All major Canadian banks have left the NZBA, with RBC citing its own tools to implement its climate strategy
Royal Bank of Canada (RBC) has left the Net-Zero Banking Alliance (NZBA), joining Toronto-Dominion Bank (TD) and Bank of Montreal (BMO) in withdrawing from the banking industry’s largest climate-finance group, as reported by BNN Bloomberg.
With RBC’s departure, announced in a statement on Friday, all major Canadian banks have now exited NZBA.
Bank of Nova Scotia, TD, BMO, Canadian Imperial Bank of Commerce (CIBC), and National Bank of Canada had already disclosed their exits earlier this month.
RBC stated that leaving NZBA does not change its approach to supporting clients in addressing climate change and transitioning to a low-carbon economy.
The bank added, “we now have the tools and capabilities to help implement our climate strategy and measure our performance.”
All the departing banks have maintained that their decision does not affect their commitment to decarbonization.
RBC Chief Executive Officer Dave McKay reiterated in January that withdrawing from NZBA “doesn’t lead to a non-commitment to net zero or climate change.”
The exits from NZBA in Canada mirror a similar trend in the US. Since December, major US financial institutions, including Goldman Sachs Group Inc., Morgan Stanley, Wells Fargo & Co., Bank of America Corp., Citigroup Inc., and JPMorgan Chase & Co., have also withdrawn from the alliance.
The departures come amid policy shifts in the US, where President Donald Trump has taken steps to reverse Biden-era climate policies and prioritize fossil-fuel production.
His return has further emboldened the Republican Party’s criticism of climate finance initiatives.
According to its website, NZBA has over 135 member banks across more than 40 countries. Signatories commit to aligning their financed emissions with net-zero targets by 2050, setting 2030 interim goals, and documenting progress.
