CA$726 billion into the fossil fuel industry since the signing of the Paris Accord in 2016. When considering the breakdown of investments among the banks, Royal Bank of Canada took the top spot, having invested CA$208 billion between 2016 and 2020. During this period, TD invested CA$157 billion in the industry, followed by Scotiabank, which invested CA$148 billion. The contribution made by Bank of Montreal amounted to CA$126 billion, while CA$87 billion was invested by the Canadian Imperial Bank of Commerce.
Earlier this year, RBC made a commitment of CA$500 billion in sustainable financing in the years leading up to 2025, while TD has also made similar pledges. On the other hand, the two banks have also reduced their fossil fuel financing over the recent past, and yet, they respectively raked 23rd and 25th in terms of total assets contributed to fossil fuel companies over the past 5 years.
According to experts this continued investments of the top banks in the oil and gas sector will make it difficult for Canada to achieve its 2030 target on carbon emissions. “A stark change in direction is needed,” earth scientist David Hughes said in his Canada’s Energy Sector report.
According to most recent data from 2019, the oil and gas industry accounts for 26 per cent of Canada’s total greenhouse gas emissions. So far, the North American nation has only reduced 1.2 per cent of its emissions from the levels in 2005.
Therefore, Stephanie Bertels, director of the Centre for Corporate Governance and Sustainability, noted that banks have a civic responsibility to address the impact of their investments on the global climate crisis. “More importantly, they have a fiduciary responsibility to do so,” she added.
