2012 Environmental, Social and Governance Report and Public … · 2013. 3. 16. · The 46,000...

2012 Environmental, Social and Governance Report and Public Accountability Statement

2012 Environmental, Social and Governance Report and Public Accountability Statement1 TableofContents

Table of ContentsAbout this Report 2

Message from the CEO 3

Message from the Chair, BMO Sustainability Council 4

Who We Are 5

Contributing to the Economy 6

Materiality and Stakeholder Engagement 7–8

BMO’s ESG Scorecard 9

2012 Highlights 10–14

GRI Index

ProfileDisclosures(1.1–4.17) 15–21

Performance Indicators

ProductandService 22 Economic 23–24 Environmental 24–27 Social:LabourPractices 27–30 Social:HumanRights 30–32 Social:Society 32–33 Social:ProductResponsibility 33–35

Bank of Montreal Public Accountability Statement 36–45

Bank of Montreal Mortgage Corporation Public Accountability Statement 46

Awards and Recognition 47

Glossary of Terms 48–50

External Assurance Statement 51–52

We work hard to earn and maintain the trust that our business is built on. And we support that trust by adhering to basic values such as integrity and transparency.

BMO Financial Group2 AboutthisReport

About this ReportBMOFinancialGroup’sEnvironmental,SocialandGovernance(ESG)ReportandPublicAccountabilityStatement(PAS)outlineshowwemanagetheenvironmental,socialandgovernanceimpactsofourbusinesswhilecreatingvalueforourcustomers,investors,theeconomyandsociety.ThePASoutlinescertainaspectsofBankofMontreal’scontributions,andthecontributionsofthebank’saffiliateswithoperationsinCanada,totheCanadianeconomyandsociety.ThissatisfiestherequirementsoftheCanadianfederalgovernment’sPublicAccountabilityStatementregulations(section459.3(1)oftheBank Act(Canada)).

Thereportcoversour2012fiscalyear(November1,2011toOctober31,2012)forouroperationsinCanadaandtheUnitedStates(U.S.),laterreferredtoasourNorthAmericanoperations.Unlessotherwisenoted,alldollaramountsareCanadianfundsandinformationinthisreportisdatedasatOctober31,2012.

Reporting Framework

GlobalReportingInitiative(GRI)istheworld’smostwidelyusedsustainabilityreportingframework.We’veusedtheGRIreportingframeworksince2005.Inadditiontoprovidinguswithguidanceonmeasuringourprogress,itmakesiteasierforourstakeholderstocompareourperformancewiththatofourpeers.Againthisyear,we’vefollowedversionGRIG3.1andtheFinancialServicesSectorSupplement,andself-declaredanApplicationlevelB+.

External Assurance

KPMGhasbeenengagedbyBMOtoauditthefinancialstatementsand,forthefirsttime,toprovideassuranceonselectedsustainabilityinformationcontainedintheESGReport.KPMG’sfinancialstatementauditreportcanbefoundonpages117and118ofthe2012AnnualReportanditsassurancereportonselectedperformanceindicatorscanbefoundonpage51and52ofthe2012ESGReport.Inthisdocument,thesymbol▲indicatesassuredinformation.

KPMGisindependentoftheBankwithinthemeaningoftheRulesofProfessionalConductandCodesofEthicsofvariousCanadianprovincialprofessionalaccountingbodiesandunderU.S.securitieslawsincludinginRegulationS-X:QualificationsandReportsofAccountants.

The Complete Picture

Toprovideyouwithacompletepictureofoursustainabilityperformance,thisreportreferencesotherpubliclydisclosedinformation.Thesedocumentsarefoundonourwebsiteasfollows:

■ AnnualInformationFormfortheyearendedOctober31,2012(AIF)www.bmo.com/home/about/banking/investor-relations/annual-reports-proxy-circulars

■ BMOFinancialGroup195thAnnualReport2012(AR)www.bmo.com/home/about/banking/corporate-responsibility/our-approach/reporting#annual_report

■ CorporateResponsibilitywebsite www.bmo.com/home/about/banking/corporate-responsibility/home

Note: TheNoticeofAnnualGeneralMeetingofShareholdersandManagementProxyCircularwillbeavailableonourwebsiteonMarch15,2013.

This report outlines how we manage the environmental, social and governance impacts of our business while creating value for our customers, investors, the economy and society.

2012 Environmental, Social and Governance Report and Public Accountability Statement3 MessagefromtheCEO

Message from the CEO

William A. Downe President and Chief Executive Officer

Our Commitment to SustainabilityThe46,000peoplewhotogethermakeupthiscompanyshareacommonvisiontobethebankthatdefinesgreatcustomerexperience.Thisreport–our2012Environmental,SocialandGovernanceReportandPublicAccountabilityStatement–detailsoureffortstorealizethisgoal,notonlyinwhatwedoforourcustomers,buthowwedoit,aswell.

Earningtherighttoguidethefinancialinterestsofmorethan12millioncustomers–fromgradeschoolersmanagingtheirfirstsavingsaccountstoleadingcorporationswithglobalinterests–isfirstamatterofbuildingandsustainingtheirrespectandtrustforourrecordonenvironmental,socialandgovernanceissues.

Actingsustainablydemandsawarenessandcommitmentfromcorporationsandthepeoplewithinthem.Itmeansfosteringacorporateculturewheretheinstinctsfordoingtherightthingaresecondnature:wherevaluesandexpectationsareclearlystatedandstandardsrigidlyupheld.Wehavedonejustthat–ourvaluesarewell-foundedanduniversallyapplied–therearenograyareasatBMO.

ThisreportdemonstratestwomoreimportantSustainabilitycommitmentswetakeseriouslyatBMO:innovationandtransparency.NewthisyearisBMO’sESGScorecard,foundonpage9.TheScorecardprovidesdetailonthemeasuresthatmattermosttoourstakeholders,reportedwithcorrespondingyearoveryeardata.Infuturereports,wewillcontinuetoreviewandrefinethislist–keepingpaceasareasofinterestandrelevancechange.

Thisyear’sreportalsoincorporatesKPMG’slimitedassuranceonselectedperformanceindicators.Usingtheresultsofareadinessassessment–conductedbyKPMGin2011–asaroadmapforimprovingourcurrentdisclosure,isanotherstepinourcommitmenttothoroughnessandtransparency.Objectively,westeadilydeepenourunderstandingofwhatitmeanstobeagoodcompany–ineverysenseoftheword.Thebank’sCorporateResponsibilityReport,issuedlaterintheyear,illustratesthewayweconductbusinessandhowthebankputsitsprinciples,intopractice.

Asyoureviewthesepages,IhopeyouwillseeinthemanorganizationstrivingtodeliveragreatbankingexperienceandarecordthatshowsconclusivelythatBMO’sfocusonSustainabilityisanenduringcommitment.

William A. Downe

BMO Financial Group4 MessagefromtheChair,BMOSustainabilityCouncil

Balancing our Commitments I’mpleasedtopresentour2012Environmental,SocialandGovernanceReportandPublicAccountabilityStatement.

Balancingourcommitmentsmeansmanagingtheenvironmental,socialandgovernanceimpactsofourbusinesswhilecreatingvalueforourcustomers,investors,theeconomyandsociety.

Everythingwedoandeverydecisionwemakehasthepotentialtocreateordestroytrust,affectingourlong-termsuccess.Weunderstandtheimportanceofbalancingourstakeholders’needswhilepursuingourbusinessstrategies.Andtodeliveronourstrategicprioritieswemustattractandretainatalented,diverseworkforce;wemustsupportandinvestinthecommunitieswhereweliveandoperate;andwemustpayattentiontosocietalissuesandglobalrisksthatmayhaveanimpactonthewaywedobusiness.

We’vemadeprogressinseveralareasthisyear:

■ BMO’sBoardofDirectorsadoptedaBoardDiversityPolicywhichincludesthegoalofhavingnolessthanonethirdofbothgendersontheBoard;

■ we’veregained#1positionamongCanadianfinancialinstitutionsintherepresentationofwomenexecutives,workingtowardsourgoaltohavewomenrepresent40%ofallexecutivesbytheendof2016;

■ wepurchased115,213megawatthoursof100%renewableelectricity,whichwaspartofathreeyearcontract;

■ BMOisaleaderinfinancingandprovidingstrategicadvicetoourclientsinvolvedintherenewableenergysector;

■ wedevelopedastrategytoimprovefinancialfluencyamongCanadiansandAmericansacrossallincomelevels;and

■ we’veincreasedthenumberofinvestmentstosupportsmallbusinessexpansion,thedevelopmentofneweducationalfacilities,theincreasedavailabilityofqualityaffordablehousing,andtargetedcommunity-basedcommercialrealestateintheU.S.

Afterreadingthisreport,Iinviteyoutoprovideyourfeedback.Pleaseemailusat: [email protected]

Simon Fish

Message from the Chair, BMO Sustainability Council

Simon Fish Executive Vice-President and General Counsel & BMO Sustainability Council Chair

2012 Environmental, Social and Governance Report and Public Accountability Statement5 WhoWeAre

Who We AreEstablishedin1817asBankofMontreal,BMOFinancialGroup(TSX,NYSE:BMO)isahighlydiversifiedfinancialservicesproviderbasedinNorthAmerica,withtotalassetsof$525billionandmorethan46,000employees,BMOprovidesabroadrangeofretailbanking,wealthmanagementandinvestmentbankingproductsandservicestomorethan12millioncustomers.

WeservemorethansevenmillioncustomersacrossCanadathoughourCanadianretailarm,BMOBankofMontreal.Wealsoservecustomersthroughourwealthmanagementbusinesses:BMONesbittBurns,BMOInvestorLine,BMOPrivateBanking,BMOAssetManagementandBMOInsurance.BMOCapitalMarkets,ourinvestmentandcorporatebankingdivision,providesafullsuiteoffinancialproductsandservicestoourNorthAmericanandinternationalclients.

IntheU.S.,BMOservescustomersthroughBMOHarrisBank,anintegratedfinancialservicesorganizationbasedintheU.S.Midwestwithmorethantwomillionretail,smallbusinessandcommercialcustomers.BMOFinancialGroupconductsbusinessthroughthreeoperatinggroups:PersonalandCommercialBanking,PrivateClientGroupandBMOCapitalMarkets.

OnJuly5,2011,BMOannouncedthatithadcompletedtheacquisitionofMilwaukee-basedMarshall&IlsleyCorporation(M&I).M&ImergedwithHarrisBanktoformBMOHarrisBankN.A.,partofBMOFinancialGroup.Theintegrationofthetwobank’soperatingsystemswascompletedonOctober8,2012,andallU.S.retailbranchesnowoperateunderthenameBMOHarrisBank.

FurtherInformation:www.bmo.com/home/about/banking/investor-relations/who-we-are

Our Vision

Tobethebankthatdefinesgreatcustomerexperience.

Our Guiding Principle

Weaimtodelivertop-tiertotalshareholderreturnandbalanceourcommitmentstofinancialperformance,ourcustomers,ouremployees,theenvironmentandthecommunitieswhereweliveandwork.

Our Strategic Priorities

1. Achieveindustry-leadingcustomerloyaltybydeliveringonourbrandpromise.2. Enhanceproductivitytodriveperformanceandshareholdervalue.3. LeverageourconsolidatedNorthAmericanplatformtodeliverqualityearningsgrowth.4. Expandstrategicallyinselectglobalmarketstocreatefuturegrowth.5. Ensureourstrengthinriskmanagementunderpinseverythingwedoforcustomers.

We have more than 12 million customers, more than 46,000 full-time equivalent employees and approximately 1,570 bank branches in Canada and the United States.

BMO Financial Group6 ContributingtotheEconomy

Contributing to the EconomyWecreatewealthinavarietyofways.BelowaresomeexamplesofthedirecteconomicvalueBMOgeneratedanddistributedduringthereportingyear:

Net income

Reportednetincomeroseby35%,or$1.1billion.Adjustednetincomeincreased25%,or$0.8billion.

Revenues

Reportedrevenueroseby$2.2billion,or16%,followinggrowthof14%in2011.Adjustedrevenueincreasedby$1.3billion,or10%.ThestronggrowthratesreflectthebenefitsoftheacquisitionofM&Iandorganicgrowth.

Government levies and taxes

Totalgovernmentleviesandtaxeswere$1,521million.Theseincludepayrolllevies,propertytaxes,provincialcapitaltaxes,businesstaxes,harmonizedsalestax,GSTandothersalestaxesandsundrytaxes.Forayear-over-yearbreakdownofgovernmentleviesandtaxes,seeTable8:Non-InterestExpenseandExpense-to-RevenueRatioonpage105inthe2012 Annual Report.

Shareholder value

In2012,reportedreturnonequity(ROE)increased0.8percentagepointsfrom2011levelsandadjustedROEdecreased0.5percentagepoints.Weachievedgoodgrowthinbothearningsavailabletocommonshareholders,aswellasincreasedaveragecommonshareholders’equity.Formoreinformationonourfinancialperformance,seeour2012 Annual ReportandtheInvestor Relationslinkonourwebsite.

Employment

Weemploymorethan46,000full-timeequivalentemployees.Totalemployeecompensationin2012was$5,628million.Thatnumberincludessalaries,performance-basedcompensationandemployeebenefits.Forayear-over-yearbreakdownofemployeecompensation,seeTable8:Non-InterestExpenseandExpense-to-RevenueRatioonpage105inthe2012 Annual Report.

Purchasing goods and services

In2012,wepurchasedover$3billionworthofgoodsandservicesfromourpreferredsuppliersinNorthAmerica.Ofthat,approximately$2.4billionwasspentinCanadaandover$1billionwasspentintheU.S.

Investing in our communities

In2012,BMOcontributedmorethan$87.6million▲indonations,sponsorshipsandeventstogroups,organizationsandprogramsthathelpbuildandsustainresilient,vitalandhealthycommunitiesinCanadaandtheU.S.Formoreinformation,seetheCommunitylinkonourwebsite.

Operating costs

Totalpremisesandequipmentcostswere$1,916millionandincludedrentalofrealestatepremises,furnitureandfixtures,propertytaxes,computersandequipment.Forayear-over-yearbreakdown,seeTable8:Non-InterestExpenseandExpense-to-RevenueRatioonpage105inthe2012 Annual Report.

In 2012, we spent over $3 billion on goods and services with our preferred suppliers in North America.

Note:Adjustedresultsinthissectionarenon-GAAPandarediscussedintheNon-GAAPMeasuressectiononpage98ofthe2012 Annual Report.

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2012 Environmental, Social and Governance Report and Public Accountability Statement7 MaterialityandStakeholderEngagement

Sustainability means creating value for shareholders and acting in the long-term interest of our many stakeholders.

Materiality and Stakeholder EngagementMateriality: Determining what Matters

Wecreatedthisreportwithourstakeholdersinmindbyreviewingseveralfactorstodeterminewhichtopicsweremostimportant.Weconsidered:

■ ourstrategicpriorities;■ topicsthatrequireactivemanagementorengagementbyus;■ concernsraisedthroughstakeholderfeedback;■ emergingrisksoropportunities;■ emergingsocietalissues;■ bestpracticenormsexhibitedbyourpeers;and■ topicsofinterestbytheresearchcommunity.

Oncewecompiledthelistofpotentialtopicsthatmatter,wenarroweditdowntothosethatweremostrelevant.Insustainabilityreporting,thisisreferredtoasamaterialityanalysis.AccordingtotheGlobalReportingInitiative,materialtopicsarethosetopicsthatreflecttheorganization’ssignificanteconomic,environmentalandsocialimpacts,orthatsubstantivelyinfluencetheassessmentsanddecisionsofstakeholders.Thisidentificationofmaterialtopicsofinteresttostakeholdersisbroaderthantheassessmentofmaterialitytoinvestorsforfinancialreportingpurposes.

BMO’sSustainabilityCouncil,amanagementlevelbodythatprovidesinsightandguidancetotheorganization,playsanactiveroleindeterminingthesignificanceofthetopics.Forthe2012reportingperiod,we’vefocusedonthetopicsreviewedandprioritizedbytheCouncil.Thisformsthebasisforthereport’scontent.

Our material issues (inalphabeticalorder)

1. Accesstofinancialservices2. Addressingenvironmentalandsocialconcerns3. Buildingatalentedanddiverseworkforce4. Providingcustomerswithclearadvice5. Reducingourimpactontheenvironment6. Soundcorporategovernance7. Supportingthecommunitieswhereweliveandwork

BMO Financial Group8 MaterialityandStakeholderEngagement

Stakeholder Engagement

BMO’s stakeholders include: Customers, Shareholders, Employees, Regulators, Suppliers, Community partners, Non-Governmental Organizations, and Analysts.Weengagewiththesegroupsinavarietyofwaysandalthoughtheyallhavedifferentneedsandinterests,welearnfromourinteractionswithallofthegroupsandusethisfeedbacktoenhanceourbusinessandoverallcontributiontosociety.Adescriptionofhowweengagewiththethreelargestgroupsfollows.

Customers

Weprovidecustomerswithavarietyoffeedbackmechanisms,suchasinperson,bytelephone,onlineorinwriting.OurcomplaintresolutionprocessforourCanadiancustomersisdescribedonourwebsite,andincludescontactinformationforthevariousbusinessgroups,BMO’sOmbudsman,theOmbudsmanforBankingServicesandInvestments,otherOmbudsservices,andvariousregulatorsandprovincialsecuritiescommissions.ForourU.S.customers,ourwebsitelistscontactinformationforallofourU.S.operatinggroups.Inaddition,weprovidealinkforonlinemessages,afeedbacksurveyanda“PushtoTalk”interactiveoption.

NetPromoter®Score(NPS)isthekeyloyaltymetricusedbyBMO.Throughouttheyear,athirdpartyvendortracksourretailandcommercialcustomers’attitudestowardsusandourmajorcompetitorsbyusingasurveythatincludesquestionsaroundtheirexperiencesandproblemstoassessoverallloyalty.ResultsoftheNPSsurveysarereportedandsharedwiththebusinessesandusedinactionplanningtoimprovecustomerexperience.Duringthereportingyear,260,500customersinCanadaand88,900customersintheU.S.wereinterviewed.Withourcustomers’permission,branchmanagersattempttoreconnectwithcustomerswhohaveexperiencedaserviceproblemtofurtherdiscusstheirconcerns.

Shareholders

ManagementcommunicateswithshareholdersthroughtheQuarterlyReporttoShareholders,pressreleases,theAnnualReportandproxycirculars,meetingswithkeyinstitutionalshareholders,andtheInvestor Relations linkonourwebsite.

In2012,wedevelopedaShareholderEngagementPolicy,whichoutlineshowtheBoardofDirectorscommunicateswithshareholdersandhowshareholderscancommunicatewiththeBoardorBMOmanagement.BMO’sdisclosurepracticesensurethatallshareholdersreceivetimely,factualandaccurateinformation.Toviewthepolicy,goto:Corporate Governance.

