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 The foundation of RBC’s approach to responsible lending is our environmental credit risk policy suite, which covers a range of environmental risks and business activities. The purposes of this suite of policies is to help us identify and manage our environmental risks and to protect the interests of our clients and stakeholders.
RBC’s environmental credit risks primarily result from RBC clients with environmental issues, also known as direct environmental risks. Direct environmental risks can relate to environmental issues such as contaminated property, environmental fines, shut-downs or lawsuits. These can negatively impact the financial position of a borrower, impair collateral or affect the liquidity of a mortgage, presenting the banks and the borrower with an unfavourable risk.
The Environmental Risk Management Group (ERMG), which was established in 1991 to provide risk mitigation services and credit approval support, provides a means for RBC to identify and manage these risks in order to capitalize on credit transactions in a responsible and equitable manner for the benefit of RBC and our clients.
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