60,”RBChasestablishedfiveagencybankingoutletsinAboriginalcommunitiesinAlberta,BritishColumbia,Manitoba,andOntario.TheseagenciesprovideaccesstofinancialservicesusingRBCsystemsandinfrastructureinremoteareas.TherearecurrentlythreemoreagenciesunderconsiderationforSaskatchewan,Ontario,andNewfoundland.

OurdedicatedteamofspecializedAboriginalbankingmarketmanagers,accountmanagersandriskmanagersunderstandstheuniquelendingissuesandfinancialserviceneedsofAboriginalgovernments,businessesandcommunities.TheteamharnessesitsexpertisetoprovideproactivefinancialadviceandsolutionstoourAboriginalbankingclientsacrossCanada.

Fifty-sixFirstNationsparticipateinourOn-ReserveHousingLoanProgram,whichhelpsmorefamiliesenjoythelong-termbenefitsofhomeownershipandinvesting.Anumberofmortgageandhousingpolicychangesnowallowbandstoofferhousingtonon-FirstNationspeoples,improvingthereserve’seconomicviability.

MicrocreditMicrocreditor“microfinance”isconsideredaneffectiveapproachtoalleviatingglobalpoverty.Microfinanceconsistsofsmallloansusuallyoflessthan$200thatareprovidedbyorganizationsorfinancialinstitutionstoindividualssothattheycanestablishorexpandsmall,self-sustainingbusinesses.Manyoftheseloansaregiventowomen,andtheloansaregenerallyfacilitatedthroughafinancialinstitution’sretaildeliverychannellocatedonthegroundindevelopingnations.

WeareoftenaskedifRBCisinvolvedinmicrocredit.Wearenot.Infact,wearenotintheretailbankingbusinessindevelopingnationsoutsideoftheCaribbeanregion.Internationally,weservecorporate,institutional,publicsectorandbusinessclientswithin-vestmentbanking,trading,correspondentbankingandreinsuranceneeds.Intermsofretailservices,weprovideprivatebankingandwealthmanagementservicesforhighnetworthindividualsinter-nationally.WedosupportcharitableprogramsthatprovidesmallloansforindividualstopursueeducationorbusinessopportunitiesintheCaribbean,butthedirectprovisionofmicrocreditisnotpartofourbusinessstrategy.

Weservelow-incomeclientsinCanadaandtheUnitedStatesandprovidecreditandfinancingexpertisetosmallbusinessesinCanada,theUnitedStatesandtheCaribbean.WereportourprovisionofcredittosmallbusinessesinCanadaannuallyinthispublication.Seepage63.

IntheU.S.,RBCBankoffersstudentsandtheirfamiliesanumberofwebresourcestohelpchoose,planandfinanceacollegeeducation.Thisincludesadviceonchoosingtherightcollege,descriptionsoffinancingandaidprograms,andanumberoftoolstocalculatethecostsandvalueofhighereducation.

Newcomers to CanadaRBCwantstobethefinancialinstitutionofchoicefornewcomerstoCanadaandtoservetheneedsofthecommunitiesandculturestheyrepresent.Wearecommittedtomakingiteasierfornew-comerstosucceed.In2008,welaunchedaWelcometoCanada packagewhichfocusesonthekeyfinancialdecisionseverynewcomerfacesintheirfirstfewmonthsinCanada.Availablein14languages,thepackageincludesintroductorydiscountsonproductsandservicestomeetimmediatebankingneedswhileprovidingguidanceandadvicetoachievefuturefinancialgoals.WealsoexpandedourEquityProgramforNewImmigrantstoCanada,whichenableseligiblenewCanadianstoobtainmortgagefinancingwithouthavingtoprovidetraditionalconfirmationofemployment/incometosupporttheirabilitytoserviceamortgage.Theclientmustdemonstratetheyhavesufficientresourcestoservicethemortgage.

People who speak different languages• Asagroup,RBCemployeesspeakmorethan100languages.

• Combined,RBCcallcentreemployeesspeak60languages.

• WehaveadedicatedtelephonenumberforMandarinandCantonese-speakingclients(1-888-769-2598).

• In2008,RBClaunchedtelephoneserviceinmorethan150lan-guageson1-800-ROYAL®-1-1.Withinminutes,acustomerservicerepresentativecanconnectaclienttooneof2,600languageinter-pretersviaathree-wayconfidentialconferencecall.

• Combined,ourmobilemortgagespecialistsspeakmorethan35languages.

• OurWelcometoCanadawebsiteisavailableinFrench,EnglishandsimplifiedChinese.

• WehavededicatedChineselanguagetelephonerepresentativesandaChineselanguageoptiononourbankingmachinesat1,861locationsacrossCanada.Thisnumbercontinuestogrowasweexpandournetwork.

• ConsumerscanuseouronlinebranchandATMlocatortosearchournetworkbylocation,hoursandlanguagepreference.

• IntheU.S.,RBCBankhasabout451employeeswhoarebilingual.Ofthese,200speakSpanishfluently.Allofourbankingmachinesarebilingual.

• RBCBankcontinuestoofferatelephonelanguageinterpretationservicetoassistclientswhocannotspeakEnglish.

• RBCbranchesintheDutchCaribbeanaremultilingual,inkeepingwiththedemographicsinthosecountries.

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32 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Workplace

Workplace

RBC employment worldwide

AsatOctober31,2008

Full-time equivalent Number of employees positions

Canada* 56,112 49,999UnitedStates 14,082 13,452International 9,906 9,872

Total 80,100 73,323

* Seepage62foraregionalbreakdown.

Principles and policiesEveryemployeeatRBCisguidedbyourvisionof“Alwaysearningtherighttobeourclients’firstchoice,”andourvaluesofService,Teamwork,Responsibility,DiversityandIntegrity.

At RBC, we are bound by shared values, committed to helping our clients and proud of being a top employer. Our strong culture of employee engagement is reflective of our commitment to diversity and inclusion. We provide an enriching employee experience with opportunities to pursue rewarding and challenging work with talented and supportive colleagues, learning and development opportunities, benefits that have the flexibility to meet employees’ needs, fair and competitive compensation, and support for work/life effectiveness.

Priorities 2008 Performance highlights

Maintainprogressiveworkplacepolicesandpractices • Ourregularworkplacepolicyreviewprocessensuresweprovide flexibleandeffectiveworkingenvironmentsforemployees • Updatedandenhancedaninteractiveonlinetooltohelpemployees understandtheimpacttheirplannedretirementdatewillhaveontheir pensionpaymentsandhealthcarecostsinretirement

Providecompetitivecompensationandtotalrewards,and • Invested$149millioninformaltrainingandcareerdevelopmentenablegrowththroughtraininganddevelopmentopportunities initiatives,includingdirectandindirectexpenditures • Sponsoredemployeesavingsandshareownershipprogramsthrough whichthemajorityofemployeesareRBCshareholders

Respectdiversityandpromoteinclusion • LaunchedMOSAIC,anemployeeresourcegroupthatprovides newcomerstoCanadaandvisibleminoritiesatRBCwithmentoring andnetworkingopportunities • PilotedaVirtualJobFairthatfocusedonprovidinganaccessible andengagingenvironmentforpeoplewithdisabilities;received 700applicationsonthefirstday;83ofthoseapplicantshave alreadyjoinedRBC’sPursueYourPotentialprogram

Fosteracultureofemployeeengagement • Sustainedhighemployeeengagementasindicatedinour2008global employeeopinionsurvey • RecognizedasoneofCanada’sTop100EmployersbyMediacorp CanadaInc.,whichprofilesorganizationswithinnovativeprogramsto attractandretaintalentedemployees • RecognizedasoneofCanada’sMostAdmiredCorporateCultures

Issues• Changingdemographics.Wecontinuetorecognizetheimpactofpossibletalentshortagesinthenextdecadeandbelievethatsolu-tionsshouldbemulti-faceted,includingexpandingthesourcesofnewemployees,developingthecapabilitiesofexistingemployeesandextendingtheworkinglifeofretirement-eligibleemployees.

• Healthcarecosts.ThecostofemployeehealthcareinCanada,andinothercountriesaroundtheworld,continuestoincrease.Escalat-inghealthcarecostsarearealissueforcompaniessponsoringhealthcareprograms.RBCcontinuestolookforwaystoproactivelymanagefutureincreasesinthecostofourhealthcareprograms.Wedothisbyraisingawarenessamongemployeesandengagingthemtobecomesmartconsumersofhealthcareservicesandtoleadahealthylifestyle.

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33 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Workplace

RewardsEmployeesvaluebothmonetaryandnon-monetaryrewards.Werecognizethatnotwoemployeeshaveidenticalneeds,soourTotalRewardsprogramisbuilttoprovideflexibilityandchoiceandpromoteasharedaccountabilityforsuccess.

OurTotalRewardsframeworkencompasses:

• Fairandcompetitivecompensationincludingperformance-basedincentives

• Short-andlong-termsavingsandwealthaccumulationprograms

• Flexiblebenefitsthatprovideemployeeswiththeabilitytochoosethecoverageneeded

• Apositive,safeandflexibleworkingenvironment

• Learningandcareergrowthopportunities.

Employee compensation and benefits*

2008 $7.8billion2007 $7.9billion2006 $7.3billion

* ThesefiguresareprovidedforRBC’sglobaloperations.

Compensation, incentives and wealth accumulation programsAtRBC,ourcompensationincludessalary,anannualbonus,long-termincentives,commissionsandothervariablepay.Weparticipateinover100externalbenchmarkingsurveysannuallytoensureourcompensationremainscompetitive.Ouremployeeshareownershipplansandretirementsavingsplansprovidelong-termsavingsandwealthaccumulationopportunities.

Ourshort-termincentivebonusprogramrewardsemployeesfortheircontributiontotheirbusinessunit’sperformanceandouroverallperformance.Also,dependingonthetypeofworktheydo,someemployeesmayparticipateinvariablecompensationprogramssuchassalescommissionsandsalestargetachievementbonuses.

Retirementsavingsprogramshelpemployeesplanforretirement.InCanada,ourpensionplanoffersflexibilityandchoicetohelpemployeesaddresstheirdiverseneeds.Theprogramoffersthesecurityofadefinedbenefitplanwiththeflexibilityofadefinedcontributionplan.EmployeescanchoosetoparticipateineitheroptionandcansupplementtheirretirementsavingsbyeithermakingoptionalcontributionstothepensionplanorbyjoiningtheRBCsavingsprogram.Dependingontheoptionstheychoose,employeesmayreceiveemployermatchingcontributions.IntheUnitedStates,RBCoffersaflexible401(k)program.

OuremployeeshareownershipplansarepartofourTotalRewardsprogramandhelpalignemployee,investorandcompanyobjectives.InCanada,approximately70%ofeligibleemployeesareRBCshare-holdersthroughtheplans.

Guiding workplace principlesWhatwestandforasanemployerisdefinedinasetofworkplaceprinciples.Theyguideourcontinuingeffortstosupportthemutualsuccessofemployees,clientsandshareholders.

•Passion for client success.Wevaluepeoplewhoarepassionateaboutputtingclientsfirstandaboutcontinuouslyimprovingourabilitytohelpourclientssucceed.

•Diverse needs and contributions of individuals.Weembracediver-sityinpeople,skillsandideas.Wecultivateanenvironmentwherepeoplewithdiversebackgroundsandapproachescometogethertocreatewinningsolutionsforclients.

•High-performance work environment.Ourpassionforwinningfuelsourdesiretobethebestthatwecanbe.Wehavethepeopleandtheresourcestoenableahigh-performanceworkenvironment,andwemakesurethatresultsareappropriatelyrecognizedandrewarded.

• Professional growth.Weprovidecareeropportunitiesthroughmeaningfulgrowth,aswellasthetools,supportandtrainingtoen-suresuccessinroles.Inreturn,weexpectemployeestogrowandexcelwiththespiritofaprofessionalandtoshareresponsibilityforcareerdevelopment.

•Excellence in people management.Weunderstandtheessentialroleleadersplayinengagingemployeestodelivertopperformance.We’recommittedtodevelopingeffectiveandinspiringleadersandpeoplemanagerswhoenhancetheemployeeexperienceandemployeeengagement.

• Partner for mutual success.Webelievethatwinningasindividuals,asteamsandasanorganizationrequiresasharedsenseofpur-posebuiltonopencommunication,mutualrespectandpersonalaccountabilityforresults.

PoliciesOurpoliciescomplementourworkplaceprinciples.EmployeeconductisgovernedbyanoverarchingCodeofConductandothermorespecificpolicies.TheCodeisdescribedonpage14.TheHumanResourcesCommitteeandtheCorporateGovernanceandPublicPolicyCommitteeoftheBoardofDirectorsregularlyreviewandapproverevisionstotheCodeofConduct.Successfulcomple-tionofourCodeofConductonlinelearningprogramisaconditionofemploymentforallRBCemployees.

Supplementary policies and issuesSupplementarypoliciescoveranumberofadditionalworkplaceissuessuchasemploymentequity,hoursofwork,compensationandharassment.Wedonothaveformalpoliciesoneveryissue.Forinstance,RBCdoesnothaveaformalpolicystatementonchildorforcedlabour,giventhenatureofourbusinessasafinancialinstitutionoperatingindevelopednations.However,wedoincludechildlabourprovisionsinoutsourcingandprocurementcontractsinvolvingdevelopingnations.

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34 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Workplace

• Comprehensiveformaltrainingprogramstohelpnewemployeesbesuccessful.Over4,400employeescompletedtheentrytrainingprogramsforClientServiceRepresentative,AccountManager,andcontactcentreSalesandServiceRepresentativepositions

• Accesstothoughtleaderstoprovidecurrentandleadingedgeprogressivetalentmanagementpractices.

RecruitmentOurprimaryapproachistopromotefromwithinRBCandwecontin-uetooffergrowthanddevelopmentopportunitiesforemployees.Buildingforthefuturealsoincludesrecruitingfornewtalentandsomeofourkeyactivitiesfor2008included:

• Visitstomorethan70university,collegeandtechnical/businesscampuses

• Internshipprogramsfornewcollegeanduniversitygraduates

• Morethan34%ofthepeoplehiredatRBCin2008werereferredbyourownemployees.Ouremployeereferralprogram,StarFinder,wasenhancedin2008torewardemployeeswhoreferredcandi-datesthatweresuccessfullyhired

• ThePursueYourPotential™program,designedtohelpemployeeswithdisabilitiesandAboriginalpeopleexplorecareeropportunitiesandunderstandtherecruitmentandselectionprocess.Candidateshaveaccesstoadedicatedpointofcontactwithinourrecruitmentgroupandareprovidedwithmeaningfulfeedbackoninterviews.QualifiedcandidatesarealsoreferredtootherareasofRBCifaninitialapplicationisunsuccessful.

Diversity and inclusion

Workforce composition progress reportThecompositionofourworkforceisanimportantmeasureofhowwellourdiversityeffortsareworking.Diversityinitiativescantakeseveralyearstoshowresults,makingyear-over-yearcomparisonslessmeaningfulthanlonger-termones.

Diversity in our workplace in Canada*

2008 2007 2006 1998

Women 69% 69% 70% 75%Womeninmanagement 54% 55% 55% 53%Visibleminorities 26% 25% 24% 12%Visibleminorities inmanagement 25% 24% 21% 13%Peoplewithdisabilities 3.8% 3.9% 3.2% 2.9%Aboriginalpeople 1.6% 1.6% 1.6% 1.1%

* FiguresrepresentemploymentequitydataasofOctober31,2008,forourbusinessesinCanadathataregovernedbytheEmployment Equity Act.Givenvariationsinlegaldefini-tionsandrestrictionsinlegislationaroundtheworld,comprehensivedataonthesefourdesignatedgroupsisavailableonlyinCanada.

BenefitsWeofferacorepackageofbenefitsplusaflexibleoptionalbenefitsprogramthatgiveemployeesaccesstocompetitiveandaffordablebenefits.Part-timeemployeesareeligibleforbenefitscoverage.

Health, safety and wellnessOurCodeofConductstatesourcommitmenttoprovidingsafeworkplacesforallouremployees.Wealsohavemorespecificwork-placesafetypoliciesinmostofourlocations.AllemployeesandtheirdependentshaveaccesstotheEmployeeCareprogram,whichisanextensivesupportprogramthathelpsmanageallaspectsoftheirworkandpersonallives,withconfidentialaccesstoinforma-tionandcounselling.In2008,we:

• ContinuedtointegratedwellnessfeaturesintoourCanadianandU.S.benefitsprograms.Employeescanearnwellnesscredits,whichcanbeputtowardspurchasesintheirbenefitspackage

• Encouragedemployeestoleadhealthylifestylesthroughaseriesofcampaignsandcommunicationinitiativesthataddressednutri-tion,physicalactivity,stressmanagementandwellnessinitiatives

• Providedemployeeswithreferralstoappropriatemedicalandsupportnetworks.

FlexibilityWeprovideemployeeswiththeopportunityto:

• Workflexiblehoursormodifiedworkschedules

• Workfromhomeoroff-sitelocations

• Reduceworkhoursthroughjobsharing

• Buyanadditionalweekofvacation

• Takeanunpaidleaveforpersonalreasonssuchasforeducationorpersonaldevelopment.

Ourenvironmentprovidesmanagerstheflexibilitytodealwithworkplacesituationsonacase-by-casebasis.

Career development and learningWeprovideprofessionaltraininganddevelopmenttohelpemploy-eesbuildsuccessfulcareers.Formaltraininganddevelopmentprogramsareanimportantcomplementtolearningonthejobandin2008,weinvested$149millioninformaltraininganddevelop-mentprograms(directandindirectexpenditures),whichinclude:

• Aglobalonlinelearningsystemthatprovidesemployeeswithaccesstotrainingresourcesandopportunitiesfromworkandfromhome

• AcareerinformationguideentitledWinning Careers at RBCandconfidentialaccesstoCareerAdvisor,acomprehensiveonlinecareermanagementresourcekit.Morethan14,000employeeshavemadeuseofitsinceitwasintroducedin2006

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35 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Workplace

Training and mentoringRBCiscommittedtoongoinglearning,coachingandmentoringtoensurewedevelopandsupportarichanddiverseworkforce.Employeediversitytraininginitiativesinclude:

• Business Excellence through Diversity:Workshopswereattendedbyover380employeesglobally.

• Respectful Workplace:AlmostallU.S.employeescompletedthisprogramthathelpsindividualsunderstandandcomplywithourCodeofConductandrespectfulworkplacepolicy,whichstatethatallemployeeshavetherighttoworkinanenvironmentfreefromharassment,discriminationandoffensivebehaviour.

• Extensiveself-studymaterialsareavailablethroughourinternalwebsite,Destination Diversity.

• RBC Diversity Dialogues:Ourreciprocalmentoringprogramwasexpandedtomorethan200employees.Thisprogramconnectstwopeoplewithdifferentprofessionalexperiencesandbackgroundstolearnaboutleadershipanddiversityfromeachother.

Employee resource groupsEmployeeresourcegroupsareself-governingnetworksofemploy-eesthathelptheirmembersdeveloppersonallyandprofessionallythroughpeermentoring,coachingandnetworking.Thesegroupshelpcultivateaninclusiveworkenvironmentbyfosteringabetterunderstandingoftheirneeds.GroupsthatareformallyrecognizedbyRBCreceiveanannualbudgetandcommunicationssupportfromthecompany.

InCanada,wehaveemployeeresourcegroupsrepresentingAboriginalemployees(RoyalEagles);lesbian,gay,bisexualandtransgenderedemployees(PRIDE);andemployeeswithdisabilities(REACH).Thisyear,RBClaunchedanewemployeeresourcegroup–MOSAIC,whichsupportsnewCanadiansandvisibleminorities.

IntheU.S.,wehavegroupsrepresentinggayandlesbianem-ployees(GLADE)andminorityemployees(MEA).Aswell,womenbrokersaresupportedbytheWomen’sAssociationofFinancialConsultants,aresourcegroupthatfosterstheproductivityandsuccessofwomenfinancialconsultantsthroughawiderangeofinformation,eventsandprograms.

Programs to support diversityWeparticipateinanumberofexternalandinternalprogramsthatsupportdiversity.Forinstance,forthepast12years,wehavesuccessfullypartneredwiththeCareerEdgeorganizationtoprovidepaidinternshipstostudents.Since2003,approximately300employershaveprovidedmeaningfulworkexperiencestoover920CareerBridgeinterns.RBChasprovidedinternshippositionstoover70qualifiedprofessionalsthroughtheCareerBridgeprogramfornewcomerstoCanada,including28in2008.RBChasalso

LeadershipTocreateandsustainadiverse,inclusiveandcollaborativeworkenvironment,peopleatalllevelsoftheorganizationmustbeen-gaged.OurPresidentandCEOchairstheRBCDiversityLeadershipCouncil,createdtoestablishstrategiesandgoals,andtohaveRBCsenior-leveldiversitychampionsinplaceinNorthAmericaandtheUnitedKingdom.Inaddition,individualbusinessunitshavediver-sityleadershipcouncilsthathelpadvancediversityandinclusion.

OurleadersarealsoactiveoutsidetheRBCworkplace.Webelieveprogressindiversityisasocietalobjectiveandwecanlearnfromoneanother.Ourleadersparticipateinvariouspublicdiscussions,panelsandworkshopsthatfocusonpromotingdiversityintheworkplace.

Raising diversity awarenessRBCpromotesdiversitybysharingourknowledgeandencouragingdiscussionofitsimpactonbusiness,communitiesandtheecon-omy.Forexample,RBCsponsorsastudybyCatalystCanadaandRyersonUniversityonthecareerdevelopmentandadvancementofvisibleminoritiesincorporateCanada.In2008,CatalystCanadareleasedthefourthpartofthisstudythataddressedworkplacefitandstereotypingofvisibleminoritiesincorporateCanada.Thestudyshowedthat,likeorganizationsinothercountries,Canadianbusinessesappeartobesufferingfrom“imperfectexecution”ofdi-versityandinclusionpolicies.Thestudyalsohighlightsstrategiesforcompaniestohelpthemleveragethetalentsofvisibleminorityemployeesmorefully.

