Laurentian Bank of Canada | Advisory vote on environmental policy at Laurentian Bank of Canada

Status
Withdrawn
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
LB:CN
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that the Bank adopt an annual advisory vote policy with regard to its objectives and its environmental and climate change action plan.
Supporting statement
During the 2018 annual meetings of the shareholders of banks, we submitted a shareholder proposal inviting the banks to publish, on an annual basis, a short report that would allow shareholders to assess their exposure to climate risk and their contribution to the transition to a low-carbon economy. Reading your sustainable development and social responsibility reports testified to the actions taken or envisioned to enable a clean economy in Canada over the coming years. A report published in December 2020 by the Rainforest Action Network led us to wonder about the relevance of the proposed objectives and action plans. According to this report, RBC, TD and Scotia were among the top ten companies in the world with respect to fossil fuel financing, providing more than $89 billion to oil companies in 2019. BMO and CIBC ranked 16th and 21st, with a total of nearly $42 billion. This financing and its sustained level over the past few years are incompatible with the desired behaviour in response to the alarming findings presented in by the Intergovernmental Panel on Climate Change (IPCC) in its June 2021 draft report. In this report - which is much more alarmist than the 2014 final report --- the IPCC estimates that, whatever the rate at which greenhouse gas emissions may be, the devastating consequences of global warming on nature and humanity will accelerate and become painfully palpable long before 2050: “Life on Earth can recover from major climate change by moving towards new species and creating new ecosystems. Humanity cannot,” the panel notes.  We're adding to this data the concerns of Tiff Macklem, Governor of the Bank of Canada, who, in a speech in November 2020 called for faster action in Canada to tackle climate change and avoid any economic ripple effects on households and businesses. In his speech, the Governor invited financial institutions to improve their assessments of the risks they are contronted in in this area. For all these reasons, it is proposed that the Bank agree to adopt an advisory voting policy with regard to its objectives and action plan on environmental and climate-related matters, in order to see if they agree with the expectations of shareholder and stakeholder.

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