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.