Both RBC and Scotiabank have announced plans to pull back on their climate goals, dropping their previously set 2030 targets for reducing emissions. There were many reasons cited for the change in direction including government policy, geopolitical developments, and energy demand.
Specific to RBC, the bank established goals to reduce funded emissions for the oil and gas, power generation, and automotive sectors in 2022, with hopes of working toward net-zero financed emissions by 2050. The bank also noted that its interim targets cannot be reasonably achieved. It has reaffirmed its long-term ambition previously set for 2050 but will do so only with supportive policy and technological advancements.
In its sustainability report, Scotiabank’s actions on climate change haven’t evolved with expectations which has led to the withdrawal of its interim and long-term targets for financed emissions, citing factors such as the U.S. curbing major parts of the Inflation Reduction Act, the elimination of the carbon tax in Canada, and the lack of implementation of an oil and gas emissions cap, as well as the rising demands on energy from AI and advanced technologies.