In2008,wecreatedtheRBCDiversityBlueprint™whichsetsoutourcorporatediversitystrategy,prioritiesandobjectives.ThepurposeoftheblueprintistooutlinehowwewillcontinuetoimproveourdiversitypositioninCanada,strengthenourexistingdiversityandinclusioneffortsintheU.S.andinternationally,andwherenecessary,developnewinitiativesthatsupportourcommitmenttodiversity.

Formoreinformation,seepage59

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36 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Workplace

• Amonthlynewsflashwithadviceandinformationtargetedspecificallytomanagers

• Aseriesofonlinewebcastsdesignedtohelpmanagersandemployeeslearnaboutvariousperformancemanagementtopics

• Anonlineresourcethatprovidescoaching,information,toolsandforms

• Aseriesoflearningmodulesinourmanagementtrainingprogram,enhancedin2008totargetlearningbasedontheexperiencesofpeoplemanagersandmakeiteasierformanagerstoaccesstheprogram’sresourcesandtools.In2008,morethan3,800managerscompletedatleastoneofthesemodules

• Supportmaterialtohelpfacilitateemployeediscussionsaboutwhatournewbrandandgrowthstrategymeansforemployeesandhowitalignstoourbusinessobjectives.TheCREATEstrategyembodiesandsimplifiesourrole–tofocusonservingourclientsandcollaboratingwitheachothertohelpclientssucceed.

Employee opinion surveysOurgoalistocontinuetobeoneofthetop-performingcompaniesinNorthAmerica.Alargepartofthissuccessdependsonlisteningandrespondingtoouremployees,andwehaveconductedregularemployeeopinionsurveyssince1981.Wecompareoursurveyresultswithtop-performingNorthAmericancompaniesandfinancialinstitutionsandourownpastresults.Wecelebrateoursuccessesandtakeactiononareasforimprovement.

2008 Employee opinion surveyIn2008,theresponserateofourglobalsurveywas70%.Resultsshowed:

• HighlevelsofemployeeengagementandhighVision&Valuesscores,upfromthelastfullemployeesurveyandabovethebenchmarks

• Comparedtootherhigh-performingcompanies,wearesignificantlyabovethebenchmarksinalleightcategorieswherewehavethecomparisonavailable

• Morethan90%ofthoseemployeeswhorespondedreportthatworkingatRBChasmetorexceededtheirexpectations,includingoverone-thirdwhosayworkingatRBChasexceededtheirexpectations.

Top employer

In2008,RBCrankedamongthetop100employersinCanada.Thecompetition,heldannuallybyMediaCorpInc.,profilesorgani-zationswithinnovativeprogramsthatattractandretaintalentedemployees.RBCwasalsonamedoneofGreaterToronto’sTopEmployers.Additionally,RBCwasagainrecognizedin2008throughWaterstoneHumanCapital’sCanada’sMostAdmiredCorporateCulturesaward.

providedover85internshipsforgraduateswithdisabilitiesthroughtheAbilityEdgeprogram,including21in2008.Approximately70%ofinternsinbothprogramsjoinRBCasfull-timeemployeesfollowingtheirinternships.

WearealsocommittedtoincreasingtherepresentationofAboriginalpeoplewithinourworkforce,throughproactiverecruit-mentandprograms:

• SincetheRBCAboriginalStudentAwardsProgramwaslaunchedin1992,wehaveawarded77scholarshipstotalling$866,000toAboriginalstudentsacrossCanada.In2008,weawardedeightscholarshipsandwillbeexpandingtheprogramin2009byofferingtwoadditionalscholarships.

• In2008,thePursue Your PotentialrecruitmentprogramwasexpandedtoincludeAboriginalpeople,helpingthemexplorecareeropportunitiesandunderstandtherecruitmentandselectionprocess.

• Atotalof44studentsacrossCanadaparticipatedintheRBCAboriginalStayinSchoolProgramduringthesummer2008schoolbreak.

• InOctober2008,aspartofFIPAR(FinancialIndustryPartneringforAboriginalRelationships),RBChelpedlaunchanewwebsitede-signedtoeducateAboriginalyouthoncareeropportunitieswithinthefinancialindustry.

Manyofourinternalpoliciesandprogramspromotediversityatalllevelsofthecompanybyprovidingtheflexibilityandsupportthatmanyemployeesneedtomanageworkandlife.Thisincludes:

• Accesstopersonalwork/lifecounsellingservices

• Maternity,parentalandfamilyresponsibilityleave

• Theoptionofreturningfromleavesgraduallyorinanalternativeworkarrangement

• Emergencybackupeldercareandchildcareinseveralmajorcentres.

Engagement

People managementWehave8,000peoplewhomanageothersacrosstheorganization.Managersplayacriticalroleincreatinganengagingworkenviron-ment,andRBCinvestsinanumberofresourcestosupportthem,including:

• 360-degreereviewsthatprovidemanagersatalllevelswithanonymousfeedbackfromtheirpeers,directreportsandtheirownmanagerssotheycanadvancetheirpersonaldevelopment

• Tailoredemployeeopinionsurveydatafromwithinamanager’sownunitsothemanagercandevelopandreviewkeyactionplanswithemployees

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37 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Workplace

Information and educationRBCrecognizestheimportanceofkeepingemployeesinformed.In2008,ourinitiativesincluded:

• Theuseofavatartechnologytoinformemployeesaboutprivacyandinformationsecurityandtoeducateemployeesaboutretireebenefits

• OnlinewebcastsaimedathelpingemployeesunderstandcareersatRBCandhowtoeffectivelymanageperformance

• Acomprehensiveinternalwebsitetohelpemployeesunderstandwhatournewbrandandgrowthstrategymeansforclientsandforemployees

• Aconvenientandflexiblequarterlyaudiobroadcast,featuringourPresidentandCEO,tocommunicateprogressonstrategicgoals,financialresultsandkeymessagestoemployees

• Briefvideoclipstoprovideemployeeswithsomeinsightintohowtomanageasuccessfulcareer.Topicsincludecoachingothers,networkingandmentoring,takingownershipofyourcareer,changingworldofwork,andgenerationsatwork

• Leaders’blogstolisten,respondandengageemployeesindialoguetodeepentheirunderstandingoftheissuesandbetteralignthemtoreactquickly,effectivelyandcollaborativelytotheneedsoftheday.

Employee concernsRBCencouragesopencommunicationandtheresolutionofem-ployeeconcernslocallywheneverpossible.Inaddition,employeeswithunresolvedconcernsmayapproachourEmployeeOmbuds-man,withintheOfficeoftheOmbudsman.Thisconfidentialandimpartialresourceprovidesawayforemployeestomanageandresolveworkplaceconflictthroughdiscussion,coachingandmediation.In2008,theEmployeeOmbudsmanopened968casesfromallRBCbusinessesandfunctions.

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38 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

Environment

• Thereisagrowingdemandforqualityandquantityinenvironmen-talandsocialreporting.Theproliferationofsustainabilityratings,indicesandNGOinformationrequestscandivertresourcesawayfromdesigning,implementingandmanagingenvironmentalprograms.

• TherehasbeenagrowinglevelofNGOoppositiontoprovidingfinancingtocarbonintensivesectors,especiallyforoilsandsdevelopmentandcoal-firedpowergeneration.

• Thereisgrowingconsumersuspicionofexaggeratedorfalseclaimsregardingacompany’senvironmentalperformanceortheenviron-mentalvirtuesofaproductorservice,knownas“greenwash.”

RBC is committed to proactive and prudent management of the environmental aspects of our business. The RBC Environmental Blueprint describes the policies, programs, and guidelines planned or underway to support this commitment. We believe that fulfilling our environmental goals will lead to short- and long-term benefits for clients, shareholders, employees and the communities in which we live and conduct business.

Priorities 2008Performancehighlights

Reducetheintensityofourenvironmentalfootprint • ConvertedallofficepaperpurchasedinCanada,theU.S.andthe BritishIslestopapercertifiedbytheForestStewardshipCouncil, theProgramfortheEndorsementofForestCertificationorto 100%recycledcontent • Opened36newgreen-poweredbranchesinCanada,givingusa totalof76Canadianbranchespoweredby5,042MWh*ofcertified “green”emission-freepower,andreducingourcarbonfootprintby 2,095tonnes • Expandedourenergydatacoverageto65%ofourglobalfloorarea comparedto35%coveragein2007.Thisisthefirstyearwereported energydataformajorleasedpremisesinCanada,theUnitedStates andBritishIsles,includingenergyreportingforourkeydataand processingcentres

Promoteenvironmentallyresponsiblebusinessactivities • Performeddetailedenvironmentalcreditriskassessmentson650 transactionsinCanadaandtheUnitedStates • AppliedtheEquatorPrinciplestofivelargeprojects • TrainedCapitalMarketsandRiskManagementstaffonclimate changeandcarbonmarkets

Offerenvironmentalproductsandservices • Launchedourgreenhousegas(GHG)emissiontradingdeskwith capabilitiestotransactonexchangesinCanada,theUnitedStates andtheEuropeanUnion • LaunchedtheRBCEnergySaver™mortgageinCanadawhichoffers clientsa$300rebateonahomeenergyaudit • Expandedourelectronicstatementprogram,switchingmorethan 1.3millionaccountsfrompapertoelectronicstatements

IssuesandtrendsRBCismindfulofenvironmentalissuesandemergingtrendsand,wherepossible,incorporatesmeasurestoaddressthesechallengesinpoliciesandprograms.Someofthetrendsweareobservinginclude:

• Whileallcompaniesmusttakeresponsibilityfortheenvironmentalimpactoftheirdirectoperationsandpurchasingactivities,financialinstitutionsarealsoexpectedtoassesstheenvironmentalimpactoftheactivitiesoftheclientstowhomweprovidecredit.

• Financialinstitutionsareincreasinglyexpectedtoprovideservicesthatallowclientstoreducetheirimpactontheenvironmentandadapttounavoidableenvironmentalimpacts,suchasclimatechangeandwaterscarcity.

• Financialinstitutionsareincreasinglyexpectedtodevelopandadheretolendingandprocurementpoliciesthatpromotesustain-abledevelopment.

* TheoriginalPDFversionoftheRBC2008CorporateResponsibilityReportandPublicAccount-abilityStatement,publishedinFebruary2009,containedincorrectdatafortheamountofgreenpowerpurchasedin2007and2008.Wehavecorrectedandrestatedtheamountshere,asofApril30,2009.Pleasenotethatthe2008CorporateResponsibilityReview(printversion)containsthemisstateddataforamountofgreenpowerpurchased.

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39 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

Key environmental issues

Thereisnoshortageofimportantenvironmentalissuesfacingourcommunities,anditisachallengeforanyorganizationtodeterminewhereresourcesshouldbefocusedforgreatestimpact.RBChasdevelopedcriteriatohelpidentifyourkeyenvironmentalissuesasthosethat:

• haveanimpactonourbusinessactivitiesorthebusinessactivitiesofoursuppliersorclients,

•areaffectedbyourbusinessactivitiesortheactivitiesofoursuppliersorclients,and/or

•areimportanttoawidearrayofstakeholders.

Wehavechosenthreepriorityenvironmentalissuesforourorganization–climatechange,biodiversityandwater.

1. Climate changeClimatechangepresentsenvironmental,socialandfinancialchallengestotheglobaleconomy,humanhealthandtoourownbusinessesandoperations.WebelieveitisvitallyimportantthatweallcontributetoeffortstoreduceGHGemissionsandeffectivelyadapttotheimpactsofclimatechange.

2. BiodiversityBiodiversity,or“biologicaldiversity,”referstothevarietyofdiffer-entspecies,thegeneticvariabilityofeachspeciesandthevarietyofdifferentecosystemsthattheyform.Environmentaldegradationresultingfromhumanactivityandtheforcesofclimatechangeisdisruptingthenaturalbiodiversityofhabitatsandecosystems.RBCrecognizesthattheidentity,culturalbeliefsandeconomiesofsomeindigenouspeoplesareintrinsicallytiedtotheirregion’shistory,biodiversityandnaturallandscapes.Criticalnaturalsystemsandtheabundantbiodiversitytheysupportmustbepre-servedinordertomaintainhealthycommunities,culturalvaluesandshareholdervalue.

3. WaterWateristhemostimportantnaturalresourceonearth,andwithoutit,alllifewouldcease.Accesstocleanfreshwater,thepreservationandmanagementofwatershedsandwaterconservationarebe-comingincreasinglyurgentenvironmentalconcerns,bothgloballyandinmanyoftheregionsinwhichweoperate.Climatechange,pollutionandinefficientwaterusagearefactorscontributingtoagrowingwatercrisis.

Priority activities RBCbelievesthatprudentenvironmentalmanagementinourbusinessmeansfocusingonactivitiesthatmitigaterisk,enhancereturns,andprotectorenhanceourcorporatereputation.Ourthreeprioritiesareto:

• Reducetheintensityofourenvironmentalfootprint

• Promoteenvironmentallyresponsiblebusinessactivities

• Offerenvironmentalproductsandservices.

Environmental managementSinceourfirstEnvironmentalPolicywasdraftedin1991,RBChasbeencommittedtoenvironmentalmanagementandcontinuousimprovement.Tosupportthiscommitment,wepublishedtheRBCEnvironmentalBlueprintin2007,acleararticulationofourcorpo-rateenvironmentalpolicy,prioritiesandobjectives.Itsetsouthowwewillapproachenvironmentalmatterspertainingtooperations,businessactivities,productsandservices,employees,compliance,reportingtransparencyandpartnerships.TheRBCEnvironmentalBlueprintalsopresents44medium-andlong-termenvironmentalcommitmentswithapledgetoreportprogressonthesecommit-mentsonanannualbasis.

Structure and responsibilityTheRBCCorporateEnvironmentalAffairs(CEA)group,ultimatelyreportingtotheChiefOperatingOfficer,hasoversightresponsibil-itytoimplementtheRBCEnvironmentalBlueprint.CEAworkswithRBC’sbusinessandfunctionalunitstoundertakeactivitiesinclud-ing,butnotlimitedto,thefollowing:

• Develop,maintainandcommunicateenvironmentalpolicies,procedures,andguidelines

• Engagewithinternalandexternalstakeholderstoadvanceandlaunchinitiativesnecessarytomeetourobjectives

• Monitorrelevantlawsandregulations,aswellasotherrequirementstowhichRBCadheres

• Monitorkeyactivitiesandtrackperformance,includingcost-effectivenessofinitiatives

• Assesstheneedforimprovements

• Reportperiodicallytoourstakeholders,RBC’sGroupExecutiveandtheCorporateGovernanceandPublicPolicyCommitteeoftheBoardofDirectorsonourprogressinimplementingtheRBCEnvironmentalBlueprint.

RBC’sbusinessandfunctionalunitsprovideinputintoenvironmen-talstrategyandpolicy,shareinformationonandassistwitheffortstoreduceourenvironmentalfootprint,addressrisksandpromoteandleveragebusinessopportunities.

ToviewRBCEnvironmentalBlueprint,visitrbc.com/environment.

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40 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

RBC Environmental Blueprint: report card on 2008 commitmentsTheRBCEnvironmentalBlueprintisafive-yearworkplan,comprising44medium-andlong-termcommitments.Eightofthese44commit-mentswereearmarkedforimplementationin2008,andourprogressoneachoftheseissummarizedbelow.Forafull,currentoverviewofourprogressonall44commitmentsintheRBCEnvironmentalBlueprint,seerbc.com/environment.

Commitment Status Progress

ReleaseanenvironmentalpolicyorpoliciesforRBCProcurement DevelopedaResponsibleProcurementPolicy(draftasof October31)

Undertakeacarbonriskassessmentofourlendingportfolio Analyzedtheexposureofborrowersinourloanand investmentportfoliotoclimatechangerisksand regulations(reportanticipatedinwinter2008/2009)

Examinesector-specificguidelinesfortransactions Draftedsectorspecificguidelinesforthechemical industryandforestrysector

Continuetoexpandtheamountof“greenpower”wepurchase Opened36newgreen-poweredbranchesinCanada

Continuetoimproveourenergyefficiencybyexpandingvarious Revisedelectrical,mechanicalandarchitecturalprogramelementsofEnergySmarttohelpemployees standardsatCanadianbranches,andexpandedtheenterprise-widereduceourgreenhousegasemissions lightingretrofitprogram DraftedtheEmployeeEnvironmentalStewardship Guidelineswhichincludeguidanceonresponsibleenergy use(draftasofOctober31)

Continuetotransitionourpapersupplytomoresustainable ConvertedallofficepaperinCanadaandtheUnitedStatessourcesincludingFSCandpost-consumerrecycledcontent toFSC;significantacquisitionsofFSCpaperforenvelopes, marketingmaterialsandclientstatementsinCanada

ContinuetoenhanceSOFT(Sourcing,Operations,Facilitiesand MadesignificantstepsinexpandingourdatacoverageinTravel)Footprintdatacollectionandmanagement theUnitedStates Shiftedallutilitydatareportingtoactualconsumption (instancesofusingcost-derivedenergydatahistorically)

AppointmembersofanexpertAdvisoryPanelforthe ConvenedthepanelinJanuaryandheldfivemeetingsRBCBlueWaterProject® in2008

Status key

Significant action taken Mayincluderesearch,thedraftingand/orimplementationofnewpoliciesandprograms,andthedevelopmentofperformance metricswherepossible.Mayalsoincludeasignificantlevelofengagementwithexternaland/orinternalstakeholders

Some action taken Mayincluderesearch,policyand/orprogramdesign;however,workremainsbeforethecommitmentisfullymet.Mayalsoinclude somecommunicationwithexternaland/orinternalstakeholders

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41 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

• Incorporatedemployeetravel,videoconferencingand“howtosaveenergyintheworkplace”guidelinesintotheRBCEmployeeEnvironmentalStewardshipGuidelines(draftasofOctober31)

• OffsetthecarbonemissionsassociatedwiththeproductionoftheRBCAnnualReport,ManagementProxyCircularandCorporateResponsibilityReportthroughthepurchaseofandretirementofcertifiedemissionreductioncreditsrecognizedundertheKyotoProtocol

• ParticipatedinEarthHour2008,aglobaleventco-ordinatedbytheWorldWildlifeFund(WWF)tosymbolizethatindividualscanmakeadifferenceinthefightagainstclimatechange.Incollaborationwithourlandlords,RBCarrangedfor26ofourmajorofficebuild-ingsacrossCanadatopowerdownallnon-essentiallightingandelectricalequipment.

ResponsibleprocurementRBC’sprocurementimpactsareextensiveandgloballyfar-reaching,aseachyearwepurchaseover$4.7billionofproductsandservices.Wecurrentlysubjectourpurchasestoenvironmentalscreening,butrecognizedtheneedtoformalizeanenterprise-widepolicytoaddresstheenvironmentandsocialimpactsassociatedwithourprocurementactivities.

In2008,RBC:

• DevelopedtheRBCResponsibleProcurementPolicy(indraftasofOctober31,2008)thatwillincreasetheacquisitionofenviron-mentallyandsociallypreferableproductsandservices.Thepolicyaddressesthreecomponentsoftheprocurementduediligenceprocess.

1.RBCwillevaluatethelevelofregardsuppliershavefortheenvironmentandsocietybyconsideringtheextenttowhichtheydemonstratethattheirbusinessactivitiesareenvironmentallyresponsible,thatworkingconditionsattheirfacilitiesaresafe,thatworkersaretreatedwithrespectanddignity,andthatbusi-nessdecisionsandoperationsareconductedinanhonestandethicalmanner.

2.RBCwillreviewtheenvironmentalbenefitsandlifecycleimpactsofaproductbeingoffered,includingevidenceofthirdpartycertification(s)andanevaluationofaproduct’senvironmen-talimpactsassociatedwiththeextractionofrawmaterials,manufacturingprocess,packaging,transportation,productionlongevityandend-of-lifedisposal.

3.RBCwillreviewtheenvironmentalbenefitsofaparticularservicebeingoffered,includingevidenceofthird-partycertification(s),environmentallyresponsibletransportation,andotherenviron-mentallyresponsibleprogramsandinitiatives.

EnvironmentalprioritiesWeknowthatouractionscanmakeasignificantandpositivecon-tributiontohelpingsolvesomeoftheproblemsposedbyourkeyenvironmentalissues:climatechange,biodiversityandwater.Thissectionpresentsadiscussionofourpriorityactivitiesandtheprogressmadein2008.

ReducetheintensityofourenvironmentalfootprintRBCiscommittedtoreducingourenergyuse,GHGemissions,paperconsumptionandwateruse.Wearealsocommittedtoreducingthenegativeenvironmentalimpactsassociatedwiththewastewegenerateandourprocurementactivities.Weknowthatimprovingouroperationalefficiency,reducingourconsumptionofresources,anddecreasingemissionsassociatedwithourbusinessactivitiescanleadtopositiveenvironmentalandeconomicresults.

ReduceGHGemissionsandenergyuseWhileweemitGHGsdirectlythroughtheuseoffossilfuelsinsomeofourheatingsystems,mostofourGHGemissionsareindirect,throughtheuseofpurchasedelectricityandemployeetravel.Weuseenergytoheatandcoolbuildingsandtorunourtechnologyinfrastructureandlightingsystems.Thisisanareawherewehavefocusedaconsiderableamountofefforttoreduceourimpactsasitrepresentsasignificantproportionofourenvironmentalfootprintandsignificantopportunitiesforreducingcosts.

