The most recent Banking on Climate Chaos1 report reveals that the
five largest banks in Canada have provided nearly US$104 billion in
financing to the fossil fuel industry in 2023. The breakdown is as
follows: Royal Bank: US$28.2 billion; Bank of Nova Scotia
US$29.3 billion; Toronto-Dominion Bank US$20.3 billion, Bank of
Montreal, US$15.8 billion and Canadian Imperial Bank of
Commerce, US$15.5 billion.
According to Alex Walker of the group Environmental Defense, by
continuing to direct billions in fossil fuels, Canadian banks risk
exposure to stranded assets. A stranded asset is an investment that
loses its value before the end of its useful life due to the impact of
changes in society2.
Add to this dismal record that, according to a Bloomberg NEF report
published in December 2023, the country’s banks rank among the
worst of the 100 worst banks when it comes to the share of
funding allocated to low-carbon energy sources3.
In addition to the reputational risks that come with such
investments, Canadian banks are also exposing their shareholders
to the possibility of significant stranded asset risks, which could
lead to a sharp decline in the value of their shares.
It is therefore appropriate for shareholders to be able to express
their views on the environmental guidelines taken by the Bank.
This proposal has garnered significant support in the past, receiving
15.26% of votes in favour, and as such, we are retabling it for
consideration