Skip to main content

Climate Commitments

Helping Clients as They Transition to Net-Zero

At RBC, we believe the biggest impact we can make in addressing the climate change challenge is by helping our clients reduce their emissions and achieve their climate goals.

From large corporations to individual homebuyers, we offer advice and support to help make their journeys easier. And, by helping to fund new technologies that reduce emissions and produce cleaner energy, we can help clients access resources and implement climate change solutions.

Sustainable Finance Solutions

There is tremendous potential for financial markets to contribute to solving some of the biggest social and environmental challenges we face today.

That’s why RBC has committed to providing $500 billion in sustainable finance by 2025. Sustainable finance refers to financial activities that take into account environmental, social and governance (ESG) factors.

Our Sustainable Finance Framework highlights our approach and methodology used to measure our commitment and report on our progress to date.

Sustainable Finance Framework(opens in a new window)

We offer a broad range of solutions, services and advice to help businesses, individuals and families think about and establish their climate goals, make realistic plans and ultimately transition to a net-zero future.

Personal Banking Solutions

Sustainable Finance (opens in a new window)

Holding Ourselves Accountable

We have a goal to achieve net-zero in our lending by 2050, while balancing the needs of people and the planet. At RBC, we know how important it is to keep track of where we’ve been, where we’re going and how far we’ve come. We report annually on our progress on our climate commitments.

Our commitment to holding ourselves accountable also includes:

  • Establishing high standards of governance, including by embedding ESG factors in executive compensation
  • Continuing to embed climate risk factors into our credit decisions
  • Restricting lending transactions for certain sectors and activities(opens in a new window) that have significant environmental impacts

Learn more about our Environmental and Social Risk Management

Net-Zero Banking Alliance

As Canada's biggest bank, and one of the largest in the world based on market capitalization, we know we have an important role to play in accelerating and supporting efforts to address climate change.

We joined the Net-Zero Banking Alliance (NZBA), a global, industry-led initiative that shares our climate mission, as we believe global banking collaboration is key to driving real progress toward achieving net-zero emissions in our lending by 2050.

Net Zero Banking Alliance(opens in a new window)

Reporting on our Progress

As we work towards our net-zero goals, we have committed to monitoring, measuring and reporting on our progress. Here are a few recent examples.

2022 Climate Report(opens pdf in a new window)

Summarizes progress to date in advancing how we manage climate-related risks and opportunities in line with our enterprise climate strategy, the RBC Climate Blueprint, and in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

2022 Net-Zero Report(opens pdf in a new window)

This report outlines our initial 2030 interim emissions reduction targets for the Oil & Gas, Power Generation and Automotive sectors. It also outlines our target-setting methodology and the principles and beliefs that guided our target-setting process.

Informing and Inspiring a Sustainable Future

Addressing climate change is a large and challenging undertaking – and one that requires the ideas and expertise from a diverse group of companies and thinkers. By sharing research and insights, we aim to inform and inspire our clients, foster further climate innovation and build climate awareness.

Thought Leadership

Our research examines social, economic and technology trends in this age of disruption. By introducing ideas, perspectives and analyses, these reports can spark both critical thinking and meaningful action.

The $2 Trillion Transition: Canada’s Road to Net-Zero (opens in a new window)

The Next Green Evolution: How Canada can produce more food and fewer emissions(opens in a new window)

92 to Zero: How economic reconciliation can power Canada's climate goals(opens in a new window)

The skills revolution Canada needs to reach Net Zero(opens in a new window)

Learn about the RBC Climate Action Institute

Partnering with Experts to Make a Meaningful Impact

It takes a collective effort to move the dial on climate change. We’re proud to be working with these purpose-driven organizations.

Our partners: UNEP, The Green Bond Principles, PRI, Climate Bonds, BRC, PCAF, Institute for Sustainable Finance and Center for Climate Aligned Finance

Advancing Net-Zero Leadership In Our Own Operations

We are taking steps to reduce our own carbon footprint within our branches, offices and operations. Here are some of the ways we are transitioning our operations to net-zero.

