Evaluating Carbon Management Practices of Royal Bank of Canada

Abstract

There is a growing recognition that climate change is a global challenge that requires urgent action. Excessive emissions of greenhouse gases (GHGs) are one of the main reasons for the problem. The more GHGs are released into the atmosphere, the more the sun’s heat can be captured by those gases, leading to global warming and other ripple effects. Many countries and companies have begun to take steps to reduce their emissions. Carbon management is a method that enables them to control the release of GHGs. This report will focus on Canada’s largest bank, Royal Bank of Canada (RBC), and examine the firm’s carbon management practices towards achieving zero net emissions. This company is strongly involved with other companies’ business through financing and investment as a financial institution, indicating that it has a responsibility for both its own carbon emissions and emissions by companies which it finances or invests. The firm’s emissions mainly come from infrastructure, purchased electricity, business travel, the use of products, employee commuting, financing and investment. This company’s strategy to be carbon neutral consists of the following main pillars: making operations more efficient, helping clients with the transition to net zero, and responsible financing and investment. This report evaluates the carbon management practice of the RBC, suggesting that it needs more implementation of plans and more detailed data collection and analysis regarding its emissions to achieve the goal of net zero.