Some of Canada’s biggest banks have admitted for the first time that their climate-related finance efforts may not necessarily curtail emissions growth, following years of pressure from climate activists for banks to be more transparent about their claims on climate goals.and investors for years claiming they are using sustainability-linked financing merely for pretence of a lower carbon footprint rather than take meaningful steps in that direction.
The complaint gave climate activists more fuel in their fight, that is part of a broader international push for accountability on corporate climate pledges. Bank of Nova Scotia gave a total of $132 billion since 2018 towards its target of $350 billion in climate-related finance by 2030, but said that climate-related projects “may — or may not — lead to reductions in overall emissions.”
The bank’s plans this year include tripling lending for renewable energy projects to $15 billion and boosting low-carbon energy lending to $35 billion by 2030.