The bank was under fire over its climate and indigenous rights record
The Royal Bank of Canada (RBC) was met with several questions regarding its climate and Indigenous rights record during its annual general meeting, as reported in an article by BNN Bloomberg.
During the general meeting, the bank was urged to utilize its position when it comes to further implement energy transition as Couchiching First Nation’s Tara Houska had asked RBC Chief Executive Officer Dave McKay regarding the bank’s commitment towards moving away from the usage of fossil fuels.
McKay acknowledged the need for urgent change when it comes to the bank’s energy strategy as climate volatility could be seen, further pressing the need to move towards a net-zero future. However, he also defended the previous decisions made by the bank as well as its major policy rollouts.
The bank had previously released an outline about its plans in reducing their emissions by working with clients as well as its commitment to triple the funding for renewable energy and measures that can speed up the transition.
RBC will also be disclosing the comparison between fossil fuel funding and clean energy funding in its upcoming climate report as it received pressure from its shareholders.
Despite the bank’s moves, it was still met with criticism as many spoke up during the meeting about how their actions were lacking as it was still lending billions to oil and gas companies as well as projects that were harmful to the environment.
There were also questions that rose regarding on how the bank made sure that there was consent from Indigenous people regarding the projects that it was funding.
McKay pointed out RBC’s detailed risk assessment method which followed the guidelines of the Equator principles, which was a global baseline for the industry. He said that it allowed the bank to properly decide which projects it should be supporting.
Union of British Columbia Indian Chiefs President Grand Chief Steward Philip expressed his appreciation for the effort RBC was making but pointed out that they were not enough to meet with the United Nation’s Declaration on the Rights of Indigenous Peoples.
“As long as RBC continues to fund controversial projects that don't enjoy free prior and informed consent, we're going to have troubles, cost overruns, TMX, Coastal GasLink, billions and billions of dollars, litigation, fees and chaos and disruption,” said Philip.
As a response, McKay stated that the RBC usually took the economic participation of communities into account in its assessments, noting that the Coastal GasLink, which had been faced with controversy regarding its impact to Indigenous people, had seen buy-ins from First Nations. However, he assured that the bank will continue to make changes in its framework as time goes by.