Employees

BeginningwiththeCEO,wecommunicateregularlyandsolicitfeedbackfromemployeesatalllevels.Seniormanagementholdtownhalls,anddepartmentsandindividualteamsholdmeetingsonaregularbasis.Wealsohaveaninternalwebsiteandonlinemailboxeswheretopicsofinterest,issuesandsuggestionscanberaised.

Wealsousesurveystogatheremployees’viewsandgaugeemployeeengagement.OurprimarysurveyistheAnnualEmploymentSurvey(AES),whichisavailabletoallpermanentemployeesonlineandisaccessibleusingadaptivetechnologies.In2012,38,932employeesrespondedtothesurvey,aparticipationrateof83%▲,1%lowerthanthepreviousyear.AESresultsareanalyzedatanenterprise-widelevelandbybankinggroupanddepartment,enablingexecutivestomeasureprogressanddevelopactionplanstoaddressanygaps.

Managersprovideongoingcoachingandfeedbackthroughregularone-on-onemeetingswithemployeesandannualstructuredperformancereviews.Managersmustensurethatemployeeshaveaclearunderstandingofwhatisexpectedofthemthroughindividualperformanceobjectivesalignedtobusinesspriorities,andbyperformancefeedbackandassessments.Employeesalsohavetheopportunitytomeetwiththeirmanager’smanageratleastonceayear.

Whenemployeesleavethebankvoluntarily,weconductexitinterviewsurveys.Inadditiontoquestionsabouttheirreasonsforleaving,weseekfeedbackonhowwellwearedoingincreatinganequitable,diverseandinclusiveculture.

Annual Employee Survey (AES) Participation Rate

2012 – 83%▲

2011 – 84%

2010 – 85%

http://www.bmo.com/home/about/banking/investor-relations/home

http://www.bmo.com/home/about/banking/corporate-governance/home

2012 Environmental, Social and Governance Report and Public Accountability Statement9 BMO’sESGScorecard

Definitions for each indicator are listed in the

Glossary of Terms on pages 48–50

BMO’s ESG Scorecard 20121 20111 20101

Environmental

Renewable energy financing:

i. Involvement in equity and debt financings ($ billions) $3.6 – – ii. Lending commitments ($ billions) $1.6 – –

Operational footprint:

a. Renewable energy purchases (MWh)▲ 115,2132 115,2132 115,2132

b. Scope 1 emissions (tCO2e) 3 21,151 16,545

c. Scope 2 emissions (tCO2e) 3 65,603 48,362

Social

Employees:

a. Diversity and Inclusion: i. Women executives Canada & U.S. (%)▲ 33 34 33 ii. Visible minority employees Canada (% in senior and executive roles)▲ 21 20 18 iii. Minority employees U.S. (% in senior and executive roles)▲ 7 8 9 iv. Persons with disabilities Canada (% of total workforce)▲ 2.5 2.4 2.5 v. Aboriginal employees Canada (% of total workforce)▲ 1.4 1.4 1.4

b. Employee Engagement Index (EEI)(%)▲ 75 76 74

c. Turnover rate: i. Canada (%)▲ 9.8 8.0 – ii. U.S. (%)▲ 11.8 9.2 –

Community Investment:

a. Donations and Sponsorships ($ millions)▲ 87,629 66,440 54,302

Governance

Board Diversity:

a. Women on Board of Directors (%) 33% 25% 23.5%

Business Conduct:

a. Ethics training (% completion)▲ 98.8 99.2 – b. Significant fines or non-monetary sanctions for non-compliance4▲ 0 – – c. Incidents of discrimination (from external bodies)▲ 21 24 20 Legend:1 FiscalYear(November1toOctober31) 3 AvailableonlineinJune2013at:Environmental Performance2 Partofa3yearcontract 4 Afineisclassifiedas“significant”ifitisgreaterthan$500,000inmonetaryvalueorisdeemed– Notpubliclydisclosed bytheexternalregulatorybodytorelatetounethicalbusinesspractices. ▲ 2012dataexternallyassured(KPMG’sAssuranceStatementisonpages51and52)

http://www.bmo.com/home/about/banking/corporate-responsibility/environment/environmental-performance

BMO Financial Group10 2012Highlights

2012 Highlights

Sound Corporate Governance

Weworkhardtoearnandmaintainthetrustthatourbusinessisbuilton.Andwesupportthattrustbyadheringtobasicvaluessuchasintegrityandtransparency.WedothisbyapplyingthehigheststandardsofcorporategovernanceandadheringtoastrictcodeofbusinessconductandethicscalledFirstPrinciples.Toviewacopy,goto:Code of Conduct.

FirstPrinciplessetsouttherulesandpoliciesthatguideustodotherightthingwhendealingwithourclients,suppliers,otherstakeholdersandeachother.Annually,allpermanentandtemporaryemployees,contractors,managementandexecutivescompletemandatoryEthicsandLegalComplianceTrainingwhichincludesFirstPrinciples.Thisyear,98.8%▲ofallemployeeshadcompletedtheonlinetrainingbyJune30,2012.Thetrainingusesrealisticscenariostoprovideemployeeswiththeclarityneededtounderstandwhatisfair,rightandlegal.Otherelementsofthistrainingare:

■ Informationsecurityandprivacymatters■ Anti-corruption■ Anti-moneylaunderingandanti-terroristfinancing■ Healthandsafety■ Accessibility

Goodcorporategovernanceisimportant.Itnotonlyhelpsusdoabetterjobofrunningourbusiness,itsupportseffectivedecision-making.AsaCanadianreportingissuerwithsecuritieslistedontheTorontoStockExchangeandtheNewYorkStockExchange,ourcorporategovernancepracticesmeet,andinsomecasesexceed,applicablerulesadoptedbytheCanadianSecuritiesAdministratorsandapplicablerulesoftheU.S.SecuritiesandExchangeCommissionandprovisionsoftheU.S.Sarbanes-Oxley Act of 2002.Foradditionalinformation,seetheStatementofCorporateGovernanceintheManagement Proxy Circular.

BMO’sBoardofDirectorsadoptedaBoardDiversityPolicyinMay2012.ItincludesthegoalofhavingnolessthanonethirdofbothgendersontheBoard.AtOctober31,2012,33%ofBoardmembersarewomen,exceedingtheCatalystCanadabenchmarkof25%by2017.

WemaintainformalpoliciesandprocesseswithrespecttolegalandregulatorycomplianceinalljurisdictionswhereBMOoroursubsidiariesoraffiliatesconductbusiness.Forourviewsonissuesrangingfromanti-corruptiontoanti-moneylaunderingandterroristfinancing,tocollectivebargaining,goto:BMO on the issues.

OthermetricsrelatedtothismaterialtopicareincludedintheESGScorecardonpage9.

FirstPrinciples sets out the rules and policies that guide us to do the right thing when dealing with our clients, suppliers, other stakeholders and each other.

33%

of Board members are

women

as at October 31, 2012, exceeding the Catalyst Canada benchmark of 25% by 2017

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2012 Environmental, Social and Governance Report and Public Accountability Statement11 2012Highlights

Providing Customers with Clear Advice

Ourbrandpromiseofmakingmoneymakesenseiscenteredonremovingcomplexityfromfinancialdecisionsandprovidingcustomerswithsolutionsandadvicedesignedtomeettheirspecificneeds.Byusingclearlanguageandbeingtransparent,wemakeiteasierforcustomerstodobusinesswithus.

Ourpolicies,processesandstandardsofbusinessconductreflectourcommitmenttodealfairly,honestlyandingoodfaithwithourcustomers,toobservehighstandardsofethicalconductandtoaddressallconflictsinafair,equitableandtransparentmanner.

Forourwealthmanagementbusiness,wehavepoliciesthatfocusonensuringtheinvestmentadvicewegiveourcustomersandtheproductsandserviceswerecommendaresuitableforthemandinkeepingwiththeirinvestmentobjectives.Ourpoliciesrequirethattherepresentativeswhoserveourcustomershavetheproficiencyandexperiencenecessarytoperformtheiractivitiescompetently,andhaveasufficientunderstandingoftheproductsandservicesweofferandtheirrisks.Wealsohaverigorouspoliciesandprocedurestoensurethatweconductaresponsiblelevelofresearch,analysisandapprovaloftheproductsandservicesweoffer.

Building financial confidence

Weprovideawiderangeofcomplementarytoolsdesignedtohelpcustomersgetabetterunderstandingoftheircurrentfinancesandfutureplanningneeds.Fordetails,goto:Financial Literacy.

Accordingtoa2012BMOeconomicstudy,thereisaclearneedforimprovedfinancialfluencyamongCanadiansandAmericansacrossallincomelevels.In2012,weidentifiedanopportunitytoprovideasolutionforthis.Wedevelopedastrategyfocusedontheparent/youthsegment.PartneringwiththeCanadianFoundationforEconomicEducation,thefirstphasewaslaunchedinJanuary2013–“Talk with our kids about money.”Thisnewprogram,supportedbyBMO,offersasimplewaytohelpyoungCanadianslearnmoreaboutmoneyandpersonalfinances.

Access to Financial Services

Presence in Aboriginal communities

BMO’sAboriginalBankingUnitwascreatedin1992andhelpscontributetotheeconomicself-sufficiencyofAboriginalcommunities,businessesandindividualsacrossCanada.

BMO’sOn-ReserveHousingLoanProgramisdesignedtoreflectthespecificneedsofFirstNationsandprovidememberstheopportunitytoowntheirownhomethroughaccesstohousingloansfortheconstructionorpurchaseofowner-occupiedsingle-familydwellingsortofinancemajorrenovationstoexistinghomes.

BMOisaparticipatinglenderforFirstNationsthatqualifyfortheFirstNationsMarketHousingFund,establishedbytheGovernmentofCanadaandCanadaMortgageandHousingCorporationtogiveFirstNationsmembersgreateraccesstohousingloanson-reserveandonsettlementlands.

BMOofferstheRon Jamieson Aboriginal Scholarship and Internship PrograminhonourofRonJamieson,aSixNationsMohawkandformerSeniorVice-President,AboriginalBankingatBMO.Inadditiontothescholarship,candidatesgainexperiencethroughapaidsummerinternshipatBMOthatcanleadtoapermanentposition.

WeprovidesupporttoIndspire,formerlytheNationalAboriginalAchievementFoundation(NAAF),anationalAboriginalnon-profitorganizationthatdistributesmorethan$6millioninscholarshipsandbursarieseachyear.

Supporting newcomers

We’vedesignedproductsandservicestomeettheuniqueneedsofrecentimmigrants.OurNewcomers to Canada Programincludesafreebankingplanforayear,afreesmallsafetydepositboxoradiscounttowardtherentalofalargerbox,andbonusinvestmentinterestonaneligibleBMOTermInvestment.Forafulllistofbankingservicesavailabletonewcomers,goto:www.bmo.com/newcomers.

$1.3 billion▲ in Annual Business with Aboriginal customers

We operate

14 BMO branches▲ located on Aboriginal reserve land or Inuit territories in Canada

65 Communities▲ participating in BMO’s On-Reserve Housing Loan Program

We understand the unique needs and characteristics of small businesses, and have made it easier for customers to access financing through our credit decisioning process. We have created a new process for business credit card pre-approval and delivery.

http://www.bmo.com/home/about/banking/corporate-responsibility/customers/financial-literacy

BMO Financial Group12 2012Highlights

Alternative distribution channels

InCanada,wehavefreevideoconferencingservicesinmanyremoteandruralareasthatconnectcustomerswithFinancialPlanners,SmallBusinessbankers,CommercialAccountManagers,CommercialDepositSpecialistsandBMONesbittBurnsInvestmentAdvisors.

CustomerscontinuedtoenjoytheconvenienceofBMOMobileBankingastheadoptionofmobilebankingincreasedby160%in2012.Customerengagementinthemobilechannelhasincreasedaswell,asmobiletransactionsaveraged30%quarter-over-quartergrowthduringthefiscalyear.BMOAlertsalsoexpandeditsofferingthisyearbylaunchingafreeeStatementBMOAlertinAugust.Theconvenienceofreceivingautomatednotificationsontransactional,securityorstatementactivityhasbeenwellreceivedbyourcustomers,asthenumberofalertssentdailygrew117%overthefiscalyear.

Building a Talented and Diverse Workforce

Acompany’svisionisonlyasstrongasitspeople.BMO’sstrengthisdrivenbytheremarkabletalentandcreativityofouremployeesandtheircommitmenttodelivergreatcustomerexperienceseveryday.

Wehavefourkeytalentpriorities:buildingatalentmindset,engagingouremployees,providingopportunitiestogrowanddevelop,andcreatingadiverseandinclusiveworkenvironment.Focusingontheseprioritieswillhelpusenhanceourcultureanddrivehigherperformance.

Theimportanceofleaderswhodemonstrateasinceretalentmindsethasneverbeengreater.Weholdleadersaccountableforattracting,hiring,assessinganddevelopingtalentedemployees.Theymustinspireourpeople,andbuildanenvironmentwhereeveryonecanperformattheirbest–andwehelpleadersdeveloptheskillstheyneedtobesuccessfulbyparticipatinginBMO’sflagshipleadershiplearningprograms.

Wewantouremployeestobepassionateandexcitedaboutworkinghere.Thereisastronglinkbetweenemployeeengagement,customerloyaltyandcompanyprofitability.TheEmployeeEngagementIndex(EEI),asmeasuredbyourAnnualEmployeeSurvey,reflectsfavourablescoresregardingemployees’perspectivesabouttheirrelationshipswithourcompany,theirmanager,workgroup,job,careerandourcustomers.Thisyear,ourEEIscore,asshowninourESGScorecard,was75%▲.Thescorewasdown1%fromlastyearhowever,issignificantlyhigherthanthenormativescoreof67%foremployeeengagementwithinthefinancialservicessectorinNorthAmerica.

AtBMO,employeeshaveopportunitiestogrowanddevelopthroughouttheircareers–boththroughformalprogramsandexperiencesonthejob.In2012,weprovidedanaverageof39hoursoftrainingperemployee▲,andintroducednewtoolsandresourcestohelpemployeestakecontroloftheircareerswithsupportfromtheirmanager.

DiversityandinclusionarepartofBMO’scorevalues,andanintegralpartofourtalentmanagementpractices.In2012,werenewedBMO’sdiversitystrategy,withactionplansforallbusinessgroups.Initiativesincludedculturalintelligencetrainingforseniorleaders,andenhancingourtalentreviewandhiringprocessestoensurewehaveastrongpipelineofdiversetalent.Werecentlyregainedour#1positionamongCanadianfinancialinstitutionsintherepresentationofwomenexecutives(upfrom#2in2011),andwehaveestablishedaccelerateddevelopmentplansforBMO’smostpromisingfemaleleaders.KeydiversityandinclusionmetricsareincludedinourESGScorecardonpage9.

Addressing Environmental and Social Concerns

Issuessuchasenvironmentaldegradation,climatechange,biodiversityandAboriginalrightsareimportanttoourstakeholders,ourclientsandtous.Toaddresstheseissues,ourenvironmentalandsocialissuespolicyoutlinesthebasisforevaluatingenvironmentalandsocialrisksassociatedwithourlendingclients.Aspartofourenterpriseriskmanagementframework,weevaluatetheimpactontheenvironmentofourclientsandtheindustriesinwhichtheyoperate.Inaddition,weareasignatorytotheEquatorPrinciples,avoluntaryframeworkforevaluatingenvironmentalandsocialriskinProjectFinance.

BMOstrivestocontributetotheresolutionoftheseissuesbyassistingourclientswhoareaddressingthemdirectly.Forinstance,BMOisaleaderinfinancingandprovidingstrategicadvicetoourclientsinvolvedintherenewableenergysector.In2012,wewereinvolvedinraisingapproximately$3.6billionofequityanddebtinthecapitalmarketsforcompaniesactiveinrenewableenergyacrossNorthAmerica.Inaddition,weactedasfinancialadvisoronrenewableenergytransactionsrepresentingatotalvalueofapproximately

$15 billion in additional funding was made available for commercial lending to small businesses in Canada

BMO launched a

new financial planning website with tools and resources that help Canadians determine the steps they need to take to reach their financial goals

Current leaders at all levels are more accountable for attracting, developing and retaining good people because having the right people in every role is critical in delivering on our

promise to customers

Investment in Training 2012 – $90,615,979▲

2011 – $81,279,3272010 – $71,382,884


$3.2billion.AsofDecember31,2012,wehadapproximately$1.6billionoflendingcommitmentstothesector.Thesefiguresincludeonlythosetransactionsandlendingcommitmentsdirectlyassociatedwithrenewableenergyorentitieshavingasubstantialinterestinrenewableenergy.

WeplantoimplementadditionalESGtrainingforCapitalMarketsemployeesin2013toensurethatthereisconsistencyintheunderstandingofthesetypesofrisksacrossthebank.

Reducing our impact on the environment

ToreduceBMO’sfootprint,we’vepurchasedapproximately24,000megawatthoursof100%renewableelectricity,enoughtopower160retailbranchesorofficesacrossCanada.Andwesignedathree-yearcontracttopurchasemorethan91,000megawatthoursof100%renewableenergyfromwindturbines,whichprovideselectricityforthemajorityofourU.S.facilities.Approximately40%ofBMO’stotalemissionsfootprintismitigatedthroughouruseofrenewableenergy.Foryearoveryearmetrics,seeourESGscorecardonpage9.

Wesetanewtargetin2012:toreduceabsoluteenterprisecarbonemissionsby10%bytheendoffiscalyear2016.We’llusethesameformulaweusedtoachieveour2010goal:reducingandlimitingemissionsfromtransportationandenergyuse,purchasingelectricityfromrenewableenergysourcesandbuyingcarboncreditstooffsettheremainingemissions.Calculatingourcarbonfootprintiscomplicated.AsatOctober31,2012,wehad2,219facilitiesworldwide(owned/leased)totalling20,308,679squarefeetofrealestate.Wemeasureemissionsfromthevarioustypesofutilitiesused(e.g.electricity,naturalgas,heatingoil,diesel,etc.)aswellasanyhydrofluorocarbonleaksandwastetolandfill.Wealsocalculatetheemissionsassociatedwithgroundandairtransportationforbusinesspurposesbyemployees.

In2012,wealsosetafive-yeargoaltoreduceenterprisepaperconsumptionby25%,fromour2011levelof5,866tonnes.Weexpecttoachievethisby:

1. EncouragingcustomerstouseoureStatementservice;2. Focusingonoptimizinginternalprocessestoreducepaperuse;and3. Encouragingshareholderstoconsenttotheelectronicdeliveryofshareholdermaterials

(e.g.AnnualReportandManagementProxyCircular).