In2008,RBC:

• Opened36newgreen-poweredbranchesinCanada.AttheendofOctober2008,wehad76Canadianbranchespoweredby5,042MWhofcertified“green”emission-freepower,whichrepresentsaGHGemissionsreductionofapproximately2,095tonnesperyear

• Updatedtheelectrical,mechanicalandarchitecturalstandardsforourCanadianbranchnetworktoeliminateexcesscapacityandtoimproveenergyefficiency

• Performed19lightingretrofitsinCanadianbrancheswithanestimatedenergysavingsof463,000kWhandareductioninGHGemissionsofapproximately80tonnesperyear

• PilotedProjectReflection,anewandprogressiveofficeenviron-mentdesignthatwillsignificantlyreduceourcarbonfootprintbyoptimizingtheuseofofficespace,whichlowerslightingandHVACrequirements

• InitiatedaservervirtualizationprogramatourdatacentresinOntario,whichresultedintheremovalof480physicalservers(270convertedtovirtualand210decommissioned)

• Incorporatedclimatechangeandenergy-efficiencyconsiderationsintotheRBCprocurementdecision-makingprocessthroughtheRBCResponsibleProcurementPolicy(draftasofOctober31)

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42 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

FSC certification and third-party service providers

FSCisacertificationandlabellingsystemforpaperandforestryproductsthatarederivedfromresponsiblymanagedforests.InadditiontooureffortstoconvertourofficepapertoFSC,RBCisactivelytransitioningourpaperprintproductstoFSCcertifiedpaper.Paperprintproductsaretypicallyprocuredfromthird-partyserviceprovidersandconsistofprintedclientstatements,envelopes,marketingmaterials,bankingforms,reportsandotherhigh-endprintproducts.TheFSChasdevelopedchainofcustodyrequirementsthatgovernpublicreportingonFSCusage,includingtheuseofthird-partyserviceproviders.HighlightsofRBC’stransi-tiontoFSCinclude:

• Creationofanenvironmentalcommitteetoidentifyopportunitiestoapplyenvironmentalbestpracticesrelatedtoprintprocurement.

• Ourkeyoutsourcingpartnerresponsibleforprintingofclientstate-mentsisundertakingtheFSCchainofcustodycertificationauditinearly2009.

• 84%oftheenvelopesprocuredinCanadabyRBCProductionManagementweremadefromFSCpaperand65%ofworkpro-ducedbyRBCinternalprintsitesinCanadawasonFSCpaper.

Responsible waste management Wasteminimizationthroughdemandmanagement,reuseandrecyclingarethepreferredmethodsofreducingsolidwaste.However,wheresolidwastecannotbeeliminatedwearecommit-tedtocarefulmanagementanddisposal.In2008,wedevelopedastrategytoexpandrecyclinginbranchproperties,andcontinuetoworkwithlandlordstoimproveandoptimizediversionprogramsforrecyclablesandorganics.

In2008,RBC:

• InitiatedaCanadianrecyclingpilotprojectintentonexpandingrecyclingprogramsatpropertieswhere“free”municipalcommer-cialrecyclingprogramsareunderutilized

• Incorporatedemployeewastemanagementandrecyclingguide-linesintodraftEmployeeEnvironmentalStewardshipGuidelines

• Incorporatedrecycling,wastereductionandpackagingminimiza-tionconsiderationsintothedraftRBCResponsibleProcurementPolicy

• ContinuedourFurnitureReuseProgramthatdivertsfurniturefromlandfillsbyfindingwaystoreuseordonatethefurnituretocharities.In2008,thisprogramdivertedanestimated30tonnesofmaterialfromlandfill

• Leasedthemajorityofourelectronicequipmentfromasingleserviceproviderwithanestablishedresponsibleassetrecoveryprogram.Wereturnmostoftheleasedassetstooursupplierforeitherresaleordisposal.Oursuppliermanagesdesignatedfacili-tiesfordismantling,hazardousandrecyclablematerialsrecoveryandresponsibledisposalwithprocessesthatmeetapplicable

• GavepreferencetopaperandforestryproductssourcedfromForestStewardshipCouncil(FSC)certifiedsources.

• PilotedProjectReflection,whichincludedtheprocurementoffurnitureandfittingsofthehighestenvironmentalstandards.

InNovember2007,RBCInsurancediscontinuedtheuseofstyro-foamandpapercupsattheirMeadowvalelocationinMississauga,Ontario.Insteadofdisposablecups,eachemployeewasgivenareusablemug,whichresultsinanannualcostsavingsofnearly$20,000andeliminatesnearly375,000styrofoamandpapercupsfromourwastestreamannually.

Responsible paper useAsalargefinancialservicesinstitution,RBCusesagreatdealofpaper,bothinternallyandinmaterialsdistributedtoourclients.Wehavemadeacommitmenttoconserveforestresourcesandsupportsustainableforestmanagement

In2008,RBC:

• ConvertedallofficepaperpurchasedinCanadaandtheUnitedStatestoFSCcertifiedsources

• ConvertedallofficepaperintheBritishIslestoeitherFSC,ProgramfortheEndorsementofForestCertificationor100%recycledcontent

• Convertedover1.3millionRBCaccountsinCanadatoelectronicstatements.Sinceprojectinceptionin2006,over3.2millionaccountshavebeenconverted,resultinginpapersavingsofapproximately511metrictonnes

• ChangedtheRBCCorporateResponsibilityReportandPublicAccountabilityStatementtoanonlineelectronicformat,withabriefexecutivesummaryproducedinprint,reducingourpaperrequirementsby9.3tonnescomparedtotheprintingrequirementsin2007

• BeganinstallingnewsoftwareandhardwareinATMsthatwillprovideclientswiththeoptiontodeclinepaperreceiptsusinganewwithdrawaloptioncalled“MyQuickCash.”TheupgradeprocessisexpectedtobecompletedacrosstheentireCanadianATMnetwork(over4,000units)bymid-2010

• DevelopedtheCommonAccountOpensystemwhereaccountapprovalformsandsupportingdocumentationarenowscannedandsavedatthebranchlevel,withcopiessentelectronicallyratherthansendingpapercopies.

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43 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

2008 TrendsIn2008,wehaveaccesstoenhancedinformationregardingenergyuseacrossRBCduetoasignificantincreaseindata coverage.ThisisthefirstyearRBCwasabletotrackandreportdirectandindirectenergyuseformajorleasedpremisesinCanada,theUnitedStatesandtheBritishIsles.Wearenowabletotrackandreportenergyconsumptionforourkeydataandprocessingcentres:facilitiesthatuselargequantitiesofpurchasedelectricity.GapsinenergyusedataareassociatedwithpropertiesinsomepartsoftheUnitedStates,theCaribbeanandotherinternationallocations.

Therewasaminorincreaseintheenergy intensity(energyuseperm2)ofourbranchnetworkin2008comparedtotheprevioustwoyears.WebelievetheincreaseisattributabletothesnowyandcoldwinterexperiencedinmanypartsofCanadaandtheU.S.in2008,incontrasttotheexceptionallywarmwintersof2006and2007,whichweretwoofthewarmestonrecordaccordingtoEnvironmentCanada.Inshort,colderweatherincreasesheatingrequirements,increasingenergyconsumptionandassociatedgreenhousegas(GHG)emissionsacrossRBC’sbranchnetwork.

Office paperuse in2008wasvirtuallyunchangedfrom2007onaperemployeebasis.In2008,approximately15%ofofficepaperwascertifiedsustainablysourcedpaper(mostlyFSCcertified).VirtuallyallofficepaperinCanada,theU.S.andtheU.K.wascon-vertedtocertifiedsustainablysourcedpaperinSeptember2008.

Employee air and automobile (rental) travel decreasedonaperemployeebasisin2008,whilerailtravelincreased.Datacoverageforairtravelin2008doesnotincludeourrecentlyacquiredRBTToperationsintheCaribbean.Thiswasthefirstyearwewereabletotrackandreportemployeebusinesstravelinpersonalvehicles.Thisrepresentsasignificantamountofautomobiletravel,withover35millionkilometresloggedbyCanadianandU.S.employeesin2008.

RBC’sreported GHG emissionsarehigherin2008duetomuchgreaterdatacoveragethaninpreviousyears.OurGHGemissionsintensity(GHGemissionsperm2)appearstohaveincreasedin2008;however,thisisaresultofourimproveddatacoveragethatnowincludesmoreenergyandemissionintensivepartsofourcompanysuchasmajorleasedpremisesinCanada,theUnitedStatesandtheBritishIsles,aswellasbranchesintheUnitedStates.Majorleasedpremiseshaveagreaterenergyintensitythanbranches,correspondingtohigherGHGemissionsintensity.Also,theinclusionofU.S.energydatahasaconsiderableimpactonGHGemissionsintensitybecauseU.S.electricitygenerationistypicallymorecarbonintensive(i.e.coal-firedpowerplants)thanCanadianelectricitygeneration.

WehavenotreportedtheindirectGHGemissionsassociatedwithpaperconsumptionbecauseweareconcernedaboutthechalleng-esinaccuratelycalculatingtheseemissionsforaCanada-basedpapersupplychain.WewillcontinuetoworkwithoursuppliersandotherGHGexpertstodeterminehowbesttoreportthesefigureswithconfidence.

local,provincial/stateandfederallawsandregulations.AsmallproportionofelectronicequipmentisownedbyRBC,andwhenthisequipmentmustberetired,ourelectronicwastedisposalprogramcontractsaserviceproviderwhospecializesinelectronicwastedismantling,recoveryandresponsibledisposal.

Reduce water consumptionWatershedconservationandaccesstocleanfreshwaterareconsideredtobetwoofthekeycontributorstohumanhealthandeconomicdevelopmentaroundtheworld.WhileRBC’slevelofdirectwaterconsumptionisrelativelysmall,wearecommittedtoreducingourwaterusewherepractical.

In2008,RBC:

• Incorporatedguidanceonemployeeuseofreusablewatercontainers,watercoolerortapwaterintothedraftEmployeeEnvi-ronmentalStewardshipGuidelines

• Updatedthemechanicalstandardsforwaterfixtures,plumbingandboilersfortheCanadianbranchnetwork

• Establishedinternalguidelinesforhosting“green”meetingsincludingtipsforconservingwaterand“tapwaterpreferred”policies.TheseguidelinesalsogovernhospitalityservicesattheRBCAnnualMeetingofCommonShareholdersandatRBCexecutivedinningroomsinCanada.

SOFT footprint OurenvironmentalfootprintisaresultofourSourcing,Operations,FacilitiesandTravel(SOFT)activities.WetrackourSOFTFootprintto:

• Identifyareaswherewecanreduceourdirectenvironmentalimpact

• Identifycostmanagementopportunities

• Tracktrendsinresourceuseandemissions

• Improvereportingaccuracyandtransparency.

OursummarySOFTFootprintReportispresentedonpage44andamoredetailedreportwithadditionalperformancemetricsisavail-ableatwww.rbc.com/environment.

Note: Cautionshouldbeusedbeforemakinganyyear-over-yearcompar-isonsofRBC’senvironmentalfootprint.Thisisbecausetheenviron-mentaldatawearereportingrepresentsonlythoseperformanceindicatorsthatweareabletomeasureatanypointintime.Eachyearwestrivetomeasureandreportmoredatafrommorepartsofthecompany.For2008,wehaveincludeddataforsomeofourmoreemissionintensiveareas,suchasmajorleasedpremisesinCanada,theU.S.andtheBritishIsles(suchasdatacentres)andbranchesintheU.S.Duetothismorecomprehensivereportingin2008,ourreportedCO

2eemissionsarehigherthanthosein2007.

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44 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

SOFT(Sourcing,Operations,FacilitiesandTravel)footprint 2008 2007 2006 Units

Intensityfactors

Globalfull-timeequivalent(FTE)employees 73,323 64,815 60,539 FTEGlobalfloorarea 2,292,056 1,979,954 1,942,733 m2

Energyfootprint(1)

Direct energy use(2) Branches(3) 66,727 58,085 46,919 MWh Majorleasedpremises(4) 80,646 n.a. n.a. MWh Totaldirectenergyuseallproperties 147,372 58,085 46,919 MWh Datacoverage(asa%ofglobalfloorarea)(6) 60 29 27 %Indirect energy use(7) Branches 191,209 137,369 130,726 MWh Majorleasedpremises 257,098 n.a. n.a. MWh Totalindirectenergyuseallproperties 448,307 137,369 130,726 MWh Datacoverage(asa%ofglobalfloorarea) 65 35 34 % Greenpowerpurchases(8) 5,042(9) 2,831(9) 2,464 MWhTotal energy use Branches 257,936 195,454 177,645 MWh Majorleasedpremises 337,744 n.a. n.a. MWh Totalenergyuseallproperties 595,679 195,454 177,645 MWhEnergy intensity Energyintensity–branches .308 .286 .270 MWh/m2

Energyintensity–majorleasedpremises .515 n.a. n.a. MWh/m2

Paperfootprint

Officepaper 3,886 2,907 2,491 tonnesCertifiedsustainablysourcedpaper 15 n.a. n.a. %Coverage(as%ofglobalFTE) 90 75 77 %OfficepaperuseperFTE .059 .060 .054 tonnes/FTE

Marketinganddirectmailpaper 5,560 6,643 5,155 tonnesCertifiedsustainablysourcedpaper 42 n.a. n.a. %Coverage(as%ofglobalFTE) 80 75 77 %

Travelfootprint

Airtravel 171,620,791 188,843,521 169,387,881 kmDatacoverage(as%ofglobalFTE) 90 95 95 %AirtravelperFTE 2,611 3,010 2,878 km/FTE

Railtravel 1,085,261 938,594 1,030,707 kmDatacoverage(as%ofglobalFTE) 99 96 96 %RailtravelperFTE 16.5 15.6 18.3 km/FTE

Automobiletravel(rentalvehicles) 6,724,378 7,625,641 5,607,746 kmDatacoverage(as%ofglobalFTE) 99 99 99 %AutomobiletravelperFTE(rentalvehicles) 102 122 95 km/FTE

Automobiletravel(businesstravelinpersonalvehicles) 35,060,483 29,875,080 26,332,244 kmDatacoverage(as%ofglobalFTE) 87 93 93 %AutomobiletravelperFTE(businesstravelinpersonalvehicles) 553 496 467 km/FTE

GHGemissions(measurable)

CO2eemissionsfromenergyuse(5) 137,390 36,424 32,838 tonnes

CO2eemissionsintensityfromenergyuse(5) .092 .053 .050 tonnes/m2

CO2eemissionsfromemployeetravel 23,219 23,737 20,931 tonnes

CO2eemissionsintensityfromemployeetravel .355 .382 .359 tonnes/FTE

Carbonreductionsfromgreenpowerpurchases (2,095) (1,680) (1,360) tonnesTotalCO

2eemissions(5) 158,514 58,481 52,409 tonnes

TheenvironmentaldatareportedhasbeenprovidedtoRBCbythird-partysuppliers,vendorsandserviceprovidersandincludesinformationthatwasavailableinJanuary2008,thetimeofpreparingthisSOFTFootprintReport.WecontinuetoworktoimprovethereliabilityandcoverageoftheenvironmentaldatasothatitaccuratelyreflectstheRBCenterprise-wideSOFTFootprint.Notes:(1) Energyconsumptionisbasedonactualconsumptionfor2007and2008andcost-derivedconsumptionfor2006.(2) DirectenergyconsumptionreferstoRBC’suseoffossilfuels(naturalgas,heatingoilandpropane).(3) BranchesarecategorizedasRBCfacilitieswithanareaoflessthan25,000ft2(<2,320m2).(4) Majorleasedpremisesarecategorizedasfacilitieswithanareagreaterthan25,000ft2(>2,320m2)andallfacilitieswithcriticalinfrastructure(i.e.dataandprocessingcentres).(5) Energydatacoveragehasincreasedin2008andhasimpactedthisindicator;pleasesee“2008Trends”onpage43formoredetails.(6) Estimateofdatacoverage.(7) IndirectenergyconsumptionreferstoRBC’suseofpurchasedelectricity.(8) GreenpowerpurchasesbyRBCarecarbonneutralandrepresentareductioninGHGemissions.(9) TheoriginalPDFversionoftheRBC2008CorporateResponsibilityReportandPublicAccountabilityStatement,publishedinFebruary2009,containedincorrectdatafortheamountofgreen

powerpurchasedin2007and2008.Wehavecorrectedandrestatedtheamountshere,asofApril30,2009.Pleasenotethatthe2008CorporateResponsibilityReview(printversion)containsthemisstateddataforamountofgreenpowerpurchased.

n.a. notavailable

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45 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

In2008,RBC:

• Draftedcontentforanewenvironmentalriskcreditriskpolicyforcorporatelendingandinvestmentbanking

• Updatedpoliciesregardingenvironmentalriskmanagementforbusinessandcommercialmarkets

• Draftedadditionalsector-specificguidelinesforthechemicalindustryandforestrysector

• Analyzedtheexposureofborrowersinourloanandinvestmentportfoliotoclimatechangerisksandregulations(reportantici-patedinwinter2008/2009)

• HeldclimatechangeandcarbonmarketstrainingsessionsforCapitalMarketsandRiskManagementstaff.

Equator PrinciplesRBCwasthefirstCanadianbanktosigntheEquatorPrinciplesin2003,andwerecommittedtotherevisedPrinciplesin2006.TheEquatorPrinciplesareavoluntarysetofguidelinesthathelpfinancialinstitutionsaddresstheenvironmentalandsocialrisksassociatedwithprojectfinance.ToaddressourcommitmenttotheEquatorPrinciples,RBChasaPolicyonSocialandEnvironmentalReviewinProjectFinance.

ArequirementofEquatorPrinciplessignatoriesisto“reportannuallyontheirimplementationprocessesandexperienceinapplyingtheEquatorPrinciplesinprojectfinance.”SinceouroriginaladoptionoftheEquatorPrinciplesin2003,RBChasreviewed15projects.In2008,RBCparticipatedasbothprojectfinanciersandadvisorsforfiveprojects.

Promote responsible business activitiesAtRBC,weworkwithourclientsandthecompaniesweinvestintoidentifyandmanageenvironmentalrisksandsupportenvironmen-tallyresponsiblebusinesseswhereverpossible.OurenterpriseriskmanagementframeworkincludesrequirementsforenhancedduediligenceontransactionsandbusinessactivitiesthatinvolveenvironmentalandsocialissuesthatcouldbeharmfultoRBC’sreputation.Ourcreditrulesandguidelinesincludespecificrequirementsforassessingenvironmentalriskundercertaincir-cumstances,andourenvironmentalriskmanagementpoliciesandproceduresenableustoassesscredit,legalandreputationriskarisingfromenvironmentalissuesintransactions.Weregularlyup-datethesepoliciesandprocedurestoaddressregulatorychanges,emergingandevolvingissues,andinternationalbestpractices.

Ourenvironmentalriskpoliciesformthefoundationforresponsiblelendingandcoverarangeofenvironmentalrisksandbusinessactivities.Inadditiontogeneralpoliciesforcommercialandcorporatelending,wehavesector-specificandbusiness-segment-specificenvironmentalpoliciesandguidelinesformulti-residentialproperties,agriculture,publicsectorandprojectfinance.ThisallowsRBCaccountmanagersandriskmanagerstofocustheirassessmentandevaluationonmaterialenvironmentalissuesspecifictothatindustrialsectorintheirdiscussionswithclients.Transactionsarereviewedforenvironmentalissuesand,whererequired,escalatedtoenvironmentalspecialistsforfurtheranaly-sisandapproval.

Analysis of Equator Principles projects 2008 2007 2006

Numberofprojects(1) EquatorPrinciplesCategoryA 0 1 1 EquatorPrinciplesCategoryB 3 3 1 EquatorPrinciplesCategoryC 2 2 2

Total projects reviewed 5 6 4

Byregion(2) OECDcountries 5 5 3 Other 0 1 1

Bysector Energy(oilandgas) 2 3 2 Energy(renewable) 0 2 2 Infrastructure 2 0 0 Chemical 0 1 0 Transportation 1 0 0

(1) Whenaprojectisproposedforfinancing,RBCcategorizestheprojectbasedonthemagnitudeofitspotentialimpactsandrisksinaccordancewiththeenvironmentalandsocialscreeningcri-teriaoftheInternationalFinanceCorporation.CategoryArepresentsprojectswithpotentialsignificantadversesocialorenvironmentalimpactsthatarediverse,irreversibleorunprecedented.CategoryBrepresentsprojectswithpotentiallimitedadversesocialorenvironmentalimpactsthatarefewinnumber,generallysite-specific,largelyreversibleandreadilyaddressedthroughmitigationmeasures.CategoryCrepresentsprojectswithminimalornosocialorenvironmentalimpacts.Foradditionalinformation,visitequator-principles.com.

(2) OECDistheOrganisationforEconomicCo-operationandDevelopment.ToviewOECDmembercountriespleaserefertotheOECDwebsite.

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46 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

Asafurtherbenefittotheenvironment,RBCalsodonated$5totheNatureConservancyofCanadaeachtimeanRBCclientturnedofftheirpaperstatementoptionforanaccountandswitchedtoanelectronicstatementbetweenSeptember2007andJanuary2008.Wedonated$1million,onourclients’behalf,tohelpprotectmorethan100naturalproperties.

Environmental products and servicesRBCseekstoofferanexpandingarrayofproductsandservicesprovidinglong-termenvironmentalbenefitsthatempowerclientswithoptionstoreducetheirenvironmentalfootprint.

Electronic statements InCanada,RBCofferselectronicstatementsforVISA*,HomeEquity®,RoyalCreditLine®,BusinessDepositAccounts,RBCDaytoDaySavings®,RBCDaytoDayBanking®,eSavings™accounts,andaccountsfromDirectInvestingandDominionSecurities®.

Togetherwithourclients,wehavemadegreatstridesinreducingtheamountofpaperweuse.SinceJanuary2006,over3.2millionRBCaccountshavebeenswitchedfrompaperstatementstoelec-tronicstatements.

2008

New electronic statement Total number of electronic Percent of total active online accounts Account type adoptions statement accounts that are electronic statement

Personaldepositaccounts 899,457 2,468,192 61%VISA 177,461 469,241 24%RoyalCreditLine 136,138 216,997 19%Homeequity 22,196 46,861 19%Directinvestments 61,097 61,097 20%Dominionsecurities 30,223 30,223 29%

Total 1,326,572 3,292,611 42%

Socially responsible investing (SRI) Since2007,RBChasbeenhelpinginvestorsreachtheirfinancialgoalswhileincorporatingbroaderconcernsforsocialresponsibil-ity,environmentalsustainabilityandcorporategovernanceintoourinvestmentproducts.ThroughourpartnershipwithJantziResearch,aCanadianleaderinsociallyresponsibleinvestmentscreening,wehavebeenabletoofferclientsthreeSRIproducts:JantziBalanced,JantziCanadianEquityandJantziGlobalEquityfunds.Usingmorethan100indicatorsforenvironmental,socialandgovernanceperformance,Jantzifundsprovideclientswiththeassurancethatresponsiblescreeninghasbeenappliedtotheinvestmentdecision-makingprocess.Totalassetsundermanage-mentforthecombinedJantziFundsarenowinexcessof$35million(asofOctober31,2008).