Looking ahead, we are committed to the goals of:

70%

Reducing our greenhouse gas emissions by 70% by 2025(legal disclaimer)1

100%

Increasing our sourcing of electricity from renewable and non-emitting sources to 100% by 2025

Our progress so far:

  • In 2022, our emissions were 58% less than what they were in 2018, and 90% of our global electricity consumption came from renewable and non-emitting sources.
  • The renewable electricity generated by the wind and solar projects from our two Power Purchase Agreements are important contributors towards our goals as well as ongoing energy efficiency measures.
  • Annually, in addition to reducing our emissions, we purchase carbon offsets for the remaining emissions from our operations to support decarbonization technologies and projects.

Climate Strategy FAQs

Addressing climate change is one of the biggest and most complex undertakings in generations and will require coordinated action by many stakeholders including governments, regulators, businesses and individuals. At RBC, we believe that we can have the greatest impact by supporting our clients as they take steps to reduce their emissions and supporting initiatives that bring greener solutions to market.

Our climate strategy is laid out in the RBC Climate Blueprint. Some key takeaways can be found below:

The transition to net-zero is a multi-decade journey and will take time. Currently, there is simply not enough renewable energy supply available for use, so we still need a variety of forms of energy to power our economy and lives. There is a responsibility for government and businesses to take the necessary steps to get us there and ensure access to a low-carbon energy supply. We have been working with our clients to bring greener solutions to market and reduce emissions.

As a financial institution, we believe we can have the greatest impact by working with our clients, including those in the high-emitting, hard-to-abate sectors, as they take steps to reduce their emissions and supporting initiatives that bring greener solutions to market. Each year, we release a Climate Report, guided by the Task Force on Climate-Related Financial Disclosures (TCFD) which details the progress being made toward our climate goals.

We have committed to achieving net-zero emissions in our lending by 2050, aligned with the principles of the Paris Agreement, and are setting initial 2030 interim emission reduction targets (interim targets) in line with this commitment – details of which can be found in our Net Zero Report.(opens pdf in a new window)

We have also committed to providing $500 billion in sustainable finance by 2025 to support our clients’ environmental, social and governance (ESG) objectives. Between 2019 – 2022, we have provided approximately $282 billion towards this commitment. RBC’s approach to sustainable finance is discussed further in Question 4: ‘What is Sustainable Finance?’ More details about progress on meeting our sustainable finance commitment are published annually in our Climate Report (TCFD Report)(opens pdf in a new window) and our ESG Performance Report.

We are also committed to reducing emissions from our own operations. In March 2022, we signed our second Power Purchase Agreement, which helps drive towards this goal.

Another important climate initiative is RBC Tech for Nature. Launched in 2019, RBC Tech for Nature supports new ideas, technologies, and partnerships that address complex environmental challenges. Further details can be found in our Climate Report (TCFD Report).(opens pdf in a new window)

We believe that addressing climate change requires collective ambition from many stakeholders including government, business and individuals. Recognizing the need for collective action, we joined the Net-Zero Banking Alliance (NZBA) in October 2021, which is a global initiative convened by the United Nations (UN) to drive collective action on climate by the world's largest banks, create common standards and methodologies, and a consistent disclosure practice.

The transition to net-zero is complex and will take time. New sources of energy and new ways of powering businesses and communities are coming. We are turning the dial in the right direction, but we can’t flip a switch – we still need all forms of energy to power the way we live. We believe we have a comprehensive enterprise-wide climate strategy balanced with the right programs and commitments to help accelerate change.

Please refer to our glossary of terms found here(opens in a new window)

Sustainable finance solutions provide clients with products and services that take into account environmental, social and governance (ESG) factors. Our $500 billion by 2025 sustainable finance commitment is designed to help finance the transition to net-zero, strengthen a diverse and inclusive culture, build stronger communities, and enable economic inclusion.

Sustainable finance is an important part of how RBC is supporting the transition to net-zero. Among other initiatives, it helps organizations that are striving to reduce the emissions profile of their business or their clients, to access the financing or advice they need.

In October 2022, we released the RBC Sustainable Finance Framework, which explains the criteria for determining whether a transaction is eligible towards RBC’s $500 billion commitment. Under the Framework, RBC considers eligible instruments such as green loans and bonds and sustainability-linked loans and bonds, as well as green activities that support key environmental objectives, including but not limited to, climate change mitigation, climate change adaptation, biodiversity and ecosystem protection, sustainable use and protection of water and marine resources, pollution prevention and control, and circular economy.

