Canada’s major banks are increasingly the ‘lenders of last resort’ for oil and gas expansion around the world, and pulling Canada’s climate goals further out of reach
TORONTO, ON (Monday, May 13, 2024) – RBC continues to be Canada’s dirtiest bank, with Scotiabank and TD also making the list of world’s dozen dirtiest banks, according to the 2024 Banking on Climate Chaos Report, released today.
With financing more than US $28 billion in 2023 alone and an astonishing US $256 billion since the Paris Agreement in 2016, RBC’s commitment to fossil fuel financing remains in stark contrast with the image the bank portrays to Canadians, and is now the 7th dirtiest bank in the world.
The 15th annual Banking on Climate Chaos (BOCC) report is the most comprehensive global analysis on fossil fuel banking. It’s a tool that cuts through greenwash, as total financing to the fossil fuel industry is an important metric of bank commitment to the climate. The report covers the world’s top 60 banks’ lending and underwriting to over 4,200 fossil fuel companies and the financing of companies causing the degradation of the Amazon and Arctic.
Three Canadian banks make the 2023 Dirty Dozen list – RBC (7th), Scotiabank (10th) and TD (11th), with all five banks in the top 21 globally with more than US $103.85 billion into fossil fuels in 2023, representing nearly 15% of the deals unearthed in this year’s report. Canada’s financial system holds an outsized proportion, relative to its market cap, of the total of fossil fuel financing. A backgrounder of Canadian data is available here.
| Bank | Fossil Financing ‘23 (USD) | Global Rank 2023 | Fossil financing 2016- 2023 (USD) |
| RBC | $28.24 Billion | 7 | $256.46 Billion |
| Scotiabank | $24.02 Billion | 10 | $192.78 Billion |
| TD | $20.36 Billion | 11 | $178.44 Billion |
| BMO | $15.75 Billion | 15 | $148.61 Billion |
| CIBC | $15.49 Billion | 16 | $134.88 Billion |
| TOTAL CDN BANKS | $103.85 Billion | $911.16 Billion |
This year’s report is more robust than ever with a new methodology that uncovers all the sources of financing, not just bookrunners. It also uses more data sources than in previous years to increase accuracy while democratizing bank deal information that would normally be behind a paywall. A backgrounder of the methodology is here.
When considering asset size, Canada’s banks are among global leaders in disproportionately financing fossil fuels. Scotiabank, CIBC, BMO, and RBC outranking their U.S. counterparts like JPMorgan Chase, Citi, and Bank of America on this metric.
| Rank | Bank | 2023 Fossil Financing as % of assets | Rank | Bank | 2023 Fossil Financing as % of assets |
| 1 | Truist Financial | 2.56% | 6 | US Bancorp | 1.89% |
| 2 | Scotiabank | 2.36% | 7 | BMO | 1.83% |
| 3 | CIBC | 2.24% | 8 | RBC | 1.83% |
| 4 | PNC Financial Services |
2.18% | 9 | Morgan Stanley |
1.63% |
| 5 | Mizuho Financial |
1.95% | 10 | Wells Fargo | 1.62% |
In 2023, the worst funders of tar sands extraction are CIBC, RBC, and Scotiabank, each tied for worst place at US $523.20 million, while RBC, CIBC, Scotiabank & TD Bank are all in the top 10 financiers of fracked gas activities, further exacerbating emissions and growing environmental damage as a result.
Canada’s banking sector and its continued outsized role in fossil fuel financing, particularly with tar sands and LNG, underscores the urgent need for systemic change, through government intervention.
Despite growing awareness of the climate crisis, Canadian banks persist in positioning themselves as lenders of last resort for the fossil fuel sector.
Climate aligned financial policy is the missing piece of Canada’s climate plan, and is why we’re seeing Canada’s banks fuel billions into fossil fuel projects.
The Climate-Aligned Finance Act (CAFA) is a necessary piece of legislation that would align Canada’s financial system with climate goals. CAFA has received significant support. Endorsers include elected officials from 4/5 major political parties, and over 100+ academics, civil society organizations, and investors.
Banking on Climate Chaos is authored by Rainforest Action Network, BankTrack, the Center for Energy, Ecology, and Development, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club, and Urgewald.
Notes to the editor:
- Changes in rankings are due to a shift in methodology, not positive bank behaviour
- Global Banks financed fossil fuels by US $6.9 trillion since the Paris Agreement;
US $705 billion provided in 2023 alone - RBC continues to be under investigation for allegations of greenwashing by Canada’s Competition Bureau
- RBC faces a securities complaint with the Autorité des marchés financiers de Québec regarding its sustainable finance activity.
- BMO, CIBC, Scotiabank and TD are facing a complaint to the Ontario Securities Commission regarding concerns surrounding its sustainable finance activity.
