SUPPORTING STATEMENT: RBC faces considerable scrutiny for its role in funding companies whose projects and operations have failed to obtain free, prior and
informed (FPIC) consent from Indigenous communities. This includes Santos’ Barossa gas project in Australia1
; the Dakota Access
Pipeline and Enbridge’s line 3 replacement project2 in the United States3; Glencore’s Cerrejon coal mine in Colombia4; and the Coastal
Gaslink5 and Trans Mountain6 pipelines in Canada.
Where violations of Indigenous rights occur, companies may face reputational damage, project disruptions and delays, cost overruns
and civil and criminal liability.7 These violations may also present legal, financial, regulatory, and reputational business risks to the bank
and its shareholders.
It is increasingly recognized that loss of nature and degradation of ecosystems poses a serious systemic risk for the global economy,8
and the recognition and protection of Indigenous Peoples’ rights is one of the most effective ways of protecting nature.9 RBC
acknowledges “that the national priorities of Net Zero and reconciliation with Indigenous Peoples are inextricably linked. In the same
spirit, we expect RBC’s reconciliation journey will increasingly intersect with our climate priorities.”10
At the 2023 RBC annual meeting of shareholders, 27% of shareholders voted in favour of a resolution calling on the bank to amend its
human rights position statement and to inform itself as to whether clients have operationalized FPIC. At this meeting, Indigenous water
protectors, hereditary leaders and elders were barred from the main meeting room and forced to attend the meeting from a separate
reserve room. Many had traveled to express concerns with the Coastal Gaslink project, which failed to obtain FPIC, but were prevented
from meaningful participation at the meeting. RBC’s competitors and peers have made commitments towards operationalizing FPIC in some cases by invoking the UN Declaration on
the Rights of Indigenous Peoples (UN DRIP) as well as policy, education and risk management amendments and reviews11. RBC
acknowledges that:
“Meaningful engagement and consent is an ongoing exercise of building trust, sharing information, and acting to realign the terms
of the partnership based on evolving priorities. It also includes the possibility of saying no – some projects will not align with
community values, and they may have to be rerouted or in some cases abandoned.”12
Effective policies that protect Indigenous rights are critical to managing material risk and avoiding unnecessary delay, uncertainty, and
controversy. This report will help our company more effectively mitigate risk while giving RBC additional leverage to effect meaningful
and necessary progress on the path towards reconciliation.