Top Investors Urge Canadian Banks to Stay Committed to Climate Targets – Don’t Miss This Crucial Call to Action!

Disappointment and Calls for Action: Canadian Asset Owners Urge Financial Institutions to Reconsider Climate Commitments

A group of Canadian asset owners, representing a substantial $53 billion in holdings, have voiced their disappointment over Canada’s financial institutions pulling out of net-zero emissions initiatives. The 34 signatories, which include prominent names such as the Trottier Family Foundation, the Canada Post Pension Plan, United Church of Canada, and the University of Victoria, are calling for a recommitment to climate goals.

Here are the key points raised by the asset owners and the urgency for Canadian financial institutions to reevaluate their decisions:

• Concerns Over Departures: The signatories express concerns over the withdrawal of all of Canada’s six largest banks from the UN-backed Net Zero Banking Alliance, following similar moves by major U.S. banks prior to Donald Trump’s inauguration.
• Baseline Accountability: Membership in initiatives like the Net Zero Banking Alliance and the Net Zero Asset Managers Initiative is seen by the asset owners as a crucial step towards ensuring accountability and transparency through consistent reporting.
• Expectations for 2050 Commitments: The signatories expect financial institutions to uphold their net-zero by 2050 commitments and urge them to continue setting ambitious targets for 2030. They also emphasize the importance of standardized annual progress reports for transparency.
• Independence Claims: Canadian banks that exited the alliance, such as RBC, TD, BMO, CIBC, Scotiabank, and National Bank, argued that they possess the internal capabilities to fulfill their climate commitments independently.

In light of these developments, the asset owners emphasize the critical role that financial institutions play in combating climate change. They urge Canadian banks to reconsider their actions and renew their dedication to sustainability efforts. It is crucial for financial institutions to align with global climate initiatives and ensure accountability for their actions.

In conclusion, the signatories, backed by significant financial holdings, call upon Canadian financial institutions to prioritize their environmental responsibilities and stay committed to achieving net-zero emissions goals. The time for action is now, and it is imperative for banks to demonstrate leadership in the fight against climate change. Let us not falter in our efforts to build a sustainable future for generations to come.