WiththeacquisitionofPhillips,Hager&NorthInvestmentManage-mentinMay,ourclientsnowhaveadditionalSRIoptions.PH&NhasbeenmanagingSRImandatesforwelloveradecade,offeringafamilyoffoursociallyresponsiblefundscalledthePH&NCommu-nityValuesInvestmentFunds.TheydifferfromPH&N’scorefundsinthattheirinvestmentprocessincludesaformalassessmentoftheESGperformancerecordsofcompanies.PH&NCommunityVal-uesFundshaveassetsundermanagementofnearly$180million(atOctober31,2008).

Tosupportthegrowthinsociallyresponsibleinvestingamonghighnetworthindividuals,foundations,unions,andpensionfunds,RBC’sSRIWealthManagementGroupprovidesSRIexpertisetoclientsacrosstheUnitedStates.Thespecializedteamoffinancialadvisors,basedinSanFrancisco,managesalmostUS$1billioninresponsiblyinvestedassets.

Formoreinformation,seepage27

Carbon trading InJuly2008,CapitalMarketsannouncedglobalcapabilitiesforcarbonemissiontradingwiththeestablishmentofacarbontradingdeskinCincinnati,Ohio.Byyear-end,wetransactedapproximately19.8millionU.S.tonsofcarboncredits/allowances,throughover2,000distincttransactions,withanestimatedvalueofoverUS$300million.TransactionswereconductedonnumerousexchangesincludingtheEuropeanClimateExchange,theMontrealClimateExchange,theChicagoClimateExchangeandtheRegionalGreenhouseGasInitiativeinthenortheasternUnitedStates.

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47 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

Clean energy projectsRBCrecognizesopportunitiesassociatedwiththegrowthincleanenergy,includingrenewable,alternativeandcleantechnologies,andwecontinuetoactivelysupportclientsinthesesectors.In2008,someofthecleanenergyinitiativeswewereinvolvedininclude:

• RBCactedasLeadArrangerona$113millionbankfinancingfortheAshluCreekhydroprojectinBritishColumbia.Theprojectisarun-of-river,renewableenergyprojectthatusesthenaturallyflowingwaterinthecreektoproduceelectricity.Theprojectdoesnotinvolveadamorareservoir.Instead,itdivertsaportionofthecreek’swaterthroughanundergroundtunnelandthroughturbinesbeforereturningthewaterbackintothenaturalcreek.Theenergythatisproducedisenoughtoserve23,000homesanddisplace219,000tonnesofcarbondioxideemissionsfromanequivalentsizedcoal-firedpowerplanteachyear.

• RBCactedassolebookrunnerona$500millionbondfinancingforCloudworksEnergyInctobuildtheHarrisonHydroproject.Theprojectconsistsofsixrun-of-riverprojectsinBritishColumbiathatwillcollectivelyserveanewsubstation,eventuallyprovidinggreenhydroelectricitytotheprovinceandtotheDouglasFirstNationcommunitiesinTipellaandPortDouglas.Completionoftheproj-ectsisslatedforNov2010.

• RBCactedassolesell-sidefinancialadvisortoAirtricityandScot-tish&SouthernEnergyonthesaleof50%oftheGreaterGabbardoffshoreproject,a504MWwindfarmintheouterThamesestuaryintheUnitedKingdom.Onceoperational,theprojectwillbecometheworld’slargestoffshorewindfarmwith140turbines.

• RBCparticipatedasleadfinancerinthedevelopmentofastate-of-the-artnaturalgascogenerationfacilitynearSarnia,Ontario.TheSt.ClairEnergyCentreisa570MWnaturalgas-fuelledcombined-cycleprojectcurrentlyunderconstructioninSt.ClairTownship.Theproject’soutputwillbesoldintothepowermarketadministeredbytheIndependentElectricitySystemOperatorpursuanttoacleanenergysupplycontractwiththeOntarioPowerAuthority.TheSt.ClairEnergyCentrewasselectedfollowingtheOntarioMinistryofEnergy’s2004openandcompetitiveprocessfornew,cleanenergy,asOntariomovestoreplacecoal-firedpowergenerationwithmoreenvironmentallyresponsiblepowergenera-tion.Theprojectwasawardedwiththe2007NorthAmericaPublicPowerDealoftheYearbyProject Financemagazine.

Home energy efficiency Weofferourclientsinformationandresourcestomaketheirhomesmoreeco-friendly,includingrenovationtips,aswellasadown-loadablebrochureonhowtomakeahomemoreenergyefficient.InSeptember2008,welaunchedtheRBCEnergySavermortgageinCanadawhichoffersa$300rebateonahomeenergyaudit.Ahomeenergyauditisareportgeneratedbyalicensedprofes-sionalwhoisspeciallytrainedtoexamineelectrical,mechanicalandarchitecturalaspectsofresidentialhomes.Theauditprovidesrecommendationstohelpimproveahome’senergyefficiencyandlowerenergycosts.

RBCalsosponsoredNowHouse*,asustainablehousinginitiativepilotedbyCanadaMortgageandHousingCorporation’sEquilibriuminitiative.NowHousetookatypical60-year-oldwar-timebungalowandmadechangestosignificantlyincreaseitsenergyandwaterefficiency,demonstratingwhattheaveragehomeownercandotoincreasetheequityoftheirhome,improveefficiencyandsavemoney.

Formoreinformation,seerbcroyalbank.com/renovating/now-house

RBCisalsoencouragingclientstoshifttogreenenergybyofferingaCleanEnergyRebate.Clientscanapplyfora$25discounttowardstheirfirstmonthofgreenpowerpurchasedfromBullfrogPower,whichcurrentlysellsgreenpowertoresidentialcustomersintheprovincesofAlbertaandOntario.

LEED certified affordable housingIn2008,theRBCTaxCreditEquityGroupinvestedUS$532millionintothedevelopmentofapproximately6,700unitsofaffordablehousingintheUnitedStates.RBCtakesa99%equityownershippositionintheU.S.affordablehousingprojectsdevelopedunderthisprogram.SeveralofthehousingprojectswerecertifiedunderLeadershipinEnergyandEnvironmentalDesign(LEED),includingMelroseCommonVinBronx,NewYork;MaverickGardeninBoston,Massachusetts;GishApartmentsinSanJose,California;andCivicCommonsinPortland,Oregon.WealsoinvestedUS$2.5millioninsolarpaneltechnologiesforsomeofthehousingprojects,whichrepresentedthefirstsyndicationofasolar-onlytransactiononaf-fordablehousingintheUnitedStates.

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48 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

Philanthropy RBCiscommittedtomakingalastingsocialimpactthroughresponsiblegivingandbybuildingstrongpartnershipswiththecharitablesector.WiththesuccessfuldevelopmentoftheRBCBlueWaterProject,wehaveincreasedourdonationstoenvironmentalcausesfrom$300,000in2007to$3.13millionin2008tocharitiesinCanada,theUnitedStatesandtheCaribbean.

In2008,RBC:

• ConvenedtheRBCBlueWaterProjectAdvisoryPaneltohelpdevelopfocusareasandadviseRBConwaterissues.InthefirstninemonthsoftheRBCBlueWaterProjectalone,wecommitted$11.8millionto39organizationsworkingintheareasofwatershedprotectionandaccesstocleandrinkingwater.Byyearend,wehadcommittedatotalof$13.2millionto64organizationsworldwide

• Donated$200,000toLakeOntarioWaterkeeperatagalaeventat-tendedby700peopleduringtheTorontoInternationalFilmFestival

• Donated$75,000overthreeyearstotheConservationFoundationofGreaterTorontotosupporttheArchetypeSustainableHouse,aprojectthatdemonstrateshowcommunitiescanbeconstructedandlivedintominimizetheenvironmentalfootprintandimprovequalityoflife

• Donated$1.2milliontosupporttheNatureConservancyofCanada’sForceofNaturecampaign,whichaimstoconserveover2,000squarekilometresofCanada’smostbiologicallysignificantlandsandwaters

• Donated$50,000tothe3EInitiative(“Economy,Energy,Environ-ment”),anewprojectthatseekstocatalyzethenecessaryactionstoenableCanadatotransitionsuccessfullytoahighlyefficient,low-carboneconomythroughcollaborationwithleadersfrombusi-ness,academia,environmentalNGOs,philanthropicfoundations,indigenousorganizationsandgovernmentagencies

• Donated$10,000toAlGore’snon-profitorganization,TheClimateProject,tosupporteducationonclimatechange.

Reporting RBCreportspubliclyonourprogressonenvironmentalissuesandactivitiesthroughourwebsite,ourannualCorporateResponsibilityReportandourAnnualReport.Wearecommittedtoenhancingourenvironmentaldatamanagementandcollectionsystemtoimprovethequantity,qualityandgeographicscopeofenvironmentalper-formancedata.

WecontinuetousetheGlobalReportingInitiative(G3)andothersourcesasguidanceonappropriateenvironmentalperformanceindicators.Inaddition,werespondtoavarietyofenvironmentalsustainabilityratingorganizationsandindices,asappropriate,

Sustaining the RBC Environmental BlueprintKeepingtheRBCEnvironmentalBlueprintoncourserequiresanopenandproactivedialoguewithourstakeholdersandpeers,independentandco-operativeresearchtoidentifyandbetterunderstandemergingenvironmentalissuesandtransparentandrelevantreportingofourinitiativesandprogress.Wealsorecog-nizetheimportanceofphilanthropytohelpRBCmeetourgoalswhilehelpingcommunitiesmeettheirenvironmentalobjectives.Thissectionpresentsour2008highlightsforsustainingtheRBCEnvironmentalBlueprint.

Stakeholder engagementRBCisactiveinstakeholderengagementandliaisedwithanumberofstakeholdergroupsin2008todiscussenvironmentalissuesrelatedtopolicydevelopment,transactionreview,portfoliomanagement,operationalimpactsandbusinessdevelopmentopportunities.

In2008,RBC:

• Proactivelycollaboratedwithnon-governmentalorganizationsincludingtheCanadianBorealInitiative,DurrellWildlifePreser-vationTrust,ForestEthics,NatureConservancyofCanadaandRainforestActionNetwork

• Participatedinindustryassociationsincluding:CanadianBankersAssociationEnvironmentalIssuesSpecialistGroup,ConferenceBoardofCanada’sBusinessCouncilforSustainability,UNEnviron-mentProgrammeFinanceInitiative–NorthAmericanTaskForce(co-chair),theUSEnvironmentalBankersAssociationandtheExcelPartnership

• EstablishedandsupportedRBCenvironmentalcommittees,workinggroupsandnetworksincluding:RBCGlobalEnvironmentCommittee,BankingandInsuranceGreenOpportunitiesWorkingGroup,BusinessFinancialServicesGreenStrategyTeam,GreenITWorkingGroup,SRIWorkingGroup,RBCWealthManagementUSAEnvironmentalCommitteeandLibertyInsuranceGreenTeam

• Wasaplatinumsponsorofthe2008GlobeConference,abiennialtradefairandconferenceonbusinessandtheenvironment.RBCalsoplannedandmoderatedasessionatGlobe2008onFinancial Institutions:Mainstreaming Sustainability into the Decision Making Process

• Gavepresentationsonfinanceandsustainabilityatconferencesandtouniversityclasses;anddiscussedfinanceandenvironmentalissueswithfederalandprovincialgovernmentagencies.

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49 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Environment

• WatersuppliesintheCaribbean,tosupportRBCBlueWaterProjectgrantstocharitiesintheCaribbean

• Impactsofwaterscarcityonsectorsandgeographicalregions,tobetterunderstandtherisksandopportunitiesassociatedwithchangingwateravailability.

AspartoftheUNEPFINorthAmericanTaskForce,wealsocom-missionedareporttoreviewsustainabilityindicesanddisclosureinitiativesinNorthAmericaandEurope.

Looking ahead – Priorities for 2009• LaunchandpromoteEmployeeEnvironmentalStewardshipGuide-linesacrossallRBCbusinessunitsglobally

• Finalizeandimplementnewelectrical,mechanicalandarchitec-turalstandardsforourCanadianbranchnetwork,whichincludeenergy-efficiencyconsiderationsthatwillapplytoallnewbranchconstructionorbranchrenovationprojectsinCanada

• Conductanenergyauditpilotstudyat10Canadianbranchestoreviewenergyefficiencyandcost-savingspotentialformechanicalandelectricalequipment

• Purchasegreenpowerfor20newbranchesinAlbertaandOntario

• Finalize,publishandimplementanenvironmentalriskpolicyforcorporatelendingandsector-specificguidelinesformanufacturing,wastemanagement,miningandmetals,andoilandgassectors

• Conductananalysisofregionaldifferencesorgapsintheconsis-tentapplicationofenvironmentalriskmanagementpoliciesacrossRBCoperationsinCanada,theUnitedStates,theCaribbean,andtheBritishIsles

• Completetheportfolioassessmentofcarbonexposureandrisk

• Promoteandsupportbusinessopportunitiesincarbonmarkets,cleantechnologiesandenergyefficiency

• Researchandreportonwaterrelatedrisksandopportunities

• Conducttraininginenvironmentalcreditriskmanagement,climatechangeandcarbonmarketsacrossappropriateRBCbusinessunits

• ConductthesecondroundoffundingfortheRBCBlueWaterProject

• OpentheRBCCentre,anewfacilityinToronto.ThisbuildingwillaimforLeadershipinEnergyandEnvironmentalDesign(LEED)goldcertificationfornewconstruction.

sothatourshareholders,clientsandemployeeshaveaccesstoindependentassessmentsofourprogress.In2008,RBCrespondedtoinquiriesfromsustainabilityindices,sociallyresponsibleinvest-mentcompaniesandanalystsincludingEthicalFundsCompany,JantziResearch,CarbonDisclosureProject,DowJonesSustainabil-ityIndexandInnovestStrategicValueAdvisors.

ToviewhowourenvironmentalreportingalignstotheGRI,pleaserefertotheGRIIndexonpage67.

Recognition• RBCwasnamedtotheCarbonDisclosureLeadershipIndex2008undertheCarbonDisclosureProject,anhonourrollrecognizingworldleadersingovernanceanddisclosureofthefinancialrisksandopportunitiesresultingfromclimatechange.Amongfinancialinstitutions,RBCwasrankednumberoneinCanada,andtiedforsecondplaceglobally.

• RBCwasnamedtotheDowJonesSustainabilityWorldIndex,anannualreviewthatrecognizestheworld’sfinancial,socialandenvironmentalcorporateleaders.RBCwasalsonamedtotheDJSINorthAmericaIndex.

• InSeptember2008,RBC’soperationsinGuernsey,BritishIsles,wereawardedtheKeepGuernseyGreenAward,whichrecognizescompaniesthataremakingasignificantefforttodiverttheirwastefromtheisland’slimitedlandfillsitesandintorecyclingschemesinstead.

• RBCwasrecognizedasanenvironmentallyawarebusinessthroughEcoActiveforJersey,agovernmentrunprogramontheBritishIsleofJersey.

• AnaffordablehousingdevelopmentinMartha’sVineyard,Massachusetts,financedbytheRBCTaxCreditEquityGroup,wasawardedwiththe2008UrbanLandInstitute’sJ.RonaldTerwilligerWorkforceHousingModelsofExcellenceAward.Entriesarejudgedoncriteriaincludingextentofaffordability,involvementofpublic/privatepartnership,energycostsavingsandinnovativebuildingtechnologiesthatreducecostandimproveenvironmentalefficiency.

Research and thought leadershipStayinginformedofthelatestscientificresearchonenvironmentalissuesandenvironmentalbestpracticesisanimportantelementoftheRBCEnvironmentalBlueprint.In2008,RBCpreparedthefollowingin-houseresearchreportson:

• OpportunitiesforRBCtosupportsafedrinkingwaterforFirstNationsinCanada

• Golfandtheenvironment,tosupportourcommitmenttotheRBCCanadianOpen

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50 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

Community

•Wewanttoencourageandrecognizeemployeevolunteerismandgiving,whileensuringtheydonotfeelpressuredintoeither.

Our tradition of philanthropy dates back to our roots, with donations on record as far back as 1891. We are now one of Canada’s largest corporate donors. The RBC Community Blueprint aims to promote prosperity by contributing to the communities in which we live and work. Across North America and around the world, we support a broad range of community initiatives, through donations, sponsorships and employee volunteer activities.

Priorities 2008 Performance highlights

Providedonationswithalastingsocialimpact •Donatedmorethan$51.5milliontocommunitycausesworldwide, primarilyintheareasofeducation,theenvironment,health,social services,artsandcultureandciviccauses •InthefirstninemonthsoftheRBCBlueWaterProject,wecommitted $11.8milliontoorganizationsworkingintheareasofwatershed protectionandaccesstocleandrinkingwater.Byyear-end,wehad committed$13.2millionto64organizationsworldwide •QualifiedasanImagineCanada“CaringCompany”

Sponsorkeycommunityinitiatives •Providedmorethan$47.5millioninsponsorshipofcommunityevents andnationalorganizations,primarilyintheareasofamateursport, artsandculture,andOlympics-relatedprograms • LaunchedtheRBCWicketCricket®programtohelpCanadianschools andcommunitiesintroducecrickettotheirphysicaleducation programs • Sponsored“Let’sDoSomethingGiant”awardsintheUnitedStates, recognizingindividualsfortheircommunityserviceorathletic accomplishments

Enableemployeestocontribute •Employeesandpensionersworldwidecontributedcountlesshoursin volunteeractivitiesandfundstonot-for-profitgroupsthrough payrolldeductions,directgivingandspecialevents • ExpandedtheEmployeeVolunteerGrantsprograminternationally • Introducedacorporateprogramtosupportemployeeteams inpledgedevents

Formoredetailsandfordonationsorsponsorshiprequestguidelines,visitrbc.com/donationsorrbc.com/sponsorship.

Issues•Inthecomingyear,thefinancialservicesindustryandothersectorswillbeunderpressuretodomorewithless.RBCaimstobalancetoday’ssocialneedsandfinancialrealities,takingalong-termviewofeconomic,environmentalandsocialsustainability.Wehavecommittedtomaintainour1%commitmenttocharitablegivinginCanadain2009.

• Theglobaltrendisforcorporationstomovetowards“strategicphilanthropy,”narrowingtheirareasoffundingtoalignwiththeirbusinessgoals.Thiscanbedifficulttoachievewhenacompanyalsowishestosupportthecausesitsclientscareabout.

• Thereisanincreasingexpectationfromsociallyresponsibleinvestorsthatcompaniesshoulddomorerigorousanalysisandreportingofthesocialimpactoftheirdonations.Thismaycauseanadditionalburdenofperformancemanagementandreportinguponsmallercharitablepartners.

2008 Donations by cause – Canada

Education 30%Health 29.3%Social services 17.3%Civic 9.4%Arts and culture 8.9%Environment 5.1%

2008 Donations worldwide

Canada $44,145,000 United States $ 6,470,000Other International $ 889,000 Total $51,504,000

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51 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

Donations history($ millions)

2006

2007

2008

42.4

47.7

51.5

RBCFoundationhasitsownBoardofDirectors,representingeachofourbusinesses,tosetpolicyandratifyalldonationsmadeinNorthAmerica.TheFoundationisstaffedbyfiveemployees.Toensureourgivingfulfillslocalneeds,wealsohaveprofessionalgrant-makerssituatedineachofourregionalCanadianheadquar-tersaswellasinourUnitedStatesandCaribbeanbusinesses.

Due diligence RBCFoundationinCanadareceivesabout25,000requestsforfundingeachyear–morethan10requestsforeveryhourofthebusinessday.Withthismanyproposals,wenoticewhenmandatesofdifferentcharitiesoverlapandweencouragesynergiesbetweenorganizations.Ourgoalistoensurethatourcharitablepartnershavesustainablesourcesoffundingandusetheirdonors’fundsresponsibly.

Ourgrant-makersfollowarigorousprocesswhenevaluatingpro-posalstoensureourfundsareinvestedwiththeutmostcareandresponsibility.Welookatwhetherthecharityhasawiderangeofsupportandassessitsabilitytodeliverprograms.Weassessthecharity’sfiscalmanagementandgovernancepracticesandrequirethatallcharitiesprovideauditedfinancialstatements.

Social impactTheRBCFoundationrequires,wherepossible,thatourcharitablepartnersdemonstratethesocialimpactofourcontributionandprovidedetailsabouttheirgoalsandgapstheyencounterduringthetimetheyreceivefunding.

RBCiscommittedtosupportingsponsorshipopportunitiesthatareimportantforourclientsandourcommunities.Aspartofthiscommitment,wesponsornumerousCanadianandinternationalprogramsaswellascommunityandculturaleventsintheneigh-bourhoodswherewedobusiness.

Targets and performance WeareamemberofImagineCanada,whichencouragesphilanthro-pyandcitizenship,andarecommittedtodonatingatleast1%ofpre-taxprofitsmeasuredonafive-yearrollingaverage.

Foracompletelistofdonationsover$500givenin2008,seerbc.com/donations

2008 Donations by region

Newfoundland $ 325,012PrinceEdwardIsland 246,000NovaScotia 1,471,618NewBrunswick 809,095Quebec 6,386,866Ontario 18,309,969Manitoba 1,389,077Saskatchewan 1,166,100Alberta 4,041,536BritishColumbia 4,210,768Yukon,NWT,Nunavut 161,500Nationalorganizations 5,627,459UnitedStates 6,470,000OtherInternational 889,000

Total $51,504,000

Approach RBCbelievesincontributingtocommunitiesinwhichweoperate,acrossNorthAmericaandaroundtheworld.

