RBC quits climate group as Big Six banks follow Wall Street
Royal Bank of Canada has followed Toronto-Dominion Bank and Bank of Montreal in leaving the banking industry’s largest climate-finance alliance.
With RBC’s exit, which it disclosed in a statement on Friday, all of Canada’s biggest banks have now left the Net-Zero Banking Alliance. Bank of Nova Scotia, Toronto-Dominion, BMO, Canadian Imperial Bank of Commerce and National Bank of Canada all announced their exits earlier this month.
RBC said leaving NZBA won’t change its focus on “supporting our clients to help them address climate change and succeed in the transition to a low-carbon and resilient economy.”
All the banks that have quit NZBA have insisted the decision won’t impact their pledge to decarbonizing their businesses. RBC chief executive Dave McKay said in early January that pulling out of NZBA “doesn’t lead to a non-commitment to net zero or climate change.”
RBC said on Friday that “we now have the tools and capabilities to help implement our climate strategy and measure our performance.”
The Canadian withdrawal from NZBA follows a similar exodus in the U.S. Since the beginning of December, the NZBA has been abandoned by Goldman Sachs Group Inc., Morgan Stanley, Wells Fargo & Co., Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.
The moves come as United States President Donald Trump takes steps to roll back Biden-era climate policies and instead promote a revival of fossil-fuel production. Trump’s return has also emboldened the Republican Party in its ongoing attacks on climate finance.
NZBA’s website currently shows the group having more than 135 member banks from over 40 countries. Signatory banks commit to transition their financed emissions to align with “pathways to net zero by 2050” at the
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