OtherkeymetricsrelatedtothismaterialissueareincludedinourESGScorecardonpage9.

Supporting the Communities Where we Work and Live

Donations

Ourphilanthropicareasoffocusareeducation,health,artsandculture,communitydevelopment,andsportsandathletics.Oursupport,whichisalignedwithourvalues,hasapositiveimpactonthediversecommunitiesweserve.In2012,wemade$55million▲incharitabledonationsinworldwide.Herearesomeexamples:

■ Learning for a Sustainable FuturehasadvancededucationforsustainabledevelopmentinCanadabyinformingpolicy,developingexcellentprograms,supportingteachersandempoweringyouth.

■ Health Arts Society and Société pour les Arts en Milieux de Santé–BMO’sdonationof$750,000supportedaprogrambringingconcertstolong-termcarefacilitiesacrossCanada.Over1,600concertswerestagedduringtheyearforpeopleincare,includingtheelderlyandthoseisolatedbyillnessordisability.

■ Science World in Vancouver, British Columbia –BMOsupportededucationandyouthengagementwithadonationof$500,000forthenew“OurWorld:BMOSustainabilityGallery”aspartofScienceWorld’sBridgingtheScienceGapcapitalcampaign.

■ One Book, One Chicago Program through Chicago Public Library Foundation –Byhostingdozensofbookdiscussiongroupsinlocationsacrossthecity,theChicagoPublicLibraryaimstoenrichtheexperienceofreadingforeveryone,regardlessofrace,gender,age,incomeortheneighbourhoodtheycallhome.

■ Chicago Botanic Garden –Throughanumberofdifferentprograms,theChicagoBotanicGardenpromotestheenjoyment,understandingandconservationofplantsandthenaturalworld.Eachyear,theGreenYouthFarmprogramteachesupto70studentsaged13to18howtogrowandsellfreshproduceatitsfoururbanagriculturesitesinandaroundtheCityofChicago.

BMO Capital Markets donated $1.25 million equal to 100% of its North American institutional equity trading commissions for October 3, 2012 to Equity Through Education

13 2012Highlights

BMO Financial Group

■ Working in the Schools (WITS)promotesliteracyandtheloveofreadingamongChicago’syouthbyprovidingone-on-onetutoringandmentoring.Since2007,BMOHarrisBankvolunteershaveparticipatedinWITS’MidDayMentoringProgram,workingwithGrade3studentsatHensonandTiltonElementarySchools.Duringthemostrecentschoolyear,60BMOHarrisvolunteersspentmorethan550hoursmentoringstudents.

■ Todate,theEquity Through Educationprogramhasfundedanumberofcharitiesthatprovidescholarships,bursaries,mentorshipprogramsandjobsearchstrategyforumsandhavehelpedmorethan2,500studentsrepresentingfourdiversitygroups:women,visibleminorities,peoplewithdisabilitiesandAboriginalpeople.We’vehiredfivestudentsfromtheprogramasfull-timeemployeesatBMOCapitalMarkets.

Foracompletelistofourcontributions,goto:Corporate Giving

Sponsorships

WesponsornumerouseventsandorganizationsacrossNorthAmerica.Notonlydoesthishelpbuildourbusiness,ithasapositiveimpactonthediversecommunitiesweserve.Herearesomeofour2012sponsorships:

BMOsupportssocceratalllevels,fromprofessionaltograssroots.2012wasthesecondyearfortheBMOTeamoftheWeekprogram,whichsupportschildren’ssocceratthecommunitylevel.

In1989,webecameaFoundingSponsorofKidsHelpPhone,Canada’sonlineandtelephonecounsellingserviceforyouth.Thisfree,anonymousandconfidentialserviceisavailabletoyoungpeopleaged5to20fromcommunitiesacrossCanada,24hoursaday/7daysaweek.

WehaveanextensivepartnershipwiththeCalgaryStampede,whichincludestitlesponsorshipsoftheBMOFarmFamilyAwards,honouringthecontributionsofthoseworkingintheagriculturalindustry,andBMOKidsDay,whichbringsoutmorethan25,000peopleannuallyforafreepancakebreakfastandplentyoffunfamilyentertainment.

BMOalsosponsorstheNationalBusinessBookAward,anawardgivenannuallytotheauthorofapre-eminentbusiness-relatedbookpublishedinCanada.

WealsosponsortheSiminovitchPrizeinTheatre,Canada’slargestannualtheatreartsawardhonouringprofessionaldirectors,playwrightsanddesigners.

Foradditionalinformation,goto:Sponsorships

Employee volunteering

Wesupportandencourageouremployeestoparticipateinvolunteeractivities.June7,2012wasBMOVolunteerDayacrossNorthAmerica,uniting6,500employeesacrossborderswithacommongoal:toworktogethertohelpeventheoddsandimprovethelivesofdisadvantagedpeopleinourcommunities.

WehaveaspecialpartnershipwithUnitedWay/Centraide,whosemissionalignswithsomanyofthethingswestandfor:fairness,equityandhelpingothers.UnitedWay/Centraideensureseverydollarisputtoitsbestpossibleusebymakingemergencyfundsavailabletothosewhoneedthemmost,andfundingprogramsthataddresssocialproblemsinourcommunities.

Supporting employee activities

BMO’s2012EmployeeGivingCampaignwasrecordbreaking.Inanoverwhelmingshowofsupport,employeesgavemoregenerouslythaneverbefore,donatingarecord$13.5million.

Inadditiontoprovidingemployeeswithopportunitiestodocharitableworkduringregularbusinesshours,wealsosupplementemployees’personalcontributionsthroughThe Volunteer Grants ProgramandMatching Gifts Program.

Otherkeymetrics,suchastotaldonationsandsponsorships,areincludedinourESGScorecardonpage9.

Community investment

Duringthe2012calendaryear,BMOHarrisCommunityInvestmentsGroupmadeUS$139,818,401innewinvestmentstosupportsmallbusinessexpansion,thedevelopmentofneweducationalfacilities,theincreasedavailabilityofqualityaffordablehousing,andtargetedcommunity-basedcommercialrealestate.

$449,512 to the

Volunteer Grants Program

$145,359 to the

Matching Gifts program

94% of employees who participated in the annual employee survey

positive impact on the communities where we operate

262,442 employee volunteer hours

8,719 employees volunteered during regular business hours in 2012

14 2012Highlights

http://www.bmo.com/home/about/banking/corporate-responsibility/community/donations-sponsorships

http://www.bmo.com/home/about/banking/corporate-responsibility/community/sponsorships

http://www.bmo.com/home/about/banking/corporate-responsibility/community/employee-programs#Volunteer_Grants_Program

http://www.bmo.com/home/about/banking/corporate-responsibility/community/employee-programs#Matching_Gifts_Program

2012 Environmental, Social and Governance Report and Public Accountability Statement15 GRIIndex:ProfileDisclosures

GRI Index

GRIIndicator

Description

ReportReferenceorCommentary

Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organization (e.g. CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.

Seepage3ofthisreport:MessagefromtheCEO

1.2 Description of key impacts, risks and opportunities. Forenvironmental,socialandgovernance(ESG)relatedrisks,seeReputationRiskandEnvironmentalandSocialRisksectionsonpage92oftheAR.

Organizational Profile

2.1 Name of the organization. BankofMontreal

2.2 Primary brands, products, and/or services. BankofMontrealusesaunifiedbrandingapproachthatlinksalloftheorganization’smembercompanies.BankofMontreal,togetherwithitssubsidiaries,isknownasBMOFinancialGroup.Assuch,inthisreport,thenamesBMOandBMOFinancialGroupmeanBankofMontrealtogetherwithitssubsidiaries.

Furtherinformation:ARpages25and167–168

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Informationabouttheinter-corporaterelationshipsamongBankofMontrealanditsprincipalsubsidiariesisprovidedonpage182oftheAR.

Furtherinformation:ARpages167–168

Profile Disclosures

Legend:AIF – Annual Information Form for the year ended October 31, 2012AR – BMO Financial Group 195th Annual Report 2012ESG Report and PAS – Environmental, Social and Governance Report and Public Accountability StatementPC – Notice of Annual Meeting of Shareholders and Management Proxy Circular – February 28, 2013

BMO Financial Group16 GRIIndex:ProfileDisclosures

GRIIndicator

Description


Organization Profile continued

2.4 Location of organization’s headquarters. BMO’sheadofficeislocatedat129rueSaint-Jacques,Montreal,Quebec,H2Y1L6anditsexecutiveofficesarelocatedat100KingStreetWest,1FirstCanadianPlace,Toronto,Ontario,M5X1A1.

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Weoperateinanumberofcountries,butthescopeofourESGReportisCanadaandtheUnitedStatesofAmerica(U.S.),alsoreferredtoasBMO’sNorthAmericanoperations.

Furtherinformation:ARpages167–168and182

2.6 Nature of ownership and legal form. BankofMontrealisaCanadianScheduleIbankandpubliccompanylistedontheTorontoandNewYorkstockexchanges.Sharesarewidelyheldbyinstitutionalandretailowners.

Furtherinformation:ARpage182

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

ARpages167–168

2.8 Scale of the reporting organization. AsatJuly31,2012,BMOwasthefourthlargestcharteredbankinCanadaintermsofassets,equityandmarketcapitalization.

BMOprovidesabroadrangeofcreditandnon-creditproductsandservicesdirectlyandthroughCanadianandforeignsubsidiaries,officesandbranches.AsatOctober31,2012,BMOhadmorethan12millioncustomers,approximately46,000full-timeequivalentemployees,maintainedapproximately1,570bankbranchesinCanadaandtheU.S.andoperatedinternationallyinmajorfinancialmarketsandtradingareasthroughourofficesin24otherjurisdictions,includingtheU.S.Furtherinformation:ARpages8–9,36–38and167–168.

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

ARpages26–27,34–35and147–149

2.10 Awards received in the reporting period. Awards and Recognition

Report Parameters

3.1 Reporting period (e.g. fiscal/calendar year) for information provided.

OurAIF,AR,PC,andESGReportandPAScoverourfiscalyearendingOctober31(November1,2011toOctober31,2012).

http://www.bmo.com/awards


GRIIndicator

Description


Report Parameters continued

3.2 Date of most recent previous report. 2011SustainabilityReportandPublicAccountabilityStatement

3.3 Reporting cycle (annual, biennial, etc.). Ourreportingcycleisannual.

3.4 Contact point for questions regarding the report or its contents.

EmailaddressforquestionsaboutourESGactivitiesandperformance:[email protected]

3.5 Process for defining report content. Seepages6to8ofthisreportMaterialityandStakeholderEngagement

3.6 Boundary of the report (e.g. countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

ReferencesandcommentaryinthisreportrepresentouroperationsinCanadaandtheU.S.,unlessotherwisestated.

3.7 State any specific limitations on the scope or boundary of the report.

None.

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

ARpages:35,98–99,124–126and148–149

Wecalculatethecarbonfootprint(relativetoenergyuseinourbuildingsandtransportationbyemployeesforbusinesspurposes)forjointventures(equityshareportion),subsidiariesandleasedfacilities(butnotforoutsourcedoperations)fortheentirefiscalyear.Alsoincludedinourcalculationsaretheimpactsofanyacquisitionsfromthetransactiondatetothefiscalyear-enddate.

3.9 Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report.

Informationondatameasurement,calculationsandassumptionsarelistedintheGlossaryofTermsonpages48-50.Environmentaldatameasurementtechniquesarelistedonourwebsitealongwiththeperformance.

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

RefertoEnvironmental Performancefordetailsonchangestoenvironmentaldataandpage48forinformationontherestatementofdiversitymetrics.

mailto:[email protected]

http://www.bmo.com/home/about/banking/corporate-responsibility/environment/environmental-performance


GRIIndicator

Description


Report Parameters continued

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Therearenosignificantchangesfromthepreviousreportingperiod(FY2011)inthescope,boundaryormeasurementmethodsappliedinthereport.Forathree-yearhistoryofthedevelopmentofthebusiness,seepage4oftheAIF.

3.12 Table identifying the location of the Standard Disclosures in the report.

2012ESGReportandPublicAccountabilityStatement

3.13 Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).

KPMGisBMO’sShareholders’auditor,andwasengagedin2012forthefirsttimetoprovidelimitedassuranceonselectedsustainabilityinformationcontainedwithintheESGReport.KPMG’sfinancialstatementauditreportcanbefoundonpages117and118ofthe2012FinancialStatementsandtheirlimitedassurancereportonselectedperformanceindicatorscanbefoundonpages51and52ofthisreport.

KPMGisindependentofBMOwithinthemeaningoftheRulesofProfessionalConduct/CodeofEthicsofvariousCanadianprovincialprofessionalaccountingbodiesandtheUnited States Securities Act of 1933andtheapplicablerulesandregulationsthereunder.(Seecommentsonpage2ofthisreport.)

Governance, Commitments, and Engagement

4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

TheEnvironmental,SocialandGovernance(ESG)TeamisaccountableforidentifyingandunderstandingtheESGissuesthataffectourbusiness.Itcollaborateswithvariousareasofthebanktoaddressthoseissues,andisresponsiblefordevelopingourBoard-approvedcorporateresponsibilityandsustainabilitycorporatepolicy.

BMO’sSustainabilityCounciliscomprisedofseniorleadersfromacrossthebankandprovidesguidanceandoversightonsignificantsustainabilitymatters.TheCouncilmeetseveryquarter,andthechairreportstoourPresidentandCEO.

OurBoardofDirectorsisresponsibleforenterprise-wideoversightandgovernance,andanumberofourBoardcommitteemandatesincludeaddressingESGmatters.Forexample,theAuditandConductReviewCommitteereviewsreportsonenvironmental,socialandgovernanceissues,andtheHumanResourcesCommitteehasoversightofretentionstrategiesandexecutivecompensation.

Furtherinformation: Corporate Sustainability GovernanceandARpages19to20

4.2 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).

TheChairoftheBoardofDirectorsisnotanexecutiveofficer.

http://www.bmo.com/home/about/banking/corporate-responsibility/our-approach/our-commitment#corporate_responsibility_governance


GRIIndicator

Description


Governance, Commitments, and Engagement continued

4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

TotalBoardsizeis14.Thereisoneexecutivedirector,WilliamA.Downe,PresidentandCEOofthebank,and13independentDirectorsasdefinedbyCanadianandU.S.securitieslawsandNewYorkStockExchangeRules.

Furtherinformation:Director Independence StandardsandAIFpage11

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

ShareholdersandemployeesandotherinterestedpartiesmaycommunicatewiththeBoardofDirectorsthroughtheChairmanoftheBoard,bywritingto:ChairmanoftheBoardofDirectors,BMOFinancialGroup,P.O.Box1,FirstCanadianPlace,100KingStreetWest,Toronto,Ontario,M5X1A1,Email:[email protected]

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).

TheBoard’sGovernanceandNominatingCommitteeannuallyreviewsandbenchmarksDirectors’compensationagainstitspeergrouptoensureitiscompetitiveandconsistentwiththeresponsibilitiesofDirectors.Directors’compensationisdisclosedonpages17and18ofthePC.

BMO’scompensationpoliciesandstructuresupportourvisiontobethebankthatdefinesgreatcustomerexperience.Atthestartofeachyear,theBoard’sHumanResourcesCommitteesetstargetsthatreinforcetheBank’sstrategicprioritiesandvalues.Then,attheendoftheyear,itassessesbankandoperatingperformanceagainstthetargets,assessesindividualperformanceagainstobjectivesfortheCEOandSeniorExecutives,andallocatesindividualincentiveawardsfortheCEOandSeniorExecutives.

Furtherinformation:PC,startingonpage36

Asanincentiveforenvironmentalperformance,weprovidemonetaryrewardstoenvironment/sustainabilitymanagement,thecorporaterealestateexecutiveteamandfacilitymanagers.

Furtherinformation:BMO CDP Response

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Toensureethicalandindependentdecision-making,wehaveaprotocoltoidentifyanddealwithdirectorconflictsofinterest.DirectorsorexecutiveofficerswithamaterialinterestinamattercomingtotheBoard’sattentiondonotreceiverelatedBoardmaterials,andarenotpresentforanydiscussionsorrelatedvotes.

Furtherinformation:PCpage26(EthicalBusinessConduct)

http://www.bmo.com/home/about/banking/investor-relations/corporate-governance/director-independence-standards


http://www.bmo.com/home/about/banking/corporate-responsibility/environment/environmental-performance#cdp


GRIIndicator

Description



4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics.

TheBoard’sGovernanceandNominatingCommitteedecideswhatskillsandcompetenciestheBoardrequires,assessestheskillsofcurrentBoardmembersandidentifiesandrecommendssuitableDirectorcandidates.ThisassessmenthelpsdetermineiftheBoardneedsnewDirectors.Potentialcandidatesarescreenedforseveralattributes,includingethicsandintegrity,rangeofexperience,goodbusinessjudgement,areasofexpertise,possibleconflicts,andtheirabilitytodevotesufficienttimeandcommitmentasaDirector.Diversityofbackground,genderandgeographyisalsotakenintoconsideration.ThepolicyonmajorityvotingtoelectDirectorsisdescribedonpage4and5ofthePC.

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

FirstPrinciplesisacomprehensivecodeofbusinessconductandethicsthatguidesethicaldecision-makingandconductbyourDirectors,officersandemployees.Eachyear,everyDirector,officerandemployeemustsignandacknowledgethattheyhaveread,understoodandcompliedwithFirstPrinciples.WehaveanonlinelearningprogramfornewemployeesandonlinetestingforallemployeesonFirstPrinciples.

Furtherinformation:Our Commitment

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherance or compliance with internally agreed standards, codes of conduct, and principles.

Seeindicators4.1and4.8

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Annually,eachDirectorcompletesasurveyandhasaone-on-oneinterviewwiththeChairmanoftheBoard.EveryDirectorassessesthecontributionofeachoftheirpeersagainsttheperformancestandardsfortheDirectorposition.WhenassessingtheChairman,theGovernanceandNominatingCommitteeseeksinputfromeachDirector.EachBoardcommitteeandcommitteechairarealsoseparatelyassessed.

Furtherinformation:PCpage27

4.11 Explanation of whether and how the precautionary approach or principles is addressed by the organization.

Wefacevariousrisksinherentindoingbusiness.Anintegratedanddisciplinedapproachtoriskmanagementisintegraltoourbusiness.Ourriskmanagementframeworkhelpsprovideappropriateandindependentriskoversightacrosstheenterprise.This,inturn,helpsbuildacompetitiveadvantageandprovidestabilityforourenterprise.

Furtherinformation:ARbeginningonpage75

http://www.bmo.com/home/about/banking/corporate-responsibility/our-approach/our-commitment


GRIIndicator

Description



4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Memberships and Associations

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations.