CornerstonesDonationsandsponsorshipsarethecornerstonesoftheRBCCom-munityBlueprint,ourvisionforhelpingcreatestrongcommunities.Bothdonationsandsponsorshipshaveapositivesocialimpact,buttheyareundertakenwithdifferentobjectives.Donationsaregivenasgifts,withnostringsattached.Ontheotherhand,sponsorshipsareundertakenanddeliberatelynegotiatedforstrategicmarket-ingpurposesthatalignwithourbrandandbusinessgoalsandareexpectedtodeliveraquantifiablereturnoninvestment.Butthereisonecommontheme:withbothdonationsandsponsorships,wehopetodifferentiateRBCasaleadingcompanycommittedtoenablingthesuccessofourclientsandourcommunities.

GovernanceThemembercompaniesofRBCadministercharitabledonationsinCanadathroughtheRBCFoundation®,establishedin1993.OurDonationsPolicycoversourguidelinesandstrategyandisreviewedbytheCorporateGovernanceandPublicPolicyCommit-teeoftheBoardofDirectors.

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52 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

program,RBCRoyalBankVISA*cardholderscanexchangetheirpointsforacashcontributiontoanRBCRegisteredEducationSavingsPlan™.

RBCinvestsineducationthroughscholarships,including:

• RBCScholarshipProgramforouremployees’children

• RBCMedicalandDentalStudentScholarship

• RBCRoyalBankFinancialLifeSkillsScholarship

• RBCScholarshipforUndergraduates

• RBCScholarshipforNewCanadians

• RBCJunior‘A’ScholarshipAwards

• RBCAboriginalStudentAwardProgram

• Anumberofscholarshipsthroughprograms,not-for-profitorganizationsandpost-secondaryinstitutions.

EnvironmentLackofaccesstocleanfreshwaterisconsideredtobeoneofthemajorthreatstohumanhealthandeconomicdevelopmentaroundtheworld.TheRBCBlueWaterProjectisahistoric10-year,$50millioncommitmenttosupportcharitableorganizationsdedi-catedtofindingglobalsolutionstothewatercrisis.Theprojectwaskickedoffwitha$10-millioncommitmenttoONEDROP*,foundedbyCirqueduSoleil’sGuyLaliberté.InthefirstninemonthsoftheRBCBlueWaterProjectalone,wecommitted$11.8milliontoorganizationsworkingintheareasofwatershedprotectionandaccesstocleandrinkingwater.Byyear-end,wehadcommittedatotalof$13.2millionto64organizationsworldwide.Leadershipgrants,rangingfrom$25,000to$500,000each,wereawardedtocharitablecausesthathelpfosteracultureofwaterstewardship,including:

Canada• The Centre for Indigenous Environmental Resources.Ourcontri-butionwillfundanonlineeducationtooltoimprovewatershedmanagementintraditionalterritoriesinBritishColumbia,NovaScotiaandAlberta,whereinadequateresourcesandcapacityoftenlimitacommunity’sabilitytoengageinwatershedplanning.

• Learning for a Sustainable Future.WearesupportingaWaterActionProjectProgramforelementaryandsecondaryschoolchildrenacrossCanada,withafocusonunderservicedschoolsandFirstNationscommunities.

• The Yukon Chapter of the Canadian Parks and Wilderness Society.OurdonationwillhelpprotecttheThreeRiverswatershedintheYukon,ahotspotformineralandfossilfuelextraction,andtradi-tionalterritoryoftheNa-choNyakDunandTetl’itGwich’inFirstNations.

• Green Communities Foundation.Manywellsandcommunaldrink-ingsystemsareatriskofcontaminationinAboriginalcommunities.Ourgrantwillfundthe“WellAware”Program,providingeducationaboutwell-watermonitoringinAboriginalcommunitiesinnorth-easternOntario.

Donations with lasting social impactWhilesomecompaniesfocustheirdonationprogramsonveryspecificcausesthatalignwiththeirbusinessgoals,RBC’sstrategicapproachistoprovideabroadbaseoffundingtoawiderangeofcauses.Thisisinkeepingwithourpositionasalarge,globalfinancialinstitution,asweareexpectedtosupportamultitudeofcausesbyour17millionclientsandmorethan80,000employees.Assuch,theRBCCommunityBlueprintfocusesonsupportforfederatedappeals,youth,education,theenvironment,Aboriginalpeople,peoplewithdisabilities,amateursport,arts,culture,healthandwellness.RBClooksforopportunitiestosupportdiversityinallourdonations.

EducationHelpingkidsstayinschoolisakeyareaoffocusforRBC.

• In2008,RBCinvested$2.6millionwith95ofCanada’stopcommunity-basedafter-schoolprograms.Wehavebeenfundingafter-schoolprogramssince1999.Overthelast10years,wehaveprovidedmorethan$17millioningrantsto182community-basedafter-schoolprogramsthatofferlearningandskilldevelopmentopportunitiestoyouthinthehoursafterclassesendfortheday.

• RBCsupportsJuniorAchievement(JA),aninternationalorganiza-tiondedicatedtoeducatingandinspiringyoungpeopleaboutbusinessandeconomics.WehelpfundJA’sEconomicsofStayinginSchoolprogram,whichencouragesjuniorhighschoolandhighschoolstudentstoreflectontheadvantagesofremaininginschoolsotheycanacquiretheknowledge,attitudesandskillsneededforlong-termcareersuccess.In2008,RBCdonatedmorethan$435,000toJA.

• IntheU.S.,RBCBanksupportsCommunitiesinSchools,thenation’sleadingcommunity-basedorganizationhelpingyoungpeoplestayinschoolanddeveloplifeskills.Formorethan30years,CommunitiesinSchoolshashelpedprovidestudentswithfivebasics:aone-on-onerelationshipwithacaringadult,asafeplacetolearnandgrow,ahealthystartandahealthyfuture,amarketableskilltouseupongraduation,andachancetogivebacktopeersandcommunity.

•RBCBank’sTributetoTeachersprogramrecognizesteachersfortheiroutstandingleadershipandcontributionandprovidescashrewardsfortheirclassrooms.In2008,weexpandedtheprogramtorecognize50teachersinSyracuse(NewYork),Minneapolis(Minnesota),Oakland(California)andacrossthesoutheasternU.S.

•IntheCaribbean,RBCsupportseducationthroughanumberoforganizationsandprogramsincludingtheSchoolLeadershipCentreofTrinidadandTobago,whichequipsteacherswithnewtools,andthePrevent-a-DropoutPrograminJamaica.

RBCalsoprovidesproductstohelpparentsfinanceachild’seduca-tion.TheRBCTargetEducationFundsofferinvestmentgrowthpotentialupfrontandbecomemoreconservativeasthechildapproachescollegeoruniversityage.ThroughtheRBCRewards®

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53 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

bestpracticesforhomeownersandbusinessesaboutnon-pointwatersourcepollutionandwetlandprotection.

CaribbeanIn2008,RBCannouncedaUS$300,000contributiontotheInsti-tuteforPublic Health and Water Research.IncollaborationwiththeGlobalWaterPartnership,thefundswillsupportapilotprojecttoeducatestudents,parentsandteachersinruralcommunitiesonwaterharvesting,waterconservation,andfloodabatement.

Formoreinformation,seerbc.com/bluewater

Health and wellnessRBCsupportsresearchandprogramsthathelpimprovecommunityhealthcare.Examplesinclude:

• Athree-yeargranttotheCentreforActivityandAgingforanexerciseandeducationprogramaimedatolderadults,enablingthemtocontinuetoliveindependently

• MentalIllnessFoundationofQuebec,dedicatedtothepreventionofmentalillnessinordertoreducethesufferingofaffectedpeople

•TheRBCCaribbeanChildren’sCancerFund,afive-year,US$1millioncommitmenttosupporttheCancerTreatmentFoundation,acharitychairedbydoubleworld-record-breakingcricketerBrianLara,initseffortstoprovidefinancialsupportforcancertreatmentinchildrenundertheageof16

•TheCidelCharityCupinBarbados,anannualsailingandbeachactivityeventthatraisesfundsforanumberofcharities,includingtheBarbadosCancerSocietyandtheHeartFoundation.

RBCiscommittedtohelpingimproveoutcomesforCanadianchildrenwithmentalillnessandtheirfamilies.TheRBCChildren’sMentalHealthProjectprovidesgrantstosupportchildren’smentalhealthprogramsthatfocusonearlyinterventionandprevention.Examplesinclude:

• SupporttoextendtheJanewayChildren’sHospital’sReachingOutprogramtoallfourhealthregionsofNewfoundlandandLabrador.Since1990,theprogram’stherapistshavebeendeveloping,offer-ingandevaluatinggroupprogramsforchildren,youthandfamiliesineasternNewfoundlandandLabradorwhofaceawiderangeofissues.

• TheHeroesChildren’sMentalHealthPrograminCalgary,devel-opedbytheImpactSocietyforChildrenandFamiliesinTurmoil,acharacterdevelopmentinitiativethatbuildsresiliencyinyouthatthejuniorandseniorhighschoollevels,helpingthemdiscoverwhotheyareandtheiruniqueabilities.

Ouremployeesvolunteertheirtimeforhealthcareorganizationsandcharitiesaroundtheworld,suchas:

• JuvenileDiabetesResearchFoundation’sRideforResearch,inwhichteamsonstationarybicyclescompete.In2008,2,813employeesacrossCanadaraisedmorethan$840,000.RBCalsodonated$50,000torecognizeouremployeeefforts.

• H20 Chelsea Partners.ManyruralregionsandmunicipalitiesinQuebecrelyexclusivelyongroundwater.Thehealthofthesecommunitiesdependsonmonitoring,educationandlegislationtoprotectwaterresources.OurgrantsupportsthedevelopmentofamodelformanaginggroundwaterissuestobesharedacrosstheprovinceofQuebec.

• Royal Botanical Gardens.OurgrantwillfundtheremediationofaseriouslydegradedwetlandsareacausedbyheavyindustryandurbandevelopmentinHamilton,Ontario.

• Waterlution.RBCsupportswatereducationworkshopsforyoungleaderswhoareworkingonwaterissuesinseverallocationsacrossCanada,withafocusonwaterissuesinFirstNationcommunities.

• Lake Ontario Waterkeeper’s (LOW).OurcontributionsupportstherestorationofwaterqualityinLakeOntariobyenablingcommuni-tiesthrougheducation,empowermentandaccesstoanexpertnetwork.ItwillalsohelpcreateamodelofwatershedprotectionforCanadaandtheGreatLakes.

• Tides Canada Foundation’s Great Bear Rainforest campaign.Wehavepledged$500,000toensureahealthyfutureforBritishColumbia’snorthandcentralcoastscalledTheGreatBearRain-forest.OurdonationwillfundconservationmanagementandsustainableeconomicdevelopmentinFirstNationscommunitiesintheregion.

• Ducks Unlimited of Canada, Project Webfoot.RBCsupportstheconservation,restorationandmanagementofwetlandstoensuretheycontinuetoprovideecologicalbenefitsforpeopleandwildlife.Wetlandsaffecttheavailabilityandsafetyofourdrinkingwaterandprotectagainstfloodsandshorelinesoilerosion.

United States• North Carolina State Engineering Foundation.Ourgrantwillfundanoutreachprogramtoeducateelectedofficialsandcommunityleadersaboutwatermanagementissuesinthisquicklygrowingregionwhichsuffersfromlimitedopportunitiestodevelopnewwaterresources.

• World Wildlife Fund.ThereisalackofcredibledataontheecologicalhealthoftheLittleTennesseeRiver,awatershedthatsupportsaregionundergoingtremendousgrowth.Ourgrantwillfundaprojecttomonitorandmapthewatershed,andtraincommunitywatermonitors.

• Donors Choose.Itisincreasinglycommonforteacherstospendtheirownmoneyonclassroommaterials,especiallyinruralanddisadvantagedinnercitycommunities.OurgrantwillhelppublicschoolteachersallacrosstheUnitedStatespurchaseclassroomsuppliesforprojectsdealingwithwater.

• Friends of the Mississippi River.Rapidgrowthoftherealestateandagriculturalsectorsareleadingtoincreasedsourcesofwaterpollution.Ourgrantwillsupportcommunityoutreachandeduca-tionwithlandownerstorestoreandprotectsensitivenaturalareasandrarehabitats.

• Alabama Coastal Foundation.Rapidurbanizationandconstructionhascausedalossofwetlandsandseriousdegradationofwaterqualityinthisregion.Ourgrantwillsupportthedevelopmentof

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54 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

traditionsoftheindigenouspeopleofthenorthwestcoastofNorthAmerica.In2008,RBCwasafoundingdonoroftheGalleryofNorthwestCoastArt

• AnishinabekNation7thGenerationCharity,whichassistsFirstNations’familiesandchildrenwithculture,languageandsupportservicesfortheelderly,students,andpeoplewhoareillanddiffer-entlyabled.RBCsupportedtheexpansionofacommunity-basedAboriginalchildren’smentalhealthprogramintheFirstNationcommunityofAundeckOmniKaning

• RBC’sAboriginalStayinSchoolProgram,launchedin1994,provides“workandlearn”opportunitiesforyouth.Atotalof44studentsacrossCanadaparticipatedinthisprogramduringthe2008summerschoolbreak

• CanadianAboriginalFestival,Canada’slargestsuchfestivalandauniqueopportunityforCanadianstoshareandlearnaboutthecultures,languagesandheritageofNorthAmerica’sAboriginalpeoples

• TheMaMawiWiChiItataCentre(MaMawi),anorganizationthatfindsAboriginalsolutionstosupportandrebuildfamiliesbycreatingmeaningfulopportunitiesforcommunityandfamilyinvolvementthatbettercareforchildren

• SaskatoonEnvironmentorsCo-operative(CoreNeighbourhoodYouthCo-op),acommunity-basedorganizationworkingwithyouthonself-sufficiency,co-operativeprinciplesandenvironmentalism.CNYCcreatesopportunitiesforyouthtoengagewitheachotherandtheircommunitythroughcreativeeconomicactivitiesbasedonenvironmentalprinciples.RBCsupportedtheirCarpentryProgramwhichprovidesjobtrainingskillstoat-riskyouth

• FiveorganizationsthataddressAboriginalwaterissuesinCanadareceivedRBCBlueWaterProjectleadershipgrants.Seepages52to53foracompletelist.

• SafeDrinkingWaterFoundation,whichRBCcontinuedtosupportin2008byfundingthedevelopmentofworkshopsthatpresenttoFirstNationsandruralcommunitiestheneedforsystemicreduc-tionoftheirrelianceonchemicalsintheirwatertreatmentprocess.

Sponsorship of community events

Arts and culture RBCbelievesinthepoweroftheartstoenrichourlivesanden-hanceourcommunities,andwesupportawiderangeofinitiativesthatcontributetotheculturalfabricofcommunities.

•TheRBCCanadianPaintingCompetition,establishedin1999,nur-turesCanadianvisualartistsearlyintheircareers.In2008,winnerswerechosenfrommorethan1,200works,submittedbymorethan600artistsacrossthecountry.VancouverartistJeremyHofwasthenationalwinner.Hewasawarded$25,000forhisoriginalwork,Layer Painting Red.HonourablementionsAmandaReevesandWilMurrayeachreceiveda$15,000prize.Aspartofthe10thanniver-sarycelebrations,anadditional12semi-finalistsreceivedprizesof

•TheWeekendtoEndBreastCancer,anannualeventwherethousandsofTorontonianshelpraisefundsfortheCampbellFamilyInstituteatthePrincessMargaretHospital.Everyyear,RBCemployeestakeonthis60-kilometre,two-daywalkingchallenge.In2008,morethan150TeamRBCmembersbravedtheelementsandraisedover$335,000.

• MultipleSclerosisSociety’swalksandbikeridesacrossCanada,inwhichhundredsofRBCemployeesandfamilymemberstakepartannually.RBCalsohostedagolftournamentinTorontofortheMSSociety,raising$400,000forthecause,bringingthetotalraisedsince1995to$2.65million.

•TheannualJerseyMarathonandJerseyRelayforLifeinwhichBritishIslesemployeesraisedfundsforU.K.andlocalcharities,aswellasCancerResearchU.K.

Newcomers to CanadaIn2008,RBCFoundationdonatedmorethan$365,000toinitiativesdedicatedtohelpingnewcomerssucceedinCanada.

People with disabilitiesRBCbelievesthatfullinclusionisinthebestinterestsofourcommunitiesandourcountries.Wesupportprogramsthathelpcreateemployabilityandremovebarrierstoeducationforpeoplewithdisabilities.In2008,RBCFoundationdonated$1.15milliontoorganizationssupportingpeoplewithdisabilities,including:

• CanadianAssociationofIndependentLivingCentresandtheirnetworkof28IndependentLivingResourceCentresthatworktopromoteandfacilitatemethodsofsavingforpost-secondaryedu-cationamongparentswithdisabilitiesandparentsofchildrenwithdisabilities

• PrismCentreforAudiologyandChildren’sRehabilitationinChatham,Ontario,toprovideaudiologyandchildren’srehabilitationservices,includingmedicalclinics,occupationaltherapy,physiotherapy,poolrecreation,socialwork,respitecareandothers

• ValleyTherapeuticEquestrianAssociationwhichprovidestherapeutichorsebackridingforchildrenandadultswithallformsofdisabilities

• GrandviewChildren’sCentre,whichhelpschildrenandyouthwithspecialneedsordisabilitiestoachievetheirpersonalbest.

Aboriginal peopleRBChasaproudhistoryofstrongrelationshipswithAboriginalcommunities.WearecommittedtoserveAboriginalpeoplebysupportingprogramsthatenhanceeconomicandcommunitywell-being.Wefocusourphilanthropiccommunityactivitiesinthreekeyareas:theenvironment,specificallywater;youthliteracyandeducation;andcultureandheritage.RBCdonatedover$1.9milliontoAboriginalorganizationsinCanadain2008,including:

• TheBillReidFoundation,whosemissionistopreservetheartandlegacyofBillReid,anartistwhointroducedtheworldtotheart

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55 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

alsoprovidesvaluableworkexperiencetohelpathletesprepareforlifeaftersport.Sinceitslaunchin2002,theRBCOlympiansPro-gramhasemployedmorethan85athletesandseveralhavegoneontofull-timecareerswithRBC.

• RBCisanofficialsponsoroftheCanadianSnowboardFederation,whichincludesournationalteamandtitlesponsorshipofthegrassrootsprogramentitledRBCRiders.Wearealsoofficialspon-sorsoftheCanadianFreestyleSkiAssociationandtheRBCJumpsandBumpsprogram.Throughthesesponsorships,RBChelpsfundthecoachinganddevelopmentofCanada’sfreestyleandsnow-boardathletes.

Special OlympicsAsafoundingsponsorofSpecialOlympicsCanada,RBChelpsprovidesporttrainingandcompetitiveopportunitiesfor31,000Canadianathleteswithintellectualdisabilities.RBCemployeesvolunteertheirtimeascoachesandfundraiserswhiletheRBC-supportedSportCelebritiesFestivalraisesmorethan$1millionannually.

Hockey• RBChasbeenaPremierSponsorofHockeyCanadasince1995.InadditiontosupportingCanada’smen’sandwomen’snationalandOlympichockeyteams,RBCistitlesponsoroftheNationalJuniorAChampionship,theRBCRoyalBankCup.

• Initssixthyear,theRBCLocalHockeyLeaders®programrecog-nized“behindthescenes”volunteerswhosupporthockeyintheircommunities.

• RBCsupportsthepost-secondaryeducationofplayersfromeachoftheregionalleaguesofCanada’sJuniorAHockeyLeague(CJAHL).Since1996,RBChascontributedmorethan$195,000insupportoftheCJAHL,awardingbothindividualplayersandtheirsupportingleaguesthroughanationalscholarshipprogram.

Athletics In2008,RBCsponsoredanumberofathleticevents,programs,teamsandorganizationsaroundtheworld,including:

•RBCCanadianOpen.RBCwillbeatitlesponsorofthisPGAeventuntil2012.

•TheRBCWicketCricketProgram,designedtohelpschoolsandcommunitieseasilyintroducecrickettotheirphysicaleducationprograms.Gearedtostudentsfromkindergartentograde8,theprogramgivesphysicaleducationteachersandcommunityrecreationleadersthemeanstointroducekidstothebasicsofthegame,whileprovidingafunphysicalactivitythatdevelopsinterpersonalskills,enhancesselfconfidenceandinstillsthevalueoffairplay.

•CarolinaHurricaneshockey,CarolinaPanthersfootball,andWynd-hamChampionshipgolfintheUnitedStates.

• In2008,RBCBankhandedoutseveral“Let’sDoSomethingGiant”awardsatspecialeventsintheUnitedStates,recognizingindividu-alsfortheircommunityserviceorathleticaccomplishments.We

$7,500each,andHerExcellencytheRightHonourableMichaëlleJean,GovernorGeneralofCanada,lentherpatronagetotheevent.The12semi-finalists’workswillbecomepartoftheCanadianaFund’sCrownCollectionandwillbedisplayedinCanada’sOfficialResidencesincludingRideauHalland24SussexDrive.

•Ourartcollectionwasestablishedin1929tosupportCanadianartists.Today,ourcollectioncontainsmorethan4,000paintings,printsandsculptures,displayedinRBClocationsaroundtheworld.

• RBCsupportsemergingartists.In2008,weinvested$785,000inapprenticeship,internshipandartistrecognitionprogramssuchastheBanffInternationalStringQuartetCompetition,RBCCanadianGlassmakingAward,RBCMuseumInternshipforEmergingProfes-sionals,RBCGuestConductorProgram,RBCWriter’sFellowshipforNewCanadians,TheRBC/RCADesignAward,RBCNewWorksProject,RumbleProductionsSociety’sTREMORS:Rumble’sFestivalofEmergingArts,RBCDaretoDanceandothers.

• WesupportMusiCan,theCanadianAcademyofRecordingArtsandSciences’(CARAS)musiceducationprogram,tohelptheorganiza-tion’snurtureandsupportmusicprogramsforyoungCanadiansacrossthecountry.

• In2008,RBCmadea10-yearcommitmenttotheTorontoInterna-tionalFilmFestival,whosevisionistoleadtheworldincreativeandculturaldiscoverythroughthemovingimage.

