At BMO, we believe that the quality of our lives improves when economic growth is integrated with respect for the environment. By supporting and abiding by the principles of sustainable development, we act in the best interests of our shareholders, customers, employees, communities and our future.

Environmental Framework

BMO’s Environmental Policy and Principles provide the framework by which we address our commitment to both the protection of the environment and the principles of sustainable development. As guided by our principles, we pledge to:

• Promote environmental stewardship across our business.
• Respect, protect and act to serve the environment around us.
• Engage our employees in our environmental management programs.
• Provide credit to borrowers in a manner that respects environmental management.
• Take responsibility for our environmental performance.
• Work with others to protect and preserve our environment.

Energy Audit Progress

During the past year, in partnership with property managers and a third-party energy consultant, we completed energy audits of the nine major office towers and specialty buildings BMO owns across Canada. Moving forward, we have begun to assess the results and prioritize opportunities to improve energy efficiency.

FTSE4Good

Again this year, BMO was included in the FTSE4Good Index. Launched by the Financial Times and the London Stock Exchange, the Index recognizes the performance of companies that meet globally recognized corporate responsibility standards according to the criteria of environmental sustainability, social issues and stakeholder relations and human rights.

Dow Jones Sustainability North America Index

BMO Financial Group was chosen to be among the first Canadian companies listed on the newly created Dow Jones Sustainability North America Index (DJSI North America). Modelled on the benchmark Dow Jones Sustainability World Index, DJSI North America recognizes the region’s top companies in terms of economic, environmental and social sustainability principles and practices.

Equator Principles

In September 2005, BMO became a signatory to the Equator Principles, a voluntary set of environmental and social guidelines for project financing adopted by leading banks. The Equator Principles were established in 2002 by the International Finance Corporation, a member of the World Bank Group that promotes sustainable, private sector investment in developing countries as a way to reduce poverty and improve people’s lives.

United Nations Environment Program

BMO Financial Group is a signatory to the UNEP Statement by Financial Institutions on the Environment and Sustainable Development. As a signatory, we acknowledge globally recognized principles of environmental protection and sustainable development.

Carbon Disclosure Project

In 2005, we also became a signatory to the Carbon Disclosure Project, a coordinating secretariat for a coalition of the world’s largest institutional investors. Members of the Project voluntarily disclose investment-relevant information concerning greenhouse gas emissions.

For more on BMO and the Environment, see our web site at www.bmo.com/community.