Canadian asset owners representing about $53 billion in holdings say they’re disappointed that Canada’s financial institutions have left net-zero emissions initiatives and are calling for them to follow through on climate commitments.
The 34 signatories to an open letter include the Trottier Family Foundation, the Canada Post Pension Plan, United Church of Canada and the University of Victoria.
Together, they’re raising concerns about departures from the UN-backed Net Zero Banking Alliance, which all of Canada’s six biggest banks quit in January to follow departures by the biggest U.S. banks ahead of Donald Trump’s inauguration.
The asset owners say membership in the banking alliance, as well as the Net Zero Asset Managers Initiative, signals a baseline level of accountability as well as consistent reporting to provide transparency and comparability.
Signatories say they expect banks to follow through on net zero by 2050 commitments. They also call on banks to continue setting ‘robust’ targets for 2030 and to provide standardized annual progress reports.
Canadian banks that left the alliance including RBC, TD, BMO, CIBC, Scotiabank and National Bank said they have the internal capabilities to follow through on their climate commitments independently.
In an interview with Investment Executive, Adam Scott, executive director of the advocacy group Shift, said he believes the banks remain committed to addressing climate change. “The alliance itself is what collapsed,” he said.
Scott described the Net Zero Banking Alliance and The Glasgow Financial Alliance for Net Zero (GFANZ), a similar group formed in April 2021, as “both pretty compromised,” and that neither group held members to a firm standard.
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