• IntheUnitedStates,wesupportanumberofartsorganizationsandprogramsincludingtheUnitedArtsCouncil,CommunityMusicSchool,TarRiverChorus,MobileOpera,EmbassyCulturalCentre,BrassBandofCentralFlorida,ArtsCouncilofWinston-Salem,Artspace,andArtsplosure.

Amateur sportRBCsupportsamateurathletesofalllevels,fromthecommunitytotheOlympiclevel.

Canada’s Olympic Team•RBCisthelongest-standingcorporatesponsoroftheCanadianOlympicTeam,since1947.WearethePremierNationalPartnerinthebankingcategoryforthe2010OlympicandParalympicWinterGamesinVancouver,B.C.,whichincludessponsorshipoftheCanadianOlympicTeamforallGamesfrom2006to2012.RBC’stotalcommitmentof$110millionincludesacashcontributionofmorethan$70millionaswellasprovisionofbankingservices,athleteandamateursportinvestments,supportfortheParalym-picGames,FirstNationscommunitydevelopmentprogramsandmarketingsupportthroughtheRBCnetwork.In2008,RBCwasselectedasco-presentingpartner,withCoca-Cola*,oftheOlympicTorchRelayfortheVancouver2010OlympicandParalympicWinterGames.

• RBCemployscurrentandretiredOlympicandParalympicathletesthroughtheRBCOlympiansProgram,offeringflexibleworkarrangementssothatathletescanmaketimefortrainingandcom-petition.RBCOlympiansactascommunityambassadors,visitingschools,communitygroups,clientsandemployees.Theprogram

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56 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Community

Team actionFromwalkingforthecuretobikingforheart,RBCvolunteershavebeenmovingforgoodcausesformanyyears.In2008,weintro-ducedaprogramtohelporganize,supportandencouragetheseinitiatives.Theprogramunitesemployeeteamsbehindcommoncauseswhileprovidingcorporatefinancialsupporttothecharityforwhichtheyarewalking/running.

Volunteer websiteIn2008,RBClaunchedaninternalwebsitetogiveouremployeesaroundtheworldone-stopaccesstoinformationandresourcesonourvolunteerprogramsandinitiatives.Thesitealsoenablesustoshareandcelebratethecommunityworkofdedicatedvolunteers.Canadianorganizationsandcharitiescansubmitvolunteeroppor-tunitiestobepostedonthesite’svolunteerbulletinboard.

United WayRBCisthelargestprivatesectorcontributortotheUnitedWayinCanada,andoneofonly54organizationsthatcontributeover$1millionannually.OursisthelargestprivatesectoremployeegivingcampaigninCanada,withmorethan$11millioncontributedthroughpayrolldeduction,directgivingandemployee-drivenfundraisingevents.Combinedemployeeandcorporatecontribu-tioninCanadaandtheU.S.reached$17.4millionin2008.

United Way donations (C$)

Canada United States

Employees* $11,673,000 $ 1,004,206Corporate $ 4,367,325 $ 340,194

* Thisincludesfundsraisedthroughpayroll,directgivingandemployeefundraisingevents.RBCemployeesaroundtheworldalsohelpraisefundsforcountlesscommunitygroupsinadditiontotheUnitedWay.

Loaned employees (Canada)

Employees loaned Employees who participated to work full-time in community projects through on local campaigns United Way Days of Caring

2008 10 727

2007 14 545

2006 15 445

donatedoverUS$5,000toathleticscholarshipsandnon-profitorganizationsonbehalfoftheawardwinners.

•TheBahamasNationalSwimmingChampionships,ofwhichRBChasbeenthemajorsponsorforthepast25years.

•NationalIntercolfootballcompetitionamongsecondaryschoolsinTrinidadandTobago.

•TheJerseySwimarathonintheBritishIsles,theisland’slongestrunningcharityevent,whichwesupportinpartnershipwiththeLionsClubofJersey.In2008,theeventraised£130,000forlocalcauses,withtheprincipalbeneficiariesbeingCheshireHomeandauniquehotelforthedisabled,MaisondesLandes.

Employee activity and contributionsTheemployeesandpensionersofRBCarepassionatevolunteers.Asfinancialservicesprofessionals,theysharetheirvaluableknow-ledge.Theyparticipateonnot-for-profitboardsandcommittees,providemoney-managementworkshops,andsharetheirbudgetingandbusinessplanningknowledge.Asmembersofcommunities,theydedicatecountlesshourstocausestheybelievein.

Wecelebrateandthankouremployeesforalltheydotobuildstrong,healthycommunities.Wesupporttheireffortsthroughprogramsandinitiativesthatfosteracultureofgiving.

Toseeprofilesofsomeofouremployeevolunteers,seerbc.com/donations

Dollars for doersLaunchedin1999,theRBCEmployeeVolunteerGrantsProgramsupportscommunityinvolvement.Employeesandpensionerswhovolunteeraminimumof40hoursayeartoaregisteredcharityareeligiblefora$500granttotheorganizationintheirhonour.Manyofthesegrantsareappliedtospecificprojectsatsmallerorganiza-tionsthatdonotevenhavetheresourcestofundraise.

Since1999,RBChasmadeover14,500grantsanddonatedover$7.2milliontocelebrateouremployees’volunteerefforts.In2008,weexpandedtheprogramtoourinternationaloperationsandprovided2,077EmployeeVolunteerGrantstocommunityorganiza-tionsglobally.

Employee volunteer grants(number of employees receiving grants)

2006

Canada

2007

2008

United States and other international

1,795 1,930

1,885 2,025

1,848 2,077

135

140

229

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57 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Aboriginal people

Aboriginal people (summary*)

Economic developmentRBCsupportsthecreationofwealthandeconomicsustainabilityinAboriginalcommunitiesbyfacilitatingthedevelopmentofknow-ledgeandresourcescriticaltosuccess.WepromoteAboriginalinterests,forgingpartnershipswithAboriginalpeoples,businessesandgovernmentsbasedonunderstanding,trustandrespect.RBCencouragesdialoguebetweenbusinesses,governmentsandindi-vidualstoidentifyandresolverelevanteconomicissues.

Wesupportprogramsthatpromotelearningandskillsdevelop-mentamongAboriginalpeoples,whichleadstogreatereconomicself-sufficiency,including:

• TheAboriginalHumanResourceCouncil,formedin1998asanationalpublic/private,not-for-profitorganizationwithamandatetoadvancethefullparticipationofAboriginalpeopleinCanada’slabourmarketonanationallevel

• FrontiersFoundation,anot-for-profitAboriginalvoluntaryserviceorganizationthatpromotestheadvancementofeconomicallyandsociallydisadvantagedcommunitiestoprovideaffordablehousingandimprovementsineducation

• RBCAboriginalStudentAwardsProgram,whichhasprovided77scholarshipstotalling$866,000sincetheprogram’sinceptionin1992.Eightstudentsreceivedawardsin2008.Awardrecipientsarealsoconsideredforsummerandpost-graduateemploymentopportunitieswithRBC

• MiziweBiikAboriginalEmploymentandTrainingCentre,commit-tedtoimprovingthesocio-economicstatusofAboriginalpeoplethroughaccesstotrainingandemploymentopportunities,businessdevelopmenttrainingandsupportservices,andemploymentcoun-selling.RBCdirectedoursupporttoasmallbusinesscertificatecourseandasmallbusinessmicro-loansprogramforAboriginalentrepreneurs

• CAREERS,inpartnershipwithAlbertacommunityeducationsystemsandindustrytoachievecareersuccessforyouthandmeetinterdependentneedsofyouthemployabilityandskilledlabourshortages

• TheCanadianCouncilforAboriginalBusiness,anationalnon-profitorganizationthatprovidestoolsandresourcestopromotethefullparticipationofAboriginalpeopleandcommunitiesinCanada’seconomy.

RBC has a proud history of strong relationships with Aboriginal communities. We are committed to serving Aboriginal people by improving access to financial services, supporting economic develop-ment, creating employment opportunities, and fostering community well-being.

InDecember2007,RBCofficiallyjoinedtheAssemblyofFirstNation’s(AFN)CorporateChallengewiththesigningofaMemoran-dumofUnderstanding(MoU).RBCalsoprovidedatwo-yearactionplanthatoutlinedcommitmentstovariousinitiativesdesignedtosupportaccesstobankingandcapital,communityandsocialdevelopment,employment,andprocurementopportunitiesforFirstNationsacrossCanada.

Access to banking and specialized servicesInadditiontoeightCanadianbrancheslocatedonreservesandsixbranches“Northof60,”RBChasestablishedfiveagencybankingoutletsinAboriginalcommunitiesinAlberta,BritishColumbia,Manitoba,andOntario.TheseagenciesprovideaccesstofinancialservicesusingRBCsystemsandinfrastructureinremoteareas.TherearecurrentlythreemoreagenciesunderconsiderationforSaskatchewan,Ontario,andNewfoundland.

OurdedicatedteamofspecializedAboriginalbankingmarketmanagers,accountmanagersandriskmanagersunderstandstheuniquelendingissuesandfinancialserviceneedsofAboriginalgovernments,businessesandcommunities.TheteamharnessesitsexpertisetoprovideproactivefinancialadviceandsolutionstoourAboriginalbankingclientsacrossCanada.

Fifty-sixFirstNationsparticipateinourOn-ReserveHousingLoanProgram,whichhelpsmorefamiliesenjoythelong-termbenefitsofhomeownershipandinvesting.Anumberofmortgageandhousingpolicychangesnowallowbandstoofferhousingtonon-FirstNationspeoples,improvingthereserve’seconomicviability.

* Pages 57 to 58 provide a one-stop summary of the ways RBC supports and serves Aboriginal people. We have repeated content found in a number of other sections of this report such as Marketplace, Workplace and Community.

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58 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Aboriginal people

Community initiativesWefocusourAboriginalphilanthropiccommunityactivitiesinthreekeyareas:theenvironment,specificallywater;youthliteracyandeducation;andcultureandheritage.In2008,RBCdonatedover$1.9milliontoAboriginalorganizationsinCanada,including:

• TheBillReidFoundation,whosemissionistopreservetheartandlegacyofBillReid,anartistwhointroducedtheworldtothearttraditionsoftheindigenouspeopleofthenorthwestcoastofNorthAmerica.In2008,RBCwasafoundingdonoroftheGalleryofNorthwestCoastArt

• AnishinabekNation7thGenerationCharity,whichassistsFirstNations’familiesandchildrenwithculture,languageandsup-portservicesfortheelderly,students,andpeoplewhoareillanddifferentlyabled.RBCsupportedthefurtherdevelopmentofacommunity-basedAboriginalchildren’smentalhealthprogramintheFirstNationscommunityofAundeckOmniKaning

• CanadianAboriginalFestival,Canada’slargestAboriginalfestivalandauniqueopportunityforCanadianstoshareandlearnaboutthecultures,languagesandheritageofNorthAmerica’sAboriginalpeoples

• TheMaMawiWiChiItataCentre(MaMawi),anorganizationthatfindsAboriginalsolutionstosupportingandrebuildingfamiliestobettercareforchildrenbycreatingmeaningfulopportunitiesforcommunityandfamilyinvolvement

• SaskatoonEnvironmentorsCo-operative(CoreNeighbourhoodYouthCo-op),acommunity-basedorganizationworkingwithyouthonself-sufficiency,co-operativeprinciplesandenvironmentalism.CNYCcreatesopportunitiesforyouthtoengagewitheachotherandtheircommunitythroughcreativeeconomicactivitiesbasedonenvironmentalprinciples.RBCsupportedtheirCarpentryProgramwhichteachesavarietyofcarpentryskillsandprovidesjobtrainingskillstoat-riskyouth

• FiveorganizationsthataddressAboriginalwaterissuesinCanadareceivedRBCBlueWaterProjectleadershipgrants.Seepages52to53.

• SafeDrinkingWaterFoundation,whichRBCcontinuedtosupportbyfundingthedevelopmentofworkshopsthatpresenttoFirstNationsandruralcommunitiestheneedforsystemicreductionoftheirrelianceonchemicalsintheirwatertreatmentprocess.

Employment

Aboriginal people in our workplace in Canada*

2008 2007 2006 1998

1.6% 1.6% 1.6% 1.1%

* FiguresrepresentemploymentequitydataasofOctober31forourbusinessesinCanadathataregovernedbytheEmployment Equity Act.

WearecommittedtoincreasingtherepresentationofAboriginalpeoplewithinourworkforce,throughproactiverecruitmentandprograms:

• SincetheRBCAboriginalStudentAwardsProgramwaslaunchedin1992,wehaveawarded77scholarshipstotaling$866,000toAboriginalstudentsacrossCanada.In2008,weawardedatotalofeightscholarshipsandwillbeexpandingtheprogramin2009byofferinganadditionaltwoscholarships.

• In2008,thePursue Your PotentialrecruitmentprogramwasexpandedtoincludeAboriginalpeople,helpingthemexplorecareeropportunitiesandunderstandtherecruitmentandselectionprocess.

• Atotalof44studentsacrossCanadaparticipatedintheRBCAboriginalStayinSchoolProgramduringthesummer2008schoolbreak.

• InOctober2008,aspartofFIPAR(FinancialIndustryPartneringforAboriginalRelationships),RBChelpedlaunchanewwebsitedesignedtoeducateAboriginalyouthoncareeropportunitieswithinthefinancialindustry.

* Pages 57 to 58 provide a one-stop summary of the ways RBC supports and serves Aboriginal people. We have repeated content found in a number of other sections of this report such as Marketplace, Workplace and Community.

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59 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Diversity

Diversity (summary*)

Diversity in our workplace in Canada*

2008 2007 2006 1998

Women 69% 69% 70% 75%Women in management 54% 55% 55% 53%Visible minorities 26% 25% 24% 12%Visible minorities in management 25% 24% 21% 13%People with disabilities 3.8% 3.9% 3.2% 2.9%Aboriginal people 1.6% 1.6% 1.6% 1.1%

* Figures represent employment equity data as of October 31, for our businesses in Canada that are governed by the Employment Equity Act. Given variations in legal definitions and restrictions in legislation around the world, comprehensive data on these four designated groups is available only in Canada.

Training and mentoringRBC is committed to ongoing learning, coaching and mentoring to ensure we develop and support a rich and diverse workforce. Employee diversity training initiatives include:

• Business Excellence through Diversity: Workshops were completed by over 380 employees globally.

• Respectful Workplace: Almost all U.S. employees completed this program that helps individuals understand and comply with our Code of Conduct and respectful workplace policy, which state that all employees have the right to work in an environment free from harassment, discrimination and offensive behaviour.

• Extensive self-study materials are available 24/7 through our internal website, Destination Diversity.

• RBC Diversity Dialogues: Our reciprocal mentoring program was expanded to more than 200 employees. This program connects two people with different professional experiences and backgrounds who learn about leadership and diversity from each other.

Employee resource groupsEmployee resource groups are self-governing networks of employees that help their members develop personally and professionally through peer mentoring, coaching and networking. These groups help cultivate an inclusive work environment by fostering a better understanding of their needs. Groups that are formally recognized by RBC receive an annual budget and communications support from the company.

In Canada, we have employee resource groups representing Aboriginal employees (Royal Eagles); lesbian, gay, bisexual and transgendered employees (PRIDE); and employees with disabilities (REACH). This year, RBC also launched a new employee resource group – MOSAIC, which aims to foster the career advancement of new Canadians and visible minorities through mentoring and networking opportunities.

The RBC Diversity Blueprint sets out our corporate diversity strategy, priorities and objectives. It out-lines how we will continue to improve our diversity position in Canada, strengthen our existing diversity and inclusion efforts in the U.S. and internationally, and develop new initiatives that support our commitment to diversity.

LeadershipTo create and sustain a diverse, inclusive and collaborative work environment, people at all levels of the organization must be engaged. Our President and CEO chairs the RBC Diversity Leader-ship Council, created to establish strategies and goals, and put RBC senior-level diversity champions in place in North America and the United Kingdom. In addition, individual business units have diver-sity leadership councils that help advance diversity and inclusion.

Our leaders are also active outside the RBC workplace. We believe progress in diversity is a societal objective and we can learn from one another. Our leaders participate in various public discussions, panels and workshops that focus on promoting diversity in the workplace.

Raising diversity awarenessRBC promotes diversity by sharing our knowledge and encouraging discussion of its impact on business, communities and the econ-omy. For example, RBC sponsors a study by Catalyst Canada and Ryerson University on the career development and advancement of visible minorities in corporate Canada. In 2008, Catalyst Canada released the fourth part of this study that addressed workplace fit and stereotyping of visible minorities in corporate Canada. The study showed that, like organizations in other countries, Canadian businesses appear to be suffering from “imperfect execution” of diversity and inclusion policies. The study also highlights strate-gies for companies to help them leverage the talents of visible minority employees more fully.

Workplace

Workforce composition progress reportThe composition of our workforce is an important measure of how well our diversity efforts are working. Diversity initiatives can take several years to show results, making year-over-year comparisons less meaningful than longer-term ones.

* Pages 59 to 60 provide a one-stop summary of the various diversity initiatives taking place across RBC. We have repeated content from a number of other sections of this report, such as Marketplace, Workplace and Community.

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60 RBC Corporate Responsibility Report and Public Accountability Statement 2008 Diversity

Economic development initiativesRBCbelievestherearesignificanteconomicbenefitswhennewimmigrantssucceedintheiradoptedcountry.InCanada,wehaveadaptedourcredit,banking,marketing,recruitingandtrainingpracticestohelpmakethishappen.In2008,wecreatedabankingpackagetailoredtotheneedsofnewcomers,increasedthenumberofscholarshipawardsfornewCanadiansfromsevento12,anddevelopedanumberoftoolsandresourcestohelpnewcomerssucceedintheiradoptedcountry.Wealsosupportedanumberoforganizationsthathelpskilledimmigrantsfindemploymentandsucceed,suchas:

• CareerBridge*,aninnovativepaidinternshipprogramthatrespondstoCanada’slabourmarketdemandforinternationallyqualifiedprofessionalsandtotheaspirationsofqualifiedimmigrantseagertoworkintheirprofessionalfieldsinCanada.Since2003,approxi-mately300employershaveprovidedmeaningfulworkexperiencestoover920CareerBridgeinterns,including73internshipsatRBC.

• ImmigrantAccessFund,anot-for-profitgroupthatraisesfundstoprovidemicro-loanstointernationallytrainednewcomersinCalgaryforaccreditation,trainingandupgradingofskills

• TheTorontoRegionImmigrantEmploymentCouncil,amulti-stakeholdercouncilworkingtoimproveaccesstoemploymentforimmigrantssotheyarebetterabletousetheskills,educationandexperiencetheybringwiththemtoCanada.InpartnershipwithTRIEC,RBCisakeysponsoroftheannualImmigrantSuccessAwardsthatrecognizesTorontoRegionemployersandindividualsthatrecruit,retainandpromoteskilledimmigrantsintheworkplace.

• S.U.C.C.E.S.S.,amulti-serviceagencyinBritishColumbiathatpromotesthewell-beingofallCanadiansandimmigrants,encour-agingtheirparticipationinthecommunitybyofferingsocial,employment,businessandeconomicdevelopment,trainingandeducation,andhealthservices.

Community initiativesRBCbelievesthatfullinclusionisinthebestinterestsofourcom-munitiesandourcountries.That’swhywesupportprogramsthathelpnewcomerssucceed,promoteAboriginalinterestsandremovebarrierstoeducationforpeoplewithdisabilities.In2008,RBCFoun-dationdonated$365,000toprogramsthathelpnewcomerssucceed,$1.5milliontoorganizationsthatsupportpeoplewithdisabilitiesand$1.9milliontoAboriginalcauses.

Supplier managementWeareafoundingmemberoftheCanadianAboriginalandMinoritySupplierCouncil.RBChasbeenamemberoftheCouncil’sU.S.affili-ate,theNationalMinoritySupplierDevelopmentCouncil,since2002.

IntheU.S.,wehavegroupsrepresentinggayandlesbianem-ployees(GLADE)andminorityemployees(MEA).Aswell,womenbrokersaresupportedbytheWomen’sAssociationofFinancialConsultants,aresourcegroupthatfosterstheproductivityandsuccessofwomenfinancialconsultantsthroughawiderangeofinformation,eventsandprograms.

Programs to support diversityWeparticipateinanumberofexternalandinternalprogramsthatsupportdiversity.Forinstance,forthepast12years,wehavesuccessfullypartneredwiththeCareerEdgeorganizationtoprovidepaidinternshipstostudents.Since2003,approximately300employershaveprovidedmeaningfulworkexperiencestoover920CareerBridgeinterns.RBChasprovidedover70qualifiedprofessionalsininternshippositionsthroughtheCareerBridgeprogramfornewcomerstoCanada,andhasprovidedover85internshipsforgraduateswithdisabilitiesthroughtheAbilityEdgeprogram.Approximately70%ofinternsinbothprogramsjoinRBCasfull-timeemployeesfollowingtheirinternships.

WearealsocommittedtoincreasingtherepresentationofAboriginalpeoplewithinourworkforce,throughproactiverecruit-mentandprograms.

Manyofourinternalpoliciesandprogramspromotediversityatalllevelsofthecompanybyprovidingtheflexibilityandsupportthatmanyemployeesneedtomanageworkandlife.Thisincludes:

• Accesstopersonalwork/lifecounsellingservices

• Maternity,parentalandfamilyresponsibilityleave

• Theoptionofreturningfromleavesgraduallyorinanalternativeworkarrangement

• Emergencybackupeldercareandchildcareinseveralmajorcentres.

MarketplaceRBCprovidesbankingaccesstoahostofdiversegroupsthroughcustomizedproducts,services,channelsandcommunity-basedprograms.Groupsservedinclude:

• Low-incomeandunderservedclients

• Peoplewithdisabilities

• Seniors

• Studentsandyouth

• NewcomerstoCanada

• PeoplewhospeaklanguagesotherthanEnglishandFrench.

