Today, ahead of the United Nations Climate Change Conference (COP26) in Glasgow, six of Canada's largest banks – BMO, CIBC, National Bank of Canada, RBC, Scotiabank, and TD – together announced their pledge to join the Net-Zero Banking Alliance (NZBA) as part of a global, industry-led initiative to accelerate and support efforts to address climate change.
Joining NZBA reinforces the six banks' commitment to play a significant role in financing the climate transition and support collaborative approaches between the public and private sectors to reach the goal of net-zero by 2050. It also represents the advancement of the banks' shared goals to combat climate change in an inclusive way. Considerable attention will be dedicated to helping clients develop and implement their own transitions to a low-carbon economy, recognizing the complex and interdependent efforts of many stakeholders across the economy.
This approach is also consistent with the six banks' participation in the Federal government's Sustainable Finance Action Council, focused on establishing a well-functioning sustainable finance market that will give investors confidence in Canada, protect the resilience of the Canadian financial sector in the years ahead, and ensure Canada's broader long-term economic strength.
Aligned with The Paris Agreement, BMO, CIBC, National Bank of Canada, RBC, Scotiabank, and TD have over the last several years, undertaken significant efforts to reduce overall climate change impact through operations and financing companies' and organizations' sustainability efforts. Each institution has taken steps to partner with clients to reduce carbon emissions, invest in renewable energy projects and support sustainable financing.
"A transformation of the financial system to ensure a prosperous and just transition to net-zero is needed," said Mark Carney, the UN Special Envoy, and Chair of the Glasgow Financial Alliance for Net Zero. "Canadian banks, by joining NZBA and GFANZ, are bringing their deep expertise and strong balance sheets to drive solutions for the sustainable economy that Canada and the world needs."