Memberships and Associations

4.14 List of stakeholder groups engaged by the organization.

StakeholderengagementisembeddedinallareasofBMO.Weseekfeedbackthroughallofourcustomer-facingchannels,makeiteasyforshareholderstoraiseconcernsandprovideopportunitiesforemployeestoprovidefeedback.Weengagewithourstakeholdersthroughsocialmedia,participateinroundtableswithourpeersandareactivemembersofavarietyofindustryandcommunityassociations.

List of Stakeholder Groups:CustomersCommunitiesEmployeesShareholdersRegulatorsNon-GovernmentalOrganizations(NGOs)Suppliers

FurtherInformation:pages7and8ofthisreport:MaterialityandStakeholderEngagement

4.15 Basis for identification and selection of stakeholders with whom to engage.

Seeindicator4.14

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Seeindicator4.14

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Seepages7to8ofthisreport:MaterialityandStakeholderEngagement

http://www2.bmo.com/content/0,1089,divId-7_langId-1_navCode-4856,00.html

http://www2.bmo.com/content/0,1089,divId-7_langId-1_navCode-4856,00.html

BMO Financial Group

GRI Indicator

Description

Report Reference or Commentary

Product and Service Impact

FS1 Policies with specific environmental and social components applied to business lines.

Environmental and social risks include both the threat of adverse effects on the natural environment through emissions, wastes and resource depletion, as well as risks to livelihoods, the health and rights of communities and cultural heritage arising out of a client’s business operations and BMO’s financing activities. The existence of environmental and social risks does not preclude the bank from providing financing to a borrower. We have internal policies applicable to our Commercial and Capital Markets businesses to provide guidance on how to identify, manage and mitigate environmental and social risk in financing transactions. The policies are regularly reviewed and approved by executives in the Risk Management area.

FS2 Procedures for assessing and screening environmental and social risks in business lines.

Due diligence is performed by the line of business so that we can determine if the magnitude of the environmental and social risks is material. The findings are included in the transaction application that is sent to Risk Management for its approval. Environmental risk is most prevalent when dealing with environmentally sensitive industries. We have identified over 50 industries that we subject to a higher level of environmental due diligence. We evaluate social risks by how well a client manages regulatory and other risks related to stakeholder engagement and issues related to Aboriginal consultation. Specific due diligence questions on both aspects are outlined in our financing policies.

FS3 Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included in agreements or transactions.

Social and environmental requirements in transaction agreements are monitored by the line of business in the same way as other transaction requirements.

FS4 Process (es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines.

Updates to our policies are widely distributed to all affected employees and, when required, we raise additional awareness on a case-by-case or issue-by-issue basis with key decision-makers. We plan to extend environmental and social risk training to all new Capital Markets employees in 2013.

FS5 Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.

We work with our clients and suppliers to understand and manage social and environmental risks, and to take advantage of opportunities. This also occurs in our Commercial and Corporate businesses where clients may need financing to take advantage of environmental opportunities.

FS9 Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.

The management of environmental and social risks is integrated into our enterprise-wide risk management processes. As a matter of course, our internal audit function conducts audits on all bank units periodically. This audit includes assessing compliance with relevant environmental and social risk policies.

22 GRI Index: Performance Indicators

Performance Indicators

2012 Environmental, Social and Governance Report and Public Accountability Statement23 GRIIndex:PerformanceIndicators

GRIIndicator

Description


Economic

DMA Economic AsaleadingNorthAmericanfinancialinstitution,BMO’smandateistofinanceopportunity,createwealthandmaximizereturnstoourshareholders.Atthesametime,asamajorbusinessenterprise,weplayavitalroleinsustainingoveralleconomicprosperityforourclients,ouremployeesandourcommunities.ThewealthBMOcreatesiswidelysharedthroughemployeecompensation,theprocurementofgoodsandservices,dividendstoshareholders,supportforcharitableinitiativesandtaxes.

Furtherinformation:page6ofthisreportandCommunity

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

In2012,BMOcontributedmorethan$87.6million▲indonations,sponsorshipsandeventsinCanadaandtheU.S.togroups,organizationsandprogramsthathelpbuildandsustainresilient,vitalandhealthycommunities.

Forabreakdownofexpensessuchasemployeecompensation,premisesandequipmentandgovernmentleviesandtaxes,seeARpage105(Table8).

EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change.

WedisclosehowwemanageclimatechangeinourCarbonDisclosureProject(CDP)submission.

Furtherinformation:CDP Response

EC3 Coverage of the organization’s defined benefit plan obligations.

WeprovidedefinedbenefitpensionandotherfutureemployeebenefitstocertaineligibleretiredandcurrentemployeesinCanadaandtheU.S.Weprovidedefinedcontributionpensionplanstoemployeesinsomeofoursubsidiaries.

Furtherinformation:ARpages160–164

EC4 Significant financial assistance received from government.

None.

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

AsweoperateacrossCanadaandtheU.S.,wedefinelocalsuppliersasthosebasedinNorthAmerica.InFY2012,wespentover$3billionongoodsandserviceswithourpreferredsuppliersinNorthAmerica.Supplierselectionisbasedonthedeliveryofproductsandservicesthatarethebestinvalue,qualityandperformance.Wehaveacomprehensivesustainableprocurementpracticethatincludesenvironmentalandsocialconsiderationsintheprocessofevaluatingandselectingsuppliersacrosstheenterprise.BMOStrategicSourcingisresponsibleforsuppliergovernancestandardsthatestablishtheprocurementpracticesforBMOemployees.

Furtherinformation:BMO Sustainable Procurement Questionnaire


http://www2.bmo.com/content/0,1089,divId-7_langId-1_navCode-4890,00.html#cdp

http://www.bmo.com/home/about/banking/corporate-responsibility/environment/environmental-approach#eco5

BMO Financial Group24 GRIIndex:PerformanceIndicators

GRIIndicator

Description


Economic continued

EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.

Weexpectourseniorleaderstobeactiveparticipantsintheirlocalcommunities.Ouremployeesreflecttheneighbourhoodsinwhichweliveandwork,andwemakesurewehavetherightpeopleintherightrolestomeetcustomerneeds.Ourjobsarepostedinsidethecompanyandonourexternalsite(bmo.com),andweusenationalandregionaljobboardsandlocal,in-branchmarketingtohighlightBMOemploymentopportunities.

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, inkind, or pro bono engagement.

Duringthe2012calendaryear,BMOHarrisCommunityInvestmentsGroupmadeUS$139,818,401innewinvestmentstosupportsmall-businessexpansion,thedevelopmentofneweducationalfacilities,increasedavailabilityofqualityaffordablehousing,andtargetedcommunity-basedcommercialrealestate.

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Weplayanimportantroleincreatingaproductiveandprosperoussociety.Wehelppeoplebuyhomes,savefortheirchildren’seducationandbuildsecureretirementplans.Wehelpsmallbusinessesgrow,helpgrowingbusinessesbecomemorecompetitive,helpcompetitivebusinessesfindnewmarketsandhelpallbusinessesbemoreinnovative.

Weprovidedirecteconomicsupportthroughjobcreation.Webuygoodsandservicesfromlargeandsmallcompaniesaswellasfromindividualcontractors,andwepaytaxes.

Furtherinformation:Supporting our Communities,andARpages12–17

Environmental

DMA Environmental Wearecommittedtominimizingtheenvironmentalimpactsofourbusinessoperationsthroughbest-practicemanagementofourenergyuse,transportation,materialconsumption,wateruse,waste,emissionsandeffluent.Aspartofthiscommitment,wehavedevelopedarobustenvironmentalmanagementsystemthatdescribestheobjectives,targetsandprocessesinplacetomitigatetheseimpacts.Wemonitorperformanceagainstourstatedobjectivesinpursuingcontinualimprovementinourenvironmentalperformanceandongoingpollutionprevention.

Furtherinformation:ARpage92

Note:Mostrecentenvironmentalperformancedataisavailableonourwebsite.

EN1 Materials used by weight or volume. Environmental Performance

EN2 Percentage of materials used that are recycled input materials.

Environmental Performance


http://www2.bmo.com/content/0,1089,divId-7_langId-1_navCode-4890,00.html#eco5summary



GRIIndicator

Description


Environmental continued

EN3 Direct energy consumption by primary energy source. Environmental Performance

EN4 Indirect energy consumption by primary energy source.


EN5 Energy saved due to conservation and efficiency improvements.

Furtherinformation:BMO CDP Response

EN6 Initiatives to provide energy-efficient or renewable energy based-products and services, and reductions in energy requirements as a result of these initiatives.

Thisindicatorisnotapplicabletoourbusinessbecauseourproductsandservicesarefinancial.Wecontinuetofocusonprovidingclientsandshareholderswithelectronicoptionstoreduceenergyusedincreatingandsendingpapermaterials.

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

Foralistofourinitiativestoreduceindirectenergyconsumption,goto:BMO ECO5 Strategy.Foryear-over-yeardataonthereductionsachieved,goto:Environmental Performance

Furtherinformation: BMO CDP Response

EN8 Total water withdrawal by source. Thisindicatorisnotapplicablebecauseweuserelativelylittlewatertooperateourbusiness.

EN9 Water sources significantly affected by withdrawal of water.

SeeindicatorEN8

EN10 Percentage and total volume of water recycled and reused.

SeeindicatorEN8

EN11 Location and use of land owned; leased; managed in; or adjacent to; protected areas and areas of high biodiversity value outside protected areas.

Thisindicatorisnotapplicabletoourbusinessoperations.BMO’spropertyportfolioislocatedinurbanareasorwithinthetowncentresofruralareasanddoesnotdirectlyaffectbiodiversehabitats.BiodiversityimpactsthatmayariseinProjectFinancetransactionsaremitigatedbyourclientsthroughourapplicationoftheEquatorPrinciples.

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

SeeindicatorEN11

EN13 Habitats protected or restored. SeeindicatorEN11






http://www.bmo.com/home/about/banking/corporate-responsibility/environment/environmental-approach#eco5strategy

BMO Financial Group

GRIIndicator

Description



EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

SeeindicatorEN11

EN15 Number of IUNC Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

SeeindicatorEN11

EN16 Total direct and indirect GHG emissions by weight. Environmental Performance

EN17 Other relevant direct and indirect GHG emissions by weight.


EN18 Initiatives to reduce GHG emissions and reductions achieved.

BMO ECO5 Strategy Environmental Performance BMO CDP Response

EN19 Emissions of ozone-depleting substances by weight. Environmental Performance

EN21 Total water discharge by quality and destination. Thisindicatorisnotapplicablebecauseweuserelativelylittlewater(andthereforehaveminimaldischarge)tooperateourbusiness.

EN22 Total weight of waste by type and disposal method. Environmental Performance

EN23 Total number and volume of significant spills. None.

EN24 Weight of transported; imported; exported; or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

Thisindicatorisnotapplicabletoouroperations.

EN25 Identity; size; protected status; and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.

ThisindicatorisnotapplicablebecauseBMO’swaterisdischargedtopublicwastewatertreatmentfacilitiesnotdirectlyintowaterbodiesandrelatedhabitats.

26 GRIIndex:PerformanceIndicators









GRIIndicator

Description



EN26 Initiatives to migrate environmental impacts of products and services, and extent of impact mitigation.

TargetsNote:ThisinformationwillbeavailableJune2013.

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

Thisindicatorisnotapplicable.BMOproductsandservicesdonothavepackagingmaterialstobereclaimed(recycledorreused).

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental law and regulations.

BMOhasnotpaidanysignificantfinesorbeenotherwisesanctionedfornon-compliancewithenvironmentallawsorregulations.

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

BMO ECO5 StrategyEnvironmental Performance

EN30 Total environmental protection expenditures and investments by type.

Environmentalprotectionexpendituresforfiscalyear2012:

2.2Wastedisposal,emissionstreatmentandremediationcosts $11,387,813

2.3Preventionandenvironmentalmanagementcosts $540,000

Total $11,927,813

Social: Labour Practices

DMA Labour Practices and Decent Work AtBMO,ourresponsibilitytoouremployeesextendsbeyondprovidingjobs.Ourmandateistoopenupnewavenuesinprofessionalandpersonaldevelopment,helpingpeopleexpandtheirhorizonsanddiscoverexcitingcareerpossibilities.

Furtherinformation: BMO’s Talent StrategyandDiversity, Equity and Inclusion

LA1 Total workforce by employment type, employment contract, and region.

Seepage37ofthisreport:BMOFinancialGroupCanadaHeadcount

http://www.bmo.com/home/about/banking/corporate-responsibility/environment/carbon-neutral


http://www.bmo.com/home/about/banking/corporate-responsibility/employees/investing-people

http://www.bmo.com/home/about/banking/corporate-responsibility/employees/diversity-equity-inclusion


http://www.bmo.com/home/about/banking/corporate-responsibility/employees/diversity-equity-inclusion


GRIIndicator

Description


Social: Labour Practices continued

LA2 Total number and rate of employee turnover by age group, gender, and region.

AnnualturnoverrateinNorthAmerica,byregion:

Region Category 2012▲ 2011

Canada VoluntaryTurnover(%) 9.8 8.0

U.S. VoluntaryTurnover(%) 11.8 9.21

1 U.S.figureexcludestheM&IacquisitionthatoccurredinJuly2011.

TurnoverrateisdefinedintheGlossaryofTermsonpage50.

We track turnover by age group and gender, but we do not disclose the metrics at this time.

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

BMOoffersabroadrangeofprogramsdesignedtohelpemployeesbalancetheirresponsibilitiestowork,familyandcommunity.BMO’semployeebenefitsareavailabletofull-timeandparttimeemployees.Temporaryemployeesareeligibleforlimitedbenefits,Findoutmoreaboutourapproachtoemployeebenefitsat:Work and Life Effectiveness

LA15 Return to work and retention rates after parental leave, by gender.

BMOendorsesmanymeasuresthatsupportwork/lifebalanceforallemployees,includingparentalleavesthatseeemployeesreturningtotheirformerpositionswheneverreasonablypossible.BMO’sHRpoliciesandpracticessupportthisapproachandoutcome.However,BMOdoesnotformallymonitorandtrackthesesituations.

LA4 Percentage of employees covered by collective bargaining agreements.

Currently,0%ofemployeesarecoveredbycollectivebargainingagreements.ForBMO’spositiononfreedomofassociationandcollectivebargaining,goto:BMO on the issues

LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

Whenmanagingchangeduetoacquisitions,restructuringoroutsourcing,ourgoalistogiveaffectedemployeesasmuchnoticeaspossiblesotheyareclearaboutwhat’shappeningandcanfindotheremployment.Wemeetorexceedminimumnoticeperiods,andfollowBMO’svalues,principles,practicesandlegalobligations.

LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.

InCanada,BMO(excludingBMONesbittBurns)hasbeengrantedanexemptionbyHumanResourcesandSkillsDevelopmentCanadaandisnotrequiredtooperatejointcommittees.BMONesbittBurnsoperatesjointHealth&Safetycommittees,asprescribedbytheapplicableProvinciallegislation.

IntheU.S.,thereisnolegislationorlawrequiringBMOHarrisBanktooperatejointcommittees.

http://www.bmo.com/home/about/banking/corporate-responsibility/employees/work-life-effectiveness



GRIIndicator

Description



LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.

AtBMO,wehavehadnowork-relatedfatalities.Althoughwedonottrackratesofinjuryordisease,asafinancialinstitution,stressistheleadingcauseofshort-andlong-termleaves.Wefocusonhelpingtheseemployeesreturntoworkandsupporttheirneedsoncetheyreturn.

LA8 Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

BMOemployeesarenotinjobswithahighincidenceorhighriskofspecificdiseases.

OurHealthandSafetyPoliciesoutlineexecutive,manager,andemployeeresponsibilitiesinmaintainingahazard-freeworkplaceandwecreateawarenessthroughmandatoryannualtraining.

BMO’sEmployeeAssistanceProgramandLifeWorksprovideconfidentialcounsellingtoemployees,bothactiveandpensioned,andtheirdependentfamilymembers.Inaddition,wehaveawiderangeofmedicalbenefitstohelpplanforandrespondtodifferenthealthneeds.

BMO’sChiefMedicalOfficerandteamworkcloselywithprovincialandnationalhealthauthoritiestoensurethatwecanrespondtowidespreadhealthsituationssuchaspandemics.

Furtherinformation:Work and Life Effectiveness

LA10 Average hours of training per year per employee by employee category.

Duringthe2012fiscalyear,averagehoursoftrainingwere38.8hoursperemployeeperyear▲.Ourcoreareasoffocuscontinuetobelearningthatorientsnewemployeestoourvision,values,strategyandculture;buildstalentedleaders;enhancesjudgementandcapabilityaroundriskandregulatorymatters;andmostimportantlyenablesouremployeestodelivergreatcustomerexperiences.Forexample,40%ofalltraininghourswerespentonsalesorcustomerservicetraining.

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

BMOencouragesongoingemployeedevelopmentthroughsubsidiesfortuitionandprofessionalaccreditation,paidinternshipopportunities,formalmentoringprogramsandcareerplanningworkshops.Inaddition,wehaveprogramsforemployeeswhoarepreparingforretirement,suchassuccessionandretirementplanning,andphased-inretirement.Foremployeeswhoareretired,wehavepaidhealthbenefits,organizedsocialactivitiesandvolunteeropportunities.

LA12 Percentage of employees receiving regular performance and career development reviews.

Ourpoliciesandprogramsoutlinemanagers’responsibilitytohaveperformanceandcareerdevelopmentconversations.Wealsohaveaperformancemanagementindextoassesshowwellwedeliveronourcommitment.Our2012annualemployeesurveyindicated93%ofouremployeesconfirmedtheyhadengagedinaperformanceplanningandassessmentdiscussionwiththeirmanager.

http://www.bmo.com/home/about/banking/corporate-responsibility/employees/work-life-effectiveness


GRIIndicator

Description



LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

SeeBMO’sESGScorecardonpage9.

DiversityandinclusionarepartofBMO’scorevalues,andanintegralpartofourtalentmanagementpractices.In2012,werenewedBMO’sdiversitystrategyby:

n launchingaDiversityRenewalCounciloftopexecutivestoleadcompany-widediversityinitiatives;

n establishingdiversityactionplansinallbusinessareas;

n introducingculturalintelligencetrainingforseniorleaders;and

n enhancingourtalentreviewandhiringprocessestoensureastrongpipelineofdiversetalent,withaparticularfocusonwomen,visibleminorities,personswithdisabilitiesandAboriginalpersons.

Furtherinformation:Employee Equity Narrative Report

LA14 Ratio of basic salary of men to women by employee category.

BasesalarypoliciesatBMOaregender-neutral,requiringmanagerstoconsiderknowledge,skillsandabilities,aswellassustainedperformance,whenmakingpaydecisions.InsupportofBMO’spaypolicies,paystructuresaredesignedtobemarket-competitive,throughtheuseofexternalpaysurveysforsimilarrolesinadiversemarketplace.Reviewsofbasesalarybetweenmaleandfemaleemployeesoccuracrosstheenterprise,toensurecomparablepaylevelsforsimilarrolesand/orjoblevelswithsimilarexperience.