- Full data sets – including fossil fuel finance data, policy scores, and stories from the frontlines – are available for download at bankingonclimatechaos.org
- Julie Segal, from Environmental Defence will be hosting an online discussion with elected officials including Senator Rosa Galvez, Liberal MP Ryan Turnbull, Bloc Québécois MP Monique Pauzé, Green Party MP Elizabeth May, and NDP MP Laurel Collins around their strategies for advancing climate goals through sustainable finance, ensuring Canada builds a resilient economy and health environment. Monday, May 13, 2024 at 12pm ET Registration is available here
Quotes from Partner Organizations and Report Authors
April Merleaux, Research and Policy Manager at Rainforest Action Network: (BOCC report co-author): “Wall Streets’ top concern is its profit. Our top concerns are the climate and human rights. Banks that profit from climate chaos invent new greenwash every year, but we have the receipts that show how much money they put into fossil fuels. Our new methodology uncovers previously unreported details on banks’ support for fossil fuels and gives campaigners new tools to hold them accountable. And bank financing for fossil fuels is not declining nearly fast enough. In 2023, we saw nearly $350 billion financed to companies expanding fossil fuels, which is dangerous and inconsistent with real climate commitments. In a year with record climate impacts, I am shocked to see financing for any category of fossil fuels increase. And yet in 2023 this report shows a big increase in financing to companies developing methane gas terminals and related infrastructure. Banks should be listening to those on the frontlines and stepping away from these projects.”
Chief Na’Moks, Wet’suwet’en Hereditary Chief: “After facing silencing and censorship at RBC’s April shareholder meeting, this report shows that Canada’s banks are still financing billions in fossil fuels, perpetuating violence against Indigenous peoples, Mother Earth, and all of us. It’s not just RBC: we are strengthening our sovereignty by connecting dirty banks’ roles in fossil fuel projects that endanger communities across Turtle Island and around the world. Canada’s banks costs for financing fossil fuels will only continue to rise without taking bold action to respect Indigenous sovereignty and our rights.”
Tori Cress, Keepers of the Water; Anishinaabe (Ojibway and Pottawattami) from G’Chimnissing, an island community on the shores of Georgian Bay in Williams Treaty territory: “This report shows that Canada’s Big Five banks — RBC, CIBC, BMO, TD and Scotia — hold half of all global banks’ tar sands investment, proving what we’ve known all along: tar sands is a bad investment financially, for our health, and for our entire planet. We are dying from the pollution caused by Canada’s banks tar sands financing, including their expansion of this destruction. Indigenous people in our homelands have been the sacrifice zone, and we say: no more. We decide our future.”
Eriel Deranger, Indigenous Climate Action (ICA) Executive Director: “The Banking on Climate Chaos report illustrates Canada’s big 5 banks continuing to fuel the climate emergency that disproportionately impacts Indigenous peoples around the world. The financial sector must take responsibility in preventing further degradation of our lands and waters. That starts with a firm plan to reduce and eliminate investments in fossil fuels, and respect the United Nations Declaration on the Rights of Indigenous Peoples.”
Richard Brooks, Stand.earth Climate Finance Director: “We have the solutions, yet Canada’s big banks are still lighting the fuses of carbon bombs, pouring billions into fossil fuel financing during the hottest year on -record. In Canada, the Big Five are all top 16 global fossil fuel financing banks. Canadian banks are positioned as lenders of last resort, holding dangerously outsized fossil fuel financing, which should sicken and worry us all. Canada’s largest bank RBC – under CEO Dave McKay – is proving unwilling to lead. It’s time for our government and regulators to step in and mandate Canadian banks help rather than hinder our climate goals.”
Evelyn Austin, Executive Director, Change Course: “The big 5 Canadian banks continue to try to brand themselves as leaders on climate and climate finance, but the numbers show how blatantly untrue this is. On campuses, the major banks fund sustainable finance certificate programs, sustainability research, and sustainability case competitions, while they continue to funnel billions into the tar sands and fossil fuel expansions globally. RBC can’t have it both ways – you can’t pour billions into wrecking the planet and brand yourself as a climate leader. It’s time for RBC to put their money where their mouth is and walk away from fossil fuels for good.”
Alex Walker, Climate Finance Program Manager, Environmental Defence: “Today’s report underscores the urgent need for government intervention as it’s clear that voluntary and market-based measures are not working. Without government regulations, the flow of over $100 billion annually from Canadian banks to the fossil fuel sector will persist. It is time for the government to stop dragging its feet and support ambitious climate-aligned financial regulations such as the ‘Climate-Aligned Finance Act’. Canada’s banks have missed the memo that fossil fuels are not the future – but instead a risky investment that deeply harms our communities and puts our economy at long-term risk.”
Karine Peloffy, Sustainable Finance Project Lead, Ecojustice: “This latest report confirms that despite their lofty climate pledges, Canadian banks continue to pour fuel on the climate-induced fires that will ravage Canada again this summer. Greenwashing remains rife and systemic in Canada’s banking sector because our regulatory system is ‘patchwork, delivered late and falling short’ – to borrow Mark Carney’s words from his testimony on the Climate-Aligned Finance Act (CAFA) last week. Canada can’t afford to be a laggard in the global race to zero emissions. CAFA would make it a leader by aligning the activities of banks, pension funds and insurance companies with a livable climate.”
Laura Ullmann, Head of Climate, Greenpeace Canada: “These numbers tell a terrifying story of how Canadian banks are still pouring billions into projects causing climate change and violating Indigenous rights. It is time for governments to step in to protect us from their greed by regulating banks, so those billions are building climate solutions rather than pouring fuel on the fire.”
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