Statement from Senator Rosa Galvez on RBC Abandoning its Sustainable Finance Targets

May 2, 2025

Statement from Senator Rosa Galvez on RBC Abandoning its Sustainable Finance Targets

Ottawa, May 2, 2025 – Following Tuesday’s announcement that the Royal Bank of Canada was abandoning its sustainable finance targets, independent senator Rosa Galvez made the following statement:

"I am disappointed by RBC’s decision to abandon its CAD$500 billion sustainable finance target, citing recent changes to Canada’s Competition Act. The Act does not prohibit environmental claims—it simply requires companies to back them up with evidence. Walking away from a climate commitment when asked to prove its credibility raises serious concerns about the integrity of that commitment in the first place. Moreover, by abandoning its claims, RBC has demonstrated that the provisions of the Competition Act that intend to address greenwashing are in fact serving their purpose.

This decision by RBC risks setting a dangerous precedent among Canadian banks at a time when we need more accountability and ambition in sustainable finance, not less. This decision confirms what NGOs and advocates for sustainable finance and anti-greenwashing have been telling us for some time. It also confirms that voluntary commitments are not enough and that we need to legislate climate-aligned finance to achieve our climate commitments.

If the Climate-Aligned Finance Act (S-243) had been adopted, this likely would not have happened. That legislation would have required financial institutions to align their activities with Canada’s climate commitments and disclose how they are doing so. It would have prevented this kind of retreat by embedding transparency and accountability into law.

As many experts have noted, Canadian investors understand that climate risk is financial risk. There is capital available for companies that want to modernize and decarbonize—but they need clear, reliable disclosures to guide their decisions. Voluntary, unverifiable targets are no longer enough.

Canada's economic future depends on its ability to compete in global markets with low-carbon, high-quality products. Weakening our standards or aligning with jurisdictions that are rolling back climate rules is not a winning strategy. It undermines our sovereignty, our values, and our economic resilience.

With the federal election behind us and the victory of Prime Minister Carney, I strongly encourage the new government to prioritize sustainable finance legislation. Given this decision from RBC and the retreat of all major Canadian banks from the Carney-led Net-Zero Banking Alliance back in January, it is clear now more than ever that voluntary measures are ineffective and climate-aligned finance legislation is long overdue.

We must build a financial system that supports—not hinders—the transition to a sustainable economy. That means stronger regulations, more transparency, and climate finance commitments we can trust."

For more information please contact:

Stéphane Laviolette | Political Strategic Advisor and Office Manager

Office of Senator Rosa Galvez

613-614-1753 | Stephane.Laviolette@sen.parl.gc.ca

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