The shareholder advocacy group Investors for Paris Compliance has filed a resolution calling RBC to “update its criteria for sustainable finance.” It said sustainability-linked debt should exclude fossil-fuel activities and “projects facing significant opposition from Indigenous peoples.” (The Logic)
Talking point: The resolution was sparked by RBC’s role in issuing sustainability-linked loans and bonds to Enbridge while the oil and gas company expanded the controversial Line 3 pipeline. Investors for Paris Compliance—which aims to hold Canadian firms accountable for their net-zero commitments—said Enbridge could use the proceeds from the sustainable bonds “for whatever it wanted,” including activity that could increase emissions. The organization noted that the flexibility associated with sustainability-linked bonds means they can be used as a greenwashing tool. The shareholder group said it’s engaged Canada’s five largest banks on their climate work and has filed “a few” shareholder proposals. RBC shareholders will vote on the resolution at the bank’s annual meeting on April 7.