Canadian competition watchdog has launched an investigation into the Royal Bank of Canada (RBC) over its commitments regarding climate action.
Citing a letter from the Competition Bureau of Canada, Yahoo Finance Canada said the bank is under the regulator’s lens over “certain marketing practices”.
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The letter, dated 29 September 2022, is addressed to lawyers at Ecojustice, a non-profit environmental law organisation.
“The inquiry seeks to determine the facts relating to allegations that RBC has contravened the Act by making false or misleading environmental representations,” the publication quoted the letter.
Competition Bureau spokesperson Marie-Christine Vézina also confirmed that an investigation was launched into RBC’s allegedly deceptive marketing at the request of six Canadian residents, the report said.
Responding to the development, RBC said it “strongly disagrees” with the allegations and referred to them as “unfounded and not in line with Canada’s climate plan.”
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By GlobalDataIn an emailed statement to Yahoo Finance Canada, RBC senior director for climate communication Andrew Block said: “RBC has been engaging with our clients, partners and other stakeholders, working towards solutions to help Canada meet its net-zero commitments.
“It is critically important that we get the transition to net-zero right in order to address climate change, and we have taken a measured, thoughtful, and deliberate approach in our climate strategy.”
RBC’s operations in the oil and gas sector are not aligned with its stated climate strategy, the publication said citing Ecojustice lawyer Matt Hulse.
“RBC has claimed that it will achieve net zero in its lending and investments by 2050 and will come out with targets and plans over the next two years. This commitment is undermined by RBC’s continued financing of fossil fuels and its failure to account for the bulk of emissions from the fossil fuel companies that it finances,” Hulse said in an emailed statement to the news outlet.
In early 2021, RBC announced plans to achieve net-zero emissions in its lending by 2050 along with an increased commitment to mobilise C$500bn in sustainable finance by 2025.
