Royal Bank of Canada | Advisory vote on environmental policies at Royal Bank of Canada

Status
AGM passed
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
RY: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 adopt an annual advisory voting policy regarding its environmental and climate change objectives and
action plan (say on climate).
Supporting statement
According to the latest Banking on Climate Chaos1
report, financing provided to the fossil fuel industry by the country’s five largest banks
reached nearly US$104 billion 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 Environmental Defense, by continuing to “pump 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 the
impact of changes in society.2
Add to this dismal record that, according to a BloombergNEF 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 financing devoted to low-carbon energy sources.3
In addition to the reputational risk to which Canadian banks are exposed, they also expose their shareholders to the possibility of large
“stranded assets” and a significant drop in the value of their shares.
It is therefore appropriate that shareholders should be able to express their opinions on the Bank’s environmental policy.
Given that this proposal has received a high percentage (15.10%) of votes in favour in the past, we are tabling it again.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
VidaCaixaFor
Wesleyan Assurance SocietyFor
AXA Investment ManagersForFor equity holdings managed on behalf of clients who have consented to the application of the manager's internal proxy voting policy, granted AXA IM the discretion to vote on their behalf, and where the application of this policy complies with applicable laws and regulations, AXA IM will vote in favor of this shareholder proposal. This decision is based on our concerns regarding the company's climate strategy.

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