Social: Human Rights

DMA Human Rights RespectforhumanrightsisdeeplyembeddedinBMO’scorporatecultureandinallofourpolicies.FirstPrinciples,ourcodeofconduct,reflectsourcommitmenttohighstandardsofbusinessconductandethics.FirstPrinciplesguidesustoensurethatwhatwedoisfair,rightandlegal.FirstPrinciplesandourStatementonHumanRightsapplytoBMOanditssubsidiaries.

Furtherinformation:Code of Conduct and BMO on the issues

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

WhensuppliersareinvitedtoparticipateinanRFx,weaskproponentstobeawareofourCode of ConductanddirectthemtotheCodeofConductlinkonourwebsite.Inaddition,wehaveacomprehensivesustainableprocurementpracticethatincludesenvironmentalandsocialconsiderationswhenevaluatingandselectingoursuppliers.

Furtherinformation:BMO Sustainable Procurement Questionnaire

http://www.bmo.com/home/about/banking/corporate-responsibility/our-approach/reporting#narrative

http://www.bmo.com/home/about/banking/investor-relations/corporate-governance/code-of-conduct


http://www.bmo.com/home/about/banking/corporate-responsibility/environment/environmental-approach#eco5



GRIIndicator

Description


Social: Human Rights continued

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

FirstPrinciplesisourcodeofbusinessconductandethics.Itreflectsourcommitmenttodoingwhatisfair,rightandlegal.100%ofBMOemployeesmustcompleteannualCodeofConducttraining.Almostallemployees(98.8%▲)hadcompletedtheonlinetrainingasofJune30,2012(thelastdayofourthreemonthtrainingperiod).Newandreturningemployeesmustcompletethetrainingwithin30daysoftheirstartdate.

Furtherinformation: Code of Conduct

TotalnumberoftraininghoursonBMO’sCodeofConductforfiscal2012(November1,2011–October31,2012).

Baseline(newemployees) 9,956.0hoursRefresher 19,001.6hours

Total 28,957.6 hours

HR4 Total number of incidents of discrimination and actions taken.

AtBMO,ourpeopleareourcompetitiveadvantage.Wearepassionateaboutcreatingadiverseandinclusiveworkplacebecauseithelpsemployeesperformattheirbest.Onaverage,BMOreceivesapproximately5formalcomplaintsperquarterthroughtheCanadianHumanRightsCommission,Provincialequivalents(inCanada)ortheU.S.EqualEmploymentOpportunityCommission.Wetakeallcomplaintsseriously,andthemajorityareresolvedatthepreliminarystagesoftherespectiveprocesses.

KeymetricsrelatedtothisindicatorasincludedinourESGScorecardonpage9.

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

BMOrespectstherightofallpeopletojoin(ornotjoin)atradeuniontobargaincollectively.

ToviewBMO’sStatementonfreedomofassociationandcollectivebargaining,goto:BMO on the issues

HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

BMOrespectsitshumanrightsresponsibilitiesandcomplieswithlawsandinternationallyrecognizedhumanrightseverywhereitoperates.

ToviewBMO’sstatementonhumanrights,goto:BMO on the issues

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.

SeeindicatorHR6





GRIIndicator

Description


Social: Human Rights continued

HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.

AllBMOCorporateSecuritystaffcompleteonlinetrainingmodulesdesignedtoassessawareness,understandingandcompliancewithkeyethical,legalandregulatoryrequirements.Staffiscommittedtoensuringasafeandsecureworkplaceandhandlingviolationsofworkplacesafety.Allthird-partysecuritystaffmustmeetthesamehighstandards.Wemanagethird-partysecurityvendorsbymeetingwiththemregularlytoensuretheyfollowourstandardsandtoreviewprocessesandincidents.

Social: Society

DMA Society BMOiscommittedtohelpingimprovethequalityoflifeinthecommunitieswhereweliveandwork.Wesupportcharitableinitiativesthroughdonationsandsponsorshipprogramsandweencourageandsupportemployeesastheydevotetheirtime,energyandpassiontogivingback.

Furtherinformation:Supporting Communities and Responsible Lending

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

Werarelyleaveacommunityaltogether.Inmostcases,werelocateourbrancheslessthan500meters.Butwhenwedocloseabranchormoveitagreaterdistance,wedoallwecantominimizetheinconveniencetoourcustomers.

InCanada,wecomplywithfederallegislationbygivingcustomers:

n atleastfourmonths’noticebeforeclosingabranch,and

n sixmonths’noticeinaruralareawherethereisnootherretaildeposit-takingbranchwithin10kilometersofthebranchbeingclosed.

IntheU.S.,wecomplywithfederallegislationbygivingwrittennoticetoaffectedcustomers90daysbeforetheclosureorrelocationofabankbranch.

FS13 Access points in low-populated or economically disadvantaged areas by type.

Seepages11and12ofthisreport:2012Highlights.

FS14 Initiatives to improve access to financial services for disadvantaged people.

Seepages11and12ofthisreport:2012Highlights.

BMOiscommittedtomakingourfacilitiesandservicesaccessibletopeopleofallabilities.

Furtherinformation:Accessibility at BMO

SO2 Percentage and total number of business units analyzed for risks related to corruption.

ToviewBMO’spositiononanti-corruption,goto:BMO on the issues


http://www.bmo.com/home/about/banking/corporate-responsibility/customers/responsible-lending

http://www.bmo.com/home/about/banking/accessibility/accessibility-at-bmo?nav=left



GRIIndicator

Description


Social: Society continued

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures.

AsofJune30,2012,98.8%ofemployeescompletedtheanti-corruptiontrainingglobally.

SO4 Actions taken in response to incidents of corruption.

Wedonottrackorrecordemployeeswhohavebeendismissedordisciplinedforcorruption-relatedactivity.Nordowetrackorrecordthenumberofcontractsthatwedidnotrenewwithbusinesspartnersduetocorruption-relatedviolations.

SO5 Public policy positions and participation in public policy development and lobbying.

ToviewBMO’spositiononlobbying,goto: BMO on the issues

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

BMOsupportseffortstoenhancethefairnessandtransparencyoftheelectoralsystemsinthejurisdictionswherewedobusiness.

Historically,BMOhassupportedthepoliticalprocessinCanadathroughfinancialcontributionstopoliticalpartiesandcandidates.Suchcontributionsarepermittedineightprovinces(exceptingManitobaandQuebecandatthefederallevel).Wecontributed$55,450topoliticalpartiesandcandidatesintheseprovincesduringthereportingperiod.

IntheU.S.,wecontributedUS$82,042topoliticalpartiesandcandidatesduringthereportingperiod.

BMOhasalsosupportedthepoliticalprocessthroughcontributionstocertainadvocacyorganizations.Forinstance,BMOistheleadprivatesectorsponsoroftheParliamentaryInternshipProgramme,andhasprovidedfinancialsupporttoorganizationssuchasthePublicPolicyForum,theCanadianJournalismFoundationandtheCanadianAssociationofFormerParliamentarians.In2012,BMOprovided$137,010totheseorganizations.

SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

Therewerenosignificantfinesornon-monetarysanctionsinthe2012fiscalyear▲.RefertotheGlossaryofTermsonpage50forthedefinitionofsignificant.

Social: Product Responsibilty

DMA Product Responsibility We’reheretohelpindividualsandbusinessesmakethebestdecisions–ontheirterms–byunderstandingwhat’snotintheirbestinterestandbypointingtosolutionsthatfittheirbudgetandlong-termgoals.Weensurethatallproductsandservicesmeetconsumerprotectionlawsandregulations,FirstPrinciples:ourcodeofconduct,aswellasvoluntarycodesofconduct.Andweaimtomakeiteasierforcustomerstodobusinesswithus.

Furtherinformation:Product ResponsibilityandResponsible Lending


http://www.bmo.com/home/about/banking/corporate-responsibility/customers/product-responsibility

http://www.bmo.com/home/about/banking/corporate-responsibility/customers/responsible-lending


GRIIndicator

Description


Social: Product Responsibilty continued

FS15 Policies for the fair design and sale of financial products and services.

Ourenterprise-widepolicy,FirstPrinciples,isourcodeofbusinessconductandethics.Itreflectsourcommitmenttodoingwhatisfair,rightandlegal.Wealsohavepoliciesthatfocusontreatingcustomersfairly,protectingtheiridentityandpersonalinformation,andnotmisleadingthemwhenofferingcertainofourproductsandservices.And,wehavecomplianceprogramstoensurewecomplywithconsumerprotectionlaws.

Our Retail Business:

InCanada,theFinancial Consumer Agency of Canadasupervisesfederallyregulatedfinancialinstitutionstoensuretheycomplywithfederalconsumerprotectionlaws,voluntarycommitmentsandcodesofconduct.Forexample,financialinstitutionsarerequiredtoprovideconsumerswithinformationaboutthecostofborrowing,complaint-handlingprocedures,fees,interestratesandbranchclosures.

IntheU.S.,theConsumer Financial Protection Bureau(CFPB)supervisesfederallyregulatedfinancialinstitutions.TheCFPBisresponsibleforprotectingconsumersagainstunfair,deceptiveorabusiveactsorpractices,andforenforcingdiscriminationandotherunfairtreatmentlaws.

Our Wealth Management Business:

Ourregulatorsoverseeustoensurewecomplywithregulatoryandinvestmentindustrystandardsofpracticeandbusinessconduct,investorprotectionguidelinesandrulesintendedtofostermarketintegrity.

Furtherinformation:page11ofthisreport:ProvidingCustomerswithClearAdvice

In Canada,ourmainregulatorsincludetheInvestment Industry Regulatory Organization of CanadaandtheMutual Fund Dealers Association,whichoverseeprovinciallyregulatedinvestmentfirms.

In the U.S.,ourmainregulatorsincludetheFinancial Industry Regulatory Authority,theSecurities and Exchange Commission,Office of the Comptroller of the CurrencyandtheDepartment of Labor.

Furtherinformation:Treating Customers Fairly, Code of Conduct andARpage69

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Thisindicatorisnotapplicable.TheproductsandservicesBMOprovidesdonothavehealthorsafetyimpacts.InformationonprotectingthehealthandsafetyofthosewhodeliverourproductsisintheLabourPracticesandDecentWorksection,underemployeehealthandsafety(LA6–LA8).

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Thisindicatorisnotapplicable.TheproductsandservicesBMOprovidesdonothavehealthorsafetyimpacts.

http://www.bmo.com/home/about/banking/corporate-responsibility/customers/right-of-customers



GRIIndicator

Description


Social: Product Responsibilty continued

PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Wegiveourcustomersinformationonfees,interestrates,branchclosuresandcomplaint-handlingprocedures.Andweensurethatallnewproductsandservicesmeetconsumerprotectionlawsandregulations,ourcodeofconductandvoluntarycodesofconduct.

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

InCanada,nomaterialincidentsofnon-compliancewithregulationsandvoluntarycodesrelatingtoproductandserviceinformationorlabellinghavebeenidentifiedduringthereportingperiod.

IntheU.S.,7non-complianceissueswereidentifiedduringthereportingperiod.Appropriateremedialactionswereputinplacetorespondtothese.Sixhadbeenresolvedandoneitemwaspendingattheendofthereportingperiod.Therewerenofinesassociatedwithanyoftheissuesidentified.

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Seepage7ofthisreport:MaterialityandStakeholderEngagement.

Furtherinformation:Resolving customer complaintsorcontactBMO Harris Bank

FS16 Initiatives to enhance financial literacy by type of beneficiary.

Financial Literacy

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Weensurethatallmarketingcommunicationsfollowourownadvertising,sponsorshipandbrandguidelines,andwheredeemednecessaryincludelegalorcompliancereviewsasapplicable.InCanada,TelecasterServices,adivisionoftheTelevisionBureauofCanada,andtheCanadianBroadcastingCorporationreviewscriptsandfinalproducedspotsforallEnglishandFrenchtelevisioncommercials.NetworkclearanceisnotrequiredintheU.S.Radio,printandonlineadvertisingmaterialsforCanadaandtheU.S.donotrequirethird-partyapprovals.

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Duringthereportingperiod,therewerenoincidentsofnon-compliancewithregulationsorvoluntarycodesformarketingcommunicationsinCanadaortheU.S.TheAdvertisingStandardsCouncil(ASC)inCanadareceivedonecomplaintaboutaBMOInsuranceadvertisement.WhenwegavetheASCtherequiredinformation,itconsideredthecomplaintresolved.

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Therewerenosubstantiatedcomplaintsregardingbreachesofcustomerprivacyorlossesofcustomerdatain2012.

PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.

Therewerenosignificantfinesfornon-compliancewithlawsandregulationsontheprovisionanduseofproductsandservicesduringthe2012fiscalyear.

http://www.bmo.com/home/about/banking/corporate-responsibility/customers/right-of-customers#Resolving_Customer_Complaints

http://www4.harrisbank.com/spopup/0,4468,129778_448692,00.html/

http://www.bmo.com/home/about/banking/corporate-responsibility/customers/financial-literacy

BMO Financial Group36 PublicAccountabilityStatement

Bank of Montreal Public Accountability StatementThe Public Accountability Statement outlines certain aspects of Bank of Montreal’s contributions, and the contributions of the bank’s affiliates with operations in Canada, to the Canadian economy and society. This satisfies the requirements of the Canadian federal government’s Public Accountability Statement regulations (section 459.3(1) of the Bank Act (Canada)).

Affiliates

ThefollowingaretheprescribedaffiliateswhoseactivitiesareincludedinthisPublicAccountabilityStatement.TheseaffiliatesaresubsidiariesoftheBankofMontreal,withlessthan$1billioninequity,exceptforoursecuritiesbroker,BMONesbittBurnsInc.,whichhasequityexceeding$1billion.

BMOHarrisInvestmentManagementInc.

BMOInvestmentsInc.

BMOInvestorLineInc.

BMOLifeAssuranceCompany

BMOLifeInsuranceCompany

BMOMortgageCorp.

BMONesbittBurnsInc.

BMONesbittBurnsLtée

BMOPrivateEquity(Canada)Inc.

BMOTrustCompany

BMOAssetManagementInc.

In Canada, BMO provided free or discounted banking services to 1,007,666 seniors and free banking services to 399,798 students.

Important Information

About this Report 2

Contributing to the Economy 6

Access to Financial Services 11

Small business financing 11

Supporting the Communities Where We Work and Live 13

Employee volunteering 14

Supporting employee activities 14

Affiliates 36

Taxes paid or payable in Canada 37

BMO Financial Group (Canada) Headcount 37

Branches opened and closed in Canada 38

Branches relocated in Canada 38

ATMs opened in fiscal year 2012 (Canada) 39–44

ATMs closed in fiscal year 2012 (Canada) 44

Business Debt Financing 45

Bank of Montreal Mortgage Corporation Public Accountability Statement 46

2012 Environmental, Social and Governance Report and Public Accountability Statement37 PublicAccountabilityStatement

Taxes Paid or Payable in Canada ($ millions)

Income taxes Capital taxes Other taxes

Federal 346.5 0.0 200.4

Province or territoryAlberta 11.5 0.0 2.0BritishColumbia 17.3 0.0 7.6Manitoba 1.3 3.3 1.0NewBrunswick 1.5 2.1 0.7NewfoundlandandLabrador 1.1 3.1 2.3NovaScotia 1.9 3.9 2.4NorthwestTerritories 0.1 0.0 0.0Nunavut 0.0 0.0 0.0Ontario 137.5 0.0 177.6PrinceEdwardIsland 0.2 0.6 0.0Quebec 43.5 16.5 27.3Saskatchewan 1.3 7.6 0.3Yukon 0.1 0.0 0.0

Total provincial and territorial 217.3 37.1 221.2

Total 563.8 37.1 421.6

Income and capital taxes 600.9

Total taxes 1,022.5

BMO Financial Group (Canada) Headcount

Active,PaidandUnpaidLeaveEmployees*Permanent,Casual,andContractAsatOctober31,2012

Province or territory Full-time Part-time Total

Alberta 2,083 459 2,542BritishColumbia 2,453 701 3,154Manitoba 364 74 438NewBrunswick 272 84 356NewfoundlandandLabrador 234 73 307NovaScotia 422 93 515NorthwestTerritories 22 5 27Nunavut 0 0 0Ontario 19,428 1,869 21,297PrinceEdwardIsland 54 14 68Quebec 4,219 950 5,169Saskatchewan 379 129 508Yukon 10 6 16

Total provincial and territorial 29,940 4,457 34,397

BMOFinancialGroupisamajorCanadiantaxpayer.Infiscalyear2012,ouroveralltaxcontributionwas$1,022million.Thisamountincluded$564millioninincometaxesand$37millioninprovincialcapitaltaxes.Aswell,wepaid$422millioninothertaxes,including$245millioninHarmonizedSalesTax,GSTandothersalestaxes,$159millioninpayrolltaxes(employerportion),$14millioninpropertytaxesand$4millioninbusinesstaxesandothersundrytaxes.

