• Release of interim targets is an important step on the bank’s journey to net-zero
• RBC also releases Sustainable Finance Framework, outlining its approach to providing $500 billion in sustainable finance by 2025

RBC delivered a key milestone in its commitment to achieving net-zero in its lending portfolio by 2050 with the release of its initial set of 2030 interim emissions reduction targets (initial interim targets) for three key sectors: oil & gas, power generation, and automotive.

The initial interim targets outlined in the bank’s Net-Zero Report help drive towards RBC’s net-zero objective and advance a key element of RBC’s commitment under the Net-Zero Banking Alliance (NZBA). They also reinforce the bank’s ambition to play a role in financing the climate transition, supporting collaborative approaches between the public and private sectors to transition to a net-zero economy. Although RBC recognizes that its ability to achieve its initial interim targets and its ultimate net-zero goal will require unprecedented cooperation, action, and collaboration from a wide range of stakeholders, including businesses, governments and individuals, it believes that the initial interim targets are important markers as the bank engages with its clients to support their efforts in reaching net-zero.

Climate change is one of the world’s most pressing issues – one that can impact where we live, our food supply, and the world around us – and the world is in the midst of a critical period where the actions taken by various stakeholders in the coming years will have an impact for generations to come.

“We know the greatest impact RBC can have to drive emissions reductions in the economy is through partnerships with our clients,” said Dave McKay, President and CEO at RBC. “Our initial interim targets will help us track and measure how we’re doing in working with our clients on our ambitious net-zero goals and keep us accountable along the way. Businesses, governments, and individuals working together on the fundamental reshaping of our economies and societies will be critical in achieving these goals and RBC is committed to helping build a cleaner future and bring green solutions to market.”

See related article: RBC Capital Markets highlights recent public sector sustainable financing support, progress with ESG goals

In addition, RBC released its Sustainable Finance Framework, which outlines the approach the bank takes to measure progress against its commitment to provide $500 billion in sustainable financing by 2025. Sustainable finance solutions provide clients with products and services that contribute to key environmental, social and governance (ESG) objectives. By providing these sustainable financing solutions, RBC intends to help finance the transition to net-zero, strengthen a diverse and inclusive culture, and build stronger communities and enable economic inclusion.

Four Pillars of RBC’s Climate Blueprint

RBC’s climate strategy guides the bank’s work towards achieving a sustainable, net-zero future. In addition to supporting its clients to reduce their greenhouse gas emissions, being transparent and accountable by measuring and reporting progress towards achieving net-zero in its lending portfolio by 2050, and actively bringing together finance, public and private sectors to advance solutions and encourage the development of appropriate incentives and policies, RBC is also committed to taking action to reduce greenhouse gas emissions in its operations and sourcing electricity from renewable and non-emitting sources.

Another key element of RBC’s climate strategy is to share ideas and perspectives that inspire action. The bank is doing this through RBC publications like the $2 Trillion Transition: Canada’s Road to Net-Zero. This report was the culmination of a year-long research project to map out some of the necessary pathways for Canada to get to net-zero. Tech for Nature is another way that RBC is inspiring new ideas, technologies, and partnerships to solve pressing environmental challenges. RBC is committed to fostering innovation that inspires a more sustainable future, and through Tech for Nature, RBC is working with more than 110 universities and charities, providing $100 million by 2025 to support innovative environmental programs.

Source: RBC