RBC net-zero engagement policy: A promising start that falls short on key element
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Key Findings
In a policy document released in October 2023, RBC outlined a formalized engagement framework to assess the transition plans of its clients and the actions it intends to take in response. In important ways, RBC’s policy falls short.
Several sectors are exempt from this policy, including the midstream oil and gas industry, which plays a significant role in emissions and climate issues globally.
RBC’s maturity scale – a key assessment tool in the framework – lacks clarity and transparency.
RBC hints at the existence of an exclusion clause targeted at uncooperative clients but fails to provide adequate details on criteria and timelines for this critical element of the plan.
Introduction
The Royal Bank of Canada (RBC) has committed to a climate plan that seeks to assist its clients as they transition to net zero while also holding itself accountable for emissions generated from its lending and day-to-day operations.
RBC is collecting a wide range of data from various sources to help it in this process, including from its customer base, the bank’s most important source of information. RBC notes that since engagement is a key part of its climate strategy, the quality of the bank’s engagement with its clients is critical to meeting its climate goals and maintaining a competitive edge within the industry.
In a policy document released in October 2023, RBC outlined a formalized engagement framework to assess the transition plans of its clients and the actions it intends to take in response. But in important ways, RBC’s policy falls short.
