Canadian Banks acknowledge challenges in green financing emission reductions

In a significant shift, some of Canada’s largest banks have admitted that their investments in green financing may not lead directly to a decrease in emissions growth, as revealed by Reuters. This admission follows years of pressure from activists for greater transparency regarding the banks’ climate objectives.

Despite being major financiers of fossil fuels globally, these institutions have faced criticism for their engagement in sustainability-linked financing (SLF), which some argue is more about optics than actual environmental progress.