RBC Withdraws from UN-Backed Net-Zero Banking Alliance

January 31, 2025 TruthUSA

RBC has decided to withdraw from the UN-backed Net-Zero Banking Alliance, leaving Canada’s Big Six banks unrepresented in the group.

As the largest bank in Canada, RBC confirmed its departure on Friday, stating that it possesses the necessary tools and capabilities to execute its climate strategy and assess its performance.

This move by RBC comes shortly after Bloomberg New Energy Finance ranked the bank as having the worst ratio of clean energy to fossil fuel funding among major global banks.

The decision to exit the alliance, which aims to expedite climate action in financial institutions, follows the departure of other major Canadian banks around the time of U.S. President Donald Trump’s inauguration on Jan. 20.

Shortly after the six largest U.S. banks withdrew from the alliance leading up to Trump’s presidency, Canadian banks followed suit.

Financial institutions have been scaling back their involvement in various climate alliances and questioning the incorporation of environmental risks into their business operations amidst ongoing criticism from U.S. Republicans.