Formoreinformation,seepages30to31

*Pages 59 to 60 provide a one-stop summary of the various diversity initiatives taking place across RBC. We have repeated content from a number of other sections of this report, such as Marketplace, Workplace and Community.

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61 RBC Corporate Responsibility Report and Public Accountability Statement 2008 PAS

RBC Life Insurance CompanyRBCLifeInsuranceCompany(RBCLIC)isawhollyownedsubsidiaryofRBCInsuranceHoldingsInc.,whichinturnisawhollyownedsubsidiaryofRoyalBankofCanada.RBCLICisafederallyregulatedlifeandhealthinsurancecompanyandislicensedtowritelifeandaccidentandsicknessinsuranceinallprovincesandterritoriesinCanada.RBCLICoffersnon-participatingindividuallifeandaccidentandsicknessinsurance,aswellasgrouplifeandhealthpolicies.Theseproductsandservicesareofferedthroughthird-partybrokers,acareersalesforceanddirectmarketingefforts.RBCLICemployed926full-timestaff(849inOntario,28inQuebec,23inBritishColumbia,20inAlberta,3inNovaScotia,1inNewBrunswick,1inManitobaand1inSaskatchewan)and95part-timeemployeesinOntarioasatOctober31,2008.RBCLICexpensed$48millionofincometaxes($29million,federal;$10million,Ontario;$3million,Quebec;$2million,Alberta;$2million,BritishColumbia;$1million,Manitoba;and$1millionintotaltotheotherprovincesandterritories)and$95,000ofcapitaltaxesforthefiscalyearendedOctober31,2008.Inaddition,duringthesameperiod,RBCLICexpensed$22millionofpremiumtaxesbasedonapercentageofgrosspremiumswritten($9million,Ontario;$4million,Quebec;$3million,Alberta;$3million,BritishColumbia;$1million,Manitoba;$1million,Saskatchewan;and$1milliontootherprovincesandterritories).Incomeandothertaxes,aswellasemployeenumbersarealsoincludedinRoyalBankofCanada’sPublicAccountabilityStatementdisclosure.

DuetothespecificnatureoftheoperationsoftheDeclarants,theydonotoperatebankbranchesorotherfacilitiesatwhichdepositaccountsareopenedthroughnaturalpersonsandwithcustomersinperson,oratwhichdepositsfromcustomersareacceptedorcashisdistributedtocustomers.Inaddition,theDeclarantsdonotprovidedebtfinancingtofirmsinCanadaandarenotinvolvedinnewinitiativesandtechnicalassistanceprogramsforfinancingforsmallbusiness,noraretheyinvolvedininvestmentsorpart-nershipsinmicro-creditprograms.TheDeclarantsarealsonotinvolvedininitiativestoimproveaccesstofinancialservicesforlow-incomeindividuals,seniorcitizensanddisabledpersons.AlloftheforegoingactivitiesareundertakenbyRoyalBankofCanadaonbehalfofitsaffiliatesandareoutlinedintherespectivesectionsofthisPublicAccountabilityStatement.AsatOctober31,2008,theDeclarantsdidnothaveprescribedaffiliates.

AsintegratedsubsidiariesofRBC,theDeclarantssharecommunitydevelopmentgoalsandparticipateincommunity-basedactivities,includingvolunteer,charitableandphilanthropicactivities,collec-tivelywithRoyalBankofCanada.ForfurtherdetailsandexamplesoftheDeclarants’goalsforcommunitydevelopment,donationsandrelatedactivities,pleaserefertothecorrespondinginformationcontainedinthisPublicAccountabilityStatement.

Public Accountability Statement declaration and affiliates

Declaration TheinformationdocumentedinthisPublicAccountabilityStatementforthefiscalperiodendedOctober31,2008,includestherelevantactivitiesrelatedtoRoyalBankofCanada,ourpre-scribedaffiliatesanddeclarants,inaccordancewithCanadianfederalregulations,pursuanttosubsections459.3oftheBank Act,489.1ofthe Insurance Companies Actand444.2oftheTrust and Loan Companies Act.

Affiliates ThefollowingaretheprescribedaffiliateswhoseactivitiesareincludedinthisPublicAccountabilityStatement.TheseaffiliatesaresubsidiariesofRoyalBankofCanadaandarefinancialinstitutionswithlessthan$1billioninequity,exceptforoursecuritiesbroker,RBCDominionSecuritiesInc.,whichhasequityexceeding$1billion.

RBCAssetManagementInc.RBCDirectInvestingInc.RBCDominionSecuritiesInc.RBCGeneralInsuranceCompanyRBCInsuranceCompanyofCanadaRBCPrivateCounselInc.RBCTrusteesInternationalLimitedRoyalTrustCorporationofCanadaTheRoyalTrustCompany

Public Accountability Statementsfor Royal Bank of Canada declarantsThissectionprovidesthePublicAccountabilityStatementsforthefiscalyearendedOctober31,2008forRoyalBankMortgageCor-porationandRBCLifeInsuranceCompany(Declarants),whicharefinancialinstitutionswithgreaterthan$1billioninequitythatarerequiredundersubsection444.2oftheTrust and Loan Companies Act,andundersubsection489.1oftheInsurance Companies Act,respectively,tofilePublicAccountabilityStatements.

Royal Bank Mortgage CorporationRoyalBankMortgageCorporation’s(RBMC)primarybusinessactivityistoacquireresidentialandcommercialmortgagesfromRoyalBankofCanada.RBMCfundsitsbusinessbyissuingguar-anteedinvestmentcertificates(GICs)andRoyalMoneyMarket™savingsandchequingaccountsopenedthroughRoyalBankofCanadabranches.AllmortgagesareadministeredandguaranteedtoberepurchasedbyRoyalBankofCanada.RBMCdoesnothaveanyemployeesasallofitsactivitiesareconductedbyemployeesofRoyalBankofCanada.RBMCrecovered$102.7millionofincometaxes($64.3million,federal;and$38.4million,Quebec)andexpensed$9.5millionofcapitaltaxestoQuebecforthefiscalyearendedOctober31,2008.Incomeandcapitaltaxes,aswellasothertaxes,arealsoincludedinRoyalBankofCanada’sPublicAccount-abilityStatementdisclosure.

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62 RBC Corporate Responsibility Report and Public Accountability Statement 2008 PAS

Employment in CanadaRBCisoneofCanada’slargestemployers,withmorethan56,000employees.

AsatOctober31,2008

Provinces and territories Number of employees Full-time Part-time

NewfoundlandandLabrador 310 225 85PrinceEdwardIsland 103 70 33NovaScotia 1,299 941 358NewBrunswick 1,348 1,150 198Quebec 7,373 5,560 1,813Ontario 30,538 26,052 4,486Manitoba 2,226 1,604 622Saskatchewan 1,305 814 491Alberta 4,376 3,175 1,201BritishColumbia 7,141 5,078 2,063Yukon,NorthwestTerritoriesandNunavut 93 70 23

Total 56,112 44,739 11,373

Totalnumberoffull-andpart-timeemployeesinCanadaof56,112isequivalentto49,999full-timepositions,asreportedonpage32.

WealsohaveagrowingnumberofemployeesintheUnitedStatesandinourotherinternationallocations.AsatOctober31,2008,weemployed80,100peopleinfull-andpart-timepositionsworldwide.

TaxesIn2008,thetaxexpenseofRBCtoalllevelsofgovernmentinCanadawas$1.9billion.

Thisamountincluded$1.3billionofincometaxes,$104millionincapitaltaxesand$559millioninothertaxes,whichincludespayroll,business,municipal,propertyandgoodsandsalestaxes.Inaddition,ourtaxexpenseincluded$148millionrelatedtootherinternationaljurisdictionsincludingtheUnitedStates.

ForthefiscalyearendedOctober31,2008($millions)

Taxes by jurisdiction Capital taxes Income taxes Total taxes

NewfoundlandandLabrador $ 1 $ 3 $ 4PrinceEdwardIsland 1 1 2NovaScotia 4 12 16NewBrunswick 2 7 9Quebec 30 23 53Ontario 38 279 317Manitoba 10 14 24Saskatchewan 5 10 15Alberta – 39 39BritishColumbia 13 65 78Yukon,NorthwestTerritoriesandNunavut – – –Federal – 816 816

Capitalandincometaxes(Canada) $ 104 $ 1,269 $ 1,373Othertaxes*(Canada) 559

Canadiantaxes $ 1,932Internationaltaxes 148

Totaltaxes $ 2,080

* Othertaxesincludepayrolltaxes,goodsandsalestaxesandmunicipalandpropertytaxes.

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63 RBC Corporate Responsibility Report and Public Accountability Statement 2008 PAS

Debt financing for Canadian businessesRBCiscommittedtohelpingsmall,commercialandcorporatebusinessesinCanadaprosper.ProvidingdebtfinancingisoneofthewayswehelpbusinessesinCanadatogrowandsucceed,whethertheyarestarting,maintainingorexpandingtheiroperations.AsatOctober31,2008,authorizedamountsavailabletobusinessesinCanadatotalled$144billion.

ThefollowingtableshowsthenumberofbusinessclientswelendtoacrossCanadaandtheamountofcreditmadeavailabletothem.

2008FiscalyearendedOctober31,2008($millions)

$0– $25,000– $100,000– $250,000– $500,000– $1,000,000– *$5,000,000 Provinces and territories Metrics $24,999 $99,999 $249,999 $499,999 $999,999 $4,999,999 and greater Grand total

Newfoundland Numberofclients 1,065 704 243 89 64 84 45 2,294andLabrador Authorizedamount $ 10 $ 34 $ 36 $ 31 $ 44 $ 177 $ 1,128 $ 1,460

PrinceEdwardIsland Numberofclients 361 294 114 44 52 63 – 928 Authorizedamount $ 3 $ 15 $ 17 $ 17 $ 39 $ 138 $ – $ 229

NovaScotia Numberofclients 4,624 2,899 903 423 327 338 93 9,607 Authorizedamount $ 43 $ 145 $ 139 $ 148 $ 225 $ 722 $ 2,260 $ 3,682

NewBrunswick Numberofclients 2,370 1,588 513 243 147 190 61 5,112 Authorizedamount $ 22 $ 78 $ 77 $ 85 $ 101 $ 419 $ 895 $ 1,677

Quebec Numberofclients 13,867 8,094 3,211 1,786 1,433 1,586 431 30,408 Authorizedamount $ 129 $ 400 $ 499 $ 629 $ 1,003 $ 3,331 $ 14,685 $ 20,676

Ontario Numberofclients 46,678 29,178 10,351 4,793 3,703 3,831 1,114 99,648 Authorizedamount $ 422 $ 1,454 $ 1,575 $ 1,682 $ 2,593 $ 7,904 $ 49,206 $ 64,836

Manitoba Numberofclients 3,867 2,931 1,147 431 338 308 100 9,122 Authorizedamount $ 35 $ 152 $ 172 $ 150 $ 237 $ 688 $ 2,604 $ 4,038

Saskatchewan Numberofclients 4,657 4,038 1,905 655 428 330 57 12,070 Authorizedamount $ 45 $ 211 $ 295 $ 232 $ 297 $ 637 $ 1,956 $ 3,673

Alberta Numberofclients 19,345 10,022 3,840 1,465 1,055 1,298 458 37,483 Authorizedamount $ 174 $ 498 $ 587 $ 506 $ 731 $ 2,778 $ 20,501 $ 25,775

BritishColumbia Numberofclients 21,918 12,909 4,376 1,718 1,245 1,518 474 44,158 Authorizedamount $ 203 $ 638 $ 659 $ 594 $ 875 $ 3,262 $ 11,114 $ 17,345

Yukon,Northwest Numberofclients 454 229 87 38 29 36 – 873TerritoriesandNunavut Authorizedamount $ 4 $ 12 $ 13 $ 13 $ 21 $ 73 $ – $ 136

Total Numberofclients 119,206 72,886 26,690 11,685 8,821 9,582 2,833 251,703 Authorizedamount $ 1,090 $ 3,637 $ 4,069 $ 4,087 $ 6,166 $ 20,129 $104,349 $143,527

* Forreasonsofconfidentiality,clientsincertainregionswithauthorizedamountsof$5millionormorehavebeencombinedwithanotherregionincloseproximityforreportingpurposes:PrinceEdwardIslandhasbeencombinedwithNewfoundlandandLabrador.Yukon,NorthwestTerritoriesandNunavuthavebeencombinedwithBritishColumbia.

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64 RBC Corporate Responsibility Report and Public Accountability Statement 2008 PAS

Canadian bank branch/facility openings, closings and relocations2008FiscalyearendedOctober31,2008

NoCanadianbankbranchesorfacilitieswereclosedin2008.Foradescriptionofhowweassesstheimpactofbranchclosures,seepage29.

Opened

Unit name Street address City Province

MascoucheBranch 220MonteeMasson Mascouche QCMarketPlacePlazaBranch 370QueenStreetEast Acton ONMayfield&Highway10Branch 3068MayfieldRoad Brampton ONAirportRoad&Highway7Branch 9115AirportRoad Brampton ONImperial&PaisleyBranch 975PaisleyRoad,Unit975A Guelph ONRutherford&ThornhillWoodsBranch 1101RutherfordRoad* Maple ONMajorMackenzie&WoodbineBranch 2880MajorMackenzieDriveEast Markham ONMarkhamRoad&14thAvenueBranch 7675MarkhamRoad(Highway48) Markham ONBoxGroveBranch 60CopperCreekDrive Markham ONHighway7&McCowanBranch 5051Highway7,Unit101 Markham ONCornwall&TrafalgarBranch 361CornwallRoad,Unit107 Oakville ONBroadway&CLineBranch 489BroadwayStreet Orangeville ONKingstonRoad&SteepleHillBranch 670KingstonRoad,Unit109 Pickering ONHighTech&BayviewBranch 265HighTechRoad,Unit1 RichmondHill ONMountPleasant&ManorRoadEBranch 650Mt.PleasantAvenue Toronto ONYorkMills&LeslieBranch 801YorkMillsRoad Toronto ONUxbridgeBranch 307TorontoStreet,Unit10 Uxbridge ONMajorMackenzie&VelloreBranch 3601MajorMackenzieDrive Woodbridge ONHighway27&Highway7Branch 6140Highway7 Woodbridge ONStonebridgeVillageBranch 3118ClarenceAvenueSouth Saskatoon SKBridlewoodShoppingCentreBranch 1691924thStreetSouthWest Calgary ABTricityShoppingMallBranch 680151stStreet ColdLake ABEllerslieCrossingShoppingCentreBranch 804ParsonsRoadSouthWest Edmonton ABWapitiCentreBranch 10720–80Avenue GrandePrairie ABSylvanLakeBranch 3715–47Avenue,Unit200 SylvanLake ABSouthCourtneyBranch 3195CliffeAvenue Courtney BCCollegeHeightsBranch 6111SouthridgeAvenue PrinceGeorge BCUniversityofBritishColumbiaBranch 5960UniversityBoulevard Vancouver BC

Relocated

From To City Province

175HamptonRoad 169HamptonRoad Quispamsis NB50St.CharlesBoulevard,Unit23D 106BeaurepaireDrive Beaconsfield QC240PlaceChefMichelLaveau 2938DeLaFauneStreet Wendake QC851WonderlandRoadSouth 3089WonderlandRoadSouth London ON500KingStreetWest 550LavalDrive,Unit100 Oshawa ON89–91St.PaulStreet 80KingStreet St.Catharines ON183RoncesvallesRoad 179RoncesvallesRoad Toronto ON420ErbStreetWest 652ErbStreetWest,UnitB13 Waterloo ON4307130thAvenueSouthEast,Unit46 5222130thAvenueSouthEast,Unit401 Calgary AB1McRaeStreet 144ElizabethStreet Okotoks AB175–945ColumbiaStreetWest 400–1210SummitDrive Kamloops BC101–88LonsdaleAvenue 108EsplanadeStreetEast NorthVancouver BC1848MainStreet,Unit132 1848MainStreet,Unit174 Penticton BC705CentralAvenue 319LudlowStreet Saskatoon BC65–1153EsquimaltRoad 1153EsquimaltRoad,Unit15 Victoria BC

* Temporarypremises

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65 RBC Corporate Responsibility Report and Public Accountability Statement 2008 PAS

Canadian ATM (bank machine) openings and closings2008Fiscalyear(endedOctober31,2008)

ATMs opened

Street address City Province

230–236MainRoad HeartsContent NLTransCanadaHighway MountPearl NL1314TopsailRoad Paradise NL5790LouisbourgHighway Catalone NS291CommercialStreet NorthSydney NS1FraserSt.,Unit#3,B1v2b8(2ATMs) SydneyMines NS550UniversityAvenue Charlottetown PE2070Boul.Lemire Drummondville PQ220MonteeMasson(3ATMs) Mascouche PQ1001SherbrookeOuest Montreal PQ1140Ste-CatherineOuest(2ATMs) Montreal PQ2410Chemin Sainte-Foy PQ370QueenStreet(2ATMs) Acton ON955WestneyRoadSouth, Units7/8a/11–15 Ajax ON71SandwichStreet Amherstburg ON4995KingStreet Beamsville ON110ClearbrookTrail Bracebridge ON25PeelCentreDrive Brampton ON499MainStreetSouth Brampton ON9115AirportRoad(3ATMs) Brampton ON9800ChinguacousyRoad Brampton ON1MainStreet Brighton ON2201BrantStreet Burlington ON5111NewStreet Burlington ON351ArgyleStreet Caledonia ON11ChamplainStreet DeepRiver ON40KingStreet Dryden ON60HattStreet Dundas ON265EramosaRoad Guelph ON55WyndhamStreetNorth Guelph ON975PaisleyRoad(3ATMs) Guelph ON13–930UpperParadiseRoad Hamilton ON14–1070StoneChurchRoadEast Hamilton ON2KingStreetW,Unit124 Hamilton ON447MainStreetEast Hamilton ON505RymalRoadEast Hamilton ON4048CarlingAvenue Kanata ON537FrederickStreet Kitchener ON401KentStreetatHighway7b Lindsay ON1201OxfordStreetWest London ON1240CommissionersRoadWest(2ATMs) London ON1593AdelaideStreetNorth London ON1795ErnestAvenue London ON3089WonderlandRoadSouth London ON

Street address City Province

611WonderlandRoad London ON2880MajorMackenzieDriveEast(2ATMs) Markham ON5051Highway7,Unit101(3ATMs) Markham ON60CopperCreekDrive(2ATMs) Markham ON1515MainStreetEast Milton ON1240EglintonAvenueWest Mississauga ON1375SouthdownRoad,Units11–15 Mississauga ON3221DerryRoadWest Mississauga ON377BurnhamthorpeRoadEast Mississauga ON6415DixieRoadNorth Mississauga ON1500FisherStreet NorthBay ON6LakeshoreDrive NorthBay ON801YorkMills NorthYork ON309HaysBoulevard Oakville ON361CornwallRoad(2ATMs) Oakville ON523MapleGrove Oakville ON489Broadway(3ATMs) Orangeville ON419KingStreetWest,Unit2106 Oshawa ON550LavalDrive(2ATMs) Oshawa ON600OshawaBoulevardNorth Oshawa ON1190WellingtonStreet Ottawa ON1615OrleansBoulevard Ottawa ON1670HeronRoad Ottawa ON1910St.LaurentBoulevard,Units20&23 Ottawa ON2121CarlingAvenue,PartUnit35 Ottawa ON2269RiversideDriveEast Ottawa ON50RideauStreet(2ATMs) Ottawa ON594MontrealRoad Ottawa ON1363BWoodroffeAvenue Ottawa/Nepean ON900GreenbankRoad Ottawa/Nepean ON963SecondAvenueEast OwenSound ON72GrandRiverStreetNorth Paris ON1011VictoriaAvenue,UnitA Petawawa ON1822WhitesRoad,Unit28 Pickering ON670KingstonRoad(4ATMs) Pickering ON365HighTechRoad,BldgC(3ATMs) RichmondHill ON697CathcartBoulevard Sarnia ON2BeckwithStreetNorth SmithsFalls ON555BarrydownRoad Sudbury ON1PromenadeCircle,Units181–183 Thornhill ON10St.ClairWest Toronto ON1005KingStreetWest Toronto ON1261CollegeStreet Toronto ON179RoncesvallesAvenue Toronto ON203HumberCollegeBoulevard,BuildingR Toronto ON2275BayviewAvenue(2ATMs) Toronto ON3402YongeStreet Toronto ON4700KeeleStreet(13ATMs) Toronto ON4841YongeStreet Toronto ON650Mt.PleasantRoadEast(2ATMs) Toronto ON6897FinchAvenueWest Toronto ON

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66 RBC Corporate Responsibility Report and Public Accountability Statement 2008 PAS

Street address City Province

1588BoundaryCrescent(2ATMs) Nanaimo BC8925GranvilleStreet PortHardy BC6111SouthridgeAvenue(3ATMs) PrinceGeorge BC3906Squilax-AnglemontRoad ScotchCreek BC7177152Street Surrey BC489RobsonStreet Vancouver BC2151LouieDrive Westbank BC

ATMs closed City Province

530–546WaterStreet HarbourGrace NL544–548WaterStreet StJohn’s NL950BedfordHighway Bedford NS4164TransCanadaHighway Lower5thRiver NS91ChurchStreet Pictou NS22512Highway7 SheetHarbour NS785MainStreet(2ATMs) SydneyMines NS4701Route134 Cocagne NB396LincolnRoad Fredericton NB8040Route17 Kedgwick NB467LandeggerDrive Nackawic NB101KingGeorgeHighway Newcastle NB60MainStreet Montague PE6715RueChColomb Montreal QC9218thStreet Saskatoon QC1–110LittleAvenue Barrie ON58DundasStreetWest Belleville ON177ParisRoad Brantford ON2–125SteamshipBayRoad Gravenhurst ON22AmiensAvenue Kingston ON7481WoodbineAvenue Markham ON250TauntonRoadEast Oshawa ON634GoderichStreet PortElgin ON10TrenchStreet RichmondHill ON462BirchmountRoad Scarborough ON5892MainStreet Stouffville ON1277YorkmillsRoad Toronto ON1718QueenStreetEast Toronto ON200BayStreet Toronto ON2230LakeshoreBoulevardWest Toronto ON235RoncesvallesAvenue Toronto ON4401BathurstStreet Toronto ONHighway401West WestLorne ON2848PembinaHighway Winnipeg MB38LakewoodBoulevard Winnipeg MB631VictoriaAvenueEast Regina SK705CentralAvenue Saskatoon SK1133137thAvenueSouthEast Calgary AB380CanyonMeadowsDrive Calgary AB542655thStreet ColdLake AB185–9450-137Avenue Edmonton AB6727177thStreet Edmonton AB12109–100thStreet GrandePrairie AB945ColumbiaStreetWest Kamloops BC

