Overview

• Royal Bank of Canada has dropped its $500-billion sustainable finance commitment, originally set for 2025, citing amendments to Canada’s Competition Act targeting greenwashing.
• The bank’s internal review revealed flaws in its methodology for measuring cumulative sustainable finance activities, prompting it to retire the target and reassess its approach.
• RBC has ceased public disclosure of certain sustainability metrics but will continue monitoring and reporting internally to track progress.
• The move follows RBC and other major Canadian banks withdrawing from the UN-sponsored Net-Zero Banking Alliance earlier this year.
• Advocacy groups are urging Prime Minister Mark Carney’s government to implement mandatory climate-related disclosure rules to ensure accountability in the financial sector.