GHG Emissions, Finance, Sourcing Renewables - March 5, 2021
RBC sets sustainable finance target of $500 billion by 2025
Royal Bank of Canada (RBC) announced its intent to increase its sustainable financing by $500 billion by 2025 and achieve net zero emissions in its lending by 2050.
The Canadian financial institution achieved its initial goal of $100 billion in sustainable financing in 2020. With its new sustainability commitments today, RBC is also joining the Partnership for Carbon Accounting Financials (PCAF) and RMI’s Center for Climate-Aligned Finance.
RBC is targeting net zero emissions in its global operations annually and plans to reduce emissions by 70% and source 100% renewable electricity by 2025. The company plans to set interim targets for its financed emissions goals at a later date while beginning to measure and report financed emissions for key industry sectors starting in 2022.
"Climate change is one of the most pressing issues of our time, requiring us to work more closely with our clients, peers, across industry sectors, and with the government to help build a sustainable economy for future generations," Dave McKay, President and CEO, RBC, said in a statement. "Our updated climate strategy reinforces the important role RBC has to play in helping clients and communities through the transition to a net-zero economy by 2050. Our commitment to advancing our clients' ESG goals and accelerating society's progress is underpinned by our belief that capital can be a force for positive change."
The company will share more information on climate-related commitments and performance in its 2020 ESG Performance Report and 2020 Task Force on Climate-Related Financial Disclosures Report in early April.
RBC’s environmental leadership dates back to 1991 when it launched its first corporate environmental policy. In 2017, RBC was the first Canadian bank to publish a TCFD aligned disclosure outlining the steps it was taking to manage climate risks and opportunities, and describing the organization's ongoing commitment to climate-related disclosures.
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