In 2021, RBC, CIBC and Scotiabank were all involved in sustainable finance deals with Enbridge Inc. as the company was expanding its oil export capacity, while BMO helped structure a sustainability-linked credit facility for Gibson Energy that has been increasing its oil exposure.
That same year, TD Bank served as a co-sustainability structuring agent for a $4-billion US sustainability-linked loan with Occidental Petroleum. The oil company announced in late 2023 that it was spending about $12 billion US to buy shale driller CrownRock.
Price said there should be a higher bar for what’s considered sustainable financing, and that companies working to expand oil and gas production shouldn’t qualify.
“It’s a pretty basic question, right?”
What Your Bank Really Does With Your Money | Climate Town
Get away from Big Banks for all sorts of reasons, including who they lend money to. Look to the local credit unions, where YOU are a shareholder.
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What Your Bank Really Does With Your Money | Climate Town
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Canada’s big five banks are potentially misleading investors with their use of terms like sustainable finance, according to a complaint to securities regulators by a climate advocacy group.
Banks are using the term “sustainable finance” too broadly and not backing up the claims with data, Investors for Paris Compliance said in its submission Tuesday to the Ontario Securities Commission and the Autorité des marchés financiers of Quebec.
Canadian banks, including RBC, TD, BMO, CIBC and Scotiabank, have all made pledges on sustainable finance that together total $2 trillion by 2030.
The financing can be anything from green bonds funding a specific renewable energy project to loans that go to general corporate use but are tied to sustainability-linked performance targets.
The commitments form a key part of their sustainability efforts, but banks are providing little to back up their effectiveness, said Matt Price, executive director of Investors for Paris Compliance.
Price said there should be a higher bar for what’s considered sustainable financing, and that companies working to expand oil and gas production shouldn’t qualify.
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