Laurentian Bank of Canada | Advisory Vote on Environmental Policies at Laurentian Bank of Canada

Status
Filed
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
LB:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that the Bank adopts an annual advisory vote policy regarding its environmental and climate objectives and plans (say on climate).
Supporting statement
According to the latest Banking on Climate Chaos report8
, the financing committed to the fossil fuel
industry by the five largest banks in the country reached nearly USD 104 billion in 2023. This financing is
broken down as follows: Royal Bank: USD 28.2 billion; Bank of Nova Scotia: USD 29.3 billion; TorontoDominion Bank: USD 20.3 billion; Bank of Montreal: USD 15.8 billion; and Canadian Imperial Bank of
Commerce: USD 15.5 billion.
According to Alex Walker from Environmental Defense, by continuing to inject billions into fossil fuels,
Canadian banks are exposing themselves to stranded asset risks. A “stranded asset” is an investment that
loses its value before the end of its useful life due to societal changes9
.
Adding to this bleak picture, a Bloomberg NEF report published in December 2023 ranks the country’s
banks among the worst of the 100 worst banks in terms of financing mix dedicated to low-carbon energy
sources
10
.
Besides the reputational risk to Canadian banks, they also expose their shareholders to the possibility of
significant “stranded assets” and a substantial decrease in the value of their shares.
Therefore, it is appropriate for shareholders to express their opinions on the Bank’s environmental
directions.

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