GHG Emissions, Finance  -  April 8, 2022

Canada’s Banks Commit to 2050 Goals

Banks in Canada have pledged to implement climate action plans that set specific targets to meet the country’s goal of a net zero economy by 2050, the Canadian Bankers Association said in a statement.

Among the climate action plans being set to meet these targets are financial commitments in the hundreds of billions in support of environmental and sustainable finance activities, an enhanced focus on financing and investing in lower-carbon businesses, and working with existing business customers in higher-carbon sectors to finance their transition efforts.

Several banks are working on implementing the climate-related disclosures developed by the Task Force on Climate-Related Financial Disclosures, while bank-led programs and strategies to limit the carbon footprint of their own operations through concrete actions aimed at reducing GHG emissions are being created. 

Green bonds will be issued to help finance new and existing projects that mitigate the risks and effects of climate change. New metrics are being developed to link environmental, social and governance (ESG) factors to bank group performance and executive pay.

Six of Canada’s largest banks have joined the Net‑Zero Banking Alliance (NZBA), a global initiative of banks worldwide committed to aligning their lending and investment portfolios with net-zero emissions by 2050. Several banks have also joined RMI’s Centre for Climate-Aligned Finance and the Partnership for Carbon Accounting Financials, a global partnership of financial institutions.