* IncludesallemployeeswithaCanadiantaxlocation


Branches opened and closed in fiscal year 2012 (Canada)

BMO Bank of Montreal branches opened

Branch Name Address City/Province

Leslie&YorkMills 1859LeslieStreet Toronto,ON

AspenLanding 350AspenGlenLandings Calgary,AB

Ste-Rose 333Blvd.Cure-Labelle Ste-Rose,QC

ProvostDr&EstherShinerBlvd 57ProvostDrive NorthYork,ON

WestSprings 86285thStreet Calgary,AB

McKenzieTowne 4HighStreetSE Calgary,AB

WestLethbridgeHighlands 378UniversityDrWest Lethbridge,AB

MississaugaRd&WilliamsParkway 9505MississaugaRoad Brampton,ON

TimberleaLanding 289PowderDr FortMcMurray,AB

GordonSt.&ClairRd 3ClairRoadEast Guelph,ON

Silverado 19369SheriffKingStSW Calgary,AB

BMO Bank of Montreal branches closed or consolidated

Branch Name Address City/Province

WestLethbridgeFinancialCenter 1–550UniversityDrive Lethbridge,AB

Branches relocated in fiscal year 2012 (Canada)

Branch Name From To

LochLomondPlace 120McDonaldStreet,SaintJohn,NB 45HubertStreet,SaintJohn,NB

MillWoods 658628thAvenue,Edmonton,AB 550323rdAvenue,Edmonton,AB

PointeClaire 183BlvdHymusWest,PointeClaire,QC 6500TransCanadaHwy,PointeClaire,QC

ChinookPlaza 6100MacLeodTrailSW,Calgary,AB 6550MacLeodTrailSW,Calgary,AB

WhitbyMall 1615DundasSt.E,Whitby,ON 1615DundasSt.E,Whitby,ON

HauteVille 125Ste-FoyRd,QuebecCity,QC 1181AveTurnbull,QuebecCity,QC

Lynnwood 8706150thStreet,Edmonton,AB 8916149thStreet,Edmonton,AB

Danforth&Dawes 2810DanforthAve,Toronto,ON 2083DanforthAve,Toronto,ON

St-Constant 115RueSt-Pierre,St-Constant,QC 121RueSt-Pierre,St-Constant,QC

ParkRoyal 959ParkRoyalS,WestVancouver,BC 913ParkRoyalS,WestVancouver,BC

SaintJohnM.O. 15MarketSquare,SaintJohn,NB 2KingStreet,SaintJohn,NB

Unionville 100CarltonRd,Unionville,ON 3993Highway7,Markham,ON

LesGaleriesd’Anjou 7999Blvd.LesGaleriesd’Anjou,Anjou,QC 7999Blvd.LesGaleriesdAnjou,Anjou,QC

Chilliwack 46115YaleRoad,Chilliwack,BC 8249EagleLandingParkway,Chilliwack,BC


ATMs opened and closed in fiscal year 2012 (Canada)

ATMs opened in fiscal year 2012 (Canada)

Location Address CityNewfoundland and LabradorLawtons–Kelligrews#140 645ConceptionBayHighway,102 ConceptionBaySouthLawtons–Gander#459 177ElizabethDrive GanderLawtons–Lewisporte#125 486MainStreetW LewisporteSobeysDistributionCentre 63GlencoeDrive Mt.PearlLawtons–Paradise#887 1386TopsailRoad ParadiseLawtons–Topsail#810 496TopsailRoad St.John’sLawtons–Wedgewood#173 12GleneyreStreet St.John’s

Nova ScotiaLawtons–Amherst#122 2LawrenceStreet,101 AmherstSobeysAmherst#729 142SouthAlbionSt AmherstLawtons–Antigonish#111 133ChurchStreet AntigonishLawtons–BedfordSouth#2568 27PeakviewWay BedfordLawtons–Bridgewater#167 2626NorthStreet BridgewaterBridgewater 493KingStreet BridgewaterSobeysDartmouth#776 551PortlandStreet DartmouthLawtons–ColeHarbour#124 950ColeHarbourRoad DartmouthLawtons–RussellLake#2749 240BakerDrive DartmouthWestphalLawtons 90MainStreet DartmouthSobeysDistributionCentre 246LancasterDrive DebertSobeysGreenwood#746 720CentralAvenue GreenwoodLawtons–KearneyLake#272 998ParklandDrive HalifaxLawtons–Spryfield#2750 16DentithRoad,A10 HalifaxLawtons–Bayers#112 7071BayersRoad HalifaxSobeysHalifax#574 1120QueenSt HalifaxLawtons–Kentville#2555 363MainStreet KentvilleKentville 26AberdeenStreet KentvilleLawtons–Cobequid#895 159CobequidRoad,157 LowerSackvilleSobeys 80FirstLakeDr LowerSackvilleLawtons–EastRiver#129 810EastRiverRoad NewGlasgowNewMinasLawtons 20SilverFoxAvenue NewMinasSobeysShelburneMall#52 115KingStreet ShelburneSobeysHeadOfficeStellarton#0003 115KingStreet StellartonCapeBretonUniversityStudentsUnion2 1250GrandLakeRd SydneyLawtons–Truro#875 316WillowStreet TruroLawtons–Westville#879 1886MainStreet WestvilleLawtons–Windsor#119 25WentworthRoad WindsorLawtons–Yarmouth#169 76StarrsRoad Yarmouth

Prince Edward IslandSobeysWestRoyalty#628 39BabineauDrive CharlottetownLawtons–SherwoodCentre#882 161St.Peter’sRoad CharlottetownLawtons–Montague#2557 407MacintyreAve Montague

New BrunswickIGA#8586 580Victoria EdmundstonSobeysMoncton#783 77FillesDeJesusAvenue MonctonLawtons–Mapleton#147 40MapletonRoad MonctonSobeysDistributionCentre#0004 1WaasisRoad OromoctoSobeysRiverview#736 1160Findlay RiverviewLawtons–SaintJohn#149 107CatherwoodStreet SaintJohnStJohnMain(2ATMs) 2KingStreet SaintJohnMcallisterAndWestmorland(2ATMs) 45HubertStreet SaintJohnSt.AntoineVarietyInc. 4590PrincipaleStreet StAntoineLawtons–Sussex#137 138MainStreet,8 Sussex

QuebecIGAExtra#526 705,avenueduPontNord AlmaDépanneurLeMagasin–Alma#1169 520,avenueduPontSud AlmaShell#806 71,ruePrincipaleSud AmosShell#4542 6050,boulevardLouis-H.-LaFontaine Montréal(Anjou)LesGaleriesD’Anjou(2ATMs) 7999,boulevarddesGaleries-d’Anjou Montréal(Anjou)IGA#0134 1020,boulevardMonseigneur-DeLaval Baie-Saint-PaulIGA#8526 1500,ruedeBretagne Baie-ComeauShell#C03300 1065,boulevardLaflèche Baie-ComeauShell#C20553 2340,boulevardLouis-XIV Québec(Beauport)Shell#20563 2,boulevardSir-Wilfrid-Laurier BelœilShell#C20567 137,boulevarddeMortagne BouchervilleShell#C04986 7805,boulevardMarie-Victorin BrossardShell#21952 170,boulevardJean-Leman Candiac


Location Address CityShell#C00844 109,boulevardD’Anjou ChâteauguayIGA#8083 PlaceLeChaînon,466,3eRue ChibougamauIGA#496 1225,ruedesChamps-Élysées Saguenay(Chicoutimi)Shell#12331 1916,boulevardTalbot Saguenay(Chicoutimi)IGAChicoutimiNord#468 625,boulevardSainte-Geneviève Saguenay(Chicoutimi)IGA–#8046 265,rueChild CoaticookIGA#8507 4999,ruedesOrmes ContrecœurIGA#8065 35,ruePrincipaleEst Cookshire-EatonIGA#8257 100,rueThéophile-Brassard Coteau-du-LacCFBValcartier 516,rueGénéralTLTremblay Saint-Gabriel-de-ValcartierIGA#8092 1531,rueduSud CowansvilleShell#3251 102,rueChurch CowansvilleIGA#8070 58,route132 DelsonShell#C22422 2501,boulevarddesPromenades Deux-MontagnesShell#C03501 3601,boulevardSaint-Jean Dollard-DesOrmeauxDépanneurLeMagasin–Donnacona#1133 210,route138 DonnaconaShell#21508 141,boulevardSaint-Joseph DrummondvilleShell#5679 1380,boulevardLemire DrummondvilleIGA#8106 999,ruePrincipaleEst FarnhamIGAExtra#8520 203,boulevarddesGrives GatineauShell#20552 420,cheminVanier GatineauShell#20560 620,boulevardMaloneyOuest GatineauShell#C12633 1050,boulevardSaint-Joseph GatineauDépanneurLeMagasin–Granby#1190 373,rueDufferin GranbyIGAGranby#8212 310,rueDenison GranbyIGA#530 143,GrandeAlléeEst Grande-RivièreIGA#8223 30,rueMaple GrenvilleShell#C03240 3337,boulevardTaschereau Longueuil(GreenfieldPark)IGA#8191 2195,cheminRidge HuntingdonDépanneurLeMagasin–Joliette#1028 635,rueBeaudryNord JolietteShell#3989 477,boulevardDollard JolietteDépanneurLeMagasin–Saint-Pierre#1082 900,rueSaint-PierreSud JolietteShell#21959 2209BoulevardLapierre Montréal(LaSalle)DépanneurLeMagasin–LaSarre#1296 632,2eRueEst LaSarreIGA#8200 574,rueSaint-Louis LaTuqueIGA#286 461,chemindeKnowlton Lac-BromeShell#22361 1255,MontéeMasson TerrebonneIGA–#0365 465,avenueBéthany LachuteDépanneurLeMagasin–L’Assomption#1024 846,boulevarddel’Ange-GardienNord L’AssomptionShell#12656 3490,boulevardLeCarrefour LavalShell#3333 480,boulevardCuré-Labelle LavalShell#6250 3785,boulevardDagenaisOuest LavalShell#C10225 595,boulevardLaval LavalShell#C11748 5230,boulevardSamson LavalShell#C03334 3765,boulevardSaint-MartinOuest LavalIGAFabreville#238 3557,boulevardDagenaisOuest LavalIGA#346 4805,boulevardArthur-Sauvé LavalOuestDepanneurLeMagasin–Lavaltrie#1059 643,rueNotre-Dame LavaltrieIGA#8014 81,chemindeLavaltrie LavaltrieShell#C12624 533,boulevardLacombe Repentigny(LeGardeur)IGAExtra#8577 53,routeduPrésident-Kennedy LévisIGA–#8218 3950,boulevarddelaRive-Sud LévisIGAExtra#8506 3315,chemindeChambly LongueuilShell#3180 780,rueSaint-LaurentOuest LongueuilIGA#8179 714,boulevardSaint-LaurentOuest LouisevilleIGA#8549 1450,rueRoyale MalarticShell#C12638 52,chemindesAnglais MascoucheIGAMascouche8123 65,MontéeMasson MascoucheIGA#8042 551,avenueduPhareEst MataneIGAMcMasterville#8053 20,boulevardLaurier McMastervilleIGA–#8295 14995,ruedesSaules MirabelMont-Saint-HilaireIGAStore8159 345,boulevardSir-Wilfrid-Laurier Mont-Saint-HilaireIGA#381 1330,boulevardBenoît-Gaboury Mont-JoliShell#11385 555,boulevardAlbiny-Paquette Mont-LaurierIGA#677 5000,rueBeaubienEst MontréalIGA#108 7151,chemindelaCôte-Saint-Luc MontréalShell#12241 9080,boulevardMaurice-Duplessis MontréalShell#3259 1450,avenueWoodland MontréalShell#4840 1055,rueJarryEst MontréalShell#743 7675,boulevardSaint-Michel MontréalShell#706 7575,boulevardDécarie MontréalShell#3028 2800,rueSherbrookeEst MontréalShell#3130 11052,boulevardPie-IX Montréal


Location Address CityShell#C03003 1022,boulevardDeMaisonneuveEst MontréalShell#C03024 6201,boulevardDécarie MontréalShell#C03082 6490,avenueSomerled MontréalShell#C03720 5330,boulevardDécarie MontréalShell#C03074 2500,rueBélanger MontréalIGAHenri-Bourassa#573 6190,boulevardHenri-BourassaEst Montréal(Montréal-Nord)Shell#C03163 5000,boulevardHenri-BourassaEst Montréal(Montréal-Nord)Shell#10214 231,ruedeSaint-Jovite Mont-TremblantIGA#8587 680,cheminduVillage MorinHeightsShell#3081 3980,chemindelaCôte-de-Liesse Mount-RoyalDépanneurLeMagasin–Route131#1001 565,route131 Notre-Dame-des-PrairiesDépanneurLeMagasin–Notre-Dame-des-Prairies#1078 200,boulevardAntonio-Barrette Notre-Dame-des-PrairiesIGA#8037 13057,boulevardGouinOuest Montréal(Pierrefonds)Shell#C03279 4510,boulevardSaint-Charles Montréal(Pierrefonds)Shell#11357 13200,rueSherbrookeEst Montréal(Pointe-aux-Trembles)Pointe-Claire(2ATMs) 6500,autorouteTranscanadienne Pointe-ClaireDépanneurLeMagasin–Pont-Rouge#1322 220,rueduCollege,local101 Pont-RougeIGA#8050 190,rueduCollège Pont-RougeIGA#8560 2635,boulevardduCuré-Labelle PrévostShell#3550 780,rueBouvier QuébecShell#4539 5000,boulevarddel’Ormière QuébecShell#C03098 1254,18eRue QuébecHauteVille(2ATMs) 1181,avenueTurnbull QuébecIGA#8049 3450,rueQueen RawdonDépanneurLeMagasin–Rawdon#1083 3738,rueQueen RawdonShell#10555 129,boulevardIndustriel RepentignyIGA#8099 173,rueNotre-Dame RepentignyIGA#8126 461,chemindelaGrande-Ligne RigaudIGA#8533 12285,boulevardRodolphe-Forget Montréal(Rivière-des-Prairies)IGA#8239 1395,rueL’AnnonciationSud Rivière-RougeShell#C11746 1193,boulevardMarcotte RobervalDépanneurLeMagasin–Rosemère#1174 255,boulevardRoland-Durand RosemèreShell#C03133 203,boulevardLabelle RosemèreIGA#8553 680,avenueChaussé Rouyn-NorandaDépanneurLeMagasin–Rouyn-Noranda#1201 3182,rueSaguenay Rouyn-NorandaShell#3314 90,rueGambleOuest Rouyn-NorandaShell#10213 586,avenueLarivière Rouyn-NorandaIGA#8018 2085,boulevardMellon SaguenaySaint-Jean-sur-Richelieu 54,rueSaint-Jacques Saint-Jean-sur-RichelieuShell#12653 1600,boulevarddesÉcluses Sainte-CatherineShell#5633 2222,avenueJules-Verne Québec(Sainte-Foy)Sainte-Rose(2ATMs) 333,boulevardCuré-Labelle Laval(Sainte-Rose)Shell#12642 7100,GrandeAllée Longueuil(Saint-Hubert)Shell#C12253 7900,chemindeChambly Longueuil(Saint-Hubert)Shell#C06202 3325,boulevardLaframboise Saint-HyacintheShell#3246 515,boulevarddelaCôte-Vertu Montréal(Saint-Laurent)Shell#8349 9600,boulevardHenri-BourassaOuest Montréal(Saint-Laurent)Shell#5058 8485,boulevardViau Montréal(Saint-Léonard)IGAExtra–#0651 1010,boulevardLaure Sept-ÎlesShell#3405 905,boulevardLaure Sept-ÎlesShell#C03059 1563,boulevardSaint-Sacrement ShawiniganIGAShawinigan#8193 1500,rueTrudel ShawiniganIGA#683 6185,chemindeSaint-Élie SherbrookeDépanneurLeMagasinn–Sorel#1195 145,rueVictoria Sorel-TracyDépanneurLeMagasin–Saint-Ambroise#1004 3600,routedeSainte-Béatrix Saint-Ambroise-de-KildareShell#3205 1700,rueMontarville Saint-Bruno-de-MontarvilleSaint-Constant(2ATMs) 121,rueSaint-Pierre,local101 Saint-ConstantShell#3888 475,25eAvenue Saint-EustacheShell#C03092 22,boulevardArthur-Sauvé Saint-EustacheIGAExtra#8203 6250,boulevardCousineau Longueuil(Saint-Hubert)Shell#C06138 3885,boulevarddelaCôte-Vertu Montréal(Saint-Laurent)DépanneurLeMagasin–Saint-Roch-de-l’Achigan#1158 1219,ruePrincipale Saint-Roch-de-l’AchiganDépanneurLeMagasin–Saint-Augustin#1175 991,routedeFossambault Saint-Augustin-de-DesmauresDépanneurLeMagasin–Saint-Augustin#1171 204,route138 Saint-Augustin-de-DesmauresIGA#8341 23,boulevardSeigneurialOuest Saint-Bruno-de-MontarvilleDépanneurLeMagasin–Saint-Charles-Borromée#1200 180,ruedelaVisitation Saint-Charles-BorroméeDépanneurLeMagasin–Sainte-Adèle#1020 258,rueValiquette Sainte-AdèleDépanneurLeMagasin–Sainte-Anne-de-la-Pérade#1126 310,boulevardDeLanaudière Sainte-Anne-de-la-PéradeIGA#463 6,boulevardSainte-AnneOuest Sainte-Anne-des-MontsDépanneurLeMagasin– Sainte-Catherine-de-la-Jacques-Cartier 4600,routedeFossambault Sainte-Catherine-de-la-Jacques-CartierShell#C20581 33,boulevardSamson Laval(Sainte-Dorothée)Shell#C03131 2831,boulevardLaurier Québec(Sainte-Foy)Shell#C03552 3330,ruedeLaPérade Québec(Sainte-Foy)


Location Address CityShell#4939 1659,cheminduFer-à-Cheval Sainte-JulieDépanneurLeMagasin–Sainte-Julienne#1053 2912,route125 Sainte-JulienneDépanneurLeMagasin–Sainte-Madeleine#1006 5,rueSaint-Simon Sainte-MadeleineShell#C03242 22,boulevardduCuré-Labelle Sainte-ThérèseIGA#575 1950,boulevardDionne Saint-GeorgesIGAExtra–#0450 8980,boulevardLacroix Saint-GeorgesIGA#0380 2260,rueSaint-Charles Saint-HyacintheIGA#8537 5445,boulevardLaurierOuest Saint-HyacintheDépanneurLeMagasin–Saint-Ignace-de-Loyola#1114 214,chemindelaTraverse Saint-Ignace-de-LoyolaIGA#8215 299,boulevardSir-Wilfrid-Laurier Saint-LambertIGA#446 1234,rueduPont Saint-Lambert-de-LauzonEsso–DépanneurVoisin 2665,côteSaint-Charles Saint-LazareShell#720 9405,boulevardLacordaire Montréal(Saint-Léonard)IGA#0409 335,cheminduHibou Stoneham-et-TewkesburyIGA#8536 44,ruePrincipaleNord SuttonShell#1676 2350,cheminGascon TerrebonneIGAExtra#8276 675,boulevarddesSeigneurs TerrebonneShell#C00791 1049,boulevarddesSeigneurs TerrebonneDépanneurLeMagasin–Cap-de-la-Madeleine#1003 1975,ruedesPrairies Trois-RivièresDépanneurLeMagasin–Trois-Rivières#1094 6500,rueMarion Trois-RivièresShell#C20584 275,rueBarkoff Trois-RivièresIGATrois-Rivières#442 645,boulevardThibeau Trois-RivièresIGA#8009 1305,rueSainte-Marguerite Trois-RivièresIGA#8369 660,boulevardJean-XXIII Trois-RivièresIGA#8035 10250,cheminSainte-Marguerite Trois-RivièresIGA#8472 675,ruedelaMontagne ValcourtShell#12658 325,boulevarddelaMarine VarennesPetroCanada–DépanneurBoni-Soir 3237,routeHarwood Vaudreuil-DorionIGA#8095 30,placeduCommerce Montréal(Verdun)Shell#C04026 1125,ruedel’Église Montréal(Verdun)IGAVictoriaville428 560,boulevarddesBois-FrancsSud VictoriavilleShell#12636 9950,boulevardLouis-H.-LaFontaine Montréal(Anjou)IGA#429 10,rueduCentre-Sportif Warwick

