RBC Capital Markets acted as a lead advisor to Export Development Canada on its new Sustainable Bond Framework
RBC Capital Markets, the investment banking arm of Royal Bank of Canada, highlighted recent public sector sustainable financing support and progress made against the bank’s ambitious ESG goals.
RBC Capital Markets acted as a lead advisor to Export Development Canada (“EDC”) on the launch of their innovative new Sustainable Bond Framework. The new framework has the goal to enable greater support for projects and initiatives that create a more sustainable and equitable world. In addition to green bonds launched in 2014, EDC’s new framework will include innovative sustainable, social, and transition bonds.
“RBC Capital Markets is proud to work with Export Development Canada to help bring this timely and important Sustainable Bond Framework to life. EDC was the first Canadian financial institution to issue green bonds, and is now among the first to include transition financing in its framework,” said Sarah Thompson, Managing Director, Sustainable Finance, RBC Capital Markets. “RBC is committed to providing the advice and solutions our clients need to advance the sustainable debt market in support of a more inclusive, sustainable future.”
“Working with key partners such as RBC Capital Markets is crucial to help us have a positive impact on the competitiveness of Canadian companies and their path towards sustainability,” said Justine Hendricks, EDC’s Senior Vice-President and Chief Corporate Sustainability Officer. “Adding transition and social bonds to our framework allows us to finance the projects and companies working to catalyze the actions required to address climate change and systemic social inequity, and we encourage others to do the same.”
RBC’s work with EDC is the latest example of how the bank is leveraging its advisory expertise to help its public sector clients bring their environment, social, and governance (ESG) objectives to life. In February, RBC Capital Markets worked with the Public Sector Pension Investment Board (PSP Investments) on the structuring of their new Green Bond Framework.
“Governments, public sector organizations, and institutions like RBC have a role to play in ensuring a more sustainable future,” said Alex Caridia, Managing Director and Head, Global Public Sector Markets, RBC Capital Markets. “As Canada’s largest investment bank, we are uniquely positioned to provide the advice, knowledge, and support to help public sector organizations achieve their ESG goals while setting ambitious targets of our own.”
See related article: Scotiabank announces net-zero strategy and a commitment to mobilize $350 billion in climate related financing
On March 2, 2022, RBC released its 2021 Environmental, Social, and Governance Performance Report. The report offers insights into the bank’s approach to ESG and its overarching strategies, new and ongoing commitments, and performance related to relevant ESG topics. For example, the report includes goals and commitments aligned to the RBC Climate Blueprint and measured progress towards the bank’s sustainable finance commitment of $500 billion by 2025 and a commitment to achieve net-zero emissions in its lending by 2050.
RBC Capital Markets ESG Highlights
- RBC Capital Markets is the number one dealer in underwriting green bonds and maintains the largest market share of Canadian public sector green bond deals in Canada.
- As of 2021, RBC has provided $198 billion in sustainable financing against its commitment of $500 billion by 2025.
- The bank is active in the North American and European carbon markets, trading over 1.5 billion tonnes of CO2-equivalent credits in 2021, a growth of 135% over fiscal year 2020.
- Through the US Community Investments group, RBC Capital Markets has financed over 2.1 gigawatts of renewable energy capacity generated by 35,000 renewable energy assets since inception in 2015.
- In 2022, RBC Capital Markets also hosted its second annual Global ESG Conference and will host its ninth annual Sustainable Debt Conference from April 5-6.
Source: RBC Capital Markets