The Royal Bank of Canada (RBC) has announced the abandonment of its commitment to facilitate $361.19 billion in sustainable finance by 2025. This decision follows recent amendments to Canada’s Competition Act, which now require companies to substantiate environmental claims, thereby limiting RBC’s ability to disclose certain sustainability metrics. The bank’s review of its reporting methodology revealed inaccuracies in measuring its sustainable finance activities, leading to the withdrawal of its public commitment. While RBC has developed a methodology to calculate its energy supply ratio—the proportion of financing for low-carbon energy projects versus fossil fuels—it will not disclose this figure publicly due to regulatory constraints, though it will continue to monitor the ratio internally.

This move is part of a broader trend among major North American banks retreating from high-profile climate commitments. RBC, along with U.S. counterparts Citigroup and JPMorgan, had agreed to disclose their energy supply ratios after pressure from the New York City Comptroller but have since exited the UN-backed Net-Zero Banking Alliance.