Climate

Pure play low-carbon energy refers to entities that engage primarily in low-carbon energy activities. Low-carbon energy activities include the construction, development, operation, acquisition, maintenance and connection of: renewable energy sources (e.g., solar, wind, tidal, geothermal, waste biomass and renewable biofuels and hydroelectricity), other low-carbon energy sources (e.g., nuclear and green hydrogen), as well as electricity transmission and distribution systems, energy storage (e.g., battery technology) and efficiency improvements (e.g., smart grids). Low-carbon energy activities are identified by RBC’s industry classification codes, which are allocated using revenue or another available proxy, such as energy generation source. For details refer to Appendix 5: Methodology and data challenges for relevant metrics in our 2024 Sustainability Report.

The Energy Supply Ratio (ESR) is a measure of RBC’s energy sector financing, capturing lending, facilitation, and renewable energy tax credit (RETC) investments for low-carbon energy, decarbonization and high-carbon energy in a single metric. For details on the calculation of ESR, refer to RBC Energy Supply Ratio Methodology.

Green buildings meet one of the following criteria: 1) Construction, development, operation, acquisition and maintenance of residential or commercial buildings (including homes) that either: have received, or expect to receive, certification according to third-party verified building standards; or achieved, based on a third-party assessment, GHG emissions performance in the top 15% of their city, province/state or country; 2) Refurbishments or retrofits of residential or commercial buildings that help reduce GHG emissions, including projects or activities that achieve, or are expected to achieve, based on a third-party assessment, energy savings of at least 30% over the baseline energy consumption.

Retrofitting refers to upgrades to the overall energy efficiency of a building. This may involve upgrading a building’s energy-consuming systems (e.g. HVAC, lighting), or replacing windows and doors, or adding insulation.

In January 2025, The RBC Climate Action Institute released Climate Action 2025: A year for rewiring, its second annual progress report on Canada’s net-zero journey.

All amounts shown in Canadian dollars, unless otherwise stated. U.S. dollars are converted using the spot exchange rate as at October 31, 2024 (C$1.00 = US$0.718).

Climate solutions refers to technology, products, services or actions that help mitigate or adapt to the impacts of climate change. Solutions include those that support GHG emissions reductions and/or the low-carbon transition, but also those that support outcomes linked to society’s resilience to the physical impacts of climate change (e.g., adaptation of infrastructure, nature and/or biodiversity gains).

While our approach may evolve over time under this category of investment, we intend to prioritize allocating capital toward solutions that will lead to greenhouse gas (GHG) emissions reductions in Canada and globally. Our investment commitments eligible to count towards this goal may also include support for climate solutions with outcomes linked to biodiversity, nature and/or adaptation, among others. We aspire to achieve this goal by 2030; however, market conditions, among other factors – many of which are beyond our control and the effects of which can be difficult to predict – could impact our ability to invest capital to advance climate solutions over this timeframe. For details refer to Appendix 8: Caution regarding forward-looking statements and Appendix 9: Important notice regarding this report in our 2024 Sustainable Report. For purposes of tracking progress towards this goal, our eligible investment commitments made from 2022 onward are included in the Engage with others in advancing climate solutions section in Climate in our 2024 Sustainability Report.