This article was originally published on Reuters written by Nivedita Balu
Royal Bank of Canada (RY.TO), facing criticism from climate activists for its lending to oil and gas companies, is creating a new position in its senior executive ranks to implement an effective response to climate issues.
The Head of Climate Transition will be responsible for leading climate strategy at Canada’s top bank and will serve as an advisor on “climate transition” to the chief administration and strategy officer, according to the role advertised as on job portals.
Climate and indigenous rights activists have protested against RBC’s funding of fossil fuel projects, including TC Energy Corp’s (TRP.TO) Coastal Gaslink pipeline being built on the west coast of British Columbia which is opposed by some indigenous communities.
Environmental groups have also asked Canada’s Competition Bureau to reject RBC’s C$13.5 billion ($10 billion)takeover of HSBC’s Canada business saying the deal would limit sustainable choices for consumers and increase climate risks in the country.
“Climate is a top priority for RBC, and the net-zero transition work we do with our clients has become increasingly important,” RBC said in a statement.
An annual bank report card by Investors for Paris Compliance, an organization that holds companies accountable to their net zero commitments, in July said that RBC led fossil fuel lending and underwriting in Canada last year with C$54.8 billion ($41 billion), a 4% rise from 2021.
Keith Stewart, Senior Energy Strategist at Greenpeace Canada, said the move to hire a head of climate transition marks a shift in strategy from RBC but the bank still needs to stop activities such as funding new oil, gas and coal projects if they want campaigners “to stop pointing out their bad behavior.”
($1 = 1.3356 Canadian dollars)
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