According to the latest Banking on Climate Chaos report,(1) financing provided to the fossil fuel industry by
the country’s five largest banks reached nearly US$104 billion in 2023. This financing can be broken down as
follows: Royal Bank, US$28.2 billion; Bank of Nova Scotia, US$29.3 billion; Toronto-Dominion Bank,
US$20.3 billion; Bank of Montreal, US$15.8 billion; and Canadian Imperial Bank of Commerce,
US$15.5 billion.
According to Alex Walker of Environmental Defense, by continuing to “inject billions into fossil fuels,
Canadian banks are exposing themselves to stranded asset risks” [TRANSLATION]. A “stranded asset” is an
investment that loses its value before the end of its useful life due to the impact of societal changes.(2)
To add to this bleak record, according to a Bloomberg NEF report published in December 2023, the country’s
banks are ranked among the worst of the 100 worst banks with regard to the share of financing allocated to
low-carbon energy sources.(3)
In addition to the reputational risk to which Canadian banks are exposed, they also expose their shareholders
to the possibility of significant “stranded assets” and a significant drop in the value of their shares.
It is therefore appropriate that shareholders be able to express their views on the environmental direction
taken by the Bank.
Given it has received a high percentage (19.08%) of votes in its favor in the past, we are resubmitting this proposal.