Environment, Social and Governance (ESG) - RBC

1 2020 ESG PERFORMANCE REPORT 1 HNW_NRG_B_Bleed_NoMaskRoyal Bank of CanadaEnvironment, Social and Governance (ESG)Performance Report 20202020 ESG PERFORMANCE REPORT 2 Caution regarding forward-looking statements From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. We may make forward-looking statements in this 2020 Environmental, Social and Governance (ESG) Performance Report, in filings with Canadian regulators or the Securities and Exchange Commission (SEC), in reports to shareholders and in other communications.

2 Forward-looking statements in this document include, but are not limited to, statements relating to our financial performance objectives, vision and strategic goals, our digital strategy, as well as our Social , economic, environmental and Governance -related impacts and objectives. We have included forward-looking information in this document to assist our stakeholders in understanding our financial performance objectives, vision and strategic goals, as well as our Social , economic, environmental and Governance -related impacts and objectives.

3 This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as believe , expect , foresee , forecast , anticipate , intend , estimate , goal , plan , strive , target , and project and similar expressions of future or conditional verbs such as will , may , should , could or would . By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals, and Social , economic, environmental and Governance -related impacts and objectives will not be achieved.

4 We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors many of which are beyond our control and the effects of which can be difficult to predict include credit, market, liquidity and funding, insurance, operational, regulatory compliance (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and fines)

5 , strategic, reputation, legal and regulatory environment , competitive and systemic risks and other risks discussed in the risk sections and Significant developments: COVID-19 section of our Annual Report for the year that ended October 31, 2020 (2020 Annual Report) and the Risk management and Impact of COVID-19 pandemic sections of our Quarterly Report for the three-month period that ended January 31, 2021 (Q1 2021 Report to Shareholders); including business and economic conditions, information technology and cyber risks, Canadian housing and household indebtedness, geopolitical uncertainty, privacy, data and third-party related risks, regulatory changes, environmental and Social risk (including climate change)

6 , and digital disruption and innovation, culture and conduct, the business and economic conditions in the geographic regions in which we operate, the effects of changes in government fiscal, monetary and other policies, tax risk and transparency, and the emergence of widespread health emergencies or public health crises such as pandemics and epidemics, including the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business operations, and financial results, condition and objectives.

7 We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. When relying on our forward-looking statements to make decisions with respect to us, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the Economic, market and regulatory review and outlook section and for each business segment under the Strategic priorities and Outlook headings in our 2020 Annual Report, as updated by the Economic, market and regulatory review and outlook and Impact of COVID-19 pandemic sections in our Q1 2021 Report to Shareholders.

8 Except as required by law, we do not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf. Additional information about these and other factors can be found in the risk sections and Significant developments: COVID-19 section of our 2020 Annual Report and in the Risk management and Impact of COVID-19 pandemic sections of our Q1 2021 Report to ESG PERFORMANCE REPORT 3 2020 Highlights 4 CEO Message 5 About this Report 8 How we deliver value 10 Our ESG priorities 11 Statement of Performance 13 Governance & Integrity 15 Value for Employees 24 Value for Clients 36 Value for Communities 50 Value for Planet 60 Independent Limited Assurance Report 68 Appendices 69 The following icons are found throughout this

9 Report:Icon legendContents HNW_NRG_A_Bleed_MaskYOUR VOTE IS IMPORTANT!Royal Bank of CanadaNotice of Annual Meeting of Common ShareholdersApril 8, 2021 Management Proxy CircularRBC client Kathy Cheng, owner of Redwood Classics Apparel Toronto, Ontario2021 Management Proxy Circular2020 Annual ReportReimaginingour sharedfutureRBC client Kathy Cheng, owner of Redwood Classics ApparelToronto, OntarioPolicy and program background papersRoyal Bank of CanadaPrograms, policies and practicesAbout Value for EmployeesHNW_NRG_B_Bleed_NoMaskRoyal Bank of CanadaPrograms.

10 Policies and practicesAbout Value for CommunitiesHNW_NRG_B_Bleed_NoMaskRoyal Bank of CanadaPrograms, policies and practicesAbout Governance and IntegrityHNW_NRG_B_Bleed_NoMaskIndepende ntly assured key performance indicator Our PrioritiesaConnect with us @rbc report is part of a broader suite of disclosures. For more information, please review the additional publications listed Bank of CanadaPrograms, policies and practicesAbout Corporate Citizenship at RBCHNW_NRG_B_Bleed_NoMaskPublic Accountability Statement 20202020 Public Accountability Statement2020 TCFD ReportRBC Climate BlueprintDIGITAL-HNW_NRG_C_Inset_MaskRoy al Bank of CanadaClimate BlueprintCEO MessageAt Royal Bank of Canada (RBC), we re convinced of the merits of the sustainable path, and this is how we think we can get there.