Bank CEOs to face questions from MPs over climate policy

Representatives from Canada's five biggest banks are expected to face questions from MPs this afternoon over their commitments to help reduce greenhouse gas emissions and spur the transition to renewable forms of energy.

The chief executives of RBC, CIBC, TD Bank, BMO and Scotiabank are all scheduled to appear before the standing committee on environment and sustainable development, starting at 3:30 p.m. ET. All five will appear by video conference.

Canadian banks have come under criticism for how their lending practices contribute to climate change, given that they are among the largest financiers of oil, gas and coal globally. A recent report calculated that Canada's top banks pumped a combined $103.85 billion US into fossil fuel projects in 2023.

The five largest banks have made both short- and long-term emissions reduction targets, including net-zero financed emissions by 2050, but have also been criticized for not moving fast enough.

Another recent report, from InfluenceMap, a global climate policy watchdog, found that Canada's largest five banks have not aligned «their short- and medium-term emissions reduction targets with their long-term net zero commitments.»

«All five banks have set 2030 interim targets for the oil, gas, and power sectors among other sector targets. However, these are almost all relative, intensity-based targets, allowing for absolute financed emissions to rise.»

Today's testimony comes a week after the same committee questioned the CEOs of Canada's top oil and gas producers over their climate commitments.

New rules for banks?

Independent Quebec Sen. Rosa Galvez has proposed a bill, known as the Climate-Aligned Finance Act, that would impose new rules on Canadian financial institutions to align them