TORONTO: Bank of Nova Scotia is the latest major bank to walk away from the industry’s biggest climate-finance alliance, following a mass exodus led by Wall Street.
The lender confirmed Monday it left the Net-Zero Banking Alliance (NZBA), news that comes after Toronto-Dominion Bank, Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada all said lasy Friday they were leaving the NZBA.
Scotiabank and other lenders that quit the group all said the decision won’t affect their commitment to decarbonising their business.
In Scotiabank’s case, the firm “will continue to finance the transition and support our clients in implementing their sustainability strategies – this is the most important role that we can play,” spokesperson Katie Raskina said by email, adding that the bank “will continue to report on our progress, while meeting the varied and growing requirements of regulators across the globe.
"Royal Bank of Canada (RBC) is the only large Canadian bank remaining in the alliance, but the country’s biggest lender has suggested it’s reconsidering that membership. Dave McKay, RBC’s chief executive officer, said in early January that pulling out of the NZBA “doesn’t lead to a non-commitment to net-zero or climate change.”
A representative for RBC did not immediately respond to a request for comment Monday on the status of its membership in the group.
Canadian banks were some of the biggest financiers to oil, gas and coal companies in 2024, with Toronto-Dominion, RBC, BMO and CIBC ranking among the top 10 for such deals, according to data compiled by Bloomberg. The biggest provider of fossil-fuel finance last year was JPMorgan Chase & Co.
Since the beginning of December, the NZBA has been abandoned by Goldman Sachs Group Inc, Morgan Stanley, Wells Fargo & Co, Bank of America Corp, Citigroup Inc and JPMorgan.
The moves come as US President Donald Trump makes clear he’ll seek to roll back Biden-era climate policies and instead promote a revival of fossil-fuel production. — Bloomberg
