Royal Bank of Canada | Become a benefit company at Royal Bank of Canada

Status
5.51% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
RY:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Corporate purpose
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
It is proposed that the bank analyze the possibility of becoming a benefit company and report thereon to the shareholders at the next annual meeting. 
Supporting statement
Since 2002, banks have been required to report on their contributions to society, not only their economic performance but their social and environmental performance as well. Twenty years later, banks must deepen their commitment towards an inclusive, ecological and sustainable prosperity by analyzing the possibility of becoming a benefit company, as the Business Development Bank of Canada (BDC) has already done, by adjusting its by-laws. “Introduced in the State of Maryland in 2010, and now adopted in 36 U.S. states,” in British Columbia and provided for in Bill 7973, benefit companies are characterized by the following elements, among others: (1) The purpose of the Company shall include […] the creation of a positive impact on society and the environment, taken as a whole, from the business and operations of the Company. (2) The Directors shall, when deciding what is in the best interests of the corporation, consider the short-term and the long-term interests of the corporation and the interests of the corporation’s shareholders, employees, suppliers, creditors and consumers, as well as the government, the environment, and the community and society in which the corporation operates (the “Stakeholders”), to inform their decisions. (3) In discharging his or her duties, and in determining what is in the best interests of the corporation, each director shall consider all of the Stakeholders (defined above) but shall not be required to regard the interests of any particular Stakeholder as determinative. 

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