A BloombergNEF (1) report published in December 2023 revealed that, while the country’s five big banks are among the largest energy sector lenders (2) worldwide, they rank among the worst of the top 100 when it comes to the portion of this financing dedicated to low-carbon energy sources. National Bank stands out in this area according to this report, with $1.10 in low-carbon financing for every dollar invested in fossil fuels. Adopting an advisory vote on environmental policies would allow shareholders to signal to the members of the Board of Directors and to the Bank’s senior management that they support the Bank’s orientations with regard to financing for low-carbon energy sources and emphasize the importance they place on environmentally responsible behaviour. Shareholders play a key role in the constructive dialogue between boards of directors and stakeholders. As such, the advisory vote on environmental policies is not intended to impose specific objectives or compromise the competitiveness of the Canadian banking sector, but to: • Strengthen corporate governance and transparency by ensuring the environmental strategy is regularly reviewed by shareholders; • Align the Bank’s practices with the growing expectations of international institutional investors who consider environmental and climate issues to be major financial risks; • Reduce reputational risks by demonstrating that the Bank is sensitive to environmental concerns without compromising its contribution to the Canadian economy; • Promote a gradual transition, tailored to the North American situation, that avoids radical or confrontational approaches. It’s important to remember that this vote would: • Be advisory and non-binding, thereby respecting the Board of Directors’ corporate governance; • Provide an opportunity to express measured support, without questioning fundamental strategic choices or the independence of the Board; • Send a signal of sound corporate governance, demonstrating the Bank’s commitment to listening to its shareholders without adopting a political or ideological stance. Support for this proposal has increased in recent years, but remains below the significant influence threshold. By reaching a threshold of 30% or more, shareholders would: • Send a clear but reasonable signal in favour of stronger environmental governance; • Avoid the alternative of regulatory pressure or a more intrusive policy in the future; • Help preserve the Bank’s credibility and social acceptability, including in international markets.(1) https://ici.radio-canada.ca/nouvelle/2035114/ges-banques-canadiennes-mal-classees (2) https://www.bankingonclimatechaos.org/?bank=JPMorgan%20Chase#fulldata-panel