OntarioSobeysAuroraBayview743 15500BayviewAve AuroraBalmertonFoodFair 2SeventhStreet BalmertownSobeysBarrie#712 37MapleviewDriveWest BarrieRabbaFineFoods–Brampton 100PeelCentreDr BramptonSobeysMayfield865 11965HurontarioStreet BramptonMississaugaWilliamsParkway(2ATMs) 9505MississaugaRd BramptonHighway50AndEbenezer(2ATMs) 8950Highway50 BramptonSobeysDundas&Main#920 7575DundasStreet CambridgeSobeysChatham#732 215ParkAvenueWest ChathamClaringtonConvenience 1561Highway2 CourticeSobeysQueensway7383 125TheQueensway EtobicokeSobeysFortErie#6725 450GarrisonRoad FtErieStarTopCanadianForces 1600StarTopRd GloucesterGordonAndClair(2ATMs) 3ClairRdEast GuelphSobeysQueenston&Nash#921 700QueenstonRoad,A HamiltonMactavishEsso 59410thSt HanoverSobeysKanata877 700TerryFoxDrive KanataSobeysHighland#641 274HighlandRoadWest KitchenerOttawaAndStrasburg 795OttawaStreetSouth KitchenerSobeysIraNeedles685 235IraNeedlesBlvd KitchenerHwy7AndBirchmount 3993Highway7 MarkhamRabbaFineFoods–BristolRd. 20BristolRd.W MississaugaRabbaFineFoods176–LakeshoreRd. 645LakeshoreRd.East MississaugaRabbaMarketExpress–Eglinton 445EglintonAve.E MississaugaRabbaFineFoods–Heatherleigh 5025Heatherleigh MississaugaRabbaFineFoods–Kingsbridge 25KingsbridgeGardens MississaugaGgsCorner&GiftShop 417CentreRoad MooseFactoryProvostAndEstherShiner(2ATMs) 57ProvostDrive NorthYorkSobeysOrangeville7466 500RiddellRoad OrangevilleSobeysOrleans7496 5150InnesRd OrleansSobeysOshawa#925 1377WilsonRoadNorth OshawaAlgonquinCollegeStudentCentre 1385WoodroffeAvenue OttawaVincesKwikMart#2 6012ndAveE OwenSoundAlgonquinCollege–PerthCampus 7CraigStreet PerthSobeysLansdowne6713 1200LansdowneStreetWest PeterboroughCanexCFBTrenton 241RCAFRoad QuinteWestSobeysRedLake#5126 1Highway105&DiscoveryRd RedLakeMetalloSMiniMart 147NorthernAve.East SaultSte.MarieSobeysGlendale#929 343GlendaleAve St.Catharines


Location Address CitySobeysScott&Niagara#916 400ScottSt St.CatharinesAjitsEsso 21BeverlyStreet St.GeorgeStouffville 18WestLawnCrescent StouffvilleSudburyMain 79DurhamStreet SudburyBMOInsurance 60YongeStreet TorontoRabbaFineFoods–JarvisSt. 256JarvisStreet TorontoRabbaFineFoods–RiverSt. 177RiverSt TorontoDaisyMart 500OrioleParkway TorontoDanforthAndWoodbine(2ATMs) 2083DanforthAve TorontoLeslieAndYorkMills(2ATMs) 1859LeslieStreet TorontoSobeysNorthfield#647 585WeberStreetNorth WaterlooSobeysBridgepoint#649 94BridgeportRoad WaterlooUniversityPlazaShops(2ATMs) 170UniversityAveWest WaterlooSobeysWhitby#851 1615DundasStreetEast WhitbyWhitbyMall(2ATMs) 1615DundasStEast WhitbyCampbellVariety 1721UniversityAveW WindsorSobeysWoodstock#640 379SpringbankAvenue Woodstock

ManitobaSobeysBirdsHill#5180 3156BirdsHillRoad EastSt.PaulSobeysSteinbach#5164 1232Hwy.12,Box1750 SteinbachSobeysUnicity#5104 3635PortageAvenue WinnipegSobeysBurrows#5103 1870BurrowsAvenue WinnipegSobeysRivergrove#5377 2575MainStreet WinnipegSobeysSt.Vital#5157 1550DakotaStreet WinnipegSobeysCavalier–#5116 839CavalierDrive WinnipegSobeysNorthdale#5167 965HendersonHighway Winnipeg

SaskatchewanSobeysNorthBattleford–#3166 9801TerritorialDrive NorthBattlefordCanadaSafeway#0356 29952ndAvenueWest PrinceAlbertSobeysUniversityPark#5160 2231EastQuanceStreet ReginaSobeysAlbertStreet#5158 4250AlbertStreet ReginaCanadaSafeway#0338 15018thStreetEast,4 SaskatoonSobeysParkland#5151 277BroadwayE,31 Yorkton

AlbertaSobeysAirdrie–#5172 65MackenzieWaySW AirdrieCanadaSafeway#0208 318MartenStreet BanffSobeysBeaumont#3184 580250thStreet BeaumontCanadaSafeway#0852 550CassilsRoad,West BrooksSobeysBridlewood#1117 2335162AvenueSW,100 CalgarySobeysLakeview–#5017 6440CrowchildTrailSW CalgarySobeysSilverado#5028 19369SheriffKingSt.SW,704 CalgaryEauClaireMarket 200BarklayParadeSW CalgaryCanadaSafeway#0295 144052NdStreetNE,300 CalgaryCanadaSafeway#0292 9737MacleodTrail CalgaryCanadaSafeway#2243 56074thStreetNW CalgaryCanadaSafeway#0280 2525WoodviewDriveSW CalgaryCanadaSafeway#0293Calgary 70Shawville CalgaryCanadaSafeway#2704 4915130AvenueS.E,100 CalgaryCanadaSafeway#0210 37StreetS.W.,1200 CalgaryCanadaSafeway#0296#2 200StewartGreenSW CalgaryCanadaSafeway#0283Calgary 55CastleridgeBlvdNE CalgaryChinookPlaza(3ATMs) 6550MacleodTrailSW CalgaryTheStudentAssociationMtRoyal 4825MtRoyalGateSwRmZ222 CalgaryMcKenzieTowne(2ATMs) 4HighStSE CalgarySobeysMckenzieTowne#11 20MckenzieTowneAveSE CalgarySilverado(2ATMs) 19369SheriffKingStreetSW CalgaryAspenGlenLanding(2ATMs) 350AspenGlenLandingSW112 CalgaryWestSprings(2ATMs) 85618AAvenueSwUnit4000 CalgarySobeysCamrose#3157 482066Street CamroseCanadaSafeway#2731 100–135ChestermereStationWay ChestermereSobeysClaresholm–#1118 49201StWest ClaresholmCFDetCampWainwright(Expressmart) CampWainwrightBuilding595 DenwoodCanadaSafeway#0887 5110WindermereBlvd EdmontonSobeys#3217 1109JamesMowattTrailSW EdmontonCanadaSafeway#0808 8118118thAvenue EdmontonCanadaSafeway#0816 9710170thStreet EdmontonCanadaSafeway#0827 12950137thAvenue EdmontonCanadaSafeway#0861 833082ndAvenue,185 EdmontonCanadaSafeway0800Edmonton 8720156Street EdmontonCanadaSafeway#0845Edmonton NecTerraceRoadand98Ave EdmontonCanadaSafeway#0848 1093082ndAvenue EdmontonCanadaSafeway#0838 111Avenue&GroatRoad Edmonton


Location Address CityLynnwood(2ATMs) 8916149StreetNW EdmontonMillwoods(4ATMs) 550323Ave EdmontonTimberleaLanding(2ATMs) 289PowderDriveUnitD100 FortMcmurrayCanadaSafeway#0810 9925114Avenue,9925 GrandPrairieCanadaSafeway#0275 170223StreetNorth LethbridgeCanadaSafeway#2299 2605FairwayPlazaS LethbridgeWestLethbridge(2ATMs) 378UniversityDrWUnit#2 LethbridgeCanadaSafeway#2220MedicineHat 615DivisonAvenueS MedicineHatCanadaSafeway2223Okotoks 610BigRockLane OkotoksSobeysPincherCreek#5027 819MainStreet PincherCreekSobeysEastview–#1108 383940thAvenue RedDeerSobeysRedwater–#3086 502849thAvenue RedwaterCanadaSafeway#0822Sherwood 2020SherwoodDrive SherwoodParkCanadaSafeway#0811 985FirStreet SherwoodParkSobeysStAlbert#3177 392St.AlbertTrail St.AlbertSobeysStrathmore#5019 100RanchMarket,100 StrathmoreCanadaSafeway#2346 492646Avenue TaberCanadaSafeway#0862 390156thStreet Wetaskiwin

British ColumbiaCanadaSafeway#0088 32500S.Fraser,100 AbbotsfordChilliwackSafeway#0099 45858YaleRd ChilliwackEagleLandingShoppingCentre(2ATMs) 8249EagleLandingParkway ChilliwackCanadaSafeway#0020 100–3025LougheedHwy,100 CoquitlamThriftyFoods#9478 444LerwickRoad,123 CourtenayCanadaSafeway#0820 9123100Street FortStJohnSobeysGolden–#1149 6249AvenueNorth GoldenSunshineMarket–Kelowna 4600LakeshoreRoad,5 KelownaTownsiteGrocery 4864thAvenue KimberleyCanadaSafeway#0059 6153200thStreet LangleyThriftyFoods–HaneyPlace#9477 10011895226ThStreet MapleRidgeCanadaSafeway#0142 32520LougheedHighway MissionLowerCapilano 1120MarineDrive NorthVancouverCanex–HmcsDiscovery 1200StanleyParkDrive VancouverCanadaSafeway#0002 2733WestBroadway VancouverCanadaSafeway#36 1766RobsonStreet VancouverParkRoyal(3ATMs) 913ParkRoyalSouth WestVancouver

Total 415

ATMs closed in fiscal year 2012 (Canada)

UniversityOfNBCampus 29DineenDrive Fredericton,NBSaintJohnMainCityHall 15MarketSquare SaintJohn,NBMcallisterAndWestmorland 45HubertStreet SaintJohn,NBLesGaleriesd’Anjou(2ATMs) 7999,boulevarddesGaleries-d’Anjou Montréal(Anjou),QCPharmaprix 520,boulevardduFort-Saint-Louis Boucherville,QCPharmaprix 6411,rueSherbrookeOuest Montréal,QCPointe-Claire(2ATMs) 6500,autorouteTranscanadienne Pointe-Claire,QCHaute-Ville 1181,avenueTurnbull Québec,QCSaint-Constant(2ATMs) 121,rueSaint-Pierre,local101 Saint-Constant,QCHwy7AndBirchmount(2ATMs) 3993Highway7 Markham,ONSobeysMiltonRSC 2701HighpointDrive Milton,ONRoseboroughCtrDominion 1240EglintonAvenue Mississauga,ONSandlewoodSqPathway 40BristolRoadEast Mississauga,ONDanforthAndWoodbine 2083DanforthAve Toronto,ONDundas&Campbell 144DundasStreetEast Trenton,ONWhitbyMall 1615DundasStreetEast Whitby,ONSobeysWhitbyRSC 100NordeagleAvenue Whitby,ONWhitbyMall(2ATMs) 1615DundasStEast Whitby,ONGrant&Waverly(2ATMs) 1385GrantAvenue Winnipeg,MBShoppersDrugMart 43OsborneStreet Winnipeg,MBShellCentre 4004thAvenueSouthWest Calgary,ABChinookPlaza(3ATMs) 6550MacleodTrailSW Calgary,ABMillwoods 550323Ave Edmonton,ABMillbourneSCFoodcourt MillWoodsRd&38thAve Edmonton,ABMillwoods(3ATMs) 550323Ave Edmonton,ABLynnwood 8916149StreetNW Edmonton,ABChilliwack 46115YaleRoad Chilliwack,BCEagleLandingShoppingCentre 8249EagleLandingParkway Chilliwack,BCParkRoyal(3ATMs) 913ParkRoyalSouth WestVancouver,BC

Total 41


Business Debt Financing as at October 31, 2012 (amounts in $ millions)

Provinces and ($ millions) $0–$24,999 $25,000– $100,000– $250,000– $500,000– $1,000,000– over TOTAL Territories $99,999 $249,999 $499,999 $999,999 $4,999,999 $5,000,000

Newfoundland AuthorizedAmount 11.9 33.6 50.1 73.5 94.5 263.0 367.9 894.5andLabrador NumberofFirms 2,205 729 330 214 138 132 26 3,774

PrinceEdward AuthorizedAmount 3.6 11.7 24.7 39.5 73.0 177.2 * 329.7Island NumberofFirms 523 251 151 113 109 91 * 1,238

NovaScotia AuthorizedAmount 20.8 47.5 86.2 127.6 222.1 597.8 1,394.9 2,496.9 NumberofFirms 3,344 1,073 545 365 315 296 68 6,006

NewBrunswick AuthorizedAmount 15.0 40.3 59.2 93.1 132.9 351.2 573.2 1,264.9 NumberofFirms 2,289 893 387 269 197 179 23 4,237

Quebec AuthorizedAmount 190.9 306.8 388.7 710.9 795.8 2,697.9 12,679.3 17,770.3 NumberofFirms 28,466 7,280 2,513 1,985 1,166 1,251 469 43,130

Ontario AuthorizedAmount 386.9 662.7 976.3 1,386.8 1,922.7 6,015.5 31,745.8 43,096.7 NumberofFirms 63,406 15,651 6,331 3,987 2,833 2,836 1,132 96,176

Manitoba AuthorizedAmount 20.8 50.2 48.9 66.2 111.3 446.1 2,698.0 3,441.5 NumberofFirms 3,185 1,220 323 190 160 200 75 5,353

Saskatchewan AuthorizedAmount 35.5 113.0 132.4 177.3 199.3 432.4 1,443.6 2,533.5 NumberofFirms 5,109 2,575 859 505 291 221 72 9,632

Alberta AuthorizedAmount 147.4 253.2 277.1 407.3 639.1 2,258.4 16,480.2 20,462.7 NumberofFirms 23,049 6,308 1,782 1,171 924 1,035 505 34,774

BritishColumbia AuthorizedAmount 140.5 251.3 310.1 479.5 880.3 3,214.9 7,889.3 13,165.9 NumberofFirms 22,376 6,120 2,033 1,380 1,275 1,521 450 35,155

Yukon AuthorizedAmount 1.3 2.2 4.8 6.2 ** ** ** 14.5 NumberofFirms 212 57 30 17 ** ** ** 316

NorthwestTerritories/ AuthorizedAmount 0.7 1.5 2.7 *** *** *** *** 4.9Nunavut NumberofFirms 150 37 16 *** *** *** *** 203

Total Authorized Amount 975.3 1,774.0 2,361.2 3,567.9 5,071.0 16,454.4 75,272.2 105,476.0 Number of Firms 154,314 42,194 15,300 10,196 7,408 7,762 2,820 239,994

*ClientcountsandauthorizationsforPrinceEdwardIslandhavebeenaddedtoNovaScotiadataforthesamedollarbandtomaintainconfidentiality.**ClientcountsandauthorizationsforYukonhavebeenaddedtoBritishColumbiadataforthesamedollarbandtomaintainconfidentiality.***ClientcountsandauthorizationsforNorthwestTerritories/NunavuthavebeenaddedtoAlbertadataforthesamedollarbandtomaintainconfidentiality.

BMO Financial Group46 BMOMortgageCorporationPublicAccountabilityStatement

Bank of Montreal Mortgage Corporation Public Accountability Statement*Duetothespecificnatureofitsactivities,BankofMontrealMortgageCorporation(BMMC)providesthefollowinginformationinresponsetotherequirementssetoutinsection444.2(1)oftheTrust and Loan Companies Actandintheapplicableregulations.

BMMC,awhollyowned,fullyintegratedsubsidiaryofBankofMontreal,raisesfundsformortgagefinancingbyissuingdepositinstruments(suchasGICs)throughBankofMontreal’sretailbranchnetworkandotherproprietarychannels,whereBankofMontrealactsforBMMC,aswellasthroughthird-partychannels.BMMCdoesnotoperatebranchesthatareopentothepublicorotherfacilitiesatwhichdepositsareacceptedorcashisdistributedtocustomers.BMMCemploys15full-timeemployees.TheseemployeesarebasedinMontreal.

TheincomeandcapitaltaxespaidinCanadabyBMOFinancialGroup,ofwhichBMMCisamember,arelistedonpage37ofBMOFinancialGroup’s2012Environmental,SocialandGovernance(ESG)ReportandPublicAccountabilityStatement.

BMMCsharesBMO’scommitmenttocommunitydevelopmentandphilanthropicactivityasdescribedinBMOFinancialGroup’s2012ESGReportandPublicAccountabilityStatement.ThecommunitydevelopmentactivitiesofBMMC’semployeesareintegratedwiththoseofBMOFinancialGroupanditsemployees,asdescribedinBMOFinancialGroup’s2012ESGReportandPublicAccountabilityStatementonpages13and14.

AsdetailedinBMOFinancialGroup’s2012ESGReportandPublicAccountabilityStatement,businessdebtfinancingandprogramstoimproveaccesstofinancialservicesareengagedinbyBankofMontrealforBMOFinancialGroup.BMMChasnootheraffiliatesinrespectofwhichthisPublicAccountabilityStatementispublished.

* AsstipulatedbytheTrust and Loan Companies Act,BankofMontrealMortgageCorporation,whollyownedbyBankofMontreal,isrequiredtopublishaseparatePublicAccountabilityStatement.

2012 Environmental, Social and Governance Report and Public Accountability Statement47 AwardsandRecognition

Awards and Recognition*

Business Awards

■ BestTradeBankinCanadaby Trade Financemagazine

■ Canada’sBestInvestmentBankbyGlobal Fianancemagazine

■ CanadianInstituteofCharteredAccountants(CICA)AwardofExcellenceforCorporateReportinginFinancialServices

■ CanadianMortgageTrendsAwardsBMOfor2011MortgageoftheYear

■ Global Banking and Finance ReviewnamedBMOHarrisPrivateBankingBestPrivateBankinCanadafor2012

■ Celent2012ModelBankAwardforproductdevelopment

■ WorldFinanceawardedBMOHarrisPrivateBankingasBestPrivateBankinCanada

Diversity Awards

■ BestEmployersforNewCanadians2012

■ Canada’sBestDiversityEmployers2012

■ CorporateEqualityIndex(CEI)Award–BestPlacestoWorkforLGBTEmployees(for2013)

■ TopEmployersforCanadiansOver40for2012

Employer Awards

■ AmericanSocietyforTrainingandDevelopment(ASTD)2012BESTAward

■ BestEmployersforNewCanadiansbyMediacorpCanadaInc.

■ Canada’sTop100Employersfor2013byMediacorpCanadaInc.

