Royal Bank of Canada said in February it plans to reach net-zero emissions in its lending portfolio in the next three decades. It also pledged to increase its sustainable financing commitment from CAD100 billion ($81.32 billion) currently to CAD500 billion ($406.62 billion) by 2025. RBC is formulating interim targets and expects to publish financed emissions for key industries beginning next year. The bank is also considering membership in the Net-Zero Banking Alliance.
Toronto-Dominion Bank in November vowed to achieve net-zero emissions by 2050. TD plans to include more details in its reporting on progress toward its interim climate targets in its 2021 report. The bank has contributed more than CAD56 billion ($45.54 billion) of its CAD100-billion ($81.32 billion) low-carbon financing target for 2030.
Last month, the Bank of Montreal announced its net-zero commitment and vowed to double its sustainable finance commitment to CAD300 billion ($243.97 billion) in the next five years. BMO said it would set medium-term emission targets for 2030. However, it did not specify when it would release the target and whether it would report its progress annually. The bank is also in active discussions to decide whether to join the Net-Zero Banking Alliance.
Scotiabank has not announced an official net-zero commitment, but CEO Brian Porter said in February that it was assessing approaches to be net-zero by 2050. The bank said it would report progress every year despite having no interim target set. It has realized CAD28 billion ($22.77 billion) from the committed CAD100 billion ($81.32 billion) to lower climate change impacts by 2025.
Canadian Imperial Bank of Commerce has not announced a net-zero commitment, but a spokeswoman said it is developing tools to align financial decisions with the transition to a low-carbon economy. CIBC has committed sustainable financing of CAD150 billion ($121.99 billion) by 2027.
However, many investors are doubting these banks’ net-zero commitments due to the lack of details, including a definition of that target, interim emissions-cutting goals, and plans to distance themselves from the fossil fuel industry. Some investors also demand banks to step up their transparency, including by disclosing their milestones for achieving net-zero emissions and incentives to clients to cut emissions. Some of the investors even threatened to band and demand resolutions to remove directors.
