NYC pension funds urge Royal Bank of Canada for transparency on clean energy funding
![NYC pension funds urge Royal Bank of Canada for transparency on clean energy funding](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/02/FvAzMS5aUAEfHTw.jpeg)
Two significant New York City pension funds pressured the Royal Bank of Canada (RBC) to disclose more information about its clean energy investments. The New York City Employees’ Retirement System and Teachers’ Retirement System of the City of New York have filed a shareholder resolution, urging RBC to fully report the ratio of its clean energy funding compared to its fossil fuel funding.
This move is part of broader efforts by the pension systems to advocate for more decisive action on climate change, with similar resolutions filed against other major US banks like Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley.
City comptroller Brad Lander criticized banks for failing to meet their net-zero commitments, emphasizing the need for transparency in their energy finance practices. BloombergNEF estimates show that in 2022, RBC allocated 37 cents to clean energy for every dollar invested in fossil fuels, while globally, banks averaged a ratio of 0.73:1.
The research group suggests that banks must increase clean energy funding to a 4:1 ratio by 2030 to limit global warming to 1.5 degrees Celsius.
RBC spokesperson Andrew Block reaffirmed the bank’s commitment to achieving its net-zero target, emphasizing collaboration with clients to reduce emissions. He expressed RBC’s willingness to engage with shareholders in pursuit of a successful transition to net zero.
Richard Brooks, climate finance director at Stand.earth, applauded New York City’s leadership in pushing banks to address climate issues, highlighting the urgency of redirecting financial support away from fossil fuels towards clean alternatives.
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