■ Financial Post’sTenBestCompaniestoWorkFor

■ GreaterToronto’sTopEmployersfor2013byMediacorpCanadaInc.

Environmental Awards

■ Global500CarbonPerformanceLeadershipIndex(CPLI)byCarbonDisclosureProject

■ 2012Canada200CarbonPerformanceLeadershipIndex(CPLI)byCarbonDisclosureProject

■ 2012Canada200CarbonDisclosureLeadershipIndex(CDLI)byCarbonDisclosureProject

■ GreenOfficeChallengeAwardbyCityofChicago

Sustainability Indices and Rankings

■ Corporate Knights’listofCanada’sBest50CorporateCitizens

■ DowJonesSustainabilityNorthAmericaIndex(DJSI)

■ FTSE4GoodSeriesIndex

■ Maclean’s/SustainalyticslistoftheTop50SociallyResponsibleCorporationsinCanada

* Foracompletelistofawardsandrecognition,goto: Awards and Recognitions linkonourwebsite.

http://www.bmo.com/awards

BMO Financial Group

Glossary of Terms

A

Active employee

Includesfull-timeorpart-timepermanentemployeesbutexcludesterm/active,andemployeesonleave.

Annual business with Aboriginal customers

Includesthemonetaryvalueofallcore-commercialproducts(loans,mortgagesanddeposits)heldbyAboriginalcustomersattheendofthereportingperiod.ThisfigureexcludesallinvestmentfundbalancesmanagedbyBMOforAboriginalcommunitiesandanyretailbankingservicesorproductsprovidedtoAboriginalcustomersinCanada.

Annual Employee Survey (AES)

BMO’svoluntaryannualemployeesurveyisconductedbyathirdpartyonanannualbasis.Theonlinesurveyisavailabletoallpermanentemployees.Resultsandinsightsfromthisvoluntarysurveyareaggregatedatanenterprise-widelevelandincludeEmployeeEngagementIndexandParticipationRate.

Annual Employee Survey Participation Rate

CalculatedasthenumberofBMOemployeeswhocompletetheAnnualEmployeeSurveydividedbythetotalnumberofactiveemployeesatthetimethesurveywasperformed.TheparticipationscoreincludesallBMOemployeesworldwide.

Average training hours per employee

AveragetraininghoursperemployeeiscalculatedastotalTrainingHoursdividedbytotalnumberofactiveemployeesattheendofthereportingperiod.

B

Bank of Montreal or BMO

BankofMontrealusesaunifiedbrandingapproachthatlinksalloftheorganization’smembercompanies.BankofMontreal,togetherwithitssubsidiaries,isknownasBMOFinancialGroup.Assuch,inthisdocument,thenamesBMOandBMOFinancialGroupmeanBankofMontrealtogetherwithitssubsidiaries.

C

Communities participating in BMO’s On-Reserve Housing Loan Program

ReferstothenumberofbandsinCanadathathaveappliedandbeenapprovedfortheOn-ReserveHousingLoanProgram.TheOn-ReserveHousingLoanProgramhelpscustomerslivingon-reserves,whoselandandhomescannotbeusedassecurityforamortgage,obtainhomefinancingwiththebackingofFirstNationsgovernments,withouttheneedforfederalgovernmentguarantees.Forprogramdetails,seethe Aboriginal Bankinglinkonourwebsite.

Community Investment

Totalamountinvested,presentedinCanadiandollars,duringthereportingperiodrelatingtoenterprise-widedonationsandsponsorships:

■ Donations:Includescash-baseddonationsanddonationsaspartoftheMatchingGiftsProgramandVoluntaryGrantsProgram.Excludesin-kinddonationsandfundraisingdollars.

■ Sponsorship:Includescash-basedsponsorshipor“rightsfees”whicharenegotiatedasasponsorshippackagepaidbyBMO.Thefigurealsoincludesexpensesrelatedtothesponsorshipevent(foodandbeverage,promotionalmaterial,advertising,etc.).Sponsorshipincludessponsorshipsprovidedtobothcommercialandnon-profitentities.

D

Diversity

Diversitymetricsincludewomenemployeesinexecutiveroles(CanadaandtheU.S.),visibleminorityemployeesinseniorandexecutiveroles(Canadaonly)andminorityemployeesinseniorandexecutiveroles(U.S.only),Aboriginalemployees(Canadaonly)andemployeeswithdisabilities(Canadaonly).Allactiveemployeesandthoseemployeesonshort-termdisabilityareincludedinthemetric.

DataisreportedfortheperiodNovember1toOctober31.

Diversitymetricshavebeenrestatedfor2011and2010toalignwiththeNovember1toOctober31reportingperiod.

48 GlossaryofTerms

www.bmo.com/aboriginal/en/loan.html


E

Employee Engagement Index (EEI)

Apoint-in-timescoreofemployeeengagementlevelsatthetimetheAnnualEmployeeSurveyisadministered.Employeeengagementismeasuredusingindicatorsthatassessemployees’relationshipwithBMO,theirmanager,career,job,workgroupandcustomers.Relationshipscoresarethenusedtodeterminetheoverallengagementlevel.TheEEIscoreincludesallBMOemployeesworldwide.

Enterprise and enterprise-wide

Theterms“enterprise”and“enterprise-wide”areusedtodescribeBankofMontrealandallofitssubsidiariesworldwide.

Environmental, Social and Governance (ESG)

ESGisthetermweusetodescribethethreedifferentareasofconcernwhenlookingatsustainabilityissuesthathaveormayhaveanimpactonourstakeholdersorourbusiness.

Equator Principles (EPs)

TheEPsisavoluntarycreditriskmanagementframeworkfordetermining,assessingandmanagingenvironmentalandsocialriskinProjectFinancetransactions.ProjectFinanceisoftenusedtofundthedevelopmentandconstructionofmajorinfrastructureandindustrialprojects.BMOhasbeenasignatorytotheEquatorPrinciplessince2005.

Ethics training hours

ReferstothetotalhoursspentbyallactiveemployeescompletingBMO’scodeofconductandethicstrainingcourse,FirstPrinciplesduringthereportingperiod.Trainingisconsidered“complete”whenanemployeeachievesascoreof80%orhigherontheethicstrainingassessment.EthicstraininghoursincludeallBMOemployeesworldwide.

Ethics training coverage

ThepercentagecoverageofethicstrainingiscalculatedbydividingtotalactiveemployeeswhocompletedBMO’scodeofconductandethicstrainingcourse,FirstPrinciples,duringtheperiodApril1toJune30bythetotalnumberofactiveemployeesasatJune30.EthicstrainingcoverageincludesallBMOemployeesworldwide.

F

Full-time equivalent (FTE)

Reflectsthenumberoffull-timeequivalentemployeesintheorganization,calculatedbasedonastandardworkweek,adjustedforovertimehoursandincludingfull-timeandpart-timeemployees.Thismeasurementisusedtocalculatethetotalworkforceworldwide,brokendownbyregion.

G

H

I

Incidents of discrimination

IncludesboththenumberofincidentscommunicatedtoBMOandthenumberofincidentsresolvedduringthereportingperiod.ClaimsorallegationsmadeagainstBMOarerecordedasincidentsofdiscriminationiftheyhavebeenreceivedfromanapplicableexternallegislativeorregulatoryhumanrightsbody.Incidentsofdiscriminationcanincludeclaimsandallegationsrelatingtoage,gender,personswithdisabilitiesandethnicity.Excludesinternallyreportedclaims.

Investment in training

Includesthetotaldollarsspentoninternalcoursesincludingdesignanddeliveryandassociatedcosts(e.g.,travelandmaterials)administeredbyBMO’sInstituteforLearning,andcostreimbursementsforexternalcourses(e.g.,tuitionfees,travelandmaterials).

J

K

L

M

N

Net Promoter Score (NPS)

NetPromoterScoreisthenetpercentageofcustomerswhowouldrecommendBMOtoafriendorcolleague.Calculatedbysubtractingthepercentageof“detractors”(definedbasedonafivepointscaleasthoseindicatingthey“mightormightnotrecommend”,“probablywouldnotrecommend”and“definitelywouldnotrecommend”)fromthepercentageof”promoters”(definedbasedonafivepointscaleasthoseindicatingthey“definitelywouldrecommend”).Reportedona12-monthrollingaveragebasis.

Number of locations serving Aboriginal communities

NumberofBMObrancheslocatedonAboriginalreservelandorInuitterritories,asdefinedbytheGovernmentofCanada.ThisnumberisforCanadaonly.

49 GlossaryofTerms

BMO Financial Group

O

P

Project Finance

ProjectFinanceisamethodoffundinginwhichthelenderlooksprimarilytotherevenuesgeneratedbyasingleproject,bothasthesourceofrepaymentandassecurityfortheexposure.ProjectFinancetransactionsplayanimportantroleinfinancingdevelopmentthroughouttheworld.Thistypeoffinancingisusuallyforlarge,complexandexpensiveinstallationsthatmightinclude,forexample,powerplants,chemicalprocessingplants,mines,transportationinfrastructure,environmentandtelecommunicationsinfrastructure.

Source:EquatorPrinciples www.equator-principles.com/index.php/about-ep/faqs/42-about/frequently-asked-questions/18

Q

R

Renewable energy purchases

Referstototalpurchasesinmegawatt-hours(MW/h)ofrenewableenergycertificates(RECs)duringthereportingperiod.InCanada,RECsrepresentpowerfromcertifiedwindandlow-impacthydrogeneratorsandhavebeenusedinretailbranchesintheprovincesofOntario,BritishColumbia,Alberta,NovaScotia,NewBrunswickandPrinceEdwardIsland.IntheU.S.,RECsrepresentpowergeneratedfromwindturbines.InbothCanadaandU.S.,theRECsareretiredafterpurchasethroughlegalcontractwiththesupplier.

S

Scope 1 emissions

Referstodirectgreenhousegasemissionsfromsourcesownedand/orcontrolledbyBMO.TotalScope1emissionsarecalculatedinaccordancewiththeISO14064-1standardandincludethoseresultingfromenergycombustionfromownedfacilities(e.g.,naturalgas,heatingoil,otherfuels),ownedtransportationassets,andsomeozone-depletingsubstances.ThisdefinitionofScope1alignswiththegreenhousegas(GHG)protocolandisreportedatanenterprise-widelevelfortheperiodNovember1toOctober31.

Scope 2 emissions

Referstoindirectgreenhousegasemissionsassociatedwiththegenerationofelectricity,heatingandcooling,orsteampurchasedforanorganization’sownconsumption.BMO’stotalScope2emissionsrepresentourworldwideoperationsandincludethoseresultingfromthepurchaseofnon-renewableelectricityandsteamforuseatourownedfacilities.ThisdefinitionalignswiththeGHGprotocolandisreportedfortheperiodNovember1toOctober31.

Significant fines or non-monetary sanctions for non-compliance with laws and regulations

ReferstosignificantmonetaryfinesthathavebeenleviedagainstBMObyaregulatorybodyduringthereportingperiod.Afineisclassifiedas“significant”ifitisgreaterthan$500,000inmonetaryvalueorisdeemedbytheexternalregulatorybodytorelatetounethicalbusinesspractices.Non-monetarysanctionsrefertotheprohibitionofBMOtooperateincertainjurisdictionsorproductlines.

Significantfinesornon-monetarysanctionsexcludesfinesorsanctionslevieddirectlyonemployeesbyregulatorsforbreachoftradingrules,whereithasbeendeterminedthatBMOhasadequatepoliciesandproceduresinplacetopreventnon-compliance.Thisisdeterminedbytheregulatorybodythatperformsaninvestigationoftheindividualandtheorganizationtoensuretheorganizationwasnotawareofandunabletopreventtheindividual’sbehaviourwithbetterpoliciesandprocedures.

Thismetricexcludesfinesornon-monetarysanctionsfornon-compliancewithenvironmentallawandregulations.SeeEN28onpage26forthisinformation.

T

Training hours

ReferstototalhoursincurredbyBMOemployeesoncompletedinternaltrainingcoursesduringthereportingperiod.

Turnover rate

Employeeturnoverratereferstothevoluntaryattritionduringthereportingperiodasaproportionofthenumberofactiveemployeesattheendofthereportingperiod.Turnoverrateexcludesemployeeswhoretireorareterminatedduringtheperiod.

U

V

W

X

Y

Z

50 GlossaryofTerms

http://www.equator-principles.com/index.php/about-ep/faqs/42-about/frequently-asked-questions/18


External Assurance Statement

Independent Limited Assurance Report to BMO Financial Group

WehavebeenengagedbytheBoardofDirectorsofBMOFinancialGroup(BMO)toundertakealimitedassuranceengagement,inrespectoftheyearendedOctober31,2012,oncertainqualitativeandquantitativeperformanceinformationdisclosedinthe2012ESGReportandPublicAccountabilityStatement(theReport)asdescribedbelow.

Inaddition,wehavebeenengagedtocheckBMO’sself-declaredGlobalReportingInitiative(GRI)applicationlevel.

Selected Indicators

Thescopeforwhichassuranceistobeexpressed,asagreedwithmanagement,includesthefollowingperformanceinformation(theSelectedIndicators):

■ Renewableenergypurchases(MWh)

■ Womenemployeesinseniorandexecutiveroles(%)

■ Visibleminorityemployeesinseniorandexecutiveroles(%)

■ Personswithdisabilities(%)

■ Aboriginalemployees(%)

■ Employeeengagementindex(EEI)score(%)

■ Annualemployeesurveyparticipationrate(%)

■ Turnoverrate(%)

■ Investmentintraining($)

■ Investmentintraining(hoursperemployee)

■ Annualbusinesswithaboriginalcustomers($)

■ NumberofbrancheslocatedonaboriginalreservelandorInuitterritories

■ CommunitiesparticipatinginBMO’son-reservehousingloanprogram(numberof)

■ Incidentsofdiscriminationincludingthosesuccessfullyresolved(numberof)

■ Donationsandsponsorships($)

■ Ethicstraining(%completion)

■ Significantfinesorsanctionsfornon-compliance.

TheSelectedIndicators,containedwithintheReportanddenotedbythesymbol▲,havebeendeterminedbymanagementonthebasisofBMO’sassessmentofthematerialissuescontributingtoBMO’ssustainabilityperformanceandmostrelevanttotheirstakeholders.Therearenomandatoryrequirementsforthepreparation,publicationorreviewofsustainabilityperformancemetrics.AssuchBMOappliesitsowninternalreportingguidelinesanddefinitionsforsustainabilityreportingwhichcanbefoundintheGlossaryofTermsonpages48to50oftheReport.

Management’s responsibilities

ManagementisresponsibleforthepreparationandpresentationoftheReportinaccordancewithBMO’sinternalreportingguidelinesanddefinitionsforsustainabilityreportingcurrentasatthedateofourreport,fordeterminingBMO’sobjectivesinrespectofsustainabledevelopmentperformanceandreporting,includingtheidentificationofstakeholdersandmaterialissues,andforestablishingandmaintainingappropriateperformancemanagementandinternalcontrolsystemsfromwhichthereportedperformanceinformationisderived.

Our responsibility

OurresponsibilityinrelationtotheSelectedIndicatorsistoperformalimitedassuranceengagementandtoexpressaconclusionbasedontheworkperformed.WeconductedourengagementinaccordancewithInternationalStandardonAssuranceEngagements3000Assurance Engagements other than Audits or Reviews of Historical Financial Information(ISAE3000),issuedbytheInternationalAuditingandAssuranceStandardsBoard.ISAE3000requiresthatwecomplywithapplicableethicalrequirements,includingindependencerequirements.

Wehavenotbeenengagedto,anddonot,provideassuranceinrespectofanyperiodspriortotheyearendedOctober31,2012.

Assurance approach

Weplannedandperformedourworktoobtainalloftheevidence,informationandexplanationsweconsiderednecessaryinordertoformourconclusionassetoutbelow.Alimitedassuranceengagementconsistsofmakinginquiries,primarilyofpersonsresponsibleforthepreparationoftheSelectedIndicators,andapplyinganalyticalandotherevidencegatheringprocedurestotheSelectedIndicators,asappropriate.Ourproceduresincluded:

■ InquiriesofmanagementtogainanunderstandingofBMO’sprocessesfordeterminingthematerialissuesforBMO’skeystakeholdergroups;

■ InquirieswithrelevantstaffatthecorporateandbusinessunitleveltounderstandthedatacollectionandreportingprocessesfortheSelectedIndicators;

■ Whererelevant,performingwalkthroughstotestthedesignofinternalcontrolsrelatingtodatacollectionandreportingoftheSelectedIndicators;

■ ComparingthereporteddatafortheSelectedIndicatorstounderlyingdatasources;

■ Inquiriesofmanagementregardingkeyassumptionsandwhererelevant,there-performanceofcalculations;and

■ ReviewingtheSelectedIndicatorspresentedintheReporttodeterminewhethertheyareconsistentwithouroverallknowledgeof,andexperiencewith,thesustainabilityperformanceofBMO.

51 ExternalAssuranceStatement

BMO Financial Group

Theextentofevidencegatheringproceduresperformedinalimitedassuranceengagementislessthanthatforareasonableassuranceengagement,andthereforealowerlevelofassuranceisobtained.

OurassurancereportisprovidedsolelytoBMOinaccordancewiththetermsofourengagement.OurworkhasbeenundertakensothatwemightreporttoBMOonthosematterswehavebeenengagedtoreportuponinthisassurancereport,andfornootherpurpose.WedonotacceptorassumeresponsibilitytoanyoneotherthanBMOforourwork,forthisassurancereport,orfortheconclusionwehavereached.

Independence and competence

InconductingourengagementwehavecompliedwiththeindependenceandotherethicalrequirementsoftheIFACCodeofEthicsforProfessionalAccountants.

Theengagementwasconductedbyamultidisciplinaryteamwhichincludedprofessionalswithsuitableskillsandexperienceinbothassuranceandintheapplicablesubjectmatterincludingenvironmental,social,governanceandfinancialaspects.

Our conclusion

Basedontheproceduresperformed,asdescribedabove,nothinghascometoourattentionthatcausesustobelievethatfortheyearendedOctober31,2012,theSelectedIndicators,asdescribedaboveanddisclosedinthe2012ESGReportandPublicAccountabilityStatement,havenotbeenpreparedandpresented,inallmaterialrespects,inaccordancewithBMOFinancialGroup’sinternalreportingguidelinesanddefinitionsforsustainabilityreportingcurrentasatthedateofourreport.

GRI Application Level Check

Basedonourreviewofthedisclosuresinthereport,weconcurwithBMOFinancialGroup’sself-declaredB+GRIapplicationlevel,asdisclosedinthe2012ESGReportandPublicAccountabilityStatement.

Chartered Accountants, Licensed Public Accountants

March14,2013Toronto,Canada

52 ExternalAssuranceStatement

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