Street address City Province

200WellingtonStreetWest, Unit200 Toronto/Downtown ON777BayStreet,UnitC216 Toronto/Downtown ON3555DonMillsRoad Toronto/East ON1245DupontStreet Toronto/West ON4890DundasStreetWest Toronto/West ON899–901EglintonAvenueWest Toronto/West ON307TorontoStreetSouth Uxbridge ON3080Highway69North ValCaron ON1500MajorMackenzieDriveWest Vaughan ON440JamesStreet Wallaceburg ON232DundasStreetWest Waterdown ON425UniversityAvenue Waterloo ON585WeberStreetNorth Waterloo ON652ErbStreetWest Waterloo ON605RosslandRoadEast Whitby ON3601MajorMackenzieDrive(3ATMs) Woodbridge ON1795HendersonHighway,Unit9 Winnipeg MB515PortageAvenue Winnipeg MB676PortageAvenue Winnipeg MB134PrimroseDrive Saskatoon SK3118ClarenaceAvenueSouth(2ATMs) Saskatoon SK319LudlowStreet(2ATMs) Saskatoon SK317BanffAvenue,CascadeMall Banff AB116,817-19thStreetNorthEast Calgary AB1400–12thAvenueSouthWest Calgary AB14–11625ElbowDriveSouthWest Calgary AB1440–52ndStreetNorthEast Calgary AB148,555StrathconaBoulevardSouthWest Calgary AB160,11520–24thStreetSouthEast(2ATMs) Calgary AB1691924thStreet,SouthWest(3ATMs) Calgary AB5222130thAvenueSouthEast(2ATMs) Calgary AB600CrowfootCrescentNorthWest Calgary AB70HighStreetSouthEast Calgary AB80749thAveSouthWest Calgary AB11300TuscanyBoulevardNorthWest, Unit2050 Calgary AB1251stStreetEast,Box519 (WestlandPlaza) Cochrane AB6801–51Street ColdLake AB804ParsonsRoadSouthWest(3ATMs) Edmonton AB10720–80Avenue(3ATMs) GrandePrairie AB5004–53rdAvenue HighPrairie AB300VillageAvenue Okotoks AB200–3715–47Avenue(3ATMs) SylvanLake AB4705–50thAvenue Valleyview AB4702–51stStreet Whitecourt AB30838MaclureRoad Abbotsford BC2766DunsmuirAvenue Cumberland BC1204–56thStreet Delta BC7031–120Street,Unit7133 Delta BC400–1210SummitDrive Kamloops BC

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67 RBC Corporate Responsibility Report and Public Accountability Statement 2008 GRI index

Global Reporting Initiative index

RBChasadoptedamulti-prongedapproachtosustainabilityreporting,andwepublishinformationaboutoursocial,environmentalandethicalperformanceinanumberofplacesforvariousstakeholdergroups.Werelyonexternalsources,investorandstakeholdergroupsandglobalbestpracticesindeterminingtherelevantissuesforinclusion,andstrivetoprovideanappropriatelevelofdetailforeachgroup.WesupporttheworkoftheGlobalReportingInitiative(GRI).Theindexbelowandtheinformationitpointstoconstituteareportthatquali-fiesforGRI’sG3ApplicationLevelC.

GRI # Indicator RBC information

1. Strategy and analysis1.1 Statementfromthemostseniordecisionmakerofthe Whatisabank’sresponsibility?,page6 organization(e.g.,CEO,chair,orequivalentseniorposition) abouttherelevanceofsustainabilitytotheorganizationand itsstrategy.

2. Organization profile2.1 Nameoftheorganization RoyalBankofCanada

2.2 Primarybrands,products,and/orservices Seeour2008AnnualReport.

2.3 Operationalstructureoftheorganization,includingmain Seeour2008AnnualReport. divisions,operatingcompanies,subsidiaries,and jointventures.(2.4)

2.4 Locationoforganization’sheadquarters Seeour2008AnnualReport.

2.5 Numberofcountrieswheretheorganizationoperates,and Weoperatein50countries.Fordetails,visitrbc.com/aboutus. namesofcountrieswitheithermajoroperationsorthatare specificallyrelevanttothesustainabilityissuescoveredin thereport

2.6 Natureofownershipandlegalform Seeour2008AnnualReportand2008AnnualInformationForm.

2.7 Marketsserved(includinggeographicbreakdown,sectors Seeour2008AnnualReportand2008AnnualInformationForm,or served,andtypesofcustomers/beneficiaries) visitrbc.com/aboutus.

2.8 Scaleofthereportingorganization Seeour2008AnnualReportand2008AnnualInformationForm.

2.9 Significantchangesduringthereportingperiodregarding Seeour2008AnnualReport. size,structure,orownership

2.10 Awardsreceivedinthereportingperiod Recognition,page9

3. Report parametersReport profile3.1 Reportingperiod TheinformationonthispageisintendedasanindextoallofRBC’s publiclyavailablecurrentsustainabilityreportingasofour fiscalyear-end2008.OurCorporateResponsibilitywebsitealso includesadditionalinformationnotpublishedelsewhereand informationthathasbecomenewlyavailablefor2009.See rbc.com/responsibility.

3.2 Dateofmostrecentpreviousreport(ifany) Atpresent,RBCdoesnotissueaone-stopsustainabilityreport: rather,wereportvariousmeasuresinexistingcommunication pieces,suchasourAnnualReport,ProxyStatements,annual CorporateResponsibilityReport.Weproducetheseonanannual basisandupdatethisindexonaregularbasis.

3.3 Reportingcycle(annual,biennial,etc.) Annual

3.4 Contactpointforquestionsregardingthereportoritscontents [email protected]

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GRI # Indicator RBC information

Report scope and boundary3.5 Processfordefiningreportcontent Sustainabilityreporting,page11 Stakeholders,page9

3.6 Boundaryofthereport ThisreportcoversactivitiesforRBCasawhole–ouroperations aroundtheworld,includingalloursubsidiaries,unlessotherwise noted.

3.7 Stateanyspecificlimitationsonthescopeorboundary Aboutthisreport,page3 ofthereport

3.10 Explanationoftheeffectofanyre-statementsofinformation Effective2008,wehaveexcludedstatutoryholidaypayforpart-time providedinearlierreports,andthereasonsforsuch employeesfromourfull-timeequivalent(FTE)calculationconsistent re-statement withourmanagementreportingframework.Allcomparative amountsreflectthechangetotheFTEcalculation.

3.11 Significantchangesfrompreviousreportingperiodsin Effective2008,wehaveexcludedstatutoryholidaypayforpart-time thescope,boundary,ormeasurementmethodsapplied employeesfromourfull-timeequivalent(FTE)calculationconsistent inthereport withourmanagementreportingframework.Allcomparative amountsreflectthechangetotheFTEcalculation. In2008,weexpandedourenergydatacoverageto65%ofour globalfloorarea,comparedto35%in2007.Wearenowableto reportenergydataforpropertiesinCanada,theU.S.andthe BritishIsles,datanotfullyavailableinprioryears.For2008,we haveincludeddataforsomeofourmoreemissionintensiveareas, suchasmajorleasedpremisesinCanada,theU.S.andthe BritishIslesand(suchasdatacentres)andbranchesintheU.S. Duetothismorecomprehensivereportingin2008,ourreported CO

2eemissionsarehigherthanthosein2007.

3.12 TableidentifyingthelocationoftheStandardDisclosures GRIIndex,page67 inthereport

Assurance3.13 Policyandcurrentpracticewithregardtoseekingexternal Atpresent,RBCdoesnothavethird-partyverificationorauditing assuranceforthereport.Ifnotincludedintheassurance ofournon-financialreporting.OurannualCorporateResponsibility reportaccompanyingthesustainabilityreport,explainthe ReportandPublicAccountabilityStatementarereviewedbyour scopeandbasisofanyexternalassuranceprovided.Also internalCompliancedepartment(RiskManagement),byLegal explaintherelationshipbetweenthereportingorganization departmentandinternalsubjectmatterexperts. andtheassuranceprovider(s).

4. Governance, commitments, and engagementGovernance4.1 Governancestructureoftheorganization,including Seeour2008AnnualReport. committeesunderthehighestgovernancebodyresponsible forspecifictasks,suchassettingstrategyororganizational oversight

4.2 IndicatewhethertheChairofthehighestgovernancebody Seeour2008AnnualReport. isalsoanexecutiveofficer(and,ifso,theirfunctionwithin theorganization’smanagementandthereasonsforthis Leadership,page13 arrangement)

4.3 Fororganizationsthathaveaunitaryboardstructure, Seeour2008AnnualReport. statethenumberofmembersofthehighestgovernance bodythatareindependentand/ornon-executivemembers Practices,leadershipanddisclosure,page12

4.4 Mechanismsforshareholdersandemployeestoprovide SeeourManagementProxyCircular. recommendationsordirectiontothehighestgovernancebody

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GRI # Indicator RBC information

4.5 Linkagebetweencompensationformembersofthehighest SeeourManagementProxyCircular. governancebody,seniormanagers,andexecutives(including departurearrangements),andtheorganization’sperformance (includingsocialandenvironmentalperformance)

4.6 Processesinplaceforthehighestgovernancebodyto SeeourManagementProxyCircular. ensureconflictsofinterestareavoided

4.8 Internallydevelopedstatementsofmissionorvalues, Principles,codesandpolicies,page14 codesofconduct,andprinciplesrelevanttoeconomic, environmental,andsocialperformanceandthestatusof theirimplementation

4.9 Proceduresofthehighestgovernancebodyforoverseeing SeeourManagementProxyCircular. theorganization’sidentificationandmanagementof economic,environmental,andsocialperformance, includingrelevantrisksandopportunities,andadherence orcompliancewithinternationallyagreedstandards, codesofconduct,andprinciples

Commitments to external initiatives4.12 Externallydevelopedeconomic,environmental,and Externalprinciples,chartersandinitiatives,page17 socialcharters,principles,orotherinitiativestowhich theorganizationsubscribesorendorses

4.13 Membershipsinassociations(suchasindustryassociations) Affiliations,page9 and/ornational/internationaladvocacyorganizations

Stakeholder engagement4.14 Listofstakeholdergroupsengagedbytheorganization Stakeholders,page9

4.15 Basisforidentificationandselectionofstakeholders Stakeholders,page9 withwhomtoengage

4.16 Approachestostakeholderengagement,includingfrequency Stakeholders,page9 ofengagementbytypeandbystakeholdergroup

4.17 Keytopicsandconcernsthathavebeenraisedthrough Stakeholders,page9 stakeholderengagement,andhowtheorganizationhas respondedtothosekeytopicsandconcerns,including throughitsreporting

5. Management approach and performance indicators

Economic performance indicatorsEconomic performanceEC1 Directeconomicvaluegeneratedanddistributed,including Seeour2008AnnualReport. revenues,operatingcosts,employeecompensation, donationsandothercommunityinvestments,retained Economicimpact,page18 earnings,andpaymentstocapitalprovidersandgovernments

EC2 Financialimplicationsandotherrisksandopportunities Keyenvironmentalissues,page39 fortheorganization’sactivitiesduetoclimatechange rbc.com/environment

Market presenceEC6 Policy,practices,andproportionofspendingon Purchasing,page25 locallybasedsuppliersatsignificantlocationsofoperation

Indirect economic impactsEC8 Developmentandimpactofinfrastructureinvestmentsand Partnerships,page24 servicesprovidedprimarilyforpublicbenefitthrough commercial,in-kind,orprobonoengagement

EC9 Understandinganddescribingsignificantindirecteconomic Economicimpact,page18 impacts,includingtheextentofimpacts

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GRI # Indicator RBC information

Environmental performance indicatorsMaterialsEN1 Materialsusedbyweightorvolume SOFTfootprint,page44 rbc.com/environment

EN2 Percentageofmaterialsusedthatarerecycledinputmaterials rbc.com/environment

EnergyEN3 Directenergyconsumptionbyprimaryenergysource SOFTfootprint,page44 rbc.com/environment

EN4 Indirectenergyconsumptionbyprimarysource SOFTfootprint,page44

EN5 Energysavedduetoconservationandefficiencyimprovements Reducetheintensityofourenvironmentalfootprint,page41

EN6 Initiativestoprovideenergy-efficientorrenewable-energy- Reducetheintensityofourenvironmentalfootprint,page41 basedproductsandservices,andreductionsinenergy requirementsasaresultoftheseinitiatives

EN7 Initiativestoreduceindirectenergyconsumptionand Reducetheintensityofourenvironmentalfootprint,page41 reductionsachieved

BiodiversityEN12 Descriptionofsignificantimpactsofactivities,products,and rbc.com/environment servicesonbiodiversityinprotectedareasandareasofhigh biodiversityvalueoutsideprotectedareas

EN13 Strategies,currentactions,andfutureplansformanaging rbc.com/environment impactsonbiodiversity

Emissions, effluents and wasteEN16 Totaldirectandindirectgreenhousegasemissionsbyweight SOFTfootprint,page44

EN18 Initiativestoreducegreenhousegasemissionsand Reducetheintensityofourenvironmentalfootprint,page41 reductionsachieved

EN22 Totalweightofwastebytypeanddisposalmethod Responsiblewastemanagement,page42

Products and servicesEN26 Initiativestomitigateenvironmentalimpactsofproducts Environmentalproductsandservices,page46 andservices,andextentofimpactmitigation

TransportEN29 Significantenvironmentalimpactsoftransportingproducts SOFTfootprint,page44 andothergoodsandmaterialsusedfortheorganization’s operationsandtransportingmembersoftheworkforce

Social performance indicatorsLabour practices and decent workEmploymentLA1 Totalworkforcebyemploymenttype,employmentcontract, RBCemploymentworldwide,page32 andregion

LA3 Benefitsprovidedtofull-timeemployeesthatarenotprovided Benefits,page34 totemporaryorpart-timeemployees,bymajoroperations

Labour/management relationsLA4 Percentageofemployeescoveredbycollectivebargaining RBChastwobargainingunitsintheCaribbean,withabout agreements 80employeesrepresentedbytwotradeunions.

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GRI # Indicator RBC information

Occupational health and safetyLA6 Percentageoftotalworkforcerepresentedinformaljoint Health,safetyandwellness,page34 management-workerhealthandsafetycommitteesthathelp monitorandadviseonoccupationalhealthandsafetyprograms

LA7 Ratesofinjury,occupationaldiseases,lostdays,and Duetothenatureofourworkplace,incidentsarerareandnumber absenteeism,andnumberofwork-relatedfatalitiesbyregion oflostworkinghoursisinsignificant.AnonlineVacationandAbsence ManagementSystemwasintroducedinOctober2003tocapture absenteeismdata.Thedataisnotrobustenoughtoreportatthis time.Informationaboutaccidentsandinjuriesiscollectedcentrally forfederallyregulatedemployeesonly.

LA8 Education,training,counseling,prevention,andrisk-control Health,safetyandwellness,page34 programsinplacetoassistworkforcemembers,theirfamilies, orcommunitymembersregardingseriousdiseases

Training and educationLA10 Averagehoursoftrainingperyearperemployeeby Careerdevelopmentandlearning,page34.Wedonotreporthours employeecategory oftrainingperyear,buttheoverallinvestment.

LA11 Programsforskillsmanagementandlifelonglearningthat Careerdevelopmentandlearning,page34 supportthecontinuedemployabilityofemployeesandassist theminmanagingcareerendings

Diversity and equal opportunityLA13 Compositionofgovernancebodiesandbreakdownof SeeourManagementProxyCircular. employeespercategoryaccordingtogender,agegroup, Diversityandinclusion,page34 minoritygroupmembership,andotherindicatorsofdiversity

Human rightsInvestment And Procurement PracticesHR2 Percentageofsignificantsuppliersandcontractorsthat Purchasing,page25 haveundergonescreeningonhumanrightsandactionstaken

SocietyCommunitySO1 Nature,scope,andeffectivenessofanyprogramsand Branchesinlocalcommunities,page29 practicesthatassessandmanagetheimpactsofoperations oncommunities,includingentering,operating,andexiting

CorruptionSO3 Percentageofemployeestrainedinorganization’s Codeofconduct,page14 anti-corruptionpoliciesandprocedures Anti-moneylaundering,page15

Public policySO5 Publicpolicypositionsandparticipationinpublicpolicy Governments,page10 developmentandlobbying Politicalcontributionsandlobbying,page16

Product responsibilityCustomer Health And SafetyPR1 Lifecyclestagesinwhichhealthandsafetyimpactsof Productresponsibility,page26 productsandservicesareassessedforimprovement,and percentageofsignificantproductsandservicescategories subjecttosuchprocedures

Product and service labelingPR5 Practicesrelatedtocustomersatisfaction,includingresults Stakeholders,page9 ofsurveysmeasuringcustomersatisfaction Clientsatisfaction,page28

Marketing communicationsPR6 Programsforadherencetolaws,standards,andvoluntary Privacy,page14 codesrelatedtomarketingcommunications,including Codeofconduct,page14 advertising,promotion,andsponsorship Voluntarycodes,page17

Customer privacyPR8 Totalnumberofsubstantiatedcomplaintsregardingbreaches Seeour2008Ombudsman’sReportavailableatrbc.com. ofcustomerprivacyandlossesofcustomerdata

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GRI # Indicator RBC information

6. Financial services sector supplementCSR managementCSR1 CSRPolicy.DescribesocialelementsoftheCSRpolicy, CorporateresponsibilityatRBC,page7 includingcorporatedefinitionofCSR.

CSR2 CSROrganization.DescribethestructureandrelevantCSR Structure,oversightandresponsibility,page8 responsibilities,includingexplanationoftheinstalled procedures.

CSR4 Managementofsensitiveissues.Describeproceduresfor Stakeholders,page9 handlingissuessensitivetostakeholdersandresponsiveness.

CSR6 Stakeholderdialogue.Describestakeholderdialogueand Stakeholders,page9 involvementprocedures.

Internal social performanceINT1 InternalCSRPolicy.Describesocialresponsibilityissues Principlesandpolicies,page32 coveredinthecompany’shumanresourcespolicies. Codeofconduct,page14

INT3 Employeesatisfaction Employeeopinionsurveys,page36

INT4 Seniormanagementremuneration SeeExecutivecompensationinourManagementProxyCircular.

INT6 Female-malesalaryratio SeeourEmploymentEquityReportavailableatrbc.com/careers.

INT7 Employeeprofile(gender,ethnicity,disability) Diversityandinclusion,page34

Performance to societySOC1 Reportoncontributionstocharitablecauses,community Community,page50 investmentsandcommercialsponsorships

SuppliersSUP1 Screeningofmajorsuppliers Purchasing,page25

Retail bankingRB1 Retailbankingpolicy(sociallyrelevantelements) Accesstobankingandinsurance,page29

RB2 Reportonrepartitionoflendingbusiness,includingindustrial DebtfinancingforCanadianbusinesses,page63 sectorsandcompanysizes,withspecificreferencetolending Smallbusiness,page19 relatedtosmallandmedium-sizedenterprises. Seeour2008AnnualReport.

RB3 Lendingwithhighsocialbenefit Responsiblelending,page27 Microcredit,page31

Investment bankingIB1 Describethesocialcriteriaappliedbythereporting Responsibleinvesting,page27 organizationtoitsinvestmentbanking.

IB3 Reportonprovisionoftailoredandinnovativeproducts Productresponsibility,page26 andservicesapplyingspecialethical/sustainabilitycriteria.

Asset managementAM1 Assetmanagementpolicy(sociallyrelevantelements) Mutualfundgovernance,page17 Responsibleinvesting,page27

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TrademarksusedinthisreportincludetheRBCLION&GLOBEDESIGN,ROYALBANKOFCANADA,ROYALBANK,RBC,RBCROYALBANK,RBCASSETMANAGEMENT,RBCWEALTHMANAGEMENT,DOMINIONSECURITIES,RBCBLUEPRINTFORDOINGBETTER,RBCWICKETCRICKET,RBCBLUEWATERPROJECT,RBCCAPITALMARKETS,RBCBANK,RBCCOMMUNITYBLUEPRINT,RBCDIVERSITYBLUEPRINT,RBCENVIRONMEN-TALBLUEPRINT,RBCFOUNDATION,RBCDAYTODAYSAVINGS,RBCDAYTODAYBANKING,RBCHIGHINTERESTESAVINGSACCOUNT,RBCINSURANCE,RBCLOCALHOCKEYLEADERS,RBCNEXTGREATINNOVATORCHALLENGE,RBCP2P,RBCREWARDS,ROYALBUSINESSCOM-MUNITYACCOUNT,ROYALCREDITLINE,HOMEEQUITY,RBCENERGYSAVER,ROYALDIRECT,1-800-ROYAL,LEO’SYOUNGSAVERSACCOUNT,PURSUEYOURPOTENTIALandSTRAIGHTTALKwhicharetrademarksofRoyalBankofCanadausedbyRoyalBankofCanadaand/oritssubsidiariesunderlicense.VISAisaregisteredtrademarkofVisaInternationalServiceAssociation.Allothertrademarksmentionedinthisreport,includingthosethatareidentifiedwiththe*symbol,whicharenotthepropertyofRoyalBankofCanada,areownedbytheirrespectiveholders.

©RoyalBankofCanada2009–allrightsreserved.

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To provide feedback, or to order print or audio formats:TheEditorRBCCorporateResponsibilityReportandPublicAccountabilityStatement9thFloor,SouthTowerRoyalBankPlaza200BayStreetToronto,OntarioCanadaM5J2J5Email:[email protected]

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