Banks in Canada are leading the global business community on how to successfully transition to a lower-carbon economy
In the spring of 2022, the Canadian government announced a climate change program for reducing greenhouse gasses 40% by 2030 and reaching net-zero emissions by 2050. Now, the Net-Zero Advisory Body has released the annual report on its progress. “As climate change’s impacts become more evident, governments and businesses worldwide are scrambling to make a difference,” finds Forbes’ analysis on those making the greatest strides. “With most major companies signing up to achieve net-zero emissions, investors [and customers] don’t have to do much to be part of the revolution.” But some companies and countries are moving faster than others.
Known for leading the charge in global environmental, sustainability and governance (ESG) standards, Canadian banks have embraced the country’s net-zero pledge. “Canada’s banks recognize the urgency of addressing climate change and understand that the financial sector is central to securing the transition to a low-carbon economy, mitigating the impacts of humans on the environment and ensuring the continued resilience of our country’s financial system,” says the Canadian Bankers Association. “To that end, banks in Canada have pledged to implement climate action plans that set specific targets to meet the demands of this global challenge.”
Efforts Canada’s banks are making to oversee the financial services sector in transitioning to lower-carbon standards include: financial commitments supporting environmental and sustainable finance; financing and investing in lower-carbon businesses; bank-led programs to limit the carbon footprint of their own operations; issuing green bonds to finance environmental projects; and more. While most Canadian banks are making good progress, Bank of Montreal (BMO) stands tall among its peers for strong and steady support of the environment. The bank was just named the most sustainable bank in North America for the fourth consecutive year and ranks eighth in the world for clean and green revenue.
For more information on how Canadian financial institutions lead on environmental sustainability, stay tuned to Believe in Banking’s continuing coverage of top trends and topics. For the banking industry’s best practices and perspectives, visit Adrenaline’s Insights. And if you’re a banking leader looking for brand-to-branch strategies customized for your institution, contact our banking and credit union experts via email at info@adrenalinex.com.