At CIBC, we recognize that good business and environmental responsibility go hand in hand. Our success as a company depends on a sustainable economy, which in turn contributes to a healthy environment for our employees, customers and communities. To formalize this commitment to environmental responsibility, CIBC has had a Corporate Environmental Policy in place since the early 1990s, which is also supported by other policies, standards and procedures.

Corporate Environmental Policy
Credit Risk Management Policy and Framework
Environmental Credit Risk Management Standards and Procedures
Global Reputation and Legal Risk Policy
Environmentally Responsible Procurement Standard
International commitments

Corporate Environmental Policy

CIBC's environmental commitments were formalized with the creation of the Corporate Environmental Policy, which was first approved by our Board of Directors in 1993, and then updated in 2002 and again in 2007. It states that CIBC is committed to responsible conduct in all its activities to:

Protect and conserve the environment
Safeguard the interests of the corporation, its employees, customers and shareholders from unacceptable levels of environmental risk
Support the principles of sustainable development

This policy also includes 9 guiding principles which govern CIBC's commitments in the areas of: communication, community values, compliance, continuous improvement, credit and investment risk management, employee education, operations and supplier management, and procurement.

Credit Risk Management Policy and Framework

A key objective of risk management is to promote sound decision processes that balance risk and return in line with an organization's business strategies and overall risk tolerance. CIBC's Credit Risk Management Policy and Framework establishes an effective foundation for the management of credit risk. It includes the following environmental requirements:

All risk-rated business and government credits require an assessment of known or potential environmental risk, in compliance with the applicable standards and procedures established by CIBC's Environmental Risk Management group
Project financings must comply with the requirements of the Equator Principles

Environmental Credit Risk Management Standards and Procedures

CIBC has integrated environmental assessment into the commercial lending process throughout the corporation through appropriate policies, procedures, training, allocation of resources, and information tracking. Environmental credit risk management policies, standards and procedures have been in place since 1992 to help protect the interests of the corporation, its shareholders, and customers from exposure to unacceptable levels of environmental risk. In 2006, we updated and consolidated our environmental credit risk management practices into seamless Environmental Credit Risk Management Standards and Procedures that cover all small business, commercial and corporate loans of any size, as well as merchant banking transactions. For more information on Environmental Credit Risk Management Standards and Procedures within CIBC, visit Lending and Investment.

Global Reputation and Legal Risk Policy

The objective of CIBC's Global Reputation and Legal Risk (GRLR) Policy, introduced in 2004, is to ensure we operate our business to the highest standards of governance and control, and that we focus on doing the right thing for our clients, employees and investors. The GRLR Policy is underpinned by several procedures including Procedures for Credit Transactions, which require that we assess whether transactions may pose a reputational risk or legal risk as a result of known or anticipated environmental factors. The identification of environmental factors is to be done in accordance with the Environmental Credit Risk Management Standards and Procedures.

Generally, this risk factor was developed to determine if CIBC could be exposed to legal action or reputational damage by lending to clients who have (or likely have) caused adverse environmental impacts to innocent third parties, and who do not appear to have taken mitigation steps that would be considered appropriate in the circumstances. This risk factor may also be triggered if the borrower's overall management of environmental risks appears to be inadequate.

Environmentally Responsible Procurement Standard

In 2007, CIBC developed its Environmentally Responsible Procurement Standard in consultation with several external stakeholder groups. This Standard describes CIBC's requirements for inclusion of environmental considerations in our procurement activities, applicable for all products, as well as all services which may have an adverse environmental impact. Learn more

International commitments

Business Charter for Sustainable Development

In 1991, CIBC formally endorsed the Business Charter for Sustainable Development published by International Chamber of Commerce, which includes 16 principles for sound environmental management. Learn more

United Nations Environment Programme Finance Initiative (UNEP FI)

In 1992, CIBC became a signatory to the United Nations Environment Programme (UNEP) Statement by Financial Institutions on the Environment & Sustainable Development. Signatories to the Statements commit to the integration of environmental considerations into all aspects of their operations. The UNEP FI Statements are aspirational, voluntary declarations of intent. Learn more

The Equator Principles

The Equator Principles are a voluntary set of environmental and social screening criteria and guidelines that apply globally to project finance transactions with a capital cost of US$10 million or more, in all industry sectors. CIBC adopted the Equator Principles in 2003, thereby undertaking to integrate the environmental and social screening criteria of the World Bank Group (WBG) and the International Finance Corporation (IFC) into the project finance credit adjudication process. On July 6, 2006 CIBC re-adopted the revised Equator Principles. Learn more

For further details on Equator Principles implementation within CIBC, visit Lending and Investment.