For a full list of eligible green activities, and to learn more about how sustainable finance is supporting the net-zero transition, take a look at the RBC Sustainable Finance Framework.(opens pdf in a new window)

We are doing our part to drive greenhouse gas (GHG) emissions reductions that will help our society and economy transition to net-zero and we are focusing our attention where we will have the greatest impact – working with our clients as they take steps to reduce their emissions and supporting initiatives that bring greener solutions to market.

We are committed to achieving net-zero in our lending by 2050, and establishing interim emissions reduction targets will help us drive action and measure progress. As part of this commitment, we believe that it is important for us to measure our progress towards our climate objectives and to communicate this progress. Our Net-Zero Report(opens pdf in a new window) and Sustainable Finance Framework(opens in a new window), released in October 2022 do just that, and they lay the foundation for how we plan to achieve our net-zero lending commitment and our commitment to provide $500 billion in sustainable finance.

Our initial 2030 interim emissions reduction targets are informed by science, government policy commitments, as well as input from our frontline business teams. We believe that they reflect a thoughtful and deliberate approach on climate action. We plan on reviewing our interim targets as appropriate, at minimum every five years, to support their alignment with evolving economic realities, market practice and current climate science.

Our annual Climate Report summarizes progress to date in advancing how we manage climate-related risks and opportunities in line with our enterprise climate strategy, the RBC Climate Blueprint, and in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The Net-Zero Banking Alliance is a global, industry-led initiative to accelerate and support efforts to address climate change, convened by the UN.

Reducing GHG emissions is a critical issue, which will require collective action across public and private sectors. Financial institutions have an important role to play, including in the measurement, disclosure and reduction of the emissions associated with their lending.

RBC joined the NZBA as we believe global banking collaboration is key to driving collective and credible progress toward achieving net-zero emissions by 2050.

The NZBA will also provide a structured forum to support banks' and our clients' transition to net-zero in an orderly and inclusive way that accounts for the resource-based and export-oriented economies like Canada's.

More information about the NZBA can be found here(Our Commitment to the Net-Zero Banking Alliance - opens in a new window).

RBC is committed to working alongside governments, businesses and individuals to accelerate progress towards net-zero. As a financial institution, we believe that we can have the greatest impact by working with our clients, including those in the high-emitting, hard-to-abate sectors, as they take steps to reduce their emissions.

RBC’s plan to achieve net-zero in our lending aims to balance the needs of people and the planet. That is why RBC has set initial 2030 interim emissions reduction targets that are informed by science and reflect a measured and deliberate approach to climate action. In October 2022, RBC released its Net-Zero Report(opens pdf in a new window), which outlines the bank’s initial 2030 interim emissions reduction targets for lending in three key sectors – oil & gas, power generation, and automotive. These targets reinforce RBC’s ambition to play a role in financing the climate transition.

A balanced approach is especially critical for the energy transition. The transition will not happen overnight – without risking significant harm and disruption to lives and livelihoods everywhere. The reality is that society still needs a variety of forms of energy, including fossil fuels, to power the economy and people’s lives. That is why RBC believes it is essential to drive reductions in emissions to bring about an orderly and inclusive transition to net-zero. All of society will need to play a role in this transition including governments, regulators, businesses, and individuals.

We believe that the journey to net-zero emissions must be orderly and inclusive and balance society’s current energy needs with our vision of a more sustainable future. An orderly and inclusive transition also means that the communities that depend on the jobs created by the energy sector aren’t left behind. Investments in technology, communities, and people are needed to support this transition, and RBC intends to play our part. Technological advances in various high-emitting industries have already made energy production cleaner, and these are examples of the innovations our finance solutions can support.

RBC strives to be a leading financial institution in Canada working with Indigenous people and communities towards reconciliation, supporting economic development, community endeavours and educational opportunities. We respect the inherent right of Indigenous peoples to self-determination in accordance with international and domestic law.

We are actively engaging with Indigenous leaders and communities to discuss constructive ideas that reinforce reconciliation and support community healing and prosperity.

RBC has adopted the Equator Principles, a well-established voluntary international framework for financial institutions to identify, assess, manage and mitigate environmental and social risks in project finance and cover aspects of human rights, including the rights of Indigenous peoples.

Before financing a proposed project, RBC considers whether the Equator Principles have been met, and that environmental and social issues associated with the project have been adequately considered and minimized, mitigated, or offset.

We also evaluate proposed projects against international standards, our own enhanced due diligence frameworks and our Human Rights Position Statement(opens pdf in a new window).