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
TORONTO, Oct. 26, 2022 /CNW/ - Today, 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."
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.
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.
You can learn more about RBC's approach, including RBC's strategy to support its clients in sectors across the economy in a socially inclusive transition to net-zero, and the risks and opportunities RBC faces at www.rbc.com/climate.
- RBC's Net-Zero Report outlines RBC's 2030 initial interim emissions reduction targets for the oil & gas, power generation, and automotive sectors.
- RBC's Sustainable Finance Framework outlines the approach the bank takes to measure progress against its commitment to provide $500 billion in sustainable finance by 2025.
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 92,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.
This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation with respect to Royal Bank of Canada's (we, us or our) Net-Zero Report and Sustainable Finance Framework. Forward-looking statements in this press release include, but are not limited to, statements relating to our climate-related objectives, vision, goals, metrics and targets, including our 2030 interim emissions reduction targets (initial interim targets), our support for the transition to a net-zero economy, our commitment to align our lending activities with net-zero by 2050 as part of our NZBA commitment, our commitments to and role in helping our clients transition to net-zero, our ambition to play a role in financing the climate transition to a net-zero economy, our ability to achieve our interim targets and our ultimate net-zero goal will require unprecedented cooperation, action, and collaboration from a wide variety of stakeholders including businesses, governments and individuals, our interim targets will help us track and measure toward achieving our goal of net-zero, our commitment to providing $500 billion in sustainable finance by 2025 and measuring our progress against this commitment, our intention to help finance the transition to net-zero, strengthen a diverse and inclusive culture, and build stronger communities and enable economic inclusion through providing sustainable financing solutions, our commitment to reducing greenhouse gas emissions in our own operations and sourcing electricity from renewable and non-emitting sources, and our commitment to fostering innovation that inspires a more sustainable future. The forward-looking information contained in this press release is presented for the purpose of assisting our stakeholders, including holders of our securities and financial analysts in understanding the ways we intend to address climate-related governance, strategy, risks, opportunities, and metrics and targets, and may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "believe", "expect", "expectation", "aim", "foresee", "forecast", "anticipate", "predict", "intend", "estimate", "commit", "goal", "plan", "strive", "objective", "target" and "project" and similar expressions of future or conditional verbs such as "will", "may", "might", "should", "could" or "would".
By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our objectives, vision, commitments, goals, targets and strategies to mitigate and adapt to climate-related risks and opportunities, and our objectives, including our net-zero commitment, initial interim targets and sustainable finance commitment, will not be achieved and that our actual results may differ materially from such predictions, forecasts, projections, expectations or conclusions. Moreover, many of the assumptions, standards, metrics and measurements used in preparing this press release continue to evolve and are based on assumptions believed to be reasonable at the time of preparation, but should not be considered guarantees.
We caution readers not to place undue reliance on these statements as a number of risk factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. These factors – many of which are beyond our control and the effects of which can be difficult to predict – include the need for more and better climate data and standardization of climate-related measurement methodologies, our ability to gather and verify data, our ability to successfully implement various initiatives throughout our enterprise under expected time frames, the risk that initiatives will not be completed within a specified period or at all or with the results or outcomes as originally expected or anticipated by us, difficulty in identifying transactions, products and services that meet the sustainable finance classification criteria, the risk that eligible transactions or related initiatives will not be completed within any specified period or at all or with the results or outcome as originally expected or anticipated by us, our ability to track transactions and report on them as performance against our commitment to provide $500 billion in sustainable finance by 2025, the compliance of various third parties with our policies and procedures and their commitment to us, the need for active and continuing participation and action of various stakeholders (including governmental and non-governmental organizations, other financial institutions, businesses and individuals), technological advancements, the evolution of consumer behaviour, varying decarbonization efforts across economies, the need for thoughtful climate policies around the world, the challenges of balancing emission reduction targets with an orderly, just and inclusive transition and geopolitical factors that impact global energy needs, the legal and regulatory environment, and regulatory compliance considerations (which could lead to us being subject to various legal and regulatory proceedings, the potential outcome of which could include regulatory restrictions, penalties and/or fines). Additional factors that could cause actual results to differ materially from the expectations in such forward-looking statements can be found in the Risk sections and Impact of COVID-19 pandemic section of our Annual Report for the year ended October 31, 2021 and the Risk management section of our Quarterly Report to Shareholders for the three- and nine-month periods ended July 31, 2022.
We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. Except as required by law, none of RBC or its affiliates undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by us or on our behalf.
SOURCE RBC
Media Contact: Andrew Block, [email protected]
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