Ms. Rimmer, who has three decades of experience in debt markets and corporate banking, is hoping the bank’s newly-formed energy infrastructure and transition group will be first to carve a successful niche in climate-change-related financing, as well as by hyper-focusing on U.S. renewable power projects. The goal, she said in her first interview since taking on the new role, is to devise long-term strategies to fund energy transition plans that can withstand the volatility of market cycles.
Other major banks have already set up dedicated teams similar to the one CIBC established last year. The banks’ approaches differ, but all are dedicated to reshaping the existing universe of financial products to include sustainability components, while also developing new products in hopes of gaining a competitive edge.
Jonathan Hackett, co-chair of the energy transition group at Bank of Montreal, is building a similar team focused on offering highly-specialized expertise. Aaron Engen, Mr. Hackett’s co-chair, said the more generalized approach has been reflected in the job ads he has seen posted by other large banks, which often use ambiguous language and overly broad descriptions.
Sustainable finance products are expected to become ubiquitous in the coming decades. Scotiabank’s Mr. Lawrence is among those who believe competition between